Cactus Announces Third Quarter 2025 Results

HOUSTON--( BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the third quarter of 2025.

Third Quarter Highlights

Financial Summary

Three Months Ended

September 30,

June 30,

September 30,

2025

2024

(in thousands)

Revenues

263,954

273,575

293,181

Operating income (3)

61,234

60,805

76,792

Operating income margin

23.2

22.2

26.2

Net income

50,188

49,047

62,437

Net income margin

19.0

17.9

21.3

Adjusted net income (1)

53,719

53,249

63,479

Adjusted net income margin (1)

20.4

19.5

21.7

Adjusted EBITDA (2)

86,943

86,677

100,370

Adjusted EBITDA margin (2)

32.9

31.7

34.2

Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in its operating subsidiary at the beginning of the period. Additional information regarding non-GAAP financial measures, including the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables.

Operating income reflects certain expenses related to the FlexSteel acquisition, including expenses related to the remeasurement of the earn-out liability associated with the FlexSteel acquisition and intangible amortization expenses related to purchase price accounting. See the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables for further details.

Scott Bender, CEO and Chairman of the Board of Cactus, commented, “I am proud of our performance in the third quarter, which was highlighted by stronger Pressure Control margins and higher Spoolable Technologies revenues and margins than anticipated. Pressure Control revenues declined in-line with expectations while margins improved due to our prompt action to right-size the organization for current activity levels. We also benefitted from lower legal expenses. Spoolable Technologies revenues benefitted from increased international sales.”

“We anticipate that the U.S. land rig count will be flat to slightly down in the fourth quarter of 2025. Notwithstanding lower seasonal activity late in the year, we expect Pressure Control revenues to be relatively flat in the fourth quarter. We expect our Spoolable Technologies segment to experience a typical seasonal decline late in the year.”

Mr. Bender concluded, “The third quarter demonstrated our focus on cost control and our deep relationships with our customer base. The market outlook and domestic activity levels remain tepid, and I am proud of our team's efforts through the year to retain industry-leading profitability in the face of the volatile tariff environment. Integration planning work regarding the acquisition of a 65% interest in Baker Hughes' Surface Pressure Control business is progressing well, and we now anticipate closing in early 2026.”

Segment Performance

We report two business segments, Pressure Control and Spoolable Technologies. Corporate and other expenses not directly attributable to either segment are presented separately as Corporate and Other expenses.

Pressure Control

Third quarter 2025 Pressure Control revenue decreased $11.1 million, or 6.2%, sequentially, primarily due to lower sales of wellhead and production related equipment resulting from reduced activity levels in the quarter and lower rental revenues. Operating income increased $2.2 million, or 5.2%, sequentially, with margins increasing 290 basis points due to the implementation of cost reduction initiatives combined with reduced legal expenses. Adjusted Segment EBITDA increased $2.1 million, or 3.9%, sequentially, with Adjusted Segment EBITDA margins increasing 320 basis points.

Spoolable Technologies

Third quarter 2025 Spoolable Technologies revenues decreased $1.0 million, or 1.0%, sequentially, due to lower domestic activity levels, offset by strong international sales. Operating income decreased $2.2 million, or 8.0%, sequentially, on lower volume and higher input costs, while margins decreased 210 basis points. Adjusted Segment EBITDA was lower by $2.0 million, or 5.2%, sequentially, with Adjusted Segment EBITDA margins declining 160 basis points.

Corporate and Other Expenses

Third quarter 2025 Corporate and Other expenses declined $0.5 million sequentially, primarily due to lower transaction and integration expenses. Third quarter Corporate and Other expenses contained $3.2 million of transaction-related expenses related to the announced plan to acquire a majority interest in Baker Hughes' Surface Pressure Control business, $0.3 million lower than the second quarter.

Liquidity, Capital Expenditures and Other

As of September 30, 2025, the Company had $445.6 million of cash and cash equivalents, no bank debt outstanding, and $223.2 million of availability on our revolving credit facility. Operating cash flow was $61.8 million for the third quarter of 2025. During the third quarter, the Company made dividend payments and associated distributions of $11.2 million.

Net capital expenditures were $8.2 million during the third quarter of 2025, primarily due to upgrades within our Spoolable Technologies segment. For the full year 2025, the Company still expects net capital expenditures to be in the range of $40 to $45 million, inclusive of capital directed towards supply chain diversification efforts and further efficiency improvements in the Baytown manufacturing facility.

As of September 30, 2025, Cactus had 68,840,127 shares of Class A common stock outstanding (representing 86.2% of the total voting power) and 11,007,337 shares of Class B common stock outstanding (representing 13.8% of the total voting power).

Quarterly Dividend

The Board of Directors has approved a quarterly cash dividend of $0.14 per share of Class A common stock with payment to occur on December 18, 2025 to holders of record of Class A common stock at the close of business on December 1, 2025. A corresponding distribution of up to $0.14 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC.

Conference Call Details

The Company will host a conference call to discuss financial and operational results tomorrow, Thursday October 30, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).

The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call.

An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.

About Cactus, Inc.

Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers throughout North America and Australia, while also providing equipment and services in select international markets.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “plan,” “should,” “estimate,” “continue,” “potential,” “outlook,” “will,” “hope,” “opportunity,” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(in thousands, except per share data)

Revenues

Pressure Control

168,714

185,099

538,763

547,319

Spoolable Technologies

95,240

108,155

284,043

310,966

Corporate and other (1)

—

(73

)

(4,958

)

(592

)

Total revenues

263,954

293,181

817,848

857,693

Operating income

Pressure Control

44,523

52,537

141,189

159,881

Spoolable Technologies

25,806

32,907

77,735

79,341

Total segment operating income

70,329

85,444

218,924

239,222

Corporate and other expenses

(9,095

)

(8,652

)

(28,273

)

(20,061

)

Total operating income

61,234

76,792

190,651

219,161

Interest income, net

2,977

2,062

7,820

4,156

Other income, net

221

—

221

—

Income before income taxes

64,432

78,854

198,692

223,317

Income tax expense

14,244

16,417

45,352

48,006

Net income

50,188

62,437

153,340

175,311

Less: net income attributable to non-controlling interest

8,564

12,510

27,164

36,591

Net income attributable to Cactus, Inc.

41,624

49,927

126,176

138,720

Earnings per Class A share - basic

0.61

0.75

1.84

2.10

Earnings per Class A share - diluted (2)

0.60

0.74

1.83

2.09

Weighted average shares outstanding - basic

68,681

66,563

68,465

66,030

Weighted average shares outstanding - diluted (2)

69,196

80,190

68,877

79,777

(1)

Represents the elimination of inter-segment revenue for sales from our Pressure Control segment to our Spoolable Technologies segment.

(2)

Dilution for the three and nine months ended September 30, 2025, excludes 11.2 million and 11.3 million shares of Class B common stock, respectively, as the effect would be antidilutive. Dilution for the three and nine months ended September 30, 2024 includes an additional $12.9 million and $37.8 million, respectively of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 26%, and 13.0 million and 13.5 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

September 30,

December 31,

2025

2024

(in thousands)

Assets

Current assets

Cash and cash equivalents

445,614

342,843

Accounts receivable, net

201,382

191,627

Inventories

271,278

226,796

Prepaid expenses and other current assets

10,438

13,422

Total current assets

928,712

774,688

Property and equipment, net

346,616

346,008

Operating lease right-of-use assets, net

20,870

24,094

Intangible assets, net

152,001

163,991

Goodwill

203,028

Deferred tax asset, net

199,223

219,003

Investment in unconsolidated affiliates

5,692

—

Other noncurrent assets

8,634

8,516

Total assets

1,864,776

1,739,328

Liabilities and Equity

Current liabilities

Accounts payable

67,248

72,001

Accrued expenses and other current liabilities

75,878

75,416

Current portion of liability related to tax receivable agreement

20,297

Finance lease obligations, current portion

7,394

7,024

Operating lease liabilities, current portion

5,052

4,086

Total current liabilities

175,869

178,824

Deferred tax liability, net

2,449

2,868

Liability related to tax receivable agreement, net of current portion

261,367

258,376

Finance lease obligations, net of current portion

10,329

10,528

Operating lease liabilities, net of current portion

16,875

20,078

Other noncurrent liabilities

4,475

Total liabilities

471,364

475,149

Equity

1,393,412

1,264,179

Total liabilities and equity

1,864,776

1,739,328

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

Nine Months Ended September 30,

2025

2024

(in thousands)

Cash flows from operating activities

Net income

153,340

175,311

Reconciliation of net income to net cash provided by operating activities

Depreciation and amortization

47,752

45,124

Deferred financing cost amortization

839

840

Stock-based compensation

18,475

15,943

Provision for expected credit losses

874

378

Inventory obsolescence

2,439

2,738

Gain on disposal of assets

(2,101

)

(824

)

Deferred income taxes

22,678

12,606

Change in fair value of earn-out liability

—

16,318

Gain from revaluation of liability related to tax receivable agreement and other

(221

)

—

Changes in operating assets and liabilities:

Accounts receivable

(9,463

)

8,324

Inventories

(46,561

)

(16,781

)

Prepaid expenses and other assets

2,350

1,065

Accounts payable

(5,446

)

2,871

Accrued expenses and other liabilities

1,193

32,050

Payments pursuant to tax receivable agreement

—

(15,277

)

Payment of earn-out liability

—

(31,168

)

Net cash provided by operating activities

186,148

249,518

Cash flows from investing activities

Investment in unconsolidated affiliate

(6,000

)

—

Capital expenditures and other

(32,351

)

(27,042

)

Proceeds from sales of assets

3,626

2,991

Net cash used in investing activities

(34,725

)

(24,051

)

Cash flows from financing activities

Payment of contingent consideration

—

(5,960

)

Payments on finance leases

(5,823

)

(5,881

)

Dividends paid to Class A common stock shareholders

(27,793

)

(24,821

)

Distributions to members

(10,303

)

(10,444

)

Repurchases of shares

(5,914

)

(9,321

)

Net cash used in financing activities

(49,833

)

(56,427

)

Effect of exchange rate changes on cash and cash equivalents

1,181

544

Net increase in cash and cash equivalents

102,771

169,584

Cash and cash equivalents

Beginning of period

342,843

133,792

End of period

445,614

303,376

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin

(unaudited)

Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin are not measures of net income as determined by GAAP but they are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in its operating subsidiary at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by total revenue. The Company believes this supplemental information is useful for evaluating performance period over period.

Three Months Ended

September 30,

June 30,

September 30,

2025

2024

(in thousands, except per share data)

Net income

50,188

49,047

62,437

Adjustments:

Severance expenses (1)

247

177

—

Gain from revaluation of liability related to tax receivable agreement and other (2)

(221

)

—

Transaction related expenses (3)

3,170

3,502

2,793

Intangible amortization expense (4)

3,997

Remeasurement loss on earn-out liability (5)

—

138

Income tax expense differential (6)

(3,662

)

(3,474

)

(5,886

)

Adjusted net income

53,719

53,249

63,479

Diluted earnings per share, as adjusted

0.67

0.66

0.79

Weighted average shares outstanding, as adjusted (7)

80,355

80,203

80,190

Revenue

263,954

273,575

293,181

Net income margin

19.0

17.9

21.3

Adjusted net income margin

20.4

19.5

21.7

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents non-cash adjustments for the revaluation of the Tax Receivable Agreement ("TRA") liability and the tax indemnity receivable asset related to the FlexSteel acquisition.

(3)

Reflects transaction fees and expenses recorded in connection with the announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business and other growth initiatives.

(4)

(5)

Represents adjustments for the remeasurement of the earn-out liability associated with the FlexSteel acquisition.

(6)

(7)

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin

(unaudited)

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below.

Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company’s business.

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2025

2024

2025

2024

(in thousands)

Net income

50,188

49,047

62,437

153,340

175,311

Interest income, net

(2,977

)

(2,518

)

(2,062

)

(7,820

)

(4,156

)

Income tax expense

14,244

14,276

16,417

45,352

48,006

Depreciation and amortization

16,188

15,886

15,077

47,752

45,124

EBITDA

77,643

76,691

91,869

238,624

264,285

Gain from revaluation of liability related to tax receivable agreement and other (1)

(221

)

—

(221

)

—

Severance expenses (2)

247

177

—

424

—

Transaction related expenses (3)

3,170

3,502

2,793

10,159

2,793

Remeasurement loss on earn-out liability (4)

—

138

—

16,318

Stock-based compensation

6,104

6,307

5,570

18,475

15,943

Adjusted EBITDA

86,943

86,677

100,370

267,461

299,339

Revenue

263,954

273,575

293,181

817,848

857,693

Net income margin

19.0

17.9

21.3

18.7

20.4

Adjusted EBITDA margin

32.9

31.7

34.2

32.7

34.9

(1)

Represents non-cash adjustments for the revaluation of the TRA liability and the tax indemnity receivable asset related to the FlexSteel acquisition.

(2)

Represents non-routine charges related to severance benefits.

(3)

Reflects transaction fees and expenses recorded in connection with the announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business and other growth initiatives.

(4)

Represents adjustments for the remeasurement of the earn-out liability associated with the FlexSteel acquisition.

Cactus, Inc. – Supplemental Information

Reconciliation of GAAP to non-GAAP Financial Measures

Adjusted Segment EBITDA and Adjusted Segment EBITDA margin

(unaudited)

Adjusted Segment EBITDA and Adjusted Segment EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines Adjusted Segment EBITDA as segment operating income excluding depreciation and amortization and the other items outlined below, in each case, that are attributable to the segment.

Cactus management believes Adjusted Segment EBITDA is useful because it allows management to more effectively evaluate the Company’s segment operating performance and compare the results of its segment operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. Adjusted Segment EBITDA should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted Segment EBITDA margin as Adjusted Segment EBITDA divided by total segment revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company’s business.

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2025

2024

2025

2024

(in thousands)

Pressure Control

Revenue

168,714

179,772

185,099

538,763

547,319

Operating income

44,523

42,333

52,537

141,189

159,881

Depreciation and amortization expense

7,211

7,138

6,592

21,384

20,065

Severance expenses (1)

177

—

354

—

Stock-based compensation

3,264

3,432

2,837

10,078

7,963

Adjusted Segment EBITDA

55,175

53,080

61,966

173,005

187,909

Operating income margin

26.4

23.5

28.4

26.2

29.2

Adjusted Segment EBITDA margin

32.7

29.5

33.5

32.1

34.3

Spoolable Technologies

Revenue

95,240

96,225

108,155

284,043

310,966

Operating income

25,806

28,053

32,907

77,735

79,341

Depreciation and amortization expense

8,977

8,748

8,485

26,368

25,059

Severance expenses (1)

—

Stock-based compensation

1,128

1,146

1,015

3,283

3,089

Remeasurement loss on earn-out liability (2)

—

138

—

16,318

Adjusted Segment EBITDA

35,979

37,947

42,545

107,454

123,807

Operating income margin

27.1

29.2

30.4

27.4

25.5

Adjusted Segment EBITDA margin

37.8

39.4

39.3

37.8

39.8

Corporate and Other

Revenue (3)

—

(2,422

)

(73

)

(4,958

)

(592

)

Corporate and other expenses

(9,095

)

(9,581

)

(8,652

)

(28,273

)

(20,061

)

Severance expenses (1)

—

Stock-based compensation

1,712

1,729

1,718

5,114

4,891

Transaction related expenses (4)

3,170

3,502

2,793

10,159

2,793

Adjusted Corporate EBITDA

(4,211

)

(4,350

)

(4,141

)

(12,998

)

(12,377

)

Total revenue

263,954

273,575

293,181

817,848

857,693

Total operating income

61,234

60,805

76,792

190,651

219,161

Total operating income margin

23.2

22.2

26.2

23.3

25.6

Total Adjusted EBITDA

86,943

86,677

100,370

267,461

299,339

Total Adjusted EBITDA margin

32.9

31.7

34.2

32.7

34.9

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents adjustments for the remeasurement of the earn-out liability associated with the FlexSteel acquisition.

(3)

Represents the elimination of inter-segment revenue for sales from our Pressure Control segment to our Spoolable Technologies segment.

(4)

Reflects transaction fees and expenses recorded in connection with the announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business and other growth initiatives.