Drilling Tools International Corp (DTI) 2025 Q4 法說會逐字稿

Greetings and welcome to the Drilling Tools International 2025 year-end and fourth quarter financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Drilling Tools International 2025 年終及第四季財務業績電話會議。（操作說明）提醒各位，本次會議正在錄音。

It is now my pleasure to introduce your host, Ken Dennard, Investor Relations. Thank you, sir. You may begin.

現在，我很高興向大家介紹主持人，投資者關係部門的肯·丹納德。謝謝您，先生。你可以開始了。

Thank you, operator, and good morning, everyone. We appreciate you joining us for Drilling Tools International's 2025 year-end and fourth quarter conference call and webcast. With me today are Wayne Prejean, Chief Executive Officer; and David Johnson, Chief Financial Officer.

謝謝接線員，大家早安。感謝您參加 Drilling Tools International 2025 年終及第四季電話會議和網路直播。今天陪同我出席的有執行長韋恩·普雷讓和財務長大衛·約翰遜。

Following my remarks, management will provide a review of year-end, fourth quarter results and 2026 outlook before opening the call for your questions. There'll be a replay of today's call that'll be available via webcast on the company's website, that's drillingtools.com, and there'll also be a telephonic recorded replay available until March 30.

在我發言之後，管理層將回顧年終業績、第四季度業績以及 2026 年展望，之後將開放問答環節。今天的電話會議將透過公司網站 drillingtools.com 上的網路直播進行重播，同時還將提供電話錄音重播，直至 3 月 30 日。

Please note that any information reported on this call speaks only as of today, March 6, 2026. And therefore, you are advised that time sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

請注意，本次通話中報告的任何資訊僅代表截至 2026 年 3 月 6 日的情況。因此，請注意，時效性資訊可能在您重聽節目或閱讀文字稿時不再準確。

Also, comments on this call will contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of DTI's management. However, various risks and uncertainties and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in the statements made by management.

此外，本次電話會議的評論將包含美國聯邦證券法意義上的前瞻性陳述。這些前瞻性陳述反映了DTI管理階層目前的觀點。然而，各種風險、不確定性和突發事件可能導致實際結果、績效或成就與管理層聲明中表達的內容有重大差異。

The listener or reader is encouraged to read the company's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K to understand certain of those risks, uncertainties, and contingencies.

建議聽眾或讀者閱讀公司 10-K 表格的年度報告、10-Q 表格的季度報告和 8-K 表格的當前報告，以了解某些風險、不確定性和或有事項。

The comments today will also include certain non-GAAP financial measures, including but not limited to adjusted EBITDA and adjusted free cash flow. The company provides these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures.

今天的評論還將包括一些非GAAP財務指標，包括但不限於調整後的EBITDA和調整後的自由現金流。本公司提供這些非GAAP績效僅供參考，不應與最直接可比較的GAAP指標割裂看待。

A discussion of why we believe these non-GAAP measures are useful to investors, certain limitations of using these measures, and reconciliations to the most directly comparable GAAP measures can be found in our earnings release and our filings with the SEC.

關於我們認為這些非GAAP指標對投資者有用的原因、使用這些指標的某些局限性以及與最直接可比較的GAAP指標的調節情況，請參閱我們的盈利報告和我們向美國證券交易委員會提交的文件。

And now with that housekeeping behind me, I'd like to turn the call over to Wayne Prejean, DTI's Chief Executive Officer. Wayne?

現在，這些瑣事都已處理完畢，我想把電話交給DTI執行長韋恩‧普雷讓。韋恩？

Thanks, Ken, and good morning, everyone. I will open with some comments on our full year results, then hand the call over to David to review fourth quarter financials and our 2026 outlook. After that, I will wrap it up with a few additional thoughts before we open up for questions.

謝謝你，肯，大家早安。首先，我將對我們全年的業績做一些評論，然後將電話交給大衛，讓他回顧第四季度的財務狀況和我們對 2026 年的展望。之後，在開放提問環節之前，我還會補充幾點想法。

We are pleased with our strong performance in the fourth quarter, which enabled us to finish the year on a positive note. These results demonstrate our ability to deliver consistent returns in the face of continued market softness.

我們對第四季度的強勁表現感到滿意，這使我們能夠以積極的姿態結束這一年。這些結果證明了我們在市場持續疲軟的情況下仍能取得穩定的收益。

Despite global rig count declining 7% year-over-year, we were able to produce resilient results and generate significant free cash flow. In fact, DTI's annual adjusted free cash flow has grown each year since going public in 2023. This is an achievement we take great pride in and underscores our ability to operate efficiently, capitalize on opportunities in the market, and navigate the evolving energy landscape.

儘管全球鑽井平台數量比去年同期下降了 7%，但我們仍然取得了穩健的業績，並產生了可觀的自由現金流。事實上，自 2023 年上市以來，DTI 的年度調整後自由現金流逐年成長。我們為此成就感到非常自豪，凸顯了我們高效運作、掌握市場機會以及駕馭不斷變化的能源格局的能力。

Our 2025 results came in at or above the high end of our guidance ranges. We generated total rental revenues of $129.6 million and total product sales revenues of $30.1 million, or $159.6 million on a consolidated basis. Adjusted net income for 2025 was $3.4 million and adjusted diluted EPS for 2025 was $0.10 per share. We generated 2025 adjusted EBITDA of $39.3 million and adjusted free cash flow of $19.2 million.

我們2025年的業績達到或超過了我們預期範圍的上限。我們共實現租賃收入 1.296 億美元，產品銷售收入 3,010 萬美元，合併後收入為 1.596 億美元。2025 年調整後淨收入為 340 萬美元，2025 年調整後攤薄每股收益為 0.10 美元。我們預計 2025 年調整後 EBITDA 為 3,930 萬美元，調整後自由現金流為 1,920 萬美元。

We completed our fourth acquisition in January 2025 since going public, and we were able to meaningfully reduce our net debt compared to the same period a year ago. This reflects our capital discipline and intentional focus on paying down debt.

自上市以來，我們在 2025 年 1 月完成了第四次收購，與去年同期相比，我們的淨債務大幅減少。這反映了我們的資本紀律和對償還債務的有意關注。

As the market softened throughout the year, we utilized our flexible CapEx model and pivoted to harvesting cash, which we then used to pay down over $11 million of debt in the back half of 2025. We also returned a portion of our free cash flow to shareholders through our share buyback program. These actions reinforce our commitment to enhancing shareholder value and maintain our solid financial position.

隨著市場在一年內走軟，我們利用靈活的資本支出模式，轉向獲取現金，然後在 2025 年下半年用這些現金償還了超過 1,100 萬美元的債務。我們也透過股票回購計畫將部分自由現金流返還給了股東。這些措施鞏固了我們提升股東價值和維持穩健財務狀況的承諾。

Geographically, our eastern hemisphere operations experienced continued growth in 2025, and this expansion was a large contributor to the resilience of our results. Year-over-year, our Eastern Hemisphere revenue grew by 78% and contributed approximately 14% of our total revenue.

從地理上看，我們在東半球的業務在 2025 年持續成長，這一擴張極大地增強了我們業績的韌性。與去年同期相比，我們在東半球的營收成長了 78%，約占我們總營收的 14%。

The Eastern Hemisphere segment has continued to perform well, reflecting significant demand for our tools along with consistent execution and DTI's growing market presence. Western Hemisphere operations were impacted by softer North American drilling and completions activity in 2025, but managed to only see a low single-digit revenue decline when compared to 2024.

東半球市場持續表現良好，反映出市場對我們工具的巨大需求，以及我們持續的執行力和DTI不斷增長的市場份額。2025 年，西半球的業務受到北美鑽井和完井活動疲軟的影響，但與 2024 年相比，收入僅出現個位數的下降。

As the situation evolves in the Middle East, we are focused on supporting our employees and clients. As of today, most all rigs are operating. Assuming this remains the same, we anticipate a positive baseline of activity with upside driven by oil capacity expansion and strategic gas development.

隨著中東局勢的發展，我們正集中精力為我們的員工和客戶提供支援。截至目前，大部分鑽井平台都在運作。假設情況保持不變，我們預期市場活動將保持積極基線，而石油產能擴張和策略性天然氣開發將推動市場上行。

This momentum sends an encouraging signal as we look to further expand our Eastern Hemisphere operations.

這一勢頭令人鼓舞，並有望進一步擴大我們在東半球的業務。

Our strong alignment with local operators positions us well for continued expansion. And again, assuming there are no major rig activity or infrastructure disruptions, we expect our customers to scale up their activities heading into 2026, and we expect growing market adoption of our tools to make us the service company of choice in the region.

我們與當地營運商的緊密合作使我們更有利於持續擴張。再次強調，假設沒有重大鑽井活動或基礎設施中斷，我們預計我們的客戶將在 2026 年擴大業務規模，並且我們預計市場對我們工具的採用率不斷提高，這將使我們成為該地區首選的服務公司。

As evidence of the traction that our tools have gained in the Eastern Hemisphere to date, our Wellbore Optimization product line offering continues to benefit from the significant increase in utilization of [Drill-N-Ream] tools and our clear path stabilizer technology throughout the Eastern Hemisphere. We expect this constructive trend to continue as rig activity in Saudi Arabia stabilizes and selected programs are reactivated, creating incremental demand tailwinds for our Eastern Hemisphere segment.

為了證明我們的工具迄今為止在東半球已取得顯著成效，我們的井眼優化產品線繼續受益於[鑽擴]工具和我們的清晰路徑穩定器技術在整個東半球的顯著增長。我們預計，隨著沙烏地阿拉伯鑽井活動的穩定和部分專案的重新啟動，這一建設性趨勢將繼續下去，從而為我們在東半球的業務板塊創造額外的需求順風。

Over the past 24 months, we have completed several strategic acquisitions, and even as market conditions have tempered some of the near-term upside, we have remained focused on discipline integration and realization of targeted synergies. This has allowed us to strengthen DTI's foundation and position the company for meaningful financial improvement as activity levels rebound.

在過去的 24 個月裡，我們完成了幾項策略性收購，儘管市場狀況抑制了一些短期上漲空間，但我們仍然專注於紀律整合和實現預期的協同效應。這使我們能夠加強 DTI 的基礎，並使公司在經濟活動水平回升時實現有意義的財務改善。

I'm encouraged by our team's ability to make the best out of a challenging environment, and I firmly believe that this will set us up for future success. David will now take you through our results in greater detail and introduce our 2026 outlook. David?

我對我們團隊能夠在充滿挑戰的環境中做到最好感到鼓舞，我堅信這將為我們未來的成功奠定基礎。接下來，David 將更詳細地向大家介紹我們的研究成果，並介紹我們對 2026 年的展望。大衛？

Thanks, Wayne. In yesterday's earnings release, we provided detailed year-end and fourth quarter financial tables. So I'll use this time to offer further insight into specific financial metrics. Wayne gave an overview of our full year results in his opening comments, so I will provide some additional color on our fourth quarter results.

謝謝你，韋恩。在昨天的財報中，我們提供了詳細的年終和第四季財務報表。因此，我將利用這段時間進一步深入探討一些具體的財務指標。韋恩在開場白中概述了我們全年的業績，所以我將補充一些關於我們第四季度業績的細節。

However, just to echo Wayne's comments from earlier, we are pleased to have achieved another record year for adjusted free cash flow. Even with the general industry and typical Q4 seasonal softness, we prioritize generating and preserving cash flow by managing cost and CapEx.

不過，正如韋恩之前所說，我們很高興再次實現了調整後自由現金流的創紀錄年份。即使考慮到整個行業的普遍情況以及典型的第四季度季節性疲軟，我們仍然優先考慮透過控製成本和資本支出來創造和維持現金流。

We intend to maintain our capital discipline strategy in 2026 by driving operational efficiency across the business.

我們計劃在 2026 年繼續推行資本紀律策略，透過提高整個業務的營運效率來實現這一目標。

As of December 31, 2025, we had $3.6 million of cash in cash equivalents, net debt of $42.2 million and a net leverage ratio of 1.1 times, which is down slightly from 1.2 times a year ago despite taking on additional debt to fund the Titan Tools acquisition in 2025.

截至 2025 年 12 月 31 日，我們擁有 360 萬美元的現金及現金等價物，淨債務為 4,220 萬美元，淨槓桿率為 1.1 倍，儘管為了在 2025 年收購 Titan Tools 而承擔了額外的債務，但該比率仍比一年前的 1.2 倍略有下降。

Now turning to our fourth quarter results. We generated consolidated Q4 revenue of $38.5 million. Fourth quarter tool rental revenue was $30.4 million and product sales revenue totaled $8.1 million. Net income attributable to stockholders for the fourth quarter was $1.2 million or $0.03 per share.

現在來看我們第四季的業績。我們第四季合併營收為3850萬美元。第四季工具租賃收入為 3,040 萬美元，產品銷售收入總計 810 萬美元。第四季歸屬於股東的淨利潤為 120 萬美元，即每股 0.03 美元。

Q4 adjusted net income was $1.5 million or adjusted diluted EPS of $0.04 per share. Fourth quarter adjusted EBITDA was $10.1 million and adjusted free cash flow was $6.1 million.

第四季調整後淨利為 150 萬美元，或調整後攤薄每股收益為 0.04 美元。第四季調整後 EBITDA 為 1,010 萬美元，調整後自由現金流為 610 萬美元。

Our capital expenditures in the fourth quarter were $4 million. Looking at maintenance CapEx for the fourth quarter, it was approximately 10% of total revenue. And just as a reminder, our maintenance capital is primarily funded by tool recovery revenue, which keeps our rental tool fleet relevant and sustainable regardless of market trends.

我們第四季的資本支出為 400 萬美元。從第四季的維護資本支出來看，它約佔總收入的 10%。另外提醒一下，我們的維修資金主要來自工具回收收入，這使得我們的租賃工具車隊能夠維持相關性和永續性，不受市場趨勢的影響。

CapEx is just one component of our capital discipline strategy. We take a disciplined approach to all capital deployment, prioritizing opportunities that align with our capital allocation framework and support long-term value creation for shareholders. For example, we paid down $5.5 million in debt in the fourth quarter and overall approximately $11 million in the second half of 2025.

資本支出只是我們資本紀律策略的一個組成部分。我們對所有資本部署採取嚴謹的態度，優先考慮符合我們資本配置框架並能為股東創造長期價值的機會。例如，我們在第四季償還了 550 萬美元的債務，到 2025 年下半年總共償還了約 1,100 萬美元的債務。

Bringing down our net debt to EBITDA leverage ratio to 1.1 times, we have also been active in our share buyback program in the second half of 2025, where we purchased approximately $660,000 of additional common shares averaging $2.17 per share.

我們將淨債務與 EBITDA 的槓桿比率降至 1.1 倍，並在 2025 年下半年積極實施了股票回購計劃，以平均每股 2.17 美元的價格購買了約 66 萬美元的額外普通股。

We remain focused on maintaining a strong financial position and will thoughtfully use our capital allocation levers as attractive opportunities arise.

我們將繼續專注於維持穩健的財務狀況，並將在出現有吸引力的機會時謹慎運用我們的資本配置手段。

Looking at our geographic segment mix, we continue to benefit from our diversified geographic footprint and customer base, with 14% of our total Q4 revenue coming from our Eastern Hemisphere segment. This growth reinforces the effectiveness of our strategy and commitment to delivering consistent high-quality performance across our global footprint, especially as we look ahead to a market rebound.

從我們的地域細分市場組成來看，我們繼續受益於我們多元化的地域佈局和客戶群，第四季度總收入的 14% 來自東半球市場。這一成長鞏固了我們策略的有效性，以及我們致力於在全球範圍內持續提供高品質服務的承諾，尤其是在我們展望市場反彈之際。

As we disclosed in yesterday's earnings release and as Wayne alluded to earlier, we have released our 2026 full year guidance ranges that reflect year-over-year growth at the midpoint. 2026 revenue is expected to be in the range of $155 million to $170 million. Adjusted EBITDA is expected to be within the range of $35 million to $45 million.

正如我們在昨天的財報中所揭露的，也正如韋恩之前提到的，我們發布了2026年全年業績指引範圍，其中值反映了同比增長。預計2026年營收將在1.55億美元至1.7億美元之間。調整後 EBITDA 預計在 3,500 萬美元至 4,500 萬美元之間。

Capital expenditures are expected to be between $18 million and $23 million. And finally, we expect our 2026 adjusted free cash flow to range between $17 million to $22 million.

預計資本支出將在 1800 萬美元至 2300 萬美元之間。最後，我們預計 2026 年調整後的自由現金流將在 1,700 萬美元至 2,200 萬美元之間。

We have constructed these ranges with the assumption that activity will remain relatively flat in the first half of 2026 and improve slightly in the second half of the year. Regardless, we continue to believe that our established geographical footprint will provide a meaningful runway for growth as market momentum returns.

我們建構這些範圍的前提假設是，2026 年上半年經濟活動將保持相對平穩，下半年將略有改善。儘管如此，我們仍然相信，隨著市場動能的恢復，我們已建立的地域佈局將為成長提供充足的空間。

That concludes my financial review and outlook section. I will now turn the call back over to Wayne for closing comments.

我的財務回顧和展望部分到此結束。現在我將把電話轉回給韋恩，讓他做總結發言。

Thank you, David. We continue to make substantial headway on our synergy program called OneDTI. We have been able to align our operating divisions into integrated systems and processes, as well as onboard new business units into our Compass platform to manage assets and transactions from our customers.

謝謝你，大衛。我們的協同計劃 OneDTI 繼續取得實質進展。我們已經能夠將營運部門整合到一體化的系統和流程中，並將新的業務部門納入我們的 Compass 平台，以管理來自客戶的資產和交易。

This represents an important milestone for the company's growth potential as it streamlines workflows, enhances accountability, and materially shortens the timeline for integrating future acquisitions into the DTI platform.

這對於公司的發展潛力而言是一個重要的里程碑，因為它簡化了工作流程，增強了問責制，並大大縮短了將未來收購整合到 DTI 平台的時間。

We also remain active in evaluating additional M&A opportunities that align with our strategic and financial objectives. As we continue to thoughtfully scale our current operations, we believe DTI is the preferred provider for downhole tool rentals supporting well bore construction and casing installation.

我們也會持續積極評估符合我們策略和財務目標的其他併購機會。隨著我們持續穩定擴大現有業務規模，我們相信 DTI 是井下工具租賃的首選供應商，為井眼施工和套管安裝提供支援。

Despite the near term softness we expect to occur within the first half of the year, our outlook for 2026 reflects not only the solid foundation we have established, but also our forward-looking commitment to operational excellence and delivering consistent results.

儘管我們預計今年上半年短期內市場將出現疲軟，但我們對 2026 年的展望不僅反映了我們已經建立的堅實基礎，也反映了我們對卓越營運和持續取得良好業績的前瞻性承諾。

We believe there are several potential catalysts across multiple geographies that offer upside potential later in the year, including rig reactivations in Saudi Arabia, incremental tenders in the broader Middle East, and increased project activity in select international markets where we have recently expanded our presence, among others. These are not built into our guidance but may materialize into areas of outperformance.

我們認為，今年晚些時候，多個地區存在一些潛在的催化劑，預計將帶來上漲潛力，其中包括沙烏地阿拉伯鑽井平台的重新啟用、更廣泛的中東地區新增招標項目，以及我們最近擴大業務範圍的特定國際市場項目活動的增加等等。這些因素並未納入我們的指導方針，但可能會轉化為表現優異的領域。

Looking forward I am optimistic about the momentum we're building across the organization and the attractive opportunities we see on the horizon. The investments made to date are beginning to gain traction and are positioned to drive meaningful results.

展望未來，我對我們在整個組織中正在建立的發展勢頭以及我們看到的未來​​機會充滿信心。迄今為止的投資已開始取得成效，並有望帶來顯著成果。

We are confident that elevated demand for complex well bore solutions should further reinforce the need for our differentiated technology and the value-added solutions we deliver to customers around the world. Our ongoing focus on generating shareholder value is supported by the prospect of a more favorable market backdrop emerging later this year.

我們相信，對複雜井筒解決方案日益增長的需求將進一步強化對我們差異化技術和我們為全球客戶提供的增值解決方案的需求。我們持續專注於為股東創造價值，並受益於今年稍後可能出現的更有利的市場環境。

Finally, I want to address the conflict in the Middle East as it pertains directly to DTI. As of yesterday, our Middle East personnel were all accounted for, have sheltered in place per local government requirements, and are maintaining continuity with customers' needs and supporting our operations. We have experienced minimal disruption to our ongoing business thus far. We do not have any American expat employees in the conflict zone.

最後，我想談談中東衝突與DTI的直接關係。截至昨天，我們在中東的所有員工都已清點完畢，並按照當地政府的要求就地避難，他們正在維持與客戶需求的連續性，並支持我們的營運。到目前為止，我們的日常業務受到的影響微乎其微。我們在衝突地區沒有任何美國外籍員工。

But we do have numerous expat employees from other nationalities who are based in the Middle East. We are diligently monitoring the situation and have launched our crisis response plan, which is providing resources to support our team members in the area.

但我們確實有很多來自其他國家的外籍員工，他們目前在中東工作。我們正在密切關注局勢，並已啟動危機應對計劃，為該地區的團隊成員提供資源支援。

We are conducting frequent meetings, obtaining regular operational updates, and are maintaining communications with our personnel in the region.

我們正在召開頻繁的會議，定期獲取營運最新訊息，並與該地區的員工保持溝通。

I want to thank every member of the DTI organization for their continued commitment to working in a safe, inspired, and productive manner, with special thanks to those personnel who are in the Middle East for their continued support of our operations.

我要感謝DTI組織的每一位成員，感謝他們一直以來以安全、積極和高效的方式開展工作，尤其要感謝在中東工作的員工，感謝他們一直以來對我們業務的支持。

Our thoughts are with you every day. Our employees' commitment and dedication have been essential in navigating a constantly evolving environment and is central to the success and future growth we are building together. With that, we will now take your questions, operator.

我們每天都在想念你們。在不斷變化的環境中，員工的投入和奉獻至關重要，也是我們共同成功和未來發展的核心。接下來，我們將開始回答您的問題，接線生。

(Operator Instructions)

（操作說明）

Steve Ferrazani, Sidody.

史蒂夫·費拉扎尼，西多迪。

Good morning, everyone. Appreciate the detail and color on the call this morning. Also appreciate weighing your message on Middle Eastern safety. I think that's certainly appreciated right now.

各位早安。非常感謝今天早上通話中展現出的細節和豐富資訊。也感謝您就中東安全議題發表的看法。我認為這一點現在確實很受重視。

A couple of really strong numbers that surprised me in the quarter. Wanted to get your thoughts and color around what drove it. The first one, the big one, was the really healthy EBITDA margin this quarter, highest in it looks to us like in six quarters. Six quarters ago, the rig count was much better. What drove that really strong margin this quarter?

本季有幾個數據非常亮眼，讓我感到意外。想聽聽你對這件事的思考和看法，以及它背後的驅動因素。第一個也是最重要的一個消息是，本季 EBITDA 利潤率非常健康，在我們看來，這是六個季度以來的最高水準。六個季度前，鑽井平台數量要好得多。本季強勁的利潤率是由什麼因素推動的？

Yeah, you want me to take that, yeah, I think it, Steve, it was just a combination of -- we didn't see all the Q4 sort of typical seasonal softness in some of our numbers. And then we were further benefiting from some of the cost reductions, that we did earlier in the year. So kind of the combination of that we had our product kind of mix was a little bit different. But yeah, just in overall a good quarter compared to the rest of the year.

是的，你想讓我接受這個，是的，我想，史蒂夫，這只是多種因素共同作用的結果——我們的一些數據並沒有顯示出第四季度典型的季節性疲軟。此外，我們也受惠於年初實施的一些成本削減措施。所以，我們產品的混合組合有點不一樣。但總的來說，與今年其他季度相比，這算是一個不錯的季度。

Yeah.

是的。

Anything specific, one quarter type mix here because your margin in the quarter was above the full year guide for '26 on the margin line.

有什麼具體情況嗎？這裡只有一種季度類型的組合，因為你們本季的利潤率高於 2026 年全年利潤率指引值。

Yeah, I think mainly it was a product sale impact we had some additional product sale. That -- that's a little bit better, kind of margin profile, especially on the loss and whole DVR type sales.

是的，我認為主要影響的是產品銷售，我們增加了一些產品銷售。那——那利潤率情況稍微好一些，尤其是在虧損和整機DVR銷售方面。

So that's driving improved margins there.

所以這推動了那裡的利潤率提高。

So. It helps support the overall quarter, but generally it was steady state, pretty good performance overall.

所以。這有助於支撐整個季度的業績，但總體而言，業績保持穩定，整體表現相當不錯。

Got it. And then all of your numbers came in at the very, as you noted, came in at the very high end of your full year ranges. The one that beat was adjusted free cash flow. It's a very strong free cash flow quarter. Anything driving that, and you put out fairly solid guidance for free cash flow again next year.

知道了。然後，正如你所指出的，你所有的數據都達到了全年預期範圍的上限。表現最佳的是調整後的自由現金流。這是一個自由現金流非常強勁的季度。任何推動因素，以及你對明年自由現金流的相當可靠的預測。

Yeah, Steve, I think that's a good point. We're definitely seeing kind of that durable free cash flow generation, since kind of going public, that was kind of our stated goal, kind of focusing on the M&A front for growth and really demonstrating that we can generate that free cash flow. But typically, and we'll see it kind of every year, we're a lot of our CapEx is front loaded in the year.

是的，史蒂夫，我覺得你說得對。自從上市以來，我們確實看到了持續的自由現金流產生，這正是我們既定的目標，即專注於併購以實現成長，並真正證明我們能夠產生自由現金流。但通常情況下，我們幾乎每年都會看到，我們的大部分資本支出都集中在年初。

So as we kind of cycle through those, first couple of quarters, then we -- I think we saw our third quarter was stronger than the first and second quarter, and then our fourth quarter was even stronger on the free cash flow side, for that reason.

所以，當我們經歷了前幾季的周期後，我認為我們看到第三季比第一季和第二季表現更強勁，而第四季在自由現金流方面表現更強勁，原因就在於此。

Got it. That's helpful. And speaking about free cash flow, your leverage now, I mean, you're barely above one time. It's a great place to be, it -- and if we're theoretically, and I think you'd think that we're at a trough on your annual EBITDA or very close.

知道了。那很有幫助。說到自由現金流，你現在的槓桿率，我的意思是，你勉強超過一倍。這是一個很棒的地方，而且——如果我們理論上是這樣，我想你會認為我們正處於年度 EBITDA 的低谷或非常接近低谷。

By our model, your leverage goes under one times next year. What's the thought here? What's M&A looking like? Are there opportunities? Would you still reduce debt further? Are you thinking about cash flow?

根據我們的模型，明年您的槓桿率將低於原來的1倍。你的想法是什麼？併購市場現況如何？是否存在機會？你還會繼續減少債務嗎？您在考慮現金流問題嗎？

Well, we've stated in previous quarters and on previous calls, we have a healthy pipeline of M&A opportunities that we're constantly evaluating. And you know we'll continue to look at the most secretive, most attractive strategic opportunities that are out there.

正如我們在前幾個季度和之前的電話會議上所說，我們有大量併購機會正在不斷評估中。你知道，我們會繼續關注那些最隱密、最有吸引力的策略機會。

And our use of funds as they flow will be debt service, M&A, some buybacks. But mostly, the year -- throughout '25 we focused on integration and gaining efficiencies from what we acquired previously. So right now, we're probably looking at a number of opportunities and, they ebb and flow as the market dictates, but there are definitely still opportunities on the horizon.

我們將把資金用於償還債務、併購和部分股票回購。但總的來說，2025 年全年，我們專注於整合和提高先前收購的資產的效率。所以現在，我們可能面臨很多機會，這些機會會隨著市場的變化而起伏，但未來肯定還會出現一些機會。

Got it. That is helpful. And I saw, you know, just going through the new deck you put up, the guidance does show you expect Eastern Hemisphere share of revenue to be even higher next year if we have seen that steady growth. Can you talk about where the opportunities are in Eastern Hemisphere? Also, particularly curious about your opportunities in APAC.

知道了。那很有幫助。我看到，你知道，在瀏覽你新發布的簡報時，其中的指導意見表明，如果這種穩定的成長勢頭得以保持，你預計明年東半球的收入份額會更高。您能談談東半球有哪些機會嗎？另外，我對您在亞太地區的機會也特別感興趣。

So, throughout, as we have integrated all of the product lines and all the business units and aligned our management team and sales team, they are all firing on all cylinders and doing a great job. So we are getting lots of opportunities throughout Africa with various products. We are moving products around many of the countries in the Middle East.

因此，隨著我們整合所有產品線和所有業務部門，並協調管理團隊和銷售團隊，他們都在全力以赴，表現出色。因此，我們在非洲各地獲得了許多銷售各種產品的機會。我們正在向中東許多國家運送產品。

And despite the ongoing conflict in the Middle East, we are able to continue maintaining our customer support. Surprisingly, most everyone is still in operation. You have probably heard different news reports of different things and facilities and refineries, but drilling operations are still commencing without major disruptions to our knowledge.

儘管中東衝突持續不斷，我們仍能夠繼續為客戶提供支援。令人驚訝的是，大部分企業仍在正常運作。您可能已經聽到了關於不同事物、設施和煉油廠的各種新聞報道，但據我們所知，鑽井作業仍在進行中，沒有出現重大中斷。

Then we also have our Malaysian entity up and running with our Asia-Pac focus. So that is starting to gain traction, and we are distributing a lot of our new technologies, such as our Drill-N-Ream, our deep casing products, and our ClearPath product lines, which was an acquisition of the ED Projects Group a year ago. So all of those things are starting to get traction in the Europe, Middle East and Asia-Pac.

此外，我們在馬來西亞的實體也已投入運營，專注於亞太地區業務。所以這項技術開始獲得認可，我們正在推廣我們的許多新技術，例如我們的 Drill-N-Ream 產品、深套管產品和 ClearPath 產品線（這是我們一年前收購的 ED Projects Group）。因此，所有這些事物都開始在歐洲、中東和亞太地區獲得發展動力。

Got it. That's helpful. What's implied in your guidance in terms of revenue per active rig in the US? How are you thinking about that? If I think a lot of us assume we're modeling in sort of a flat rig count January 1 to December 30. How are you thinking about that? Can you grow revenue per rig in an active rig in a flattish market?

知道了。那很有幫助。你們的預測中對美國每台在用鑽孔機的收入有何暗示？你對此有何看法？如果我認為我們很多人都假設我們在 1 月 1 日至 12 月 30 日期間的鑽井平台數量保持穩定。你對此有何看法？在市場趨於穩定的情況下，如何提高活躍鑽井平台的單一收入？

Yeah, we see it as a we model it as a steady state with opportunistic, realities where there's some of our new technologies gain traction, those things are evolving in different markets. So we think our opportunity to overachieve is as those new technologies gain more traction. That's where we'll see our opportunity to increase over and above, where we're at today. But mostly, the market's a steady-state environment.

是的，我們將其視為一種穩定狀態，並輔以一些機會主義的現實情況，即我們的一些新技術獲得市場認可，這些技術在不同的市場中不斷發展。因此，我們認為隨著這些新技術得到更廣泛的應用，我們將迎來取得超常成績的機會。那就是我們超越現狀、實現更大發展的機會所在。但整體而言，市場處於穩定狀態。

Got it. That's helpful. Last one for me, and I know this is a totally unfair question, but you know I have to ask it anyway in terms of we're only a week in, but in terms of the Middle East developments we've seen so far, any thoughts, and we don't know -- what -- how long or how this exactly plays out, how you're positioned one way or the other is this plays out any initial thoughts? I know it's an unfair question.

知道了。那很有幫助。最後一個問題，我知道這個問題很不公平，但我還是得問，畢竟才過去一周，就目前我們看到的中東局勢發展而言，您有什麼想法？我們不知道──這會持續多久，也不知道事情最終會如何發展，您對此持什麼立場？您有什麼初步想法嗎？我知道這個問題不公平。

Well, I will start with, if you will notice, our revenues are about 14%, as we have stated in here, and we hope that they will grow, but they are only -- and the Middle East is a part of that 14% of Eastern Hemisphere. So it is still a smaller part of our overall revenue and earnings stream, but it is emerging and growing.

首先，正如我們在這裡提到的，我們的收入約佔東半球的 14%，我們希望它能夠成長，但它只是——而中東只是東半球這 14% 的一部分。所以它目前在我們整體收入和利潤流中所佔比例仍然較小，但它正在興起和成長。

It could be -- how it is going to be affected is unknown today. All we know today is that things are still operating. I do not think anyone is sure of exactly what the impact might be.

有可能——但目前還不知道會受到怎樣的影響。我們目前所知道的只是，一切仍在運作。我認為沒有人能確切地知道會產生什麼影響。

We don't have a lot of personnel scattered throughout. We have some personnel that are scattered throughout different parts of that area, and they are all safe and accounted for today and operating. So we are able to move tools about. We are able to support our customers’ operations. They are asking for support.

我們沒有很多分散在各處的人員。我們的一些人員分散在該地區的各個地方，他們今天都安全無恙，並且都在正常工作。因此，我們可以移動工具。我們能夠支援客戶的營運。他們需要支持。

So despite the noise and everything that is going on and the unknowns, what we know today, it feels like it is minimally disruptive. And I do not mean that to minimize the conflict and the impact of it, but, from a business point of view, so far, our team has performed just fantastic. And I mean we really kind of -- are operating out our COVID-style playbook of how to do crisis management and deal with remoteness and things like that.

所以，儘管現在各種喧囂紛擾，各種未知因素層出不窮，但就我們目前所知，它所帶來的干擾似乎微乎其微。我這麼說並不是要淡化衝突及其影響，但從商業角度來看，到目前為止，我們的團隊表現得非常好。我的意思是，我們實際上是在按照我們應對新冠疫情的危機管理方案，處理遠距辦公等問題。

So a lot of lessons learned from that experience on how to operate remotely with our clients and coordinate logistics and things like that. All of our team is working well in that regard.

因此，我們從那次經驗中學到了很多關於如何與客戶遠距協作、協調物流等的經驗教訓。我們團隊在這方面都做得很好。

Got it. Okay. Thanks so much, Wayne. Appreciate it, David.

知道了。好的。非常感謝你，韋恩。謝謝你，大衛。

Thank you. Thank you, Steve.

謝謝。謝謝你，史蒂夫。

John Daniel, Daniel Energy Partners.

約翰‧丹尼爾，丹尼爾能源合夥公司。

Hey, guys. Thanks for having me. Just three quick ones for you. Assuming this is a safe one here, but the revenue guidance you provided for '26, I am assuming that was all created pre-Iran. Is that fair?

嘿，夥計們。謝謝邀請。給你三個簡單的問題。假設這次的預測是安全的，但你提供的 2026 年收入預測，我假設那都是在伊朗問題出現之前製定的。這樣公平嗎？

Correct.

正確的。

Okay. And then, good job on paying down the $11 million in 2025. Do you have an established goal for '26? I mean, look at the free cash flow guidance, which is, say, $20 million at the midpoint. Roughly, what would you envision as being allocated to debt reduction versus buybacks

好的。另外，恭喜你於 2025 年還清了 1,100 萬美元的債務。你為2026年設定了明確的目標嗎？我的意思是，看看自由現金流預期，中間值大概是 2000 萬美元。您大致設想一下，用於償還債務和用於股票回購的資金應該分配多少？

I think if you look at our historical pay down events, this is the one you just described, one could expect continued pay down majority of the debt. Hopefully we could probably accelerate that. But it will depend on, the occurrences that are happening throughout the year.

我認為，如果你回顧我們歷史上的還款事件，就像你剛才描述的那樣，可以預期我們會繼續償還大部分債務。希望我們能加快這個過程。但這取決於全年發生的各種事件。

And as these events unfold, particularly the events in the Middle East. It'll help us understand where we need to focus our efforts on investments, if the US market picks up, we can dial that up. If we find that the conflict is less impactful and it returns to more normal, we can dial that up and so on.

隨著這些事件的發展，特別是中東地區的事件。這將有助於我們了解投資重點應該放在哪些方面；如果美國市場回暖，我們可以加強投資。如果我們發現衝突的影響較小，情況恢復正常，我們可以加大力度，以此類推。

So as other parts of the world, the good news is we're spread out throughout and now established with infrastructure and capabilities in many parts of the world. We have a lot more diversification in how we can deploy our capital in meaningful ways across different geomarkets depending on where the needs are and the adjustments are made. So --

與世界其他地區一樣，好消息是我們的分支機構遍布各地，並且現在在世界許多地區建立了基礎設施和能力。我們可以根據不同地理市場的需求和調整情況，以更有意義的方式部署我們的資本，從而實現資本的多元化發展。所以--

Last one, and, again, recognizing we are like five days into this thing or whatever. But, yes, there is a little bit of turmoil, right? Just look at crude prices, market concerns, et cetera.

最後一個問題，再次提醒大家，我們已經進行了五天左右了。但是，是的，現在確實有點動盪，對吧？看看原油價格、市場擔憂等等就知道了。

Sure

當然

Wayne, the question would be, in a weird way, does this get you excited that there are going to be great opportunities to capitalize on the turmoil, or do you go more defensive? How do you think about just running the business the next few quarters as this is all playing out?

韋恩，從某種奇怪的角度來看，這個問題是會讓你感到興奮，認為會有很好的機會利用這種動盪局勢獲利，還是你會採取更保守的策略？您打算如何安排接下來幾季的業務運營，因為這一切都在不斷發展變化？

Well, John, it's a very dynamic and fluid situation because there's so many unknowns of, how things will be impacted.

約翰，情況瞬息萬變，因為有很多未知因素，事情會受到怎樣的影響。

Its speculation is dangerous on my part, but we kind of feel like we're in a position to deal with the situation in multiple, as I just stated, in multiple areas. So I think we're flexible in with regard to the opportunity that may present itself as a result of this conflict.

就我而言，這種推測很危險，但我們感覺我們有能力在多個方面應對這種情況，正如我剛才所說，在多個方面。所以我認為，對於這場衝突可能帶來的機遇，我們持靈活態度。

And when I mean that. And I don't mean to diminish the impact of a war. But oil is a dynamic commodity, and so if there's a major supply disruption, someone else will fill that gap, and we are prepared to participate in where that activity may be.

而我的意思就是這樣。我並不是想淡化戰爭的影響。但石油是一種動態商品，因此如果出現重大供應中斷，總會有人填補這一缺口，而我們已準備好參與其中。

So, our fleet is relevant and sustainable. And we have the diverse geomarket exposure now with different technologies. So we're in a good position to deal with how this dynamically unfolds.

因此，我們的船隊既實用又可持續。我們現在擁有多元化的地域市場佈局和不同的技術。因此，我們有能力應對事態的動態發展。

Okay. Last one. I lied. I told you there were three, there are four. Just looking at the chart here at WTI, $88 right now. Brent, better. I mean, there has been a lot of pricing pressure for the service industry the last couple of years. I mean, things have changed. How do you even start thinking about how you are going to start your customer discussions given the backdrop and where we are?

好的。最後一個。我撒謊了。我之前說有三個，現在有四個。看看WTI原油的圖表，現在每桶88美元。布倫特更好。我的意思是，過去幾年服務業一直面臨著很大的價格壓力。我的意思是，情況已經改變了。在當前的背景與情勢下，該如何著手思考如何與客戶展開對話？

Sure. I mean, particularly in North America, there has been a meandering rig count, mostly meandering downward with capital discipline and the need for improved earnings. But we -- our business has what we call a ceiling and a floor on pricing and how we participate in the market and how we provide our customers value. And -- so, If the price is too low, no one will invest in it. If the price is too high, everybody will invest in it. So we feel like we are very efficient in the middle to upper tier of that range, participating with our clients.

當然。我的意思是，尤其是在北美，鑽井平台數量一直波動不定，而且由於資本紀律和提高獲利能力的需要，鑽井平台數量大多呈現下降趨勢。但是我們——我們的業務在定價、市場參與方式以及為客戶提供價值方面都有所謂的上限和下限。所以——如果價格太低，就不會有人投資。如果價格太高，人人都會投資。因此，我們感覺我們在這個範圍的中高端領域非常高效，能夠與客戶有效合作。

Now, how do we get OFS pricing up? I think it is just a matter of time, in my opinion, that people are going to have to reinvest in equipment, and that will drive the pushback on pricing reductions and get to a more neutral state and maybe upward in the future. And, of course, an activity increase will immediately create probably a stress point in the supply chain throughout the industry. I think we can all make that calculation.

那麼，我們要如何提高OFS定價呢？我認為這只是時間問題，人們遲早會需要重新投資設備，這將導致價格下降的阻力，價格會趨於中性，未來甚至可能會上漲。當然，業務活動的增加很可能會立即在整個產業的供應鏈中造成壓力點。我想我們都能得出這樣的結論。

Okay, thanks for having me guys have a great weekend.

好的，謝謝大家，祝你們週末愉快。

We have reached the end of the question-and-answer session. Mr. Prejean, I'd like to turn the floor back over to you for closing comments.

問答環節到此結束。普雷讓先生，我想把發言權交還給您，請您作總結發言。

So thank you everyone. You know this -- we had a good quarter and a good year and we have a pretty, positive outlook throughout 2026. But there are some challenges ahead of us, the conflict notwithstanding. But we are prepared from a point -- from our company point of view, our employee point of view, and we've got a great customer base and a good geographic diversity, and we're executing well in all those markets. So, thank you for your interest in Drilling Tools International and appreciate your time on the call.

所以，謝謝大家。你們也知道－我們上個季度和全年業績都不錯，我們對2026年的整體前景非常樂觀。但即便有衝突，我們面前仍面臨一些挑戰。但從公司、員工的角度來看，我們已經準備好了。我們擁有龐大的客戶群和良好的地理分佈，並且在所有這些市場都表現出色。感謝您對國際鑽井工具公司的關注，也感謝您抽空接聽電話。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路了，祝您有美好的一天。