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]

Core Viewpoint - Cactus, Inc. reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, but down from $0.79 per share a year ago, indicating a +15.52% earnings surprise [1] Financial Performance - The company achieved revenues of $263.95 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.86%, but down from $293.18 million year-over-year [2] - Over the last four quarters, Cactus has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Cactus shares have declined approximately 32.5% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of recent earnings expectations and revisions [4] - The current consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $248.55 million, and for the current fiscal year, it is $2.46 on revenues of $1.06 billion [7] Industry Context - The Oil and Gas - Integrated - United States industry, to which Cactus belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8]

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]

Group 1: TimesSquare Capital Management Overview - TimesSquare Capital Management released its "U.S. Small Cap Growth Strategy" second-quarter 2025 investor letter, reporting a fund return of 11.28% (gross) and 11.02% (net) compared to the Russell 2000 Growth Index return of 11.97% [1] - The second quarter saw equities posting double-digit returns as global economic activity measures improved [1] Group 2: Cactus, Inc. (NYSE:WHD) Performance - Cactus, Inc. (NYSE:WHD) had a one-month return of 2.99% but experienced a significant decline of 25.29% over the last 52 weeks, closing at $41.42 per share with a market capitalization of $2.853 billion on September 10, 2025 [2] - Cactus, Inc. reported revenue of $274 million in Q2 2025, reflecting a sequential decline of 2.4% [4] Group 3: Cactus, Inc. Business Insights - The Energy sector's performance is often linked to commodity prices, with Cactus, Inc. focusing on low-cost exploration & production companies and specialized service providers [3] - Cactus, Inc. experienced a 5% decline, despite first-quarter results exceeding consensus due to higher sales in pressure control equipment [3] - The company acquired a majority stake in Surface Pressure Control in June, aiming to accelerate international expansion, while management anticipates further declines in U.S. land activity for the remainder of the year [3] Group 4: Hedge Fund Interest - Cactus, Inc. was held by 29 hedge fund portfolios at the end of Q2 2025, an increase from 23 in the previous quarter, but it is not among the 30 most popular stocks among hedge funds [4]

Core Viewpoint - Cactus reported weaker-than-expected second quarter results, missing analyst projections for both non-GAAP earnings and GAAP revenue, primarily due to declining North American oilfield activity and increased tariff pressures [1][6][10] Financial Performance - Non-GAAP EPS was $0.66, below the expected $0.72, and down 18.5% from $0.81 in Q2 2024 [2] - GAAP revenue was $273.6 million, missing the consensus of $278.8 million and down 5.8% from $290.4 million in Q2 2024 [2][5] - Adjusted EBITDA was $86.7 million, a decline of 16.4% from $103.6 million year-over-year [2] - Net income was $49.0 million, down 22.3% from $63.1 million in the previous year [2] Segment Performance - The Pressure Control segment faced significant revenue declines, dropping 5.5% sequentially and 4.0% year-over-year, attributed to lower frac equipment rental and increased tariffs [6][10] - Operating margin for the Pressure Control segment decreased to 23.5%, down from 28.6% last quarter and 29.7% in the same period last year [7] - In contrast, the Spoolable Technologies segment saw a sequential revenue growth of 3.9%, driven by international demand, particularly in the Middle East [8][9] Strategic Initiatives - The company is focusing on integrating FlexSteel, enhancing supply chains, and increasing international exposure to mitigate reliance on the U.S. market [4][14] - Cactus is transitioning manufacturing from China to Vietnam to address tariff impacts, with expectations for partial relief once API certification is achieved [8][13] - The acquisition of 65% of Baker Hughes's Surface Pressure Control business is in progress, aimed at expanding international reach and product offerings [16] Cash Flow and Capital Expenditures - Cash flow remained strong, with cash and equivalents rising to $405.2 million and no outstanding bank debt [11] - Full-year 2025 net capital expenditures guidance was reduced to $40–$45 million, reflecting a conservative outlook [11] - The quarterly dividend was raised by 8% to $0.14 per share, demonstrating a commitment to shareholder returns despite profitability pressures [12] Outlook - Management anticipates modest revenue declines in both main segments due to ongoing weakness in North American oilfield activity [17] - No specific revenue or earnings guidance was provided for the next quarter or full year, with a focus on right-sizing the organization for the second half of the year [17]