Cactus Earnings Call Transcripts
Fiscal Year 2025
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Q4 2025 saw resilient segment performance and strong margins despite a slight sequential revenue dip. The Cactus International acquisition closed, with integration underway and synergy targets set. Near-term softness is expected, but international growth and margin improvements are anticipated.
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Q3 2025 saw revenue of $264M and adjusted EBITDA of $87M, with strong Pressure Control margins and record international Spoolable Technologies sales. Tariff mitigation, cost controls, and a growing cash balance supported results, while the Baker Hughes SPC acquisition and Vietnam plant ramp-up are set to drive future growth.
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Q2 2025 saw revenue and earnings decline sequentially amid tariff headwinds and lower activity, but strong free cash flow enabled a dividend increase and a major international acquisition was announced. Pressure Control and Spoolable Technologies segments showed mixed results.
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A 65% controlling stake in Baker Hughes' Surface Pressure Control business is being acquired for $344.5 million, expanding global reach, especially in the Middle East. The deal is expected to deliver cost synergies, diversify revenue, and provide long-term growth opportunities.
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Q1 delivered record Pressure Control revenues per rig and strong Spoolable Technologies bookings, with revenue up 3% sequentially and Adjusted EBITDA at $94 million. Tariff mitigation is underway via Vietnam sourcing, and Q2 guidance anticipates stable margins but lower Pressure Control revenue.
Fiscal Year 2024
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Record 2024 revenue and strong margins were achieved despite industry softness and Q4 seasonality. Supply chain diversification, new product launches, and international expansion are key 2025 priorities, with tariff risks and CapEx increases noted.
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Q3 revenue grew 1% sequentially to $293 million, with record Spoolable Technologies revenue and a $303 million cash balance. Guidance calls for Q4 revenue declines in both segments due to seasonality, but margins are expected to remain strong.
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Q2 revenue rose to $290M with strong margin expansion and cash growth, driven by both segment outperformance and new customer wins. Guidance anticipates stable to slightly lower Q3 revenues, with continued international expansion and new product rollouts supporting long-term growth.