Drilling Tools International (DTI) investor relations material

Executive summary

• Q2 2026 revenue was $38.1M, with $8.4M Adjusted EBITDA and $4.1M adjusted free cash flow, demonstrating resilience amid global rig count declines and Middle East disruptions.

• Net loss attributable to stockholders was $1.8M ($0.05/share), an improvement from a $2.4M loss in Q2 2025.

• Built momentum in North America and Eastern Hemisphere, with market share gains and improved commercial terms late in Q2.

• ClearPath stabilizer technology gained traction in offshore and high-spec markets, supporting future growth.

• Expanded global footprint, now operating in North America, Europe, Middle East, and Asia Pacific.

Financial highlights

• Q2 2026 consolidated revenue: $38.1M; tool rental revenue: $29.6M; product sales: $8.5M.

• Net loss for Q2 2026: $1.8M; adjusted net loss: $575K ($0.02/share); adjusted EBITDA: $8.4M; adjusted free cash flow: $4.1M.

• Six-month revenue was $76.0M, with a net loss of $3.3M and $15.9M Adjusted EBITDA.

• Tool rental gross margin remained above 70% despite pricing pressure; Q2 2026 gross margin was approximately 71%.

• CapEx for Q2 2026 was $4.2M, down from $7.7M in Q1; maintenance CapEx at 12% of revenue.

Outlook and guidance

• Reaffirmed 2026 guidance: revenue $155M–$170M, Adjusted EBITDA $35M–$45M, adjusted free cash flow $17M–$22M.

• Adjusted EBITDA margin for FY 2026 expected at 23–26%; adjusted free cash flow margin guidance for 2026: 11–13%.

• Stronger H2 expected, driven by European/North African activity, U.S. recovery, and new technology awards.

• Capital expenditures projected at $18M–$23M for 2026; elevated CapEx for ClearPath technology may bring free cash flow to lower end of range.

• Sufficient liquidity is anticipated for the next 12 months through cash, operations, and available credit.