Cactus Announces Fourth Quarter and Full Year 2025 Results

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

Fourth Quarter Highlights

Financial Summary

Three Months Ended

Twelve Months Ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

(in thousands)

Revenues

261,203

263,954

272,121

1,079,051

1,129,814

Operating income (3)

59,850

61,234

70,452

250,501

289,613

Operating income margin

22.9

23.2

25.9

23.2

25.6

Net income

48,302

50,188

57,447

201,642

232,758

Net income margin

18.5

19.0

21.1

18.7

20.6

Adjusted net income (1)

52,134

53,719

56,796

215,708

245,067

Adjusted net income margin (1)

20.0

20.4

20.9

20.0

21.7

Adjusted EBITDA (2)

85,493

86,943

92,711

352,954

392,050

Adjusted EBITDA margin (2)

32.7

32.9

34.1

32.7

34.7

(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 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 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 pleased with the way our business finished the year in 2025. Fourth quarter margins were strong in both segments. Pressure Control revenues exceeded expectations on strong sales of drilling equipment and increased rental revenues, while Spoolable Technologies revenues declined in line with expectations in the seasonally slow quarter. On January 1, 2026, we closed on the acquisition of a majority interest in Baker Hughes's Surface Pressure Control business, which we will refer to as Cactus International, supporting a multi-year journey to geographically diversify our earnings base.”

“In the first quarter of 2026 we anticipate that U.S. land activity levels will be relatively flat from the fourth quarter of 2025. Sales in our legacy Pressure Control business are expected to soften on lower products sold per rig followed after a strong fourth quarter and reduced customer rental activity. Beginning in the first quarter, our Pressure Control segment will include results of Cactus International. In Spoolable Technologies, we anticipate revenues to be softer than the fourth quarter, as activity has recently started to rebound from holiday lows late last year.”

Mr. Bender concluded, “I am proud of the way our team executed in 2025 considering the challenging macro and tariff environment faced while planning for a transformational acquisition. Our consistent performance and sustainable cash generation reflect the underlying attributes of the business. We remain excited by the integration opportunities ahead despite the near-term macro-overhang and are very happy to welcome the Cactus International team to our family.”

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. Beginning with the first quarter of 2026, results of the Cactus International business will be included in the Pressure Control segment.

Pressure Control

Fourth quarter 2025 Pressure Control revenue increased $9.7 million, or 5.8%, sequentially, as products sold per rig followed increased leading to higher product revenues. Rental revenues also increased sequentially on higher customer activity. Operating income increased $4.1 million, or 9.3%, sequentially, with margins increasing 90 basis points due to the implementation of cost reduction and recovery initiatives and improved utilization of rental equipment. Adjusted Segment EBITDA increased $4.0 million, or 7.2%, sequentially, with Adjusted Segment EBITDA margins increasing 50 basis points.

Spoolable Technologies

Fourth quarter 2025 Spoolable Technologies revenues decreased $11.0 million, or 11.6%, sequentially, due to reduced customer activity levels in the seasonally slow quarter. Operating income was $4.9 million lower, or 18.9%, sequentially, with operating income margins decreasing 220 basis points due to reduced operating leverage. Adjusted Segment EBITDA was $4.9 million lower, or 13.6%, sequentially, with Adjusted Segment EBITDA margins decreasing 90 basis points.

Corporate and Other Expenses

Fourth quarter 2025 Corporate and Other expenses increased $0.7 million, or 7.2%, sequentially. Fourth quarter Corporate and Other expenses contained $3.3 million of transaction-related expenses related to the acquisition of a majority interest in Baker Hughes' Surface Pressure Control business, $0.1 million higher than the third quarter.

Liquidity, Capital Expenditures and Other

As of December 31, 2025, the Company had $494.6 million of cash and cash equivalents, including $371.0 of restricted cash held in escrow at year-end to facilitate the close of the SPC acquisition on January 1, 2026, no bank debt outstanding, $222.9 million of availability on our revolving credit facility and $100.0 million available under an undrawn term loan facility. Operating cash flow was $72.3 million for the fourth quarter of 2025. During the fourth quarter, the Company made dividend payments and associated distributions of $11.2 million. The Company also made Tax Receivable Agreement ("TRA") payments and associated distributions of $23.3 million related to 2024 tax savings provided by the TRA.

Net capital expenditures were $4.3 million during the fourth quarter of 2025. Net capital expenditures for the full year of 2025 were $39.1 million. For the full year 2026, the Company expects net capital expenditures to be in the range of $40 to $50 million inclusive of capital for the Cactus International business. Major contributors to the spend include continued manufacturing efficiency investments at FlexSteel, routine U.S. branch facility upgrades, and Saudi Arabia wellhead facility investments.

As of December 31, 2025, Cactus had 68,889,726 shares of Class A common stock outstanding (representing 86.3% of the total voting power) and 10,958,435 shares of Class B common stock outstanding (representing 13.7% of the total voting power).

Quarterly Dividend

In February 2026, the Board approved a quarterly cash dividend of $0.14 per share of Class A common stock, with payment to occur on March 19, 2026 to holders of record of Class A common stock at the close of business on March 2, 2026. 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 February 26, 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 and obtain a dial-in number and passcode.

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 “may,” “believe,” “expect,” “intend,” “anticipate,” “plan,” “should,” “estimate,” “continue,” “potential,” “will,” “when,” “once,”“hope” 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 December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

(in thousands, except per share data)

Revenues

Pressure Control

178,428

176,719

717,191

724,038

Spoolable Technologies

84,202

96,072

368,245

407,038

Corporate and other (1)

(1,427

)

(670

)

(6,385

)

(1,262

)

Total revenues

261,203

272,121

1,079,051

1,129,814

Operating income

Pressure Control

48,672

50,829

189,861

210,710

Spoolable Technologies

20,925

25,523

98,660

104,864

Total segment operating income

69,597

76,352

288,521

315,574

Corporate and other expenses

(9,747

)

(5,900

)

(38,020

)

(25,961

)

Total operating income

59,850

70,452

250,501

289,613

Interest income, net

3,142

2,303

10,962

6,459

Other (expense) income, net

(1,015

)

3,204

(794

)

3,204

Income before income taxes

61,977

75,959

260,669

299,276

Income tax expense

13,675

18,512

59,027

66,518

Net income

48,302

57,447

201,642

232,758

Less: net income attributable to non-controlling interest

8,464

10,760

35,628

47,351

Net income attributable to Cactus, Inc.

39,838

46,687

166,014

185,407

Earnings per Class A share - basic

0.58

0.69

2.42

2.79

Earnings per Class A share - diluted (2)

0.57

0.68

2.41

2.77

Weighted average shares outstanding - basic

68,864

67,474

68,565

66,393

Weighted average shares outstanding - diluted (2)

69,517

80,359

69,015

79,915

(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 twelve months ended December 31, 2025 excludes 11.0 and 11.2 million shares of Class B common stock, respectively, as the effect would be antidilutive. Dilution for the three and twelve months ended December 31, 2024 includes an additional $11.2 million and $49.0 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 26.0% and 12.1 million and 13.1 million weighted average shares of Class B common stock, respectively, plus the effect of dilutive securities.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

December 31,

2025

2024

(in thousands)

Assets

Current assets

Cash and cash equivalents

123,571

342,843

Restricted cash

371,011

—

Accounts receivable, net

164,493

191,627

Inventories

276,613

226,796

Prepaid expenses and other current assets

19,231

13,422

Total current assets

954,919

774,688

Property and equipment, net

342,592

346,008

Operating lease right-of-use assets, net

19,491

24,094

Intangible assets, net

148,004

163,991

Goodwill

203,028

Deferred tax asset, net

187,545

219,003

Investment in unconsolidated affiliates

5,923

—

Other noncurrent assets

10,115

8,516

Total assets

1,871,617

1,739,328

Liabilities and Equity

Current liabilities

Accounts payable

71,541

72,001

Accrued expenses and other current liabilities

59,095

75,416

Current portion of liability related to tax receivable agreement

21,314

20,297

Finance lease obligations, current portion

7,476

7,024

Operating lease liabilities, current portion

4,815

4,086

Total current liabilities

164,241

178,824

Deferred tax liability, net

2,786

2,868

Liability related to tax receivable agreement, net of current portion

241,609

258,376

Finance lease obligations, net of current portion

9,672

10,528

Operating lease liabilities, net of current portion

15,786

20,078

Other noncurrent liabilities

4,475

Total liabilities

438,569

475,149

Equity

1,433,048

1,264,179

Total liabilities and equity

1,871,617

1,739,328

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

Twelve Months Ended December 31,

2025

2024

(in thousands)

Cash flows from operating activities

Net income

201,642

232,758

Reconciliation of net income to net cash provided by operating activities

Depreciation and amortization

63,914

60,438

Deferred financing cost amortization

1,081

1,120

Stock-based compensation

24,493

22,888

Provision for expected credit losses

1,211

370

Inventory obsolescence

3,163

3,841

Gain on disposal of assets

(2,985

)

(1,013

)

Deferred income taxes

35,142

19,773

Change in fair value of earn-out liability

—

16,318

(Gain) loss from revaluation of liability related to tax receivable agreement

794

(3,204

)

Changes in operating assets and liabilities:

Accounts receivable

26,443

13,048

Inventories

(52,456

)

(25,628

)

Prepaid expenses and other assets

(5,955

)

(2,267

)

Accounts payable

(2,132

)

675

Accrued expenses and other liabilities

(15,869

)

28,964

Payments pursuant to tax receivable agreement

(20,069

)

(20,800

)

Payment of earn-out liability

—

(31,168

)

Net cash provided by operating activities

258,417

316,113

Cash flows from investing activities

Investment in unconsolidated affiliates

(6,000

)

—

Capital expenditures and other

(38,805

)

(39,176

)

Proceeds from sales of assets

5,742

3,788

Net cash used in investing activities

(39,063

)

(35,388

)

Cash flows from financing activities

Payment of contingent consideration

—

(5,960

)

Payments of deferred financing costs

(2,400

)

—

Payments on finance leases

(7,692

)

(7,882

)

Dividends paid to Class A common stock shareholders

(37,441

)

(33,681

)

Distributions to members

(15,604

)

(13,290

)

Repurchases of shares

(5,927

)

(9,331

)

Net cash used in financing activities

(69,064

)

(70,144

)

Effect of exchange rate changes on cash and cash equivalents

1,449

(1,530

)

Net increase in cash, cash equivalents and restricted cash

151,739

209,051

Cash, cash equivalents and restricted cash

Beginning of period

342,843

133,792

End of period

494,582

342,843

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

Twelve Months Ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

(in thousands, except per share data)

Net income

48,302

50,188

57,447

201,642

232,758

Adjustments:

Revaluation loss (gain) on TRA liability (1)

1,015

(221

)

(3,204

)

794

(3,204

)

Transaction related expenses, pre-tax (2)

3,299

3,170

—

13,458

2,793

Intangible amortization expense (3)

3,997

15,988

Remeasurement loss on earn-out liability (4)

—

16,318

Severance expenses (5)

164

247

—

588

—

Income tax expense differential (6)

(4,643

)

(3,662

)

(1,444

)

(16,762

)

(19,586

)

Adjusted net income

52,134

53,719

56,796

215,708

245,067

Diluted earnings per share, as adjusted

0.65

0.67

0.71

2.69

3.07

Weighted average shares outstanding, as adjusted (7)

80,501

80,355

80,359

80,236

79,915

Revenue

261,203

263,954

272,121

1,079,051

1,129,814

Net income margin

18.5

19.0

21.1

18.7

20.6

Adjusted net income margin

20.0

20.4

20.9

20.0

21.7

(1)

Represents non-cash adjustments for the revaluation of the liability related to the TRA.

(2)

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

(3)

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

(4)

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

(5)

Represents non-routine charges related to severance benefits.

(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 25.0% on income before income taxes for the three and twelve months ended December 31, 2025 and three months ended September 30, 2025, and 26.0% for the three and twelve months ended December 31, 2024.

(7)

Reflects 69.5, 68.7, and 67.5 million weighted average shares of basic Class A common stock outstanding and 11.0, 11.2 and 12.1 million of additional shares for the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively, and 69.0 and 66.4 million weighted average shares of Class A common stock and 11.2 and 13.1 million of additional shares for the twelve months ended December 31, 2025 and December 31, 2024, 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

Twelve Months Ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

(in thousands)

Net income

48,302

50,188

57,447

201,642

232,758

Interest income, net

(3,142

)

(2,977

)

(2,303

)

(10,962

)

(6,459

)

Income tax expense

13,675

14,244

18,512

59,027

66,518

Depreciation and amortization

16,162

16,188

15,314

63,914

60,438

EBITDA

74,997

77,643

88,970

313,621

353,255

Revaluation loss (gain) on TRA liability (1)

1,015

(221

)

(3,204

)

794

(3,204

)

Transaction related expenses (2)

3,299

3,170

—

13,458

2,793

Remeasurement loss on earn-out liability (3)

—

16,318

Severance expenses (4)

164

247

—

588

—

Stock-based compensation

6,018

6,104

6,945

24,493

22,888

Adjusted EBITDA

85,493

86,943

92,711

352,954

392,050

Revenue

261,203

263,954

272,121

1,079,051

1,129,814

Net income margin

18.5

19.0

21.1

18.7

20.6

Adjusted EBITDA margin

32.7

32.9

34.1

32.7

34.7

(1)

Represents non-cash adjustments for the revaluation of the liability related to the TRA.

(2)

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

(3)

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

(4)

Represents non-routine charges related to severance benefits.

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

Twelve Months Ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

(in thousands)

Pressure Control

Revenue

178,428

168,714

176,719

717,191

724,038

Operating income

48,672

44,523

50,829

189,861

210,710

Depreciation and amortization expense

7,201

7,211

6,717

28,585

26,782

Severance expenses (1)

177

—

421

—

Stock-based compensation

3,211

3,264

3,954

13,289

11,917

Adjusted Segment EBITDA

59,151

55,175

61,500

232,156

249,409

Operating income margin

27.3

26.4

28.8

26.5

29.1

Adjusted Segment EBITDA margin

33.2

32.7

34.8

32.4

34.4

Spoolable Technologies

Revenue

84,202

95,240

96,072

368,245

407,038

Operating income

20,925

25,806

25,523

98,660

104,864

Depreciation and amortization expense

8,961

8,977

8,597

35,329

33,656

Severance expenses (1)

—

165

—

Stock-based compensation

1,094

1,128

1,162

4,377

4,251

Remeasurement loss on earn-out liability (2)

—

16,318

Adjusted Segment EBITDA

31,077

35,979

35,282

138,531

159,089

Operating income margin

24.9

27.1

26.6

26.8

25.8

Adjusted Segment EBITDA margin

36.9

37.8

36.7

37.6

39.1

Corporate and Other

Revenue (3)

(1,427

)

—

(670

)

(6,385

)

(1,262

)

Corporate and other expenses

(9,747

)

(9,095

)

(5,900

)

(38,020

)

(25,961

)

Severance expenses (1)

—

Stock-based compensation

1,713

1,712

1,829

6,827

6,720

Transaction related expenses (4)

3,299

3,170

—

13,458

2,793

Adjusted Corporate EBITDA

(4,735

)

(4,211

)

(4,071

)

(17,733

)

(16,448

)

Total revenue

261,203

263,954

272,121

1,079,051

1,129,814

Total operating income

59,850

61,234

70,452

250,501

289,613

Total operating income margin

22.9

23.2

25.9

23.2

25.6

Total Adjusted EBITDA

85,493

86,943

92,711

352,954

392,050

Total Adjusted EBITDA margin

32.7

32.9

34.1

32.7

34.7

(1)

Represents non-routine charges related to severance benefits.

(2)

Represents non-cash 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 acquisition of a majority interest in Baker Hughes' Surface Pressure Control business and other growth initiatives.