Cactus to become majority owner and operator of Baker Hughes’ surface pressure control product line, with Baker Hughes retaining 35% stake Joint venture combines complementary portfolios to lead technological innovation Aligns with Baker Hughes’ ongoing strategy to optimize its portfolio HOUSTON and LONDON, June 02, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday an agreement to form a new joint venture with a subsidiary of Cactus, Inc. (NYSE: WHD, “Cactus ...

A month has gone by since the last earnings report for Cactus, Inc. (WHD) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cactus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, est ...

Core Insights - National Fuel Gas (NFG) is currently viewed as a better value opportunity compared to Cactus, Inc. (WHD) based on various financial metrics and Zacks Rank [1][3][7] Valuation Metrics - NFG has a forward P/E ratio of 12.01, while WHD has a forward P/E of 14.86, indicating that NFG is potentially undervalued [5] - The PEG ratio for NFG is 0.59, suggesting a favorable earnings growth outlook compared to WHD's PEG ratio of 5.09, which indicates a less attractive growth perspective [5] - NFG's P/B ratio stands at 2.63, compared to WHD's P/B of 2.69, further supporting NFG's valuation advantage [6] Earnings Outlook - NFG is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, contrasting with WHD's weaker outlook [3][7]

Core Insights - Cactus, Inc. reported revenue of $280.32 million for the quarter ended March 2025, reflecting a 2.3% increase year-over-year and a 4.67% surprise over the Zacks Consensus Estimate of $267.82 million [1] - The company's EPS was $0.73, down from $0.75 in the same quarter last year, with a surprise of 4.29% over the consensus estimate of $0.70 [1] Revenue Performance - Spoolable Technologies revenue was $92.58 million, exceeding the average estimate of $89.61 million, but showing a decline of 6.6% compared to the previous year [4] - Pressure Control revenue reached $190.28 million, surpassing the average estimate of $178.44 million, and increased by 8.7% year-over-year [4] Operating Income - Operating income for Pressure Control was $54.33 million, above the average estimate of $51.71 million [4] - Corporate and other expenses reported an operating loss of $9.60 million, worse than the average estimate of -$6.43 million [4] - Operating income for Spoolable Technologies was $23.88 million, slightly above the average estimate of $23.29 million [4] Stock Performance - Cactus shares have returned -2.3% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Revenue Performance - For the three months ended March 31, 2025, total revenues increased to $280.3 million, a rise of 3.0% from $272.1 million in the previous quarter[92]. - Total revenues for Q1 2025 were $280.3 million, an increase of $6.2 million or 2.3% compared to Q1 2024[99]. - Pressure Control segment revenue was $190.3 million, up 7.7% from $176.7 million in the fourth quarter of 2024, driven by increased sales of wellhead and production-related equipment[93]. - Pressure Control segment revenue increased to $190.3 million, up $15.2 million or 8.7% from Q1 2024, driven by higher sales of wellhead and production-related equipment[99]. - Spoolable Technologies segment revenue decreased to $92.6 million, down 3.6% from $96.1 million in the previous quarter, primarily due to reduced customer activity levels[94]. - Spoolable Technologies segment revenue decreased to $92.6 million, down $6.5 million or 6.6% from Q1 2024, primarily due to reduced customer activity levels[100]. Income and Expenses - Operating income for the Pressure Control segment increased to $54.3 million, a 6.9% rise from $50.8 million in the previous quarter[93]. - Total operating income decreased to $68.6 million, down 2.6% from $70.5 million in the fourth quarter of 2024[92]. - Total operating income for Q1 2025 was $68.6 million, an increase of $6.1 million or 9.7% from Q1 2024[99]. - Net income attributable to Cactus Inc. was $44.2 million, a decrease of 5.3% from $46.7 million in the previous quarter[92]. - Net income attributable to Cactus Inc. was $44.2 million, an increase of $5.3 million or 13.5% compared to Q1 2024[99]. - Corporate and other expenses rose to $9.6 million, a 62.7% increase from $5.9 million in the previous quarter, primarily due to professional fees associated with growth initiatives[96]. - Corporate and other expenses increased to $9.6 million, up $4.1 million or 73.9% from Q1 2024, largely due to professional fees associated with growth initiatives[102]. Cash Flow and Investments - Net cash provided by operating activities was $41.5 million for Q1 2025, a decrease of $44.8 million from $86.3 million in Q1 2024[110]. - Net cash used in investing activities increased to $15.5 million in Q1 2025, primarily due to a $6.0 million investment in a joint venture in Vietnam[111]. - As of March 31, 2025, the company had $347.7 million in cash and cash equivalents and $222.6 million of available borrowing capacity under its Amended ABL Credit Facility[105]. - Estimated net capital expenditures for the year ending December 31, 2025 are projected to range from $40 million to $50 million, focusing on rental fleet investments and manufacturing plant enhancements[108]. Market Conditions - Average WTI oil price for the three months ended March 31, 2025, was $71.78 per barrel, compared to $77.50 per barrel in the same period of 2024[84]. - Average natural gas price increased approximately 70% from the fourth quarter of 2024 to $4.14 per MMBtu[84]. Strategic Initiatives - Cactus Inc. acquired a 40% ownership in a forging manufacturing facility in Vietnam for $6 million to diversify its supply chain[86].

Financial Data and Key Metrics Changes - Total Q1 revenue was $280 million, up 3% sequentially, with adjusted EBITDA of $94 million, an increase of 1.2% sequentially [9][11] - GAAP net income for Q1 was $54 million, down from $57 million in the previous quarter, primarily due to professional fees incurred at corporate [12] - Adjusted net income and earnings per share were $59 million and $0.73 per share, respectively, compared to $57 million and $0.71 per share in the fourth quarter [12] Business Line Data and Key Metrics Changes - Pressure Control segment revenues were $190 million, up 7.7% sequentially, driven by customer drilling efficiencies [9][10] - Spoolable Technologies segment revenues were $93 million, down 3.6% sequentially due to lower domestic customer activity, partially offset by increased international shipments [10][11] - Operating income for Pressure Control increased by $3.5 million or 6.9% sequentially, while Spoolable Technologies saw a decrease of $1.6 million or 6.5% sequentially [10] Market Data and Key Metrics Changes - International sales in the Spoolable Technologies segment increased by 30% quarter over quarter, driven by robust demand in Canada [22] - The company expects U.S. land drilling activity to decline slightly in the second quarter, with approximately 30 fewer land rigs operating than at the end of Q1 [20] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts by increasing alternative sourcing and ramping up production from its Vietnam facility [16][17] - There is a commitment to international expansion, although no specific updates were provided during the call [26] - The company plans to reduce full-year 2025 net CapEx outlook to a range of $40 million to $50 million while maintaining critical investments [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability despite macroeconomic uncertainties and tariff impacts [27] - The company anticipates a decline in pressure control revenue in Q2 but expects spoolable technologies revenue to increase due to seasonal expansion [20][21] - Management noted that downturns historically create opportunities for new customer acquisition and that they are already seeing such opportunities [90] Other Important Information - The company paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $11 million [13] - The cash balance at the end of the quarter was $348 million, reflecting a sequential increase of approximately $5 million [13] Q&A Session Summary Question: Transition to Vietnam and cost advantages - Management clarified that Bossier City is not a low-cost operation but offers fast turnaround and robust manufacturing, protecting market share [30] Question: Customer behavior regarding tariffs - Management confirmed that customers have requested to pull forward purchases, but these requests have been denied to maintain fairness among all customers [39] Question: Customer loyalty during downturns - Management indicated that major customers are sticking with the company, emphasizing the importance of supply chain sustainability [42] Question: M&A opportunities in the current environment - Management noted that private equity firms are willing to sell oil field service investments at attractive prices, but the focus remains on the current industry [46] Question: Impact of tariffs on margins - Management acknowledged that there will be some margin compression in the second half of the year due to tariffs, but diversification efforts will help mitigate impacts [68] Question: Ongoing Section 232 investigation - Management expressed that the U.S. lacks adequate steelmaking capacity, which could lead to inflationary pressures [81]

Cactus (WHD) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Good day, everyone, and thank you for standing by. My name is RJ, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cactus Q1 twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Alan Boyd, Director of Corporate Devel ...

Core Viewpoint - Cactus, Inc. reported better-than-expected first-quarter 2025 earnings, driven by increased revenues in the Pressure Control segment, despite a decline in overall earnings compared to the previous year [1][2]. Financial Performance - Adjusted earnings per share for Q1 2025 were 73 cents, exceeding the Zacks Consensus Estimate of 70 cents, but down from 75 cents in the same quarter last year [1]. - Total revenues for the quarter reached $280.3 million, surpassing the Zacks Consensus Estimate of $268 million, and showing an increase from $274 million year-over-year [1]. Business Segments - Following the FlexSteel acquisition, Cactus operates under two segments: Pressure Control and Spoolable Technologies [3]. - The Pressure Control segment generated revenues of $190.3 million, up from $175 million in the prior-year quarter, benefiting from increased sales of wellhead and production-related equipment [3]. - Adjusted Segment EBITDA for Pressure Control was $64.8 million, an increase from $60.6 million year-over-year, and above the estimate of $59.7 million [4]. - Revenues from the Spoolable Technologies segment totaled $92.6 million, down from $99.1 million in the prior-year quarter, but exceeded the estimate of $90.2 million [4]. - Adjusted Segment EBITDA for Spoolable Technologies was $33.5 million, down from $38.8 million a year ago, and above the estimate of $32.3 million [5]. Capital Expenditure and Cash Flow - Capital expenditure for the quarter was $15.5 million, while operating cash flow totaled $41.5 million [6]. Balance Sheet - At the end of Q1 2025, Cactus had cash and cash equivalents of $347.7 million and no bank debt outstanding [7]. Outlook - The company anticipates a decline in U.S. land rig count in Q2 2025 due to budget resets amid lower commodity prices, with modest revenue drops in Pressure Control and seasonal growth in Spoolable Technologies [8]. - For the full year 2025, net capital expenditures are expected to be in the range of $40-$50 million, reduced from the previous guidance of $45-$55 million [8].

Cactus, Inc. (WHD) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.29%. A quarter ago, it was expected that this company would post earnings of $0.73 per share when it actually produced earnings of $0.71, delivering a surprise of -2.74%.Over the last four quarters, the company has s ...

Exhibit 99.1 Cactus Announces First Quarter 2025 Results HOUSTON – April 30, 2025 – Cactus, Inc. (NYSE: WHD) ("Cactus" or the "Company") today announced financial and operating results for the first quarter of 2025. First Quarter Highlights Financial Summary | | | | | Three Months Ended | | | | --- | --- | --- | --- | --- | --- | --- | | | | March 31, | | December 31, | | March 31, | | | | 2025 | | 2024 | | 2024 | | | | | | (in thousands) | | | | Revenues | $ | 280,319 | $ | 272,121 | $ | 274,123 | | (3) Op ...