Drilling Tools International Corp (DTI) 2026 Q1 法說會逐字稿

Greetings, welcome to Drilling Tools International first-quarter 2026 earnings conference call. (Operator Instructions)

各位好，歡迎參加 Drilling Tools International 2026 年第一季財報電話會議。(接線員指示)

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

現在我很榮幸介紹本次會議主持人 Ken Dennard。謝謝您，Dennard 先生。您可以開始了。

Thank you, operator, and good morning, everyone. We appreciate your joining us for Drilling Tools International's 2026 first-quarter conference call and webcast. With me today are Wayne Prejean, Chairman and Chief Executive Officer; and David Johnson, Chief Financial Officer.

謝謝，接線員，各位早安。感謝各位參加 Drilling Tools International 2026 年第一季電話會議與網路直播。今天與我一同出席的有董事長兼執行長 Wayne Prejean，以及財務長 David Johnson。

Following my remarks, management will provide a review of the first quarter results and 2026 outlook. Before opening the call for your questions, there'll be a replay of today's call. It will be available by webcast on the company's website at drillingtools.com, and there'll also be a telephonic recorded replay available until May 15.

在我致詞之後，管理團隊將回顧第一季業績與 2026 年展望。在開放各位提問之前，今天的會議將提供重播。重播將可透過公司網站 drillingtools.com 的網路直播收看，並且也會提供電話錄音重播至 5 月 15 日止。

Please note that information reported on this call speaks only as of today, May 8, 2026, and therefore, you're advised that time-sensitive information may no longer be accurate as of the time of any replay listing or transcript reading.

請注意，本次電話會議所揭露之資訊僅截至今日（2026 年 5 月 8 日）為準，因此提醒各位，任何具時效性的資訊在重播收聽或閱讀逐字稿時可能已不再準確。

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符合美國聯邦證券法定義之「前瞻性陳述」。這些前瞻性陳述反映 DTI 管理階層目前的觀點。然而，各種風險、不確定性與或有事項可能導致實際結果、表現或成就與管理階層所表達之陳述存在重大差異。

The listener or reader is encouraged to read the 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.

我們鼓勵聽眾或讀者閱讀 Form 10-K 年報、Form 10-Q 季報以及 Form 8-K 即時報告，以了解其中部分風險、不確定性與或有事項。

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.

今天的評論也將包含若干非 GAAP 財務衡量指標。包括但不限於調整後 EBITDA 與調整後自由現金流。公司提供這些非 GAAP 結果僅供資訊參考，且不應脫離與其最直接可比的 GAAP 指標而單獨解讀。

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

關於我們為何認為這些非 GAAP 指標對投資人有用、使用這些指標的若干限制，以及與最直接可比 GAAP 指標的調節表，均可在我們的新聞稿與向 SEC 提交的文件中找到。

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

那麼在以上說明之後，我想把電話會議交給 DTI 董事長兼執行長 Wayne Prejean。Wayne？

Thanks, Ken, and good morning, everyone. I will provide some opening remarks before handing the call over to David to review the financials and touch on our outlook. I'll then come back and provide a few additional thoughts before we open it up for questions.

謝謝 Ken，各位早安。在把電話會議交給 David 回顧財務數字並談及我們的展望之前，我先做一些開場說明。之後我會再回來補充幾點想法，然後我們再開放提問。

Our first quarter results came in largely as anticipated. As we discussed in our year-end call in March, we expected activity to remain relatively soft through the first half of the year, with the possibility for improvement in the back half of 2026, driven by several potential catalysts across multiple geographies.

我們第一季的結果大致符合預期。如同我們在 3 月的年終電話會議中所討論的，我們預期上半年活動將維持相對疲弱，而 2026 年下半年在多個地區若干潛在催化因素帶動下，可能出現改善。

The quarter played out consistently with that framework. Despite a softer start to the year, we generated total consolidated revenue of $38 million and adjusted EBITDA of $7.5 million. Importantly, our outlook for the full year remains intact, and we are reaffirming our 2026 guidance ranges today.

本季的發展與該架構一致。儘管年初開局較弱，我們仍創造合併總營收 3,800 萬美元與調整後 EBITDA 750 萬美元。重要的是，我們對全年展望仍維持不變，並在今日重申 2026 年的指引區間。

There were a few distinct factors that shaped our first quarter. North American land activity continued to be flat to slightly down. The earlier-than-expected spring break up in Canada pulled some typical second-quarter seasonality into the first quarter. While this compressed Q1 results, it also means the post-breakup rebound should begin earlier than usual, and we expect that to be a tailwind as we move into the second quarter.

有幾個明確因素形塑了我們第一季的表現。北美陸上活動持續持平至小幅下滑。加拿大春季解凍期（spring break up）較預期更早到來，使得原本屬於第二季的部分季節性提前反映在第一季。雖然這壓縮了第一季的結果，但也意味著解凍期後的反彈將比往年更早開始，我們預期在進入第二季時這將成為利多。

In the Middle East, the ongoing regional conflict has created some operational disruption that has muted what would otherwise have been a stronger first quarter contribution. That said, and this is an important point, our experience in the region is different from public statements expressed by the larger diversified service companies.

在中東，持續的區域衝突造成部分營運干擾，使得原本可能更強勁的第一季貢獻受到抑制。不過，這裡有一點很重要：我們在該地區的實際經驗，與大型多元化油服公司對外發表的公開說法有所不同。

Due to our more targeted footprint and specialized product focus, we have continued to see rising demand for our tools in the Middle East, even through this volatility. Our tide is still rising in that market. The geopolitical backdrop has simply suppressed the slope. Offsetting these headwinds, we saw very encouraging momentum in our international offshore markets.

由於我們的布局更聚焦、產品也更專精，即使在這段波動期間，我們仍持續看到中東市場對我們工具的需求上升。我們在該市場的趨勢仍在上行。只是地緣政治背景壓抑了上升的斜率。在抵銷這些逆風的同時，我們在國際離岸市場看到了非常令人鼓舞的動能。

Our ClearPath Stabilizer technology continues to gain traction as customers adopt it for high-value offshore and land projects around the world. And the Drill-N-Ream is making steady progress in the Middle East, providing solutions for complex wellbore challenges, including micro-dog legs, tortuosity and getting Casing to the bottom.

我們的 ClearPath Stabilizer 技術持續獲得市場採用，客戶正將其用於全球高價值的離岸與陸上專案。而 Drill-N-Ream 在中東也穩步推進，為複雜井眼挑戰提供解決方案，包括微狗腿（micro-dog legs）、井眼曲折度（tortuosity），以及將套管下到井底。

Our Deep Casing Tools product line, which saw utilization bottom out in 2024, has continued its recovery with a notable rebound in product sale purchase orders, particularly from the Middle East customers who have worked through their owned inventories. Together, these unique and value-based product lines are enhancing our Eastern Hemisphere growth and support our confidence in our full-year outlook.

我們的 Deep Casing Tools 產品線在 2024 年使用率觸底後，持續復甦；產品銷售採購訂單明顯回升，尤其來自中東客戶，因其已逐步消化自有庫存。這些獨特且以價值為導向的產品線，正在強化我們在東半球的成長，並支撐我們對全年展望的信心。

Looking ahead, we are confident that the forward price of oil is higher rather than lower for the foreseeable future, and we believe a more constructive commodity backdrop will gradually help relieve the pricing compression that has characterized the last several quarters.

展望未來，我們有信心在可預見的未來，原油遠期價格更可能走高而非走低；我們也相信，更具建設性的商品環境將逐步緩解過去幾季所呈現的價格壓縮。

In North America, there is a real disconnect today between available rig capacity and the fracturing horsepower capacity needed to convert drill wells into production, which tempers our near-term enthusiasm for a significant Nam recovery. But we are seeing steady traction in the Gulf of America, the North Sea and offshore markets in other parts of the world. Our differentiated portfolio is positioning us well to capture that work.

在北美，目前可用鑽機產能與將已鑽井轉為投產所需的壓裂馬力產能之間存在明顯落差，這抑制了我們對北美短期顯著復甦的熱情。但我們在美洲灣（Gulf of America）、北海以及全球其他地區的離岸市場，正看到穩健的進展。我們具差異化的產品組合，使我們能夠很好地掌握這些工作機會。

Before I turn it over to David, I want to highlight an important milestone achieved during the first quarter. Our primary private equity sponsor, HHEP, completed the distribution of its remaining DTI shares to its limited partners. This is an event which we have been signaling to the market since going public in 2023, and it materially increases our public float and our trading liquidity.

在我把電話會議交給 David 之前，我想強調第一季達成的一項重要里程碑。我們的主要私募股權贊助方 HHEP，已完成將其剩餘的 DTI 股份分配給其有限合夥人。這是我們自 2023 年上市以來就持續向市場預告的事件，並將大幅提高我們的流通股數與交易流動性。

This distribution event, together with the recent refreshment of our Board of Directors, represents a significant transition for DTI into a fully independent public company with broader ownership and strengthened governance aligned with our next phase of growth.

這次分配事件，加上近期董事會的更新，代表 DTI 正在完成一項重要轉型：成為一家完全獨立的上市公司，擁有更廣泛的股權結構，以及更健全、與下一階段成長相一致的公司治理。

Now, I'll pass it over to David to take you through the results in greater detail and provide an update on our 2026 outlook. David?

現在，我把電話會議交給 David，請他更詳細帶各位檢視本季結果，並更新我們對 2026 年展望的看法。David？

Thank you, Wayne. In yesterday's earnings release, we provided detailed first-quarter financial tables. We'll all use this time to offer further insight into specific financial metrics.

謝謝你，Wayne。在昨天的財報新聞稿中，我們提供了第一季詳細的財務表格。我們將利用這段時間，針對特定財務指標提供進一步的說明。

Looking at our first-quarter results, we generated total consolidated revenue of $38 million. First quarter Tool Rental revenue was $28.9 million and product sales revenue totaled $9 million.

回顧我們第一季的業績，我們的合併總營收為3,800萬美元。第一季工具租賃營收為2,890萬美元，產品銷售營收合計為900萬美元。

Net loss attributable to stockholders for the first quarter was $1.5 million or a loss of $0.04 per share. Adjusted net loss was $1 million or an adjusted loss per share of $0.03.

第一季歸屬於股東的淨損為150萬美元，或每股虧損0.04美元。調整後淨損為100萬美元，或調整後每股虧損0.03美元。

First-quarter adjusted EBITDA was $7.5 million and adjusted free cash flow was a loss of approximately $160,000.

第一季調整後EBITDA為750萬美元，調整後自由現金流約為虧損16萬美元。

I'll offer a bit more color on the movement in tool rental revenue and margins. The year-over-year decline reflects a combination of softer North American land activity. The earlier-than-expected Canadian spring breakup that Wayne described, and some continued pricing pressure in certain segments of our rental fleet.

我將就工具租賃營收與毛利率的變動補充一些說明。年對年下滑反映了多項因素的綜合影響，包括北美陸上活動轉弱。Wayne所提到加拿大春季解凍期（spring breakup）早於預期，以及我們租賃機隊某些細分領域持續面臨的定價壓力。

Even with that compression, our Tool Rental gross margin remained above 70%, which we view as a strong baseline that validates the underlying quality of our rental business. As activity levels improved through the year. And as our value-add product lines continue to gain share, we expect both revenue and margins to benefit.

即便在此壓縮之下，我們的工具租賃毛利率仍維持在70%以上；我們認為這是一個強勁的基準，驗證了我們租賃業務的內在品質。隨著全年活動水準改善。以及我們的增值產品線持續提升市占，我們預期營收與毛利率都將受益。

Capital expenditures in the quarter were approximately $7.7 million. Although elevated compared to our typical first quarter run rate, it is not unexpected as we prepare for the year ahead. We expect this to trend downward as the year progresses.

本季資本支出約為770萬美元。雖然相較我們典型的第一季支出水準偏高，但在為接下來一年做準備的情況下並不意外。我們預期隨著年度推進，該數字將呈下降趨勢。

However, we could see some opportunities to make strategic investments in the coming months to support early adoption of our ClearPath technology and other growth opportunities in international markets. These are attractive project-based opportunities with sticky revenue characteristics, and we believe the returns justify the incremental investment.

不過，在未來幾個月，我們可能會看到一些策略性投資機會，以支持ClearPath技術的早期採用，以及國際市場的其他成長機會。這些是具吸引力、以專案為基礎且具黏著性營收特徵的機會，我們相信其報酬足以支持額外投資。

Maintenance CapEx for the first quarter was approximately 13% of total revenue, primarily fueled by higher-than-average tool recovery revenue. And as always, we like to remind everyone, our maintenance CapEx is primarily funded by tool recovery revenue, which keeps our rental tool fleet relevant and sustainable regardless of market trends.

第一季維護性資本支出（Maintenance CapEx）約占總營收的13%，主要受高於平均水準的工具回收（tool recovery）營收所帶動。一如既往，我們也提醒各位：我們的維護性資本支出主要由工具回收營收所支應，這使我們的租賃工具機隊不論市場趨勢如何，都能保持相關性與可持續性。

Now turning to the balance sheet. As of March 31, 2026, we had $2.8 million of cash and cash equivalents and net debt of $48.9 million. Our net debt increased modestly during the quarter, which is consistent with our typical first quarter seasonal working capital pattern, including the payout of prior-year incentive compensation combined with the elevated first quarter CapEx I just described.

接著看資產負債表。截至2026年3月31日，我們持有現金及約當現金280萬美元，淨負債為4,890萬美元。本季淨負債小幅增加，符合我們第一季典型的季節性營運資金型態，包括支付前一年度的獎酬，以及我剛才提到的第一季較高資本支出。

We expect to see improved cash flow over the remainder of the year and reduced leverage from here, consistent with how we have managed the business historically.

我們預期在今年剩餘期間現金流將改善，槓桿水準也將自此下降，這與我們過往一貫的經營方式一致。

On the capital allocation front, we continued our share buyback activity in the first quarter with approximately $700,000 of repurchases. As Wayne mentioned, the more significant development during the quarter was the completion of the share distribution by our former sponsor, HHEP, to their limited partners.

在資本配置方面，我們第一季持續進行庫藏股回購，回購金額約70萬美元。如Wayne所提到，本季更重要的進展是我們前保薦人HHEP已完成將其持股分配給其有限合夥人。

Following that distribution, the vast majority of our outstanding shares, approximately 90%, are now held in the public float, with the former sponsor and insiders collectively holding a low double-digit minority. This is exactly the outcome we communicated to investors when we went public, and it positions DTI with the trading liquidity and broad ownership profile of a fully independent public company.

在該分配完成後，我們流通在外的大多數股份（約90%）目前由公開流通股（public float）持有，而前保薦人與內部人士合計持有低雙位數比例的少數股權。這正是我們上市時向投資人所溝通的結果，並使DTI具備一家完全獨立上市公司應有的交易流動性與廣泛的股權結構。

You can find additional details around our updated shareholder composition in the investor presentation we posted to the investor relations section of our website on slide number 28.

關於更新後的股東結構，您可在我們網站投資人關係專區所發布的投資人簡報中（第28頁）找到更多細節。

Turning to our geographic segment mix, our Eastern Hemisphere segment continued to be an important contributor in the first quarter, and we expect its contribution to grow as the year progresses. The growth is supported by ongoing adoption of our ClearPath technology, deep casing tools momentum, and rising drill and ream utilization across complex Middle East wells.

再看我們的地理區隔組合，東半球區隔在第一季持續是重要貢獻來源，我們預期其貢獻將隨著年度推進而成長。此成長受多項因素支撐，包括ClearPath技術持續被採用、深套管工具（deep casing tools）動能，以及在複雜的中東井況中鑽擴（drill and ream）使用率提升。

As we disclosed in yesterday's earnings release, we are reaffirming our 2026 full-year guidance ranges. 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. And finally, we continue to expect 2026 adjusted free cash flow in the range of $17 million to $22 million.

如我們在昨天的財報新聞稿中所揭露，我們重申2026年全年指引區間。2026年營收預期介於1.55億至1.70億美元。調整後EBITDA預期介於3,500萬至4,500萬美元。最後，我們仍預期2026年調整後自由現金流介於1,700萬至2,200萬美元。

These ranges reflect our previously communicated assumption of a relatively soft first half with improvement building in the second half of the year. Despite the ongoing uncertainty surrounding our industry as it relates to supply and demand dynamics, we remain confident in our full-year trajectory.

這些區間反映了我們先前所溝通的假設：上半年相對疲弱、下半年逐步改善。儘管產業在供需動態方面仍存在不確定性，我們對全年走勢仍保持信心。

Also of note is that our ranges contemplate our current CapEx plan. However, as I mentioned earlier, we are actively evaluating additional targeted investments to support international growth opportunities in our technologically differentiated product lines, such as our ClearPath stabilizers and sleeves.

另外值得一提的是，我們的區間已納入目前的資本支出計畫。然而，如我先前所提，我們正積極評估額外的精準投資，以支持我們在技術差異化產品線上的國際成長機會，例如ClearPath扶正器（stabilizers）與套筒（sleeves）。

To the extent we choose to accelerate investment in these areas to support customer orders, we may land at the lower end of our adjusted free cash flow range. Importantly, we view these customer-sponsored initiatives as attractive, high-return uses of capital that will support durable revenue growth in 2026 and beyond as we meet our customers' needs in the anticipated upcycle.

若我們選擇加速在這些領域的投資以支援客戶訂單，我們的調整後自由現金流可能落在指引區間的下緣。重要的是，我們將這些由客戶支持的計畫視為具吸引力且高報酬的資本運用，將在我們滿足客戶需求、迎接預期景氣上行之際，支持2026年及其後的持續性營收成長。

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

以上為我的財務回顧與展望部分。接下來我將把電話會議交回給Wayne作結語。

Thank you, David. Having largely completed the integration work over the past year, DTI now operates as a single unified company anchored by our OneDTI platform. Common systems, processes, and our compass asset management backbone have been essential in managing our global footprint, and the platform we have built is truly a strategic asset.

謝謝你，David。在過去一年大致完成整合作業後，DTI目前以OneDTI平台為核心，作為一家單一且整合的公司運作。共同的系統、流程，以及我們以Compass資產管理為骨幹的架構，對於管理我們的全球佈局至關重要，而我們所建立的平台確實是一項策略性資產。

OneDTI allows us to deploy capital with greater precision, scale our differentiated technology portfolio across multiple geographies, minimizing fixed costs and integrate future acquisitions on a materially shorter timeline that has historically been possible in our industry.

OneDTI使我們能更精準地配置資本，將我們具差異化的技術組合擴展至多個地理區域，同時將固定成本降至最低，並以相較過往本產業可達成的時間大幅縮短的時程整合未來的併購。

We continue to believe the downhole drilling tool industry is fragmented and in need of consolidation. Our platform positions us to be a more effective acquirer as attractive opportunities present themselves.

我們仍然認為井下鑽井工具產業相當分散，且需要整併。我們的平台使我們在出現具吸引力的機會時，能成為更有效率的收購方。

Now before we open up the lines for questions, I would like to highlight a few key takeaways. We are reaffirming our 2026 full-year guidance ranges. Our first-quarter results are consistent with the seasonally softer first half we had planned for, and we continue to expect a stronger second half supported by technology adoption, an activity increase in major operating areas and rising international utilization.

在我們開放提問之前，我想強調幾項重點。我們重申2026年全年指引區間。我們第一季的結果符合我們規劃中季節性較疲弱的上半年表現，而我們仍預期下半年將更為強勁，並由技術採用、主要營運區域活動增加，以及國際使用率提升所支撐。

Our ClearPath Stabilizer technology is gaining meaningful traction in high-value offshore and complex well markets, domestic and internationally. Our Deep Casing Tools and drilling ring product lines are contributing to our growing Eastern Hemisphere story. These are exactly the differentiated technology-led offerings we strategically plan to scale.

我們的 ClearPath 穩定器技術在高價值離岸與複雜井市場（無論國內或國際）正取得實質進展。我們的深套管工具（Deep Casing Tools）與鑽井環（drilling ring）產品線，正為我們在東半球的成長敘事做出貢獻。這些正是我們策略性規劃要擴大規模的、以差異化技術為主導的產品與解決方案。

Our focused footprint and specialized product lines allow us to navigate Middle East volatility differently from the larger diversified service companies. Our tools remain in demand in the region, and we are continuing to win new work even in a disrupted environment.

我們聚焦的據點布局與專業化產品線，使我們能以不同於大型多元化服務公司的方式，因應中東的波動。我們的工具在該地區仍維持需求，我們也在受干擾的環境中持續贏得新案。

The completion of the sponsor share distribution and the addition of new board members mark a meaningful new chapter for DTI. We are entering this chapter as a fully independent public company with a broader ownership base, enhanced trading liquidity, and a board well-suited to guide our next phase of growth.

完成贊助方股份分配，以及新增董事會成員，標誌著 DTI 一個重要的新篇章。我們將以一家完全獨立的上市公司身分進入此篇章，擁有更廣泛的股東基礎、更佳的交易流動性，並由適合引領我們下一階段成長的董事會提供指導。

Our past M&A activity, our capital discipline, and our differentiated technology portfolio have positioned us to generate resilient results in a choppy market and to capture meaningful upside as conditions improve. We believe a higher forward oil price environment will gradually relieve the pricing compression that has characterized the last several quarters and support a more constructive backdrop for our customers and for DTI.

我們過去的併購活動、資本紀律，以及差異化的技術組合，使我們能在波動市場中產生具韌性的成果，並在環境改善時掌握可觀的上行空間。我們相信，較高的遠期油價環境將逐步緩解過去數季所呈現的價格壓縮，並為我們的客戶與 DTI 提供更具建設性的營運背景。

Finally, I want to address the ongoing conflict in the Middle East as it pertains directly to DTI. This is a fluid situation, and it seems that circumstances change daily. We have experienced some operational disruption, but our tools remain in demand and our team on the ground continues to support our customers with remarkable professionalism under difficult conditions.

最後，我想就與 DTI 直接相關的中東持續衝突做出說明。這是一個變動中的情勢，似乎每天都在改變。我們確實經歷了一些營運上的干擾，但我們的工具仍有需求，且在艱困條件下，我們在當地的團隊仍以卓越的專業精神持續支援客戶。

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 our personnel in the Middle East. Our employees' commitment and dedication have been essential in navigating a constantly evolving environment and are central to the success and future growth we are building together.

我要感謝 DTI 組織中的每一位成員，持續以安全、充滿動力且高效率的方式投入工作，並特別感謝我們在中東的同仁。員工的承諾與投入，對於我們在不斷演變的環境中前行至關重要，也是我們共同打造之成功與未來成長的核心。

With that, we will now take your questions. Operator?

接下來，我們將開始回答各位的提問。接線員？

(Operator Instructions)

(接線員指示)

Steve Ferazani, Sidoti and Company.

Steve Ferazani，Sidoti and Company。

Morning, Wayne. Morning, David. Appreciate all the color on the call. You certainly cover a lot of the topics I wanted to hit on. But Wayne, I guess the surprise negative number to us in the quarter was the rental tools margins. I know the revenue was lower, but I'm trying to get a sense of the factors that impacted the tool rental margins, how much of it was straight utilization versus a mix of price, cost and product mix?

早安，Wayne。早安，David。感謝在電話會議上提供這麼多細節。你們確實涵蓋了我想談的許多主題。不過 Wayne，我想我們本季意外的負面數字是租賃工具的毛利率。我知道營收較低，但我想了解影響工具租賃毛利率的因素：其中有多少是單純的使用率問題，還是價格、成本與產品組合等因素的混合影響？

Well, Steve, the soft market conditions in the US and kind of a muted or an early breakup in Canada, which is a -- we have a nice chunk of business there as well, kind of had a double effect on it. We also sometimes have a -- we push back on pricing in many areas and there's a bit of a shuffle in our rental tool business from one client to another. If we push back a little harder, we lose and gain in certain areas.

Steve，美國市場狀況偏弱，加上加拿大的春季解凍期（spring breakup）較為溫和或提早結束——我們在那裡也有相當一部分業務——對此產生了雙重影響。另外，我們在許多領域有時也會對價格採取回應與反制，而我們的租賃工具業務在不同客戶之間也會有一些重新分配。如果我們把價格立場推得更強硬一些，就會在某些領域有失有得。

So we're trying to be the price maker instead of the price taker. And, given the soft and flattened market in North America, that creates its own set of challenges. And then there's, the muted effect of the war in the Middle East. We had some momentum gaining there, but it just kind of flattened that out. But we're still holding pretty steady there.

因此，我們努力成為定價者（price maker），而不是被動接受價格的一方（price taker）。在北美市場疲弱且趨於平坦的情況下，這本身就帶來一系列挑戰。此外，中東戰事也帶來較為溫和的影響。我們原本在那裡累積了一些動能，但戰事使其趨於平緩。不過我們在那邊仍維持相當穩定。

I guess the question is this, because if I -- to get to your EBITDA guide full year based on your midpoint of your revenue guide, the tool rental margins have to be more like they were last year by our model, is that fair and is that achievable based on the margin you reported in Q1?

我想問題是這樣：如果我以你們營收指引的中位數來推算，要達到全年 EBITDA 指引，我們模型顯示工具租賃毛利率必須更接近去年水準；這樣理解合理嗎？而以你們第一季所報告的毛利率來看，這是否可達成？

Yeah. We have some momentum and some new products. We feel like there is going to be an uptick in the North America market. I think that's probably more likely than not, and that will relieve some of the compression that's going on. I think we'll have an activity increase, and we have a hold pricing indexes and possibly get some gains in certain areas, depending on the products mix.

是的。我們有一些動能，也有一些新產品。我們認為北美市場將會回升。我覺得這種情況更可能發生，並將緩解目前的部分壓縮。我認為活動量會增加，而我們也能維持價格指數，並可能在某些領域取得一些改善，取決於產品組合。

But I think we're -- I think we have realistic optimism for what we see the rest of the year. And the first quarter does not define exactly the structure and the capability of where we're going and what we're doing, but it is a soft quarter without a doubt.

但我認為，基於我們對今年剩餘時間的觀察，我們抱持務實的樂觀。第一季並不能完全界定我們未來要走的方向、結構與能力，但毫無疑問這是一個偏弱的季度。

Got it. Can you talk a little bit about, can you quantify at all the impact of the early spring breakup and then just how much you get back in 2Q?

了解。你能否談談並量化一下春季解凍期提早的影響，以及第二季大概能回補多少？

I don't know if I could really quantify that exactly. Just generally, we usually see most of the softness occur starting in late March or April, and it happened earlier than March, right? So those cycles tend to affect your revenues differently each year, but it's usually the effect is in the second quarter, but we had more of it in the first quarter.

我不確定是否能非常精確地量化。一般而言，我們通常在三月下旬或四月開始看到大部分的疲弱，但這次是在三月之前就發生了，對吧？因此，這些週期每年對營收的影響都不太一樣；通常影響會落在第二季，但這次第一季承受的比例更高。

And then we're hoping that some of the newer products we're launching, we get higher margins on. So that's helped offset some of the negativity in some of the other products. So one of the good things about having new technologies layered on top of our existing Rental Tool fleet is it gives you that balance. And, we haven't had too much of a margin dilution on the overall rental fleet.

另外，我們也希望正在推出的一些新產品能帶來較高毛利。因此，這有助於抵消其他產品的一些負面影響。在我們既有的租賃工具機隊之上叠加新技術的一個好處，是能提供這種平衡。而且，我們整體租賃機隊的毛利稀釋並不嚴重。

Got it. Can you talk about product adoption with some of these, and you pointed out some of the technology you've acquired, primarily in 2024. I know ClearPath came from your last acquisition, as I recall, EDE projects, deep casing tools, drill and ream, those are all acquired technologies in terms of how you've used them on your platform and adoption.

了解。你能談談其中一些產品的採用情況嗎？你也提到你們主要在 2024 年收購的一些技術。我記得 ClearPath 來自你們上一筆收購；EDE 專案、深套管工具、drill and ream，這些都是收購而來的技術——就你們如何在平台上運用以及採用情況而言。

Sure. We're getting a lot of traction in the high-value offshore markets with our ClearPath stabilization system. We've gone more from a product approach to a system approach, and that's really gaining solid traction for us in the North Sea and high-value operations some parts of Asia and the Gulf of America. So that's been helpful.

當然可以。我們的 ClearPath 穩定系統在高價值離岸市場獲得了很大的採用動能。我們已從單一產品的思維轉向系統化方案的思維，這在北海、亞洲部分地區以及美洲灣（Gulf of America）的高價值作業中，正為我們帶來扎實的進展。因此這很有幫助。

When we acquired STPI, we acquired back a couple of years ago, we acquired a large fleet of tools and infrastructure in the Middle East. And given the softness in Saudi and some of the other areas for the last year or so, we've been able to rebound that quite nicely, and it's gaining steady traction in those markets with our commercial team and our focus on high-value selling.

當我們收購 STPI（我們在幾年前收購的），我們在中東取得了一大批工具機隊與基礎設施。鑑於沙烏地以及其他一些地區在過去一年左右的疲弱，我們已能相當不錯地讓業務回升；在我們商務團隊的推動以及聚焦高價值銷售之下，這些市場正持續穩健地取得進展。

We've been able to significantly increase utilization and the revenue in that area from where it started after the acquisition, so that is getting traction. Also our deep casing product lines, the Mechlok Swivel is one particular product that is part of our portfolio there, it's gaining traction in multiple markets in Africa, in the Middle East, in the North Sea and Asia, and also our turbine tool product, which is the deep casing products, a TurboCaser or TurboRunner is resurging in Saudi and other markets where historically we've done very well.

我們已能夠在收購後，將該領域的設備利用率與營收相較於起步時大幅提升，因此正逐步取得進展並開始見到成效。另外，我們的深套管產品線中，Mechlok Swivel（機械鎖定旋轉接頭）是我們產品組合中的一項特定產品，正在非洲、中東、北海與亞洲等多個市場獲得更多採用；同時，我們的渦輪工具產品（屬於深套管產品），也就是 TurboCaser 或 TurboRunner，正在沙烏地阿拉伯以及其他我們過去表現一向很好的市場重新回溫。

And as a result of those rig count increases and activity increases, we're doing better and better each month-over-month, quarter-over-quarter, and I think we'll see those results throughout the year. The war and any more disruptions notwithstanding.

因此，隨著鑽機數增加與作業活動提升，我們每月較前月、每季較前季都表現得越來越好，我認為我們將在全年持續看到這些成果。當然，前提是戰爭及任何進一步的干擾不再發生。

Right, fair enough. So when I looked at your product sale line, that was, there was some benefit from the acquisition as opposed to just being a straight hire lost in tool revenue. Am I right about that?

好的，合理。所以當我看你們的產品銷售線時，相較於只是工具營收因人員流失而直接下滑，收購似乎帶來了一些助益。我這樣理解對嗎？

David?

David？

Yeah, Steve. Yeah. Definitely. We definitely saw, I think we alluded to earlier, where our deep casing tool product sales had bottomed out much earlier. And we saw some we're starting to see a little bit of pickup in that as the customers have depleted their inventories. And with Aramco picking up some rigs, we're seeing some more and more opportunity with that, and that improved a little bit in Q1, and we look to see continued improvement as well throughout the rest of 2026.

是的，Steve。是的。絕對是。我們確實看到——我想我們先前也提到過——我們的深套管工具產品銷售其實更早就已觸底。隨著客戶庫存消耗殆盡，我們開始看到一些回升跡象。而且隨著 Aramco 增加一些鑽機，我們看到越來越多的機會，這在第一季已有些改善；我們也預期在 2026 年剩餘期間會持續改善。

Yes, certainly, that line was much higher than we were expecting, so congratulations on getting that back on track. In terms of you both commented on CapEx and the plans for the year, obviously, higher CapEx can be looked at as clearly a positive if there's more traction in getting more of those higher value add equipment out there. What's the determination at this point? Is that going to be second-half activity driven to get to whether you're at the higher end of that guidance range?

是的，當然，那條線的表現遠高於我們的預期，所以恭喜你們把它拉回正軌。就你們兩位提到的資本支出（CapEx）與年度計畫而言，顯然若能讓更多高附加價值設備取得更多採用，更高的 CapEx 也可以被視為正面訊號。目前的判斷是什麼？是否會由下半年活動量來驅動，決定你們是否會落在該指引區間的較高端？

Yeah. That's another thing is, we do front load a lot of our, investments and trying to build momentum into each year, which is how we've always run the business. But we see a lot of opportunities at the second half and moving into 2027 with, putting our, recovery income that comes from our loss and holds and DBRs into what we call relevant fleet. Investments and some new technology investments to sustain our entire fleet. So that has been moving a solid direction.

是的。另外一點是，我們會在每年年初先行投入相當多的投資，以建立當年度的動能，這也是我們一貫的營運方式。但我們看到下半年以及邁入 2027 年有很多機會，會把因損失與持有（loss and holds）以及 DBR 所帶來的回收收入，投入到我們所稱的「相關機隊」（relevant fleet）。也會進行一些投資與新技術投資，以維持我們整體機隊的競爭力。因此這一直在朝著穩健的方向推進。

So we have some opportunities that present themselves that create a significant increase in revenues, so we have to make strategic decisions that, I think David mentioned, we might have to invest in some more tools to get longer-term contracts, and that may lower -- put our free cash flow forecast in the lower end of our guidance, but we're mindful of making sure we stay within the ranges that we expect.

因此，我們確實有一些機會一旦出現就可能帶來營收的顯著提升，所以我們必須做出策略性決策；正如 David 提到的，我們可能需要投資更多工具以取得較長期合約，而這可能會使我們的自由現金流預測落在指引區間的較低端，但我們也會留意確保仍維持在我們預期的區間內。

Are you seeing your offshore mix growing at this point?

你們目前看到離岸（offshore）占比在成長嗎？

Yes.

是的。

Excellent. All right. That's what I got. Thanks, everyone.

很好。好。我就這些。謝謝各位。

Thanks, Steve.

謝謝你，Steve。

Thanks, Steve.

謝謝你，Steve。

Colby Sasso, Daniel Energy Partners.

Colby Sasso，Daniel Energy Partners。

Hi. Thanks for having me on. Just a quick question for me. You touched on it a bit earlier, but with seemingly higher reactivity in North America in the back half of the year, and with the ongoing geopolitical tension in the Middle East, how is DTI evaluating like investment opportunities across its global portfolio with Africa, North America, the Middle East, just how are you thinking about all the different regions there?

嗨。謝謝讓我加入。我這邊只有一個簡短問題。你們稍早有稍微提到，但在看起來北美在今年下半年活動反應更強、且中東地緣政治緊張持續的情況下，DTI 如何評估其全球投資組合中的投資機會——包括非洲、北美、中東——你們是如何看待各個區域的？

Well, that's a great question, but what we looked at is the highest return opportunity and highest value for, and having a sustainable and repeatable income stream from each of those markets. It's our belief that if we continue to have a durable higher oil price metric and a durable [net] gas price in a forward strip looking forward, our customers in the States and North America will increase activity, but they will do it mindfully, thoughtfully, and I think in a manner that's somewhat organized.

嗯，這是個很好的問題。我們所看的，是各市場中報酬率最高、價值最高的機會，並且要能在各市場建立可持續且可重複的收入來源。我們相信，如果未來遠期曲線（forward strip）所反映的油價指標能維持在較高且具韌性的水準，且（淨）天然氣價格也同樣具韌性，我們在美國與北美的客戶將會增加活動，但他們會以審慎、周全的方式進行，我認為也會以相對有秩序的方式推進。

But we have some really good opportunities in Norway, which is really a growing market for us. And the Middle East, despite, the Middle East conflict, Saudi and UAE have still been quite sustainable and growing upward and figuring out ways to continue with their activity. And we are participating in that nicely.

不過，我們在挪威有一些非常好的機會，對我們而言那是一個正在成長的市場。而中東方面，儘管有中東衝突，沙烏地阿拉伯與阿聯酋仍相當穩健並持續向上成長，也在想辦法持續推進其活動。我們也很好地參與其中並受益。

There are some opportunities in Africa in the deep water and offshore operations there, but those are challenging markets to deal with in multiple countries and different rules and regs and type of customers. So we're navigating that carefully.

非洲在深水與離岸作業方面也有一些機會，但那是一些較具挑戰的市場，涉及多個國家、不同的規則與法規，以及不同類型的客戶。因此我們會謹慎地加以因應與推進。

And Asia is, I think, another bright spot for us. We've spent a lot of time and effort laying the foundation for how that is going to play out for us because our high value. Products that we just mentioned lend themselves well to solving complex world war problems, and those exist in all those markets. So I think we've aligned ourselves well with the international expansion, continuing to grow, and if the upcycle in North America continues, we'll enjoy that tide rising tide as well.

而亞洲我認為也是我們的另一個亮點。我們投入了大量時間與精力打好基礎，規劃未來將如何在那裡展開，因為我們剛提到的高價值產品非常適合用來解決複雜的全球作業問題，而這些問題在所有那些市場都存在。產品如我們剛提到的，非常適合用來解決複雜的全球作業問題，而這些問題在所有那些市場都存在。因此我認為我們已很好地與國際擴張對齊並持續成長；若北美的上行週期持續，我們也會同樣受惠於水漲船高的趨勢。

Thank you. That's all for me.

謝謝。我這邊就到這裡。

There are no further questions at this time, I would like to turn the conference back over to Wayne for closing remarks.

目前沒有進一步的問題，我想把電話會議交回給 Wayne 作結語。

We appreciate everyone's interest in Drilling Tools International, and we'll continue our journey forward, and we'll look forward to the next call. Thank you for your interest, and thank you for participating.

我們感謝各位對 Drilling Tools International 的關注，我們將持續向前推進我們的旅程，也期待下一次的電話會議。謝謝各位的關注，也謝謝各位參與。

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

謝謝。今天的電話會議到此結束。您現在可以中斷連線，並感謝您的參與。