Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ FORM 10-Q ______________________________________________________________________________ (MARK ONE) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the t ...

Financial Data and Key Metrics Changes - Total Q3 revenues were $264 million, a sequential decline of 3.5% [5] - Adjusted EBITDA was $87 million, approximately flat from the second quarter, with an adjusted EBITDA margin of 32.9% compared to 31.7% in the second quarter [6][8] - GAAP net income for Q3 was $50 million, up from $49 million in Q2, with adjusted net income of $54 million and earnings per share of $0.67, compared to $53 million and $0.66 per share in Q2 [7][8] Business Line Data and Key Metrics Changes - Pressure Control segment revenues were $169 million, down 6.2% sequentially, but operating income increased by $2.2 million or 5.2% sequentially, with operating margins increasing by 290 basis points [5][6] - Spoolable Technologies segment revenues were $95 million, down 1% sequentially, with operating income decreasing by $2.2 million or 8% sequentially [5][6] Market Data and Key Metrics Changes - The company continues to face a challenging tariff environment, with a 70% tariff on goods imported from China and a 50% tariff on goods from Vietnam [11] - The U.S. land rig count is expected to drift modestly lower through the year-end, indicating subdued domestic activity levels [12] Company Strategy and Development Direction - The company is focusing on mitigating tariff impacts and enhancing profitability through cost reduction initiatives and supply chain flexibility [11][12] - The planned acquisition of a majority interest in the Surface Pressure Control business of Baker Hughes is expected to close in early 2026, which will enhance the company's market position [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the downside risk of oil prices, suggesting they may stabilize between $55 and $60, which could impact upstream spending in 2026 [25] - The company anticipates that most industry activity declines for 2025 are behind them, with expectations for flat revenue in the Pressure Control segment for Q4 [12][13] Other Important Information - The company paid a quarterly dividend of $0.14 per share, resulting in a cash outflow of approximately $11 million [8][10] - The cash balance increased to $446 million, a sequential increase of approximately $40 million [8] Q&A Session Summary Question: Insights on U.S. customer sentiment and oil prices - Management indicated that customers are cautious, with concerns about potential declines in oil prices, and are not basing budgets on higher oil prices [25][26] Question: International opportunities for spoolable technologies - Management noted strong international demand, particularly in the Middle East and Africa, with new orders and increased personnel in these regions [27][28] Question: Pressure Control margin performance - Management attributed margin improvements to effective supply chain management and customer support, emphasizing the flexibility of their variable cost structure [30][31] Question: Update on the new wellhead system introduction - Management confirmed plans to introduce the new wellhead system in Q1 2026 [34] Question: Cactus SPC transaction and earnings power - Management provided insights on the integration planning for the Baker Hughes acquisition, expressing cautious optimism about future earnings potential [42][43]

Core Insights - Cactus, Inc. reported a revenue of $263.95 million for the quarter ended September 2025, reflecting a 10% decrease year-over-year, while EPS was $0.67 compared to $0.79 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 3.86%, and the EPS surpassed the consensus estimate by 15.52% [1] Financial Performance Metrics - Revenue from Spoolable Technologies was $95.24 million, exceeding the average estimate of $87.43 million, but showing a year-over-year decline of 11.9% [4] - Revenue from Pressure Control was $168.71 million, slightly above the average estimate of $167.51 million, with a year-over-year decrease of 8.9% [4] - Operating income for Pressure Control was reported at $44.52 million, surpassing the average estimate of $38.96 million [4] - Corporate and other expenses resulted in an operating loss of $9.1 million, worse than the average estimate of a loss of $7.36 million [4] - Operating income for Spoolable Technologies was $25.81 million, exceeding the average estimate of $21.72 million [4] Stock Performance - Cactus shares have returned -0.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.8% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Cactus, Inc. (WHD) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +15.52%. A quarter ago, it was expected that this company would post earnings of $0.67 per share when it actually produced earnings of $0.66, delivering a surprise of -1.49%.Over the last four quarters, the company has ...

Financial Performance - Revenue for Q3 2025 was $263.954 million, a decrease of 9.9% from $293.181 million in Q3 2024[4] - Operating income for Q3 2025 was $61.234 million, with an operating income margin of 23.2%, compared to 26.2% in Q3 2024[4] - Net income for Q3 2025 was $50.188 million, resulting in a net income margin of 19.0%, down from 21.3% in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $86.943 million, with an adjusted EBITDA margin of 32.9%, compared to 34.2% in Q3 2024[4] - Net income for the nine months ended September 30, 2025, was $153,340, a decrease of 12.5% compared to $175,311 for the same period in 2024[31] - Adjusted EBITDA for the nine months ended September 30, 2025, was $267,461, compared to $299,339 for the same period in 2024, reflecting a decrease of 10.7%[37] - Adjusted net income margin for the three months ended September 30, 2025, was 20.4%, compared to 21.7% in the same period of 2024[33] - The company reported a net income margin of 19.0% for the three months ended September 30, 2025, compared to 21.3% in the same period of 2024[33] - Total Adjusted EBITDA for the nine months ended September 30, 2025, was $267.461 million, down from $299.339 million in the same period last year[43] Cash Flow and Assets - Cash flow from operations for Q3 2025 was $61.8 million, with cash and cash equivalents totaling $445.6 million and no bank debt outstanding[5] - Cash and cash equivalents increased to $445,614 from $342,843, marking a rise of 30.0%[31] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $186,148, down 25.4% from $249,518 in 2024[31] - Total assets increased to $1,864,776, up from $1,739,328, representing a growth of 7.2% year-over-year[29] - Total current liabilities decreased slightly to $175,869 from $178,824, a reduction of 1.1%[29] Segment Performance - Pressure Control segment revenue decreased by $11.1 million, or 6.2%, sequentially, while operating income increased by $2.2 million, or 5.2%[9] - Spoolable Technologies segment revenue decreased by $1.0 million, or 1.0%, sequentially, with operating income declining by $2.2 million, or 8.0%[10] - Revenue for the Spoolable Technologies segment was $95.240 million for the three months ended September 30, 2025, a slight decrease from $108.155 million in the same period last year[43] - Adjusted Segment EBITDA for the Pressure Control segment was $55.175 million for the three months ended September 30, 2025, compared to $61.966 million in the same period last year, reflecting a decline of 11%[43] - Adjusted Segment EBITDA for the Spoolable Technologies segment was $35.979 million for the three months ended September 30, 2025, down from $42.545 million in the same period last year[43] Future Outlook - The company anticipates a flat to slightly down U.S. land rig count in Q4 2025, with expectations for Pressure Control revenues to remain relatively flat[7] - Integration planning for the acquisition of a 65% interest in Baker Hughes' Surface Pressure Control business is progressing well, with an expected closing in early 2026[7] Dividends and Expenses - The Board of Directors declared a quarterly cash dividend of $0.14 per Class A share, payable on December 18, 2025[5] - Corporate and other expenses amounted to $9.095 million for the three months ended September 30, 2025, compared to $8.652 million in the previous quarter[43] - The company incurred transaction-related expenses of $3.170 million in Q3 2025 related to the acquisition of a majority interest in Baker Hughes' Surface Pressure Control business[44] Earnings Per Share - Diluted earnings per share, as adjusted, for the three months ended September 30, 2025, was $0.67, down from $0.79 in the same period of 2024[33]

Core Insights - Cactus, Inc. reported third quarter 2025 financial results, showing a decline in revenues but improved operating income margins due to cost control measures and lower legal expenses [1][3][4]. Financial Summary - Revenues for Q3 2025 were $263.954 million, down from $273.575 million in Q2 2025 and $293.181 million in Q3 2024 [3][5]. - Operating income increased to $61.234 million, compared to $60.805 million in Q2 2025 and $76.792 million in Q3 2024, with an operating income margin of 23.2% [3][5]. - Net income was $50.188 million, slightly up from $49.047 million in Q2 2025 but down from $62.437 million in Q3 2024, resulting in a net income margin of 19.0% [3][5]. - Adjusted net income was $53.719 million, with an adjusted net income margin of 20.4% [3][5]. - Adjusted EBITDA was $86.943 million, with an adjusted EBITDA margin of 32.9% [3][5]. Segment Performance Pressure Control - Pressure Control revenue decreased by $11.1 million, or 6.2%, sequentially, primarily due to lower sales of wellhead and production-related equipment [8]. - Operating income increased by $2.2 million, or 5.2%, with margins improving by 290 basis points due to cost reduction initiatives [8]. Spoolable Technologies - Spoolable Technologies revenues decreased by $1.0 million, or 1.0%, sequentially, attributed to lower domestic activity levels, although international sales were strong [9]. - Operating income decreased by $2.2 million, or 8.0%, with margins declining by 210 basis points [9]. Corporate and Other Expenses - Corporate and Other expenses declined by $0.5 million sequentially, primarily due to lower transaction and integration expenses related to the acquisition of Baker Hughes' Surface Pressure Control business [10]. Liquidity and Capital Expenditures - As of September 30, 2025, the company had $445.6 million in cash and cash equivalents, with no bank debt outstanding [11]. - Net capital expenditures for Q3 2025 were $8.2 million, with expectations for full-year capital expenditures in the range of $40 to $45 million [12]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.14 per Class A share, payable on December 18, 2025 [14].

Core Points - Cactus, Inc. will release its third quarter 2025 earnings after market close on October 29, 2025 [1] - A conference call to discuss financial and operational results is scheduled for October 30, 2025, at 9:00 a.m. Central Time [1] - The conference call will be available via webcast on Cactus' official website [1]

Group 1 - Cactus, Inc. (NYSE: WHD) is experiencing increased costs due to steel tariffs, particularly affecting imports from China and Vietnam [1] - The company's profit margins are under pressure as a result of these rising costs [1] - Although the company is shifting its sourcing strategies to mitigate some of the impact, it is not fully alleviating the financial strain [1]

Company Overview - Cactus designs, manufactures, sells, and rents highly engineered products for improved drilling and completions efficiencies and enhanced safety, with product revenue accounting for 64%, rental 14%, and field service & other 22% of total revenue[9] - The company's adjusted EBITDA margin has shown resilience, with YTD 2022 annualized margin at 31%[12] - Cactus has achieved significant U S onshore market share gains, reaching 41 8% in 2021[19] Financial Performance - The company's revenue increased from $341 2 million in 2017 to $632 2 million YTD 2022 annualized[9, 16] - Adjusted EBITDA increased from $112 1 million in 2017 to $195 7 million YTD 2022 annualized[12] - Adjusted EBITDA less net capital expenditures as a percentage of revenue was 26 9% YTD 2022 annualized[14] Strategy and Outlook - Cactus' SafeDrill wellhead systems offer safety and time savings advantages over conventional wellheads[33, 34] - The company is experiencing favorable macro trends, including an expected ~10% growth in the U S land rig count in 2023[44] - Cactus is expanding geographically, with potential for growth in regions outside the U S and Australia, which currently account for 76% of the global land rig count[49, 50] - The company is committed to ESG goals, offering solutions that enable customers to drill and complete wells faster, safer, and cleaner[51, 54]

Group 1 - Cactus, Inc. (NYSE:WHD) experienced a share price decline of 6.61% from September 5 to September 12, 2025, ranking among the energy stocks that lost the most during that week [1] - The company's Executive Vice President and Secretary, William D. Marsh, sold 10,172 shares for a total of $420,307, contributing to the downward pressure on the stock [2] - Since the beginning of 2025, Cactus, Inc.'s share price has dropped over 30%, following a challenging second quarter where the company missed earnings and revenue expectations [3] Group 2 - Despite the recent setbacks, Cactus, Inc. raised its quarterly dividend by 8% to $0.14 per share in July [3]