Cactus Announces Second Quarter 2026 Results

Cactus Announces Second Quarter 2026 Results HOUSTON--( BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the second quarter of 2026.

Second Quarter Highlights

Financial Summary

Three Months Ended

June 30,

March 31,

June 30,

2026

2025

(in thousands)

Revenues

449,528

388,349

273,575

Operating income (3)

83,582

49,504

60,805

Operating income margin

18.6

12.7

22.2

Net income

61,380

40,221

49,047

Net income margin

13.7

10.4

17.9

Adjusted net income (1)

75,113

56,172

53,249

Adjusted net income margin (1)

16.7

14.5

19.5

Adjusted EBITDA (2)

132,780

100,050

86,677

Adjusted EBITDA margin (2)

29.5

25.8

31.7

(1)

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.

(2)

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.

(3)

Operating income reflects certain expenses related to the Cactus International and FlexSteel acquisitions, including expenses related to purchase price fair value adjustments of inventory, fixed assets, backlog and other 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, “The second quarter was a particularly strong period for our business. Order and shipment momentum continued in our Spoolable Technologies segment, and the acceleration of initial deliveries from previously discussed Latin America orders into the second quarter contributed to improved sales and margin mix relative to expectations. Pressure Control results solidly outperformed expectations, driven primarily by improved shipments in the Middle East despite continued conflict disruption, as well as higher domestic activity levels.

“We expect consolidated revenues in the third quarter to be down slightly on a sequential basis. We believe that the U.S. land rig count will increase in the third quarter as supportive commodity prices continue to lead to modestly higher activity primarily from private operators. We anticipate that third quarter Pressure Control revenues will be down 10% versus the second quarter which benefitted from strong backlog execution in Cactus International, more than offsetting domestic resilience. Activity in our Spoolable Technologies segment, however, should increase a further 15% to 20% in the third quarter driven by continued growth in domestic and international markets.”

Mr. Bender concluded, “I am very pleased with the momentum across our business lines, particularly within our Spoolable Technologies segment where the pace of bookings and shipments continues to strengthen. Subsequent to the quarter, we received international purchase orders in excess of $130 million in our Spoolable Technologies and Pressure Control businesses. The global oil and gas market backdrop remains uncertain, but elevated commodity prices have accelerated domestic activity levels and provided us with the opportunity to increase activity with customers who appreciate our efficiency-enhancing technologies and consistent service execution through market cycles. I would like to thank all of our associates for continuing to focus on safely serving our customers and delivering results, which together support our long-term profitable growth and enable the consistent increase in our dividend.”

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. Cactus International business results are included in the Pressure Control segment.

Pressure Control

Second quarter 2026 Pressure Control revenue increased $43.8 million, or 14.6%, sequentially, primarily due to increased revenues in the Middle East. Operating income increased $20.5 million, or 53.2%, sequentially, with margins increasing 430 basis points, due to higher operating leverage and the partial receipt of relatively modest reciprocal and fentanyl tariff-related refunds. Purchase price accounting-related adjustments included the amortization of the step-up of inventory and the amortization of the write-up of intangible values, which together totaled $20.0 million in the quarter. Adjusted Segment EBITDA increased $24.1 million, or 33.5%, sequentially, with Adjusted Segment EBITDA margins increasing 400 basis points.

Spoolable Technologies

Second quarter 2026 Spoolable Technologies revenues increased $15.6 million, or 17.4%, sequentially, due primarily to higher domestic activity levels. Operating income increased $8.6 million, or 36.5%, sequentially, on higher volume, while margins increased 430 basis points. Adjusted Segment EBITDA was higher by $9.2 million, or 28.1%, sequentially, with Adjusted Segment EBITDA margins increasing 330 basis points, as both sales mix and operating leverage moved favorably.

Corporate and Other Expenses

Second quarter 2026 Corporate and Other expenses decreased $4.9 million sequentially, primarily due to lower transaction and integration expenses. Second quarter Corporate and Other expenses contained $0.2 million of transaction-related expenses resulting from the acquisition of Cactus International, $5.6 million lower than the first quarter.

Liquidity, Capital Expenditures and Other

As of June 30, 2026, the Company had $365.8 million of cash and cash equivalents, including $92.5 million of cash held for certain restructuring activities related to the Cactus International acquisition, no bank debt outstanding, and $223.7 million of availability on our revolving credit facility. Operating cash flow was $104.6 million for the second quarter of 2026. During the second quarter, the Company made dividend payments and associated distributions of $11.2 million.

Net capital expenditures were $15.6 million during the second quarter of 2026. For the full year 2026, the Company is increasing its expected capital expenditure range to $55 to $65 million. The higher range is due primarily to initial capacity investments in the Baytown Spoolable Technologies manufacturing facility to meet increased global demand. The Company is additionally evaluating capex related to the Spoolable Technologies business in the Eastern hemisphere.

Remaining Performance Obligations, or backlog, closed the quarter at $455.8 million. Backlog is primarily related to operations in our Cactus International business.

As of June 30, 2026, Cactus had 69,633,144 shares of Class A common stock outstanding (representing 86.8% of the total voting power) and 10,546,249 shares of Class B common stock outstanding (representing 13.2% of the total voting power).

Quarterly Dividend

The Board of Directors has approved a quarterly cash dividend of $0.15 per share of Class A common stock. The approved dividend represents a 7% increase from the most recent dividend. Payment will occur on September 11, 2026 to holders of record of Class A common stock at the close of business on August 31, 2026. A corresponding distribution of up to $0.15 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, July 30, 2026 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 and manufacturing facilities globally with an emphasis in North America and the Middle East.

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 “anticipate,” “believe,” “consistent,” “continue,” “estimate,” “expect,” “guidance,” “hope,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “should,” “will,” 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, financial condition, or expenditures 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

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

(in thousands, except per share data)

Revenues

Pressure Control

343,995

179,772

644,167

370,049

Spoolable Technologies

105,533

96,225

195,433

188,803

Corporate and other (1)

—

(2,422

)

(1,723

)

(4,958

)

Total revenues

449,528

273,575

837,877

553,894

Operating income

Pressure Control

59,154

42,333

97,759

96,666

Spoolable Technologies

32,168

28,053

55,735

51,929

Total segment operating income

91,322

70,386

153,494

148,595

Corporate and other expenses

(7,740

)

(9,581

)

(20,408

)

(19,178

)

Total operating income

83,582

60,805

133,086

129,417

Interest income, net

949

2,518

1,169

4,843

Income before income taxes

84,531

63,323

134,255

134,260

Income tax expense

23,151

14,276

32,654

31,108

Net income

61,380

49,047

101,601

103,152

Less: net income attributable to non-controlling interest

12,384

8,718

19,699

18,600

Net income attributable to Cactus Inc.

48,996

40,329

81,902

84,552

Net income attributable to Cactus Inc.

48,996

40,329

81,902

84,552

Less: Accretion of redeemable non-controlling interest to redemption value

—

81,507

—

Net income attributable to Cactus Inc. including accretion of redeemable non-controlling interest to redemption value

48,996

40,329

395

84,552

Earnings per Class A share - basic

0.70

0.59

0.01

1.24

Earnings per Class A share - diluted (2)

0.70

0.59

0.01

1.23

Weighted average shares outstanding - basic

69,526

68,514

69,277

68,355

Weighted average shares outstanding - diluted (2)

70,224

68,889

69,835

68,760

(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 six months ended June 30, 2026 and three and six months ended June 30, 2025 excludes 10.7, 10.8, 11.3, and 11.4 million, respectively, of Class B common stock as the effect would be antidilutive.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

June 30,

December 31,

2026

2025

(in thousands)

Assets

Current assets

Cash and cash equivalents

365,821

123,571

Restricted cash

—

371,011

Accounts receivable, net

510,195

164,493

Inventories

387,041

276,613

Prepaid expenses and other current assets

20,147

19,231

Total current assets

1,283,204

954,919

Property and equipment, net

390,296

342,592

Operating lease right-of-use assets, net

33,702

19,491

Intangible assets, net

349,712

148,004

Goodwill

287,250

203,028

Deferred tax asset, net

199,652

187,545

Investment in unconsolidated affiliates

5,927

5,923

Other noncurrent assets

34,910

10,115

Total assets

2,584,653

1,871,617

Liabilities, Mezzanine Equity, and Stockholders' Equity

Current liabilities

Accounts payable

320,082

71,541

Accrued expenses and other current liabilities

85,341

51,388

Contract liabilities

51,849

7,707

Current portion of liability related to tax receivable agreement

21,314

Finance lease obligations, current portion

7,968

7,476

Operating lease liabilities, current portion

9,489

4,815

Total current liabilities

496,043

164,241

Deferred tax liability, net

17,114

2,786

Liability related to tax receivable agreement, net of current portion

245,734

241,609

Finance lease obligations, net of current portion

10,001

9,672

Operating lease liabilities, net of current portion

28,761

15,786

Other noncurrent liabilities

83,867

4,475

Total liabilities

881,520

438,569

Mezzanine equity

Redeemable non-controlling interest

241,121

—

Total stockholders' equity

1,462,012

1,433,048

Total liabilities, mezzanine equity, and stockholders' equity

2,584,653

1,871,617

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

Six Months Ended June 30,

2026

2025

(in thousands)

Cash flows from operating activities

Net income

101,601

103,152

Reconciliation of net income to net cash provided by operating activities

Depreciation and amortization

73,388

31,564

Deferred financing cost amortization

1,043

559

Stock-based compensation

14,434

12,371

Provision for expected credit losses

389

300

Inventory obsolescence

3,116

902

Gain on disposal of assets

(240

)

(389

)

Deferred income taxes

6,227

12,775

Changes in operating assets and liabilities:

Accounts receivable

(96,792

)

(15,715

)

Inventories

(2,999

)

(20,253

)

Prepaid expenses and other assets

(7,249

)

(1,009

)

Accounts payable

114,790

11,175

Accrued expenses and other liabilities

4,053

(11,052

)

Contract liabilities

21,074

—

Net cash provided by operating activities

232,835

124,380

Cash flows from investing activities

Acquisition of a business, net of cash and cash equivalents acquired

(301,011

)

—

Investment in unconsolidated affiliate

—

(6,000

)

Capital expenditures and other

(26,270

)

(22,168

)

Proceeds from sales of assets

1,696

1,661

Net cash used in investing activities

(325,585

)

(26,507

)

Cash flows from financing activities

Payments of deferred financing costs

(100

)

—

Payments on finance leases

(3,909

)

(3,940

)

Dividends paid to Class A common stock shareholders

(19,972

)

(18,153

)

Distributions to members

(4,250

)

(8,743

)

Repurchases of shares

(8,027

)

(5,710

)

Net cash used in financing activities

(36,258

)

(36,546

)

Effect of exchange rate changes on cash and cash equivalents

247

1,007

Net (decrease) increase in cash and cash equivalents

(128,761

)

62,334

Cash, cash equivalents, and restricted cash

Beginning of period

494,582

342,843

End of period

365,821

405,177

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 subject to the adjustments described in the table below. Among other things, those adjustments exclude income attributable to non-controlling interests in the Company's businesses, with the exception of income attributable to the non-controlling interests in the Company's principal operating subsidiary, Cactus Companies LLC. For these interests, Adjusted net income assumes Cactus, Inc. held all units in its principal operating subsidiary throughout the entire period, with net income reduced by the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. 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

June 30,

March 31,

June 30,

2026

2025

(in thousands, except per share data)

Net income

61,380

40,221

49,047

Adjustments:

Severance expenses (1)

4,929

934

177

Transaction related expenses (2)

246

5,811

3,502

Intangible amortization expense (3)

14,583

12,526

3,997

Inventory step-up expense (4)

9,466

10,449

—

Non-controlling interest adjustment (5)

(10,861

)

(7,429

)

—

Income tax expense differential (6)

(4,630

)

(6,340

)

(3,474

)

Adjusted net income

75,113

56,172

53,249

Diluted earnings per share, as adjusted

0.93

0.70

0.66

Weighted average shares outstanding, as adjusted (7)

80,875

80,581

80,203

Revenue

449,528

388,349

273,575

Net income margin

13.7

10.4

17.9

Adjusted net income margin

16.7

14.5

19.5

(1)

Represents non-routine charges related to severance benefits.

(2)

Reflects transaction fees and expenses recorded in connection with the acquisition of Cactus International and other growth initiatives.

(3)

Reflects amortization expense associated with the step-up in intangible value due to purchase price accounting.

(4)

Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.

(5)

Represents earnings attributable to non-controlling partners in both the Cactus International joint venture and Cactus International's business in Saudi Arabia.

(6)

Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of its operating subsidiary at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 27.0% on income before income taxes for the three months ended June 30, 2026, 22.0% for the three months ended March 31, 2026, and 25.0% for the three months ended June 30, 2025.

(7)

Reflects 70.2, 69.7, and 68.5 million weighted average shares of basic Class A common stock outstanding and 10.7, 10.9 and 11.3 million additional shares for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively, as if the weighted average shares of Class B common stock were exchanged and cancelled for Class A common stock at the beginning of the period, plus the effect of dilutive securities.

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

Six Months Ended

June 30,

March 31,

June 30,

2026

2025

2026

2025

(in thousands)

Net income

61,380

40,221

49,047

101,601

103,152

Interest income, net

(949

)

(220

)

(2,518

)

(1,169

)

(4,843

)

Income tax expense

23,151

9,503

14,276

32,654

31,108

Depreciation and amortization

27,162

26,313

15,886

53,475

31,564

EBITDA

110,744

75,817

76,691

186,561

160,981

Severance expenses (1)

4,929

934

177

5,863

177

Transaction related expenses (2)

246

5,811

3,502

6,057

6,989

Inventory step-up expense (3)

9,466

10,449

—

19,915

—

Stock-based compensation

7,395

7,039

6,307

14,434

12,371

Adjusted EBITDA

132,780

100,050

86,677

232,830

180,518

Revenue

449,528

388,349

273,575

837,877

553,894

Net income margin

13.7

10.4

17.9

12.1

18.6

Adjusted EBITDA margin

29.5

25.8

31.7

27.8

32.6

(1)

Represents non-routine charges related to severance benefits.

(2)

Reflects transaction fees and expenses recorded in connection with the acquisition of Cactus International and other growth initiatives.

(3)

Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.

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

Six Months Ended

June 30,

March 31,

June 30,

2026

2025

2026

2025

(in thousands)

Pressure Control

Revenue

343,995

300,172

179,772

644,167

370,049

Operating income

59,154

38,605

42,333

97,759

96,666

Depreciation and amortization expense

18,212

17,441

7,138

35,653

14,173

Severance expenses (1)

4,929

908

177

5,837

177

Inventory step-up expense (2)

9,466

10,449

—

19,915

—

Stock-based compensation

4,155

4,433

3,432

8,588

6,814

Adjusted Segment EBITDA

95,916

71,836

53,080

167,752

117,830

Operating income margin

17.2

12.9

23.5

15.2

26.1

Adjusted Segment EBITDA margin

27.9

23.9

29.5

26.0

31.8

Spoolable Technologies

Revenue

105,533

89,900

96,225

195,433

188,803

Operating income

32,168

23,567

28,053

55,735

51,929

Depreciation and amortization expense

8,950

8,872

8,748

17,822

17,391

Severance expenses (1)

—

Stock-based compensation

1,019

437

1,146

1,456

2,155

Adjusted Segment EBITDA

42,137

32,902

37,947

75,039

71,475

Operating income margin

30.5

26.2

29.2

28.5

27.5

Adjusted Segment EBITDA margin

39.9

36.6

39.4

38.4

37.9

Corporate and Other

Revenue (3)

—

(1,723

)

(2,422

)

(1,723

)

(4,958

)

Corporate and other expenses

(7,740

)

(12,668

)

(9,581

)

(20,408

)

(19,178

)

Stock-based compensation

2,221

2,169

1,729

4,390

3,402

Transaction related expenses (4)

246

5,811

3,502

6,057

6,989

Adjusted Corporate EBITDA

(5,273

)

(4,688

)

(4,350

)

(9,961

)

(8,787

)

Total revenue

449,528

388,349

273,575

837,877

553,894

Total operating income

83,582

49,504

60,805

133,086

129,417

Total operating income margin

18.6

12.7

22.2

15.9

23.4

Total Adjusted EBITDA

132,780

100,050

86,677

232,830

180,518

Total Adjusted EBITDA margin

29.5

25.8

31.7

27.8

32.6

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.

(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 acquisition of Cactus International and other growth initiatives.