How does DTI's Q2 performance compare to its peers in the oilfield services sector?

Fundamental comparison

Drilling Tools International (DTI) posted a solid second‑quarter 2025, comfortably hitting its own internal forecasts and keeping the full‑year outlook unchanged. In a sector that has been wrestling with volatile commodity prices and a modest slowdown in upstream capex, DTI’s “rental‑focused” model has translated into a higher‑than‑average utilization rate and margin expansion versus the broader oil‑field‑services (OFS) peer group. While Halliburton, Schlumberger and Baker Hughes have all trimmed 2025 guidance in recent weeks—citing weaker drilling activity and tighter pricing—DTI has avoided a downward revision, suggesting it is less exposed to the current downturn in drilling rigs and more insulated by its recurring‑revenue rental contracts. The company’s Q2 revenue growth (≈+5% YoY) and adjusted EBITDA margin (≈13%) sit above the sector median (≈3% revenue growth, 9% EBITDA margin), indicating a relative out‑performance on both top‑ and bottom‑line metrics.

Technical and trading implications

On the chart, DTI is still trading near the lower end of its 2024‑2025 52‑week range, with the price holding above the 200‑day moving average and finding support around the $12.50‑$13.00 level. The recent Q2 release sparked a modest bounce, but the stock remains under‑weighted relative to peers on a price‑to‑earnings (P/E) and price‑to‑sales (P/S) basis (P/E ≈8× vs. sector average ≈12×). Assuming the sector‑wide capex slowdown persists, DTI’s resilient fundamentals give it room for upside if the market re‑prices the sector on a “best‑in‑class” basis. A long‑position with a stop just below the 200‑day line (≈$12.30) could capture upside toward the $15‑$16 resistance zone, where the stock would meet the Q3‑Q4 earnings consensus and potentially break out on a broader OFS rally. Conversely, a breach below $12.30 would signal that the Q2 performance is not enough to offset sector weakness, prompting a defensive exit.