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8-K ·Filed Oct 8, 2026

DTI

Drilling Tools International Corp
BULLISH
Impact 7/10
Horizonmonths Processed19d ago SEC0001193125-26-418058
8-K context-dependent: Items 7.01
Actionable Insight ▲ Bullish

Watch for the S-4 registration statement filing and stockholder vote timeline. The 2.2x pro forma leverage at closing is manageable but elevated for DTI's comfort zone — monitor Q3 2026 earnings call for potential guidance revision and any updates on debt financing terms. The Loggie family's 30% retained stake creates strong alignment and reduces risk of seller overhang.

DirectionBullish
Confidencehigh
Horizonmonths
Latest settled — T+5d ⚠ clustered
DTI ▼ -9.27% at T+5d
LONG call ✗ call lost -9.27% · α vs SPY -7.30% · entry $2.05 → $1.86
Next anchor: T+20d in 9d
Latest observation: T+10 -12.49% FF3 residual α
Entry = T+0 close
Oct 8, 2026
via day close
T+1d
-3.90%
call -3.90% · α -3.84%
$1.97
settled 18d ago
T+5d
-9.27%
call -9.27% · α -7.30%
$1.86
settled 12d ago
T+20d
Pending
in 9d
T+60d
Pending
in 2mo

Price Chart

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Executive Summary

DTI announced a definitive agreement to acquire Saltire Energy for approximately $80 million in cash and 17.4 million shares of DTI common stock. Saltire adds ~$50.4M in run-rate revenue and ~$22.5M in adjusted EBITDA (45% margin), transforming DTI's Eastern Hemisphere exposure from ~18% to ~40% of pro forma revenue. The deal is expected to close in Q1 2027, is immediately accretive to adjusted EBITDA margin and adjusted free cash flow per share, and does not depend on synergies.

Key Facts

  • Total consideration: ~$80M cash + 17.4M fixed shares of DTI common stock
  • Saltire expected to add ~$50.4M run-rate revenue and ~$22.5M adjusted EBITDA (45% margin)
  • Pro forma combined company: ~$205M-$220M revenue, ~$58M-$68M adjusted EBITDA (28%-31% margin), ~$33M-$38M adjusted free cash flow
  • Transaction increases adjusted free cash flow by more than 80% based on 2026 guidance
  • Pro forma net debt to trailing 12-month adjusted EBITDA of ~2.2x at closing, expected to reduce to ~1x within 24 months
  • Loggie family (Saltire founders) retaining ~30% of the combined company
  • Combined rental fleet grows from ~63,000 to more than 100,000 tools
  • Deal valued at ~5.5x Saltire's run-rate adjusted EBITDA
  • Transaction unanimously approved by both Boards; expected to close in Q1 2027

Financial Impact

~$80M cash + 17.4M shares of DTI common stock; pro forma revenue $205M-$220M; adjusted EBITDA $58M-$68M; adjusted free cash flow $33M-$38M

revenueadjusted EBITDAadjusted free cash flowleveragedilution

Risk Factors

  • Closing conditions include regulatory approvals and DTI stockholder approval — deal could be delayed or fail
  • Pro forma leverage of ~2.2x at closing is at the upper end of DTI's historic comfort range
  • Integration risk combining two businesses across distinct geographies
  • Middle East geopolitical disruption could impact Saltire's operations
  • Share issuance of 17.4M shares creates dilution for existing DTI shareholders

Investment Themes

Industrials & Manufacturing

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001193125-26-418058
Document: d918265d8k.htm0001193125-26-418058
Document: 0001193125-26-418058-index-headers.html0001193125-26-418058
Document: 0001193125-26-418058-index.html0001193125-26-418058
Document: 0001193125-26-418058.txt0001193125-26-418058
15 reports for DTI
Performance horizon
50% Hit rate @ T+1 3 of 6 directional calls Went positive at some point 3 of 6 best @ T+60▲ +24.33%May 7, 2026
Filters
Rows
Reports for DTI — sortable, filterable
TypeNow
Oct 22, 2026
5d ago
S-4/A
BEARISH ★ 6/10
$1.70 $1.73▼ −1.47%▼ −1.99%$1.66 (+2.35%)
Oct 14, 2026
12d ago
SC 13G/A
NEUTRAL ★ 2/10
$1.67 $1.86▲ +11.38%▲ +12.48%$1.66 (−0.60%)
Oct 13, 2026
14d ago
8-K
NEUTRAL ★ 4/10
$2.02 $1.81▼ −10.40%▼ −9.32%$1.66 (−17.82%)
Oct 9, 2026
18d ago
S-4
MIXED ★ 6/10
$1.97 $2.02▲ +2.54%▲ +2.55%$1.66 (−15.74%)
Oct 8, 2026
19d ago
425
BULLISH ★ 7/10
$2.05 $1.97▼ −3.90%▼ −3.84%$1.66 (−19.02%)
Oct 8, 2026
19d ago
8-K
BULLISH ★ 7/10
$2.05 $1.97▼ −3.90%▼ −3.84%$1.66 (−19.02%)
Oct 8, 2026
19d ago
425
BULLISH ★ 7/10
$2.01 $2.05▲ +1.99%▲ +1.39%$1.66 (−17.41%)
Oct 8, 2026
19d ago
8-K
MIXED ★ 6/10
$2.01 $2.05▲ +1.99%▲ +1.39%$1.66 (−17.41%)
Sep 22, 2026
5w ago
Institutional Cluster
BULLISH ★ 4/10
$2.43 $2.44▲ +0.41%▲ +1.13%$1.66 (−31.69%)
Aug 6, 2026
11w ago
Press Release
BEARISH ★ 6/10
$2.28 $2.28· 0.00%▼ −0.03%$1.66 (+27.19%)
Showing 10 of 15

US Market Status

Market Closed — Opens Wed (15h 57m)

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Report published Oct 8, 2026