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Drilling Tools International Corporation (DTI-22.90%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total revenue of $154.4 million for the year, with tool rental revenue accounting for $117.9 million and product sale revenue for $36.5 million. This represents a slight increase from the previous year's total revenue of $152.0 million.
The company reported a net income of $3.0 million, down from $14.7 million in the previous year. The decrease is attributed to higher operating costs and expenses, including a significant increase in selling, general, and administrative expenses.
Cost of tool rental revenue decreased by 15% to $24.1 million, while cost of product sale revenue increased by 98% to $14.4 million. The increase in product sale revenue costs is primarily due to acquisitions and higher net book values of tools lost-in-hole or damaged-beyond-repair.
Drilling Tools International completed several acquisitions in 2024, including Casing Technologies Group Limited, Superior Drilling Products, Inc., and European Drilling Projects B.V. These acquisitions contributed to the company's revenue and expanded its geographical presence and product offerings.
The company reported cash flows from operating activities of $6.1 million, a decrease from $23.3 million in the previous year. This decrease is largely due to changes in operating assets and liabilities.
Drilling Tools International's balance sheet as of December 31, 2024, shows total assets of $222.4 million, with $75.6 million in property, plant, and equipment and $37.2 million in intangible assets.
The company continues to focus on expanding its operations and product offerings through strategic acquisitions and investments in new technologies. It also plans to increase its international footprint and enhance its competitive position in the oil and gas industry.
Drilling Tools International's management has identified and is working to remediate a material weakness in its internal control over financial reporting, related to ineffective monitoring activities.
The company anticipates continued inflationary pressures on its cost structure and is taking steps to manage these impacts while maintaining its strategic growth initiatives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Drilling Tools International Corporation annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.