Summary of DTI Q4 2025 Earnings Call

1Key Financial Results and Metrics

Full-Year 2025 Results:

Total rental revenues: $129.6 million

Total product sales revenues: $30.1 million

Consolidated revenue: $159.6 million

Adjusted net income: $3.4 million (Adjusted diluted EPS: $0.10)

Adjusted EBITDA: $39.3 million

Adjusted free cash flow: $19.2 million

Q4 2025 Results:

Consolidated revenue: $38.5 million

Tool rental revenue: $30.4 million; Product sales revenue: $8.1 million

Net income attributable to stockholders: $1.2 million (EPS: $0.03)

Adjusted net income: $1.5 million (Adjusted diluted EPS: $0.04)

Adjusted EBITDA: $10.1 million

Adjusted free cash flow: $6.1 million

Net debt: $42.2 million; Net leverage ratio: 1.1x (down from 1.2x year-over-year)

2Strategic Updates and Business Highlights

DTI completed its fourth acquisition since going public in January 2025, contributing to revenue growth.

The Eastern Hemisphere operations saw a 78% revenue increase year-over-year, now contributing 14% of total revenue.

The company maintained a flexible capital expenditure model, focusing on cash generation and debt reduction, paying down over $11 million in 2025.

The "OneDTI" synergy program is enhancing operational efficiency and integration of acquired businesses.

Continued focus on M&A opportunities aligned with strategic objectives.

3Forward Guidance and Outlook

2026 Guidance:

Revenue expected between $155 million and $170 million.

Adjusted EBITDA forecasted between $35 million and $45 million.

Capital expenditures projected between $18 million and $23 million.

Adjusted free cash flow anticipated to range from $17 million to $22 million.

The company expects a stable market environment with potential growth in the second half of 2026, driven by rig reactivations and increased project activity in international markets.

4Bad News, Challenges, or Points of Concern

The global rig count declined by 7% year-over-year, indicating market softness.

The ongoing conflict in the Middle East poses operational risks, although DTI reported minimal disruption to business thus far.

The Western Hemisphere operations faced a low single-digit revenue decline due to soft North American drilling activity.

Uncertainty surrounding geopolitical developments and their potential impact on operations and market conditions.

5Notable Q&A Insights

Management emphasized strong Q4 EBITDA margins due to cost reductions and a favorable product mix.

Free cash flow generation has been consistent since going public, with expectations for continued strength in 2026.

Discussions around M&A opportunities remain active, with a focus on strategic acquisitions.

The company is prepared to adapt its strategy based on the evolving situation in the Middle East and potential market disruptions.

Management believes that pricing pressures in the service industry could stabilize as demand increases, with a focus on maintaining operational efficiency and capital discipline. Overall, DTI reported a strong financial performance in 2025 despite market challenges, with a positive outlook for 2026 driven by strategic initiatives and geographic expansion. However, ongoing geopolitical risks and market softness remain concerns for the company.