Drilling Tools International Corporation · NASDAQ:DTI
Drilling Tools International — Investor Presentation (May 2025)
45 slides from Drilling Tools International's investor presentation, May 14, 2025
Slide 1: Investor Presentation Summer 2025
Exhibit 99.1 NASDAQ: DTI INVESTOR PRESENTATION SUMMER 2025 DRILLINGTOOLS.COM
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS General: Drilling Tools International Corporation (“DTI”) is making this presentation available in connection with the release of its financial results for the three months and full year ended December 31, 2024. The information contained in this presentation does not purpo
Slide 3: Overview by the CEO: Built for Outperformance
OVERVIEW BY THE CEO BUILT FOR OUTPERFORMANCE At DTI, we're not just adapting to the future of drilling – we're shaping it. We continue to have success in integrating our latest acquisitions, realizing synergies and positioning DTI for the future. Our strategic consolidation of the oilfield service r
Slide 4: The Lifecycle to Provide Mission Critical Drilling Tools
THE LIFECYCLE TO PROVIDE MISSION CRITICAL DRILLING TOOLS Consistent Revenue Growth Expanding Global Footprint DTI continues to expand globally with extensive operations in North America, Europe, Middle East, $42.9 Million 16% (Q/Q) Africa and throughout Asia Pacific. Q1 2025 revenue reflects Despite
Slide 5: Blue Chip Customer Base Across E&P and OFS Companies
BLUE CHIP CUSTOMER BASE ACROSS E&P AND OFS COMPANIES 5
Slide 6: DTI Leadership Team
DTI LEADERSHIP TEAM EXPERIENCE MATTERS 6
Slide 7: Our Customers & Why They Rent Tools
OUR CUSTOMERS & WHY THEY RENT TOOLS Complex drilling, completions, and workover Benefits operators receive from programs lead most operators and service providers renting tools to focus on core competencies while preferring to ► Outsources Logistics, Inspection, Storage & Maintenance rely on third-p
Slide 8: Comprehensive Offering to Supply Downhole Technology
COMPREHENSIVE OFFERING TO SUPPLY DOWNHOLE TECHNOLOGY ACROSS WELL CONSTRUCTION AND ABANDONMENT OPERATIONS Differentiated and extensive inventory of tools to address the wide-ranging needs of Oil & Gas customers across all regions Crossover Subs/Accessories Surface & Downhole Drill Pipe Heavy Weight R
Slide 9: Modern Manufacturing and Repair Services
MODERN MANUFACTURING &AND REPAIR SERVICES Responsive, Scalable Ability to manufacture most of our rental tools enables cost reduction & and Low Cost control of supply chain • We purchase premium drill pipe and tubing from reputable and qualified third parties Machine and repair equipment ensures pro
Slide 10: Key Operational Differentiators
KEY OPERATIONAL DIFFERENTIATORS COMPASS provides the customer traceability and transparency in the rental tool process. Proprietary COMPASS Order Customers can order their own tools online through Management System Compass with an “Amazon style” experience. Unique, Proprietary Software and Support S
Slide 11: Executing Our Strategic Plan Delivering Improved Results
EXECUTING OUR STRATEGIC PLAN DELIVERING IMPROVED RESULTS REPORTED 2025 FIRST QUARTER GROWTH (1) 16% Q/Q Revenue 22% Q/Q Adj. Free Cash Flow DTI ACHIEVEMENTS SINCE BECOMING A PUBLIC COMPANY IN JUNE 2023 ➢ Four acquisitions in 9 months ➢ Deep Casing Tools / Superior Drilling Products / European Drilli
Slide 12: Capital Allocation Strategy
Capital Allocation Strategy Prioritizing Financial Strength Through Disciplined Approach ► Maintenance & Organic Growth Investments “We are constantly evaluating our capital ► Unique CapEx lever that enables DTI to allocation strategy to ensure we are prioritizing selectively deploy capital for futu
Slide 13: Organic Growth Drivers
ORGANIC GROWTH DRIVERS ✓ 2025 results will include a full year of contributions from all acquisitions announced in 2024 ✓ Leverage our global footprint of distribution and sales channel to market ✓ Expand scope of tools & services through technological advancements ✓ Leading edge downhole technology
Slide 14: M&A Growth Strategy: Significant Consolidation Upside
M&A GROWTH STRATEGY: SIGNIFICANT CONSOLIDATION UPSIDE DTI has established a framework and robust pipeline to strategically consolidate the oilfield service rental tool industry through accretive acquisitions Large Fragmented Industry Large universe of potential targets – primarily smaller, specializ
Slide 15: M&A Growth Strategy: M&A Pipeline
M&A GROWTH STRATEGY: SIGNIFICANT CONSOLIDATION UPSIDE M&A Pipeline Unlock Business Potential and Profit with ~25 ~5 Acquired Companies 500+ 100+ 10 15
Slide 16: Synergies
SYNERGIES Clear path to margin enhancement and free cash flow optimization (1) Adjusted Free Cash Flow Growth $14.0M - $19.0M Status update $17.2M ► DTI has developed a proven integration playbook ► On track to achieve 100% of the $4.5 million in previously announced SDPI synergies by August 2025 DT
Slide 17: Sustainable Growth Executing the Plan
SUSTAINABLE GROWTH EXECUTING THE PLAN (1) Revenue Adjusted EBITDA (in millions) (in millions) $145.0 - $165.0 $51.0 $32.0 - $42.0 $154.4 $40.1 $152.0 (2) (2) 2023 2024 2025E 2023 2024 2025E (1) Adjusted Free Cash Flow Capital Expenditures (in millions) (in millions) $14.0 - $19.0 $43.8 $17.2 $18.0 -
Slide 18: Components of Adjusted EBITDA
COMPONENTS OF ADJUSTED EBITDA Increased Growth Capital spending in recent years now supports stronger Adjusted Free Cash Flow in 2025+ Commentary Smart Capital Expenditures (1) Adj. Free Cash Flow can be directly influenced by $7.3 Growth CapEx strategy $24.1 $17.2 Growth CapEx is company $14.0 - $1
Slide 19: Peer Adj. Free Cash Flow Margin Comparisons
(1) PEER ADJ. FREE CASH FLOW MARGIN COMPARISONS (2) 2024 Actual 2025 Estimates 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% WHD BKR XPRO DTI RNGR OIS BOOM RES WHD XPRO BKR DTI OIS RNGR BOOM RES Tool recovery revenue Lost or damaged equipment charges, allows DTI to sustain its fleet, m
Slide 20: Valuation vs. Peer Returns
Valuation vs. Peer Returns 2024 Actual 25% 20% 15% 10% 5% 0% WHD BKR RNGR XPRO DTI RES BOOM OIS EV/EBITDA 8.21x 8.66x 3.16x 2.62x 3.52x 3.35x 7.54x 4.65x Multiple 1) ROCE is defined as EBIT divided by Capital Employed (Total Assets - Total Current Liabilities) 2) EV/EBITDA multiples based on the Ent
Slide 21: New Geographic Segments
(RILLING TOOLS* INTERNATIONAL NEW GEOGRAPHIC SEGMENTS
Slide 22: Western Hemisphere Overview
WESTERN HEMISPHERE OVERVIEW Regional Highlights Revenue Contribution ► Sustainable rental activity with major market share (1) ► Over 60% of all drilling rigs in NA utilize DTI 1Q25 Sales Product Rental tools and equipment 89% Western $ 8.5M $ 32.7M ► Presence across all major basins in North Americ
Slide 23: Eastern Hemisphere Overview
EASTERN HEMISPHERE OVERVIEW (2) Revenue Contribution Regional Highlights ► Expanded international market share over the past (1) 1Q25 Sales Product Rental twelve months with the acquisitions of Deep Casing Tools, European Drilling Projects and Titan Tools Western $ 8.5M $ 32.7M 11% ► Expect internat
Slide 24: Eastern Hemisphere Expansion for a Global Footprint
EASTERN HEMISPHERE EXPANSION FOR A GLOBAL FOOTPRINT GLOBAL REVENUE SPLIT WESTERN | EASTERN HEMISPHERE ~1% ‘23 ~8% ‘24 ~16% ‘25 “Our global footprint creates powerful synergies in terms of tool deployment efficiencies, sales potential and technological development.” Aldo Rodriquez VP of Sales 24
Slide 25: 2025 Financial Outlook
2025 FINANCIAL OUTLOOK Delivering Adjusted Free Cash Flow Throughout The Cycle ✓ DTI expects to deliver Adjusted Free Cash Flow growth despite an Key guidance summary anticipated decline in rig count in 2025 (3) ($ thousands) FY 2025 Guidance Revenue $145,000 - $165,000 ✓ FY 2025 guidance includes c
Slide 26: DTI's Differentiated Growth Strategy
DTI’S DIFFERENTIATED GROWTH STRATEGY Creates A Compelling Investment Profile 1 A Market Leader in Downhole Tools for the Oil & Gas Industry 2 Blue Chip Customers Strategic Model Delivering Through-Cycle Outperformance 3 4 Proven Growth: Organic & M&A in Fragmented Industry 5 Strong Balance Sheet / L
Slide 27: Additional Information
(RILLING TOOLS* INTERNATIONAL ADDITIONAL INFORMATION
Slide 28: Organizational Structure and Insider Ownership
ORGANIZATIONAL STRUCTURE INSIDER OWNERSHIP Company Profile PE reinvested 100% of their equity, demonstrating a Ticker: DTI (NASDAQ) Current Change ➢ long-term commitment to DTI’s success and growth. Shares Outstanding 35,592,737 19.6% Support strategic acquisitions and expansions, ➢ Market Capitaliz
Slide 29: Strategic Rationale: Deep Casing Tools
500+ STRATEGIC RATIONALE 100+ (1) DEEP CASING TOOLS ~25 Adds to DTI’s technology platform ~5 ✓ Expands intellectual property portfolio by over 60 patents Adds strong international customer relationships ✓ ADNOC / ARAMCO / PEMEX / PETROBRAS / PETRONAS Accretive to DTI’s earnings and Adj. Free Cash Fl
Slide 30: Strategic Rationale: Superior Drilling Products
500+ STRATEGIC RATIONALE 100+ (1) SUPERIOR DRILLING PRODUCTS ~25 Enhances vertical integration of differentiated technology ~5 ✓ Cost savings on Drill-N-Ream® tool ✓ Synergies – eliminates duplicative public company costs ✓ Adds significant precision manufacturing capacity Enhances horizontal opport
Slide 31: Strategic Rationale: European Drilling Projects and Titan Tools
500+ STRATEGIC RATIONALE 100+ (1) EUROPEAN DRILLING PROJECTS ~25 DTI Enhances Technological Advancement & Global ~5 Expansion Efforts ✓ Adds key personnel, industry expertise and customer relationships ® ✓ Adds cutting-edge tools, such as the FixedBlade Stabilizer, to DTI’s industry leading technolo
Slide 32: ESG & Safety Are Integral to Our Success
ESG & SAFETY ARE INTEGRAL TO OUR SUCCESS DTI is committed to environmental stewardship ✓ Continuous evaluations and control measures to ensure minimization of waste ✓ Pursuing highest levels of operational proficiency to reduce rework, and use of chemicals and waste Environmental ✓ Actively promotin
Slide 33: Overview of Directional Tool Rentals
OVERVIEW OF DIRECTIONAL TOOL RENTALS KEY EQUIPMENT Stabilizers Reduces drill string vibration and torque… Drill collars Adds weight to the BHA to increase rate of penetration (“ROP”) and reduce vibration… Subs & other equipment Variety of subs, crossovers and handling tools used in the drill string
Slide 34: Overview of Wellbore Optimization Tools
OVERVIEW OF WELLBORE OPTIMIZATION TOOLS Specialty tools division with focused field sales and service professionals providing rig site visits and customer service, enabling consistent product performance and customer satisfaction PRODUCTS OFFERED Drill-N-Ream® (DNR) Wellbore Conditioning Tool Substa
Slide 35: Overview of Premium Tools
OVERVIEW OF PREMIUM TOOLS KEY EQUIPMENT DTI offers a wide array of premium tubulars for drilling, workover and completion operations, API blowout preventers and pressure control accessories as well as a comprehensive suite of related handling tools Tubulars Handling Tools Other Products 7 1 Drill Pi
Slide 36: Other Products & Services
OTHER PRODUCTS & SERVICES Downhole Inspection Services Technical Services Group ✓ Independent inspection services equipment of all ✓ Sustaining engineering DTI divisions and select external customers ✓ Performance analysis ✓ Critical to efficient operations ✓ Product development ✓ Services across No
Slide 37: Financial Information
(RILLING TOOLS* INTERNATIONAL FINANCIAL INFORMATION
Slide 38: First Quarter 2025 Income Statement
FIRST QUARTER 2025 INCOME STATEMENT Drilling Tools International Corp. Consolidated Statement of Operations and Comprehensive Income (Loss) (Unaudited) (In thousands of U.S. dollars and rounded) Three Months Ended March 31, 2025 2024 Revenue, net: Tool rental $ 3 4,533 $ 29,966 Product sale 8 ,347 7
Slide 39: First Quarter 2025 Balance Sheet
FIRST QUARTER 2025 BALANCE SHEET Drilling Tools International Corp. Consolidated Balance Sheets (Unaudited) (In thousands of U.S. dollars and rounded) March 31, December 31, 2025 2024 ASSETS Current assets Cash $ 2 ,789 $ 6,185 Accounts receivable, net 4 2,381 3 9,606 Related party note receivable,
Slide 40: First Quarter 2025 Cash Flow Statement
FIRST QUARTER 2025 CASH FLOW STATEMENT Drilling Tools International Corp. Consolidated Statement of Cash Flows (Unaudited) (In thousands of U.S. dollars and rounded) Three months ended March 31, 2025 2024 Cash flows from operating activities: Net income (Loss) $ (1,669) $ 3,126 Adjustments to reconc
Slide 41: Reconciliation of First Quarter 2025 Adjusted EBITDA
RECONCILIATION OF FIRST QUARTER 2025 ADJUSTED EBITDA Drilling Tools International Corp. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands of U.S. dollars and rounded) Three months ended March 31, 2025 2024 Net income (loss) $ ( 1,669) $ 3 ,126 Add (deduct): Income tax expense (be
Slide 42: Reconciliation of First Quarter 2025 Adjusted Free Cash Flow
RECONCILIATION OF FIRST QUARTER 2025 ADJUSTED FREE CASH FLOW Drilling Tools International Corp. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands of U.S. dollars and rounded) Three months ended March 31, 2025 2024 Net income (loss) $ ( 1,669) $ 3 ,126 Add (deduct): Income tax exp
Slide 43: Reconciliation of First Quarter 2025 Adjusted Net Income
RECONCILIATION OF FIRST QUARTER 2025 ADJUSTED NET INCOME Drilling Tools International Corp. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (In thousands of U.S. dollars and rounded) Three months ended March 31, 2025 2024 Net income (loss) $ ( 1,669) $ 3 ,126 Transaction expense 732 889 Good
Slide 44: Reconciliation of 2025 Outlook: Adjusted EBITDA
RECONCILIATION OF 2025 OUTLOOK Drilling Tools International Corp. Reconciliation of Estimated Consolidated Net Income to Adjusted EBITDA (In thousands of U.S. dollars and rounded) (Unaudited) Twelve Months Ended December 31, 2025 Low High Net Income $ (4,500) $ (1,500) Add (deduct) Interest expense,
Slide 45: Reconciliation of 2025 Outlook: Adjusted Free Cash Flow
RECONCILIATION OF 2025 OUTLOOK Drilling Tools International Corp. Reconciliation of Estimated Consolidated Net Income to Adjusted Free Cash Flow (In thousands of U.S. dollars and rounded) (Unaudited) Twelve Months Ended December 31, 2025 Low High Net Income $ (4,500) $ (1,500) Add (deduct) Interest
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