Core Insights - Drilling Tools International Corp. (DTI) reported a total consolidated revenue of $42.9 million for Q1 2025, with a 7.6% sequential growth and a 16% year-over-year increase [2][3] - The company has authorized a $10 million share repurchase program to enhance shareholder value, reflecting confidence in its long-term strategy and financial health [8][9] Financial Performance - Tool Rental revenue was approximately $34.5 million, while Product Sales revenue totaled $8.3 million [2] - Total Operating Expenses were $39.6 million, resulting in an Operating Income of $3.3 million and a Net Loss of approximately $1.7 million for the quarter [2][15] - Adjusted EBITDA for the quarter was $10.8 million, with an Adjusted Free Cash Flow of $5.7 million [2][29] Guidance and Market Outlook - The company has adjusted its annual guidance for 2025, projecting Revenue between $145 million and $165 million, Adjusted EBITDA between $32 million and $42 million, and Adjusted Free Cash Flow between $14 million and $19 million [6][31] - DTI anticipates potential market volatility due to factors such as tariffs, recession fears, and OPEC+'s production decisions, prompting a $6 million expense reduction program [4][6] Strategic Initiatives - The share repurchase program is part of DTI's disciplined capital allocation strategy, which also includes investments in maintenance, organic growth, and strategic acquisitions [8][9] - The company aims to optimize its capital structure and demonstrate a commitment to returning excess capital to shareholders through this program [9][10]
Drilling Tools International Corp. Reports 2025 First Quarter Results