Cactus Announces Third Quarter 2026 Results

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

Third Quarter Highlights

Financial Summary

Three Months Ended

September 30,

June 30,

September 30,

2026

2025

(in thousands)

Revenues

430,888

449,528

263,954

Operating income (3)

94,048

83,582

61,234

Operating income margin

21.8

18.6

23.2

Net income

74,091

61,380

50,188

Net income margin

17.2

13.7

19.0

Adjusted net income (1)

77,987

75,113

53,719

Adjusted net income margin (1)

18.1

16.7

20.4

Adjusted EBITDA (2)

132,025

132,780

86,943

Adjusted EBITDA margin (2)

30.6

29.5

32.9

(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, “Overall company performance remained exceptionally strong in the third quarter. Our Spoolable Technologies segment meaningfully expanded sales with record international shipments and bookings since the acquisition, while achieving excellent margins. Our Pressure Control business declined as anticipated, but margins were more resilient than expected as strong domestic performance and synergy realization helped offset lower operating leverage in our Cactus International Joint Venture. I am also pleased with our order intake in the third quarter as our backlog grew by more than $150 million, nearly doubling in our Spoolable Technologies segment.

“We expect consolidated revenues in the fourth quarter to modestly increase. We believe that the U.S. land rig count will remain approximately flat from today's levels through the remainder of the year. We anticipate that fourth quarter Pressure Control revenues will increase modestly versus the third quarter, as strength in the domestic market is combined with flat activity in the Middle East. In Spoolable Technologies, we expect sales to be up slightly in the fourth quarter, as continued international shipment momentum more than offsets typical North American market seasonality.”

Mr. Bender concluded, “This is a very exciting time for Cactus, and I am pleased to announce the Board's approval of the construction of a Spoolable Technologies manufacturing facility in the Middle East. This facility, expected to commence operations in 2029, will offer a local footprint in a critically important long-term oil and gas region and further benefits from the rapidly expanding unconventional market in the Middle East. Customer demand for our Spoolable products continues to accelerate, and the previously announced expansion of our Baytown manufacturing facility coupled with the development in the Middle East is expected to provide the necessary capacity for several years of growth at what we believe are attractive returns.”

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

Third quarter 2026 Pressure Control revenue decreased $39.2 million, or 11.4%, sequentially, primarily due to lower product shipments in the Middle East. Operating income increased $2.4 million, or 4.0%, sequentially, with margins increasing 300 basis points, as lower operating leverage was more than offset by continued strength in spares and repair margins in the Middle East and lower purchase price accounting-related adjustments, which declined from $20.0 million to $9.4 million in the quarter. Adjusted Segment EBITDA decreased $9.8 million, or 10.2%, sequentially, with Adjusted Segment EBITDA margins increasing 40 basis points.

Spoolable Technologies

Third quarter 2026 Spoolable Technologies revenues increased $21.3 million, or 20.2%, sequentially, due to strong growth in both domestic and international shipments. Operating income increased $9.4 million, or 29.3%, sequentially, on higher volume, while margins increased 230 basis points. Adjusted Segment EBITDA was higher by $9.8 million, or 23.3%, sequentially, with Adjusted Segment EBITDA margins increasing 110 basis points, as operating leverage moved favorably.

Corporate and Other Expenses

Third quarter 2026 Corporate and Other expenses increased $1.3 million sequentially, primarily due to higher transaction and personnel expenses. Third quarter Corporate and Other expenses included $0.6 million of transaction-related expenses resulting from the acquisition of Cactus International, $0.4 million higher than the second quarter.

Liquidity, Capital Expenditures and Other

As of September 30, 2026, the Company had $354.2 million of cash and cash equivalents, no bank debt outstanding, and $263.5 million of availability on our U.S. and UAE revolving credit facilities. Operating cash flow was $18.4 million for the third quarter of 2026, reflecting the $91.0 million amount disbursed to Baker Hughes related to legal entity formation activities. During the third quarter, the Company made dividend payments and associated distributions of $12.0 million.

Net capital expenditures were $16.1 million during the third quarter of 2026. For the full year 2026, the Company expects its net capital expenditures to be approximately $65 million. The estimate includes the placement of orders for long-lead equipment related to the Middle East Spoolable Technologies manufacturing facility and the ongoing Baytown facility expansion.

Remaining Performance Obligations, or backlog, closed the quarter at $615.6 million. The majority of this backlog is associated with our Cactus International business, with the balance attributable to Spoolable Technologies.

As of September 30, 2026, Cactus had 70,119,569 shares of Class A common stock outstanding (representing 87.5% of the total voting power) and 10,061,249 shares of Class B common stock outstanding (representing 12.5% 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. Payment will occur on December 17, 2026 to holders of record of Class A common stock at the close of business on November 30, 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 October 29, 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,” “backlog,” “believe,” “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

September 30,

Nine Months Ended

September 30,

2026

2025

2026

2025

(in thousands, except per share data)

Revenues

Pressure Control

304,829

168,714

948,996

538,763

Spoolable Technologies

126,868

95,240

322,301

284,043

Corporate and other (1)

(809

)

—

(2,532

)

(4,958

)

Total revenues

430,888

263,954

1,268,765

817,848

Operating income

Pressure Control

61,528

44,523

159,287

141,189

Spoolable Technologies

41,597

25,806

97,332

77,735

Total segment operating income

103,125

70,329

256,619

218,924

Corporate and other expenses

(9,077

)

(9,095

)

(29,485

)

(28,273

)

Total operating income

94,048

61,234

227,134

190,651

Interest income, net

766

2,977

1,935

7,820

Other income, net

—

221

—

221

Income before income taxes

94,814

64,432

229,069

198,692

Income tax expense

20,723

14,244

53,377

45,352

Net income

74,091

50,188

175,692

153,340

Less: net income attributable to non-controlling interest

11,927

8,564

31,626

27,164

Net income attributable to Cactus Inc.

62,164

41,624

144,066

126,176

Net income attributable to Cactus Inc.

62,164

41,624

144,066

126,176

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

62,164

41,624

62,559

126,176

Earnings per Class A share - basic

0.89

0.61

0.90

1.84

Earnings per Class A share - diluted (2)

0.87

0.60

0.89

1.83

Weighted average shares outstanding - basic

69,899

68,681

69,487

68,465

Weighted average shares outstanding - diluted (2)

81,108

69,196

70,143

68,877

(1)

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

(2)

Dilution for the nine months ended September 30, 2026, and three and nine months ended September 30, 2025, excludes 10.6, 11.2 million, and 11.3 million shares of Class B common stock, respectively, as the effect would be antidilutive. Dilution for the three months ended September 30, 2026 includes an additional $11.8 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 27%, and 10.3 million weighted average shares of Class B common stock, plus the effect of dilutive securities.

Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

September 30,

December 31,

2026

2025

(in thousands)

Assets

Current assets

Cash and cash equivalents

354,221

123,571

Restricted cash

—

371,011

Accounts receivable, net

506,342

164,493

Inventories

401,575

276,613

Prepaid expenses and other current assets

23,806

19,231

Total current assets

1,285,944

954,919

Property and equipment, net

403,621

342,592

Operating lease right-of-use assets, net

30,761

19,491

Intangible assets, net

336,158

148,004

Goodwill

285,579

203,028

Deferred tax asset, net

200,015

187,545

Investment in unconsolidated affiliates

5,980

5,923

Other noncurrent assets

31,969

10,115

Total assets

2,580,027

1,871,617

Liabilities, Mezzanine Equity, and Stockholders' Equity

Current liabilities

Accounts payable

211,331

71,541

Accrued expenses and other current liabilities

104,209

51,388

Contract liabilities

66,545

7,707

Current portion of liability related to tax receivable agreement

21,314

Finance lease obligations, current portion

8,321

7,476

Operating lease liabilities, current portion

9,196

4,815

Total current liabilities

420,916

164,241

Deferred tax liability, net

14,432

2,786

Liability related to tax receivable agreement, net of current portion

251,568

241,609

Finance lease obligations, net of current portion

9,584

9,672

Operating lease liabilities, net of current portion

27,000

15,786

Other noncurrent liabilities

84,402

4,475

Total liabilities

807,902

438,569

Mezzanine equity

Redeemable non-controlling interest

240,905

—

Total stockholders' equity

1,531,220

1,433,048

Total liabilities, mezzanine equity, and stockholders' equity

2,580,027

1,871,617

Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

Nine Months Ended September 30,

2026

2025

(in thousands)

Cash flows from operating activities

Net income

175,692

153,340

Reconciliation of net income to net cash provided by operating activities

Depreciation and amortization

100,203

47,752

Deferred financing cost amortization

1,212

839

Stock-based compensation

22,187

18,475

Provision for expected credit losses

470

874

Inventory obsolescence

5,733

2,439

Gain on disposal of assets

(3,817

)

(2,101

)

Deferred income taxes

8,824

22,678

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

—

(221

)

Changes in operating assets and liabilities:

Accounts receivable

(84,086

)

(9,463

)

Inventories

(21,791

)

(46,561

)

Prepaid expenses and other assets

(7,911

)

2,350

Accounts payable

(13,314

)

(5,446

)

Accrued expenses and other liabilities

32,415

1,193

Contract liabilities

35,438

—

Net cash provided by operating activities

251,255

186,148

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

(47,568

)

(32,351

)

Proceeds from sales of assets

6,928

3,626

Net cash used in investing activities

(341,651

)

(34,725

)

Cash flows from financing activities

Payments of deferred financing costs

(100

)

—

Payments on finance leases

(5,970

)

(5,823

)

Dividends paid to Class A common stock shareholders

(30,482

)

(27,793

)

Distributions to members

(6,902

)

(10,303

)

Repurchases of shares

(8,066

)

(5,914

)

Net cash used in financing activities

(51,520

)

(49,833

)

Effect of exchange rate changes on cash and cash equivalents

1,555

1,181

Net (decrease) increase in cash and cash equivalents

(140,361

)

102,771

Cash, cash equivalents, and restricted cash

Beginning of period

494,582

342,843

End of period

354,221

445,614

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

September 30,

June 30,

September 30,

2026

2025

(in thousands, except per share data)

Net income

74,091

61,380

50,188

Adjustments:

Severance expenses (1)

2,782

4,929

247

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

—

(221

)

Transaction related expenses (3)

629

246

3,170

Intangible amortization expense (4)

13,555

14,583

3,997

Inventory step-up adjustment (5)

(219

)

9,466

—

Non-controlling interest adjustment (6)

(4,730

)

(10,861

)

—

Income tax expense differential (7)

(8,121

)

(4,630

)

(3,662

)

Adjusted net income

77,987

75,113

53,719

Diluted earnings per share, as adjusted

0.96

0.93

0.67

Weighted average shares outstanding, as adjusted (8)

81,108

80,875

80,355

Revenue

430,888

449,528

263,954

Net income margin

17.2

13.7

19.0

Adjusted net income margin

18.1

16.7

20.4

(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 acquisition of Cactus International.

(4)

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

(5)

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

(6)

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

(7)

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 September 30 and June 30, 2026, and 25.0% for the three months ended September 30, 2025.

(8)

Reflects 69.9, 69.5, and 68.7 million weighted average shares of basic Class A common stock outstanding and 10.3, 10.7 and 11.2 million additional shares for the three months ended September 30, 2026, June 30, 2026 and September 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

Nine Months Ended

September 30,

June 30,

September 30,

2026

2025

2026

2025

(in thousands)

Net income

74,091

61,380

50,188

175,692

153,340

Interest income, net

(766

)

(949

)

(2,977

)

(1,935

)

(7,820

)

Income tax expense

20,723

23,151

14,244

53,377

45,352

Depreciation and amortization

27,032

27,162

16,188

80,507

47,752

EBITDA

121,080

110,744

77,643

307,641

238,624

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

—

(221

)

—

(221

)

Severance expenses (2)

2,782

4,929

247

8,645

424

Transaction related expenses (3)

629

246

3,170

6,686

10,159

Inventory step-up adjustment (4)

(219

)

9,466

—

19,696

—

Stock-based compensation

7,753

7,395

6,104

22,187

18,475

Adjusted EBITDA

132,025

132,780

86,943

364,855

267,461

Revenue

430,888

449,528

263,954

1,268,765

817,848

Net income margin

17.2

13.7

19.0

13.8

18.7

Adjusted EBITDA margin

30.6

29.5

32.9

28.8

32.7

(1)

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.

(2)

Represents non-routine charges related to severance benefits.

(3)

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

(4)

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

Nine Months Ended

September 30,

June 30,

September 30,

2026

2025

2026

2025

(in thousands)

Pressure Control

Revenue

304,829

343,995

168,714

948,996

538,763

Operating income

61,528

59,154

44,523

159,287

141,189

Depreciation and amortization expense

17,997

18,212

7,211

53,650

21,384

Severance expenses (1)

2,782

4,929

177

8,619

354

Inventory step-up adjustment (2)

(219

)

9,466

—

19,696

—

Stock-based compensation

4,035

4,155

3,264

12,623

10,078

Adjusted Segment EBITDA

86,123

95,916

55,175

253,875

173,005

Operating income margin

20.2

17.2

26.4

16.8

26.2

Adjusted Segment EBITDA margin

28.3

27.9

32.7

26.8

32.1

Spoolable Technologies

Revenue

126,868

105,533

95,240

322,301

284,043

Operating income

41,597

32,168

25,806

97,332

77,735

Depreciation and amortization expense

9,035

8,950

8,977

26,857

26,368

Severance expenses (1)

—

Stock-based compensation

1,322

1,019

1,128

2,778

3,283

Adjusted Segment EBITDA

51,954

42,137

35,979

126,993

107,454

Operating income margin

32.8

30.5

27.1

30.2

27.4

Adjusted Segment EBITDA margin

41.0

39.9

37.8

39.4

37.8

Corporate and Other

Revenue (3)

(809

)

—

(2,532

)

(4,958

)

Corporate and other expenses

(9,077

)

(7,740

)

(9,095

)

(29,485

)

(28,273

)

Severance expenses (1)

—

Stock-based compensation

2,396

2,221

1,712

6,786

5,114

Transaction related expenses (4)

629

246

3,170

6,686

10,159

Adjusted Corporate EBITDA

(6,052

)

(5,273

)

(4,211

)

(16,013

)

(12,998

)

Total revenue

430,888

449,528

263,954

1,268,765

817,848

Total operating income

94,048

83,582

61,234

227,134

190,651

Total operating income margin

21.8

18.6

23.2

17.9

23.3

Total Adjusted EBITDA

132,025

132,780

86,943

364,855

267,461

Total Adjusted EBITDA margin

30.6

29.5

32.9

28.8

32.7

(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.