Drilling Tools International Corporation filed an 8-K earnings press release on November 6, 2026, reporting financial results for the three months ended September 30, 2026, and providing updated full-year 2026 guidance.

Key Highlights

  • Total Q3 2026 revenue: $40.6 million, with Tool Rental revenue of $32.0 million and Product Sales revenue of approximately $8.7 million, according to the filing.
  • Net Loss: Approximately $2.6 million attributable to DTI shareholders, or a loss of $0.07 per share, for the third quarter.
  • Adjusted EBITDA: $9.5 million for Q3 2026, with Adjusted Free Cash Flow of approximately $3.8 million, as reported by the company.
  • Balance sheet: As of September 30, 2026, DTI held approximately $3.0 million in cash and cash equivalents and Net Debt of $47.4 million.
  • Saltire acquisition: The company disclosed an agreement to acquire Saltire Energy Limited and Foxley Energy Limited, expected to close in the first quarter of 2027, subject to stockholder and regulatory approvals.
  • Updated capex guidance: Full-year 2026 capital expenditure outlook raised to $22 million to $23 million, and Adjusted Free Cash Flow outlook revised to $13 million to $22 million from a prior range of $17 million to $22 million.

DTI Q3 2026 Results: Revenue Growth and Saltire Deal Reshape Outlook

Drilling Tools International Corporation (NASDAQ:DTI) reported Q3 2026 total consolidated revenue of $40.6 million, comprising Tool Rental revenue of $32.0 million and Product Sales revenue of approximately $8.7 million. The company reported a Net Loss attributable to DTI shareholders of approximately $2.6 million, or $0.07 per share. On a non-GAAP basis, Adjusted Net Loss was $433,000 and Adjusted Diluted EPS was a loss of $0.01 per share. The company noted that Adjusted EBITDA, Adjusted Net Income (Loss), and related metrics are non-GAAP financial measures reconciled to GAAP in the release.

Wayne Prejean, Chairman of the Board and Chief Executive Officer, stated in the filing that revenue was up 7% and Adjusted EBITDA up 14% sequentially, with Adjusted EBITDA margin expanding to approximately 23%. He also noted that "September was our strongest month, with Adjusted EBITDA reaching approximately $4 million for the first time this year." The company attributed sequential growth to rising U.S. rig counts, a post-breakup rebound in Canada, and new ClearPath contract awards in Europe beginning to contribute full run-rate revenue in September under long-term rental agreements.

Regarding the pending Saltire acquisition, the filing stated the transaction is expected to bring DTI's Eastern Hemisphere business to approximately 40% of pro forma revenue. The company said it expects the transaction, if completed, to be accretive to Adjusted EBITDA margin and Adjusted Free Cash Flow per share in the first year following closing before any synergies. DTI disclosed it expects to fund the cash portion through new debt financing combined with borrowings under its existing credit facility. Full-year 2026 guidance remains within previously disclosed ranges, with the company expecting to finish toward the lower end of both Revenue ($155 million to $170 million) and Adjusted EBITDA ($35 million to $45 million) ranges. The forward-looking statements in the release are the company's own and subject to its cautionary language.

What Was Disclosed

DTI disclosed Q3 2026 financial results including $40.6 million in total revenue, a net loss of approximately $2.6 million, Adjusted EBITDA of $9.5 million, updated full-year 2026 capital expenditure and Adjusted Free Cash Flow guidance, and details on the pending Saltire acquisition expected to close in Q1 2027.