Drilling Tools reports Q2 adjusted EPS (2c) vs. 10c last year
Reports Q2 revenue $39.4M vs. $37.53M last year. CEO Wayne Prejean stated, "Q2 played out largely as we expected with lower commodity prices resulting in reductions in rig count and customer activity, particularly on US land. As a result, our Western Hemisphere business was down from Q1. However, our performance in Q2 remained solid despite the continued activity decline. This enabled us to deliver financial results that exceeded our internal forecasts, which included our first positive Adjusted Free Cash Flow for any second quarter since becoming public...This momentum has allowed us to grow consolidated Revenue and Adjusted EBITDA compared to Q2 of 2024 by 5% and 4%, respectively, despite the market softness...While the market works to find its footing, we expect uncertainty to continue causing disruptions through both pricing pressure and utilization. In anticipation of these disruptions, last quarter we implemented a program to cut expenses by approximately $6 million this year to align our spending with the activity levels of our customers. We are pleased to report that we are on track to meet or exceed this goal. Should the market deteriorate further, we have contingency plans to cut additional costs. We remain committed to identifying cost reduction opportunities and maintaining operational flexibility to quickly respond to the current challenging environment."
