Core Viewpoint - Baker Hughes has announced a joint venture with Cactus, Inc., where Baker Hughes will contribute its surface pressure control product line, with Cactus owning 65% and Baker Hughes retaining 35% [1][6]. Group 1: Joint Venture Details - The joint venture will operate independently from Cactus' existing Pressure Control business and will focus on maintaining leadership in the international market for surface wellhead and production tree systems [2]. - The transaction is expected to close in the second half of 2025, subject to customary conditions including regulatory approvals [4]. Group 2: Strategic Alignment - This joint venture aligns with Baker Hughes' strategy to enhance earnings durability and cash flow, allowing for capital reallocation towards higher-return opportunities [3]. - The CEO of Baker Hughes emphasized that this transaction is a significant step in optimizing the company's portfolio, focusing on core growth areas and driving higher returns for shareholders [4]. Group 3: Company Background - Baker Hughes is an energy technology company providing solutions to energy and industrial customers globally, with operations in over 120 countries [5].

Core Viewpoint - Cactus, Inc. (WHD) has seen its shares increase by approximately 5.5% over the past month, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1]. Group 1: Earnings Report and Estimates - The consensus estimate for Cactus has shifted downward by 6.22% over the past month, indicating a negative trend in estimates revisions [2]. - The stock has received a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [4]. Group 2: VGM Scores - Cactus currently holds a Growth Score of B, but has a low Momentum Score of F, indicating weak performance in that area [3]. - The stock has a Value Score of D, placing it in the bottom 40% for this investment strategy, leading to an overall aggregate VGM Score of D [3].

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]

Financial Data and Key Metrics Changes - Total Q1 revenues were $280 million, up 3% sequentially, with adjusted EBITDA of $94 million, up 1.2% sequentially [7][10] - GAAP net income for Q1 was $54 million, down from $57 million in the previous quarter, primarily due to professional fees incurred at corporate [11] - 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 [11] Business Line Data and Key Metrics Changes - Pressure Control segment revenues were $190 million, up 7.7% sequentially, driven by customer drilling efficiencies [7][8] - Operating income for the Pressure Control segment increased by $3.5 million or 6.9% sequentially, while operating margins decreased by 20 basis points [8] - Spoolable Technologies segment revenues were $93 million, down 3.6% sequentially due to lower domestic customer activity [9] Market Data and Key Metrics Changes - International shipments in the Spoolable Technologies segment increased, partially offsetting the decline in domestic activity [9][22] - Sales to international locations were up 30% quarter over quarter, driven by robust demand in Canada [22] 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 [15][16] - The company expects to neutralize increased tariff expenses by mid-next year, maintaining profitability despite potential margin compression [19][20] - The company remains committed to international expansion and is evaluating further reductions in planned capital expenditures due to market uncertainty [13][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong cash flows despite a clouded industry outlook, citing a supportive customer base and diverse supply chain [26] - The company anticipates a decline in pressure control revenue for Q2 due to moderating levels of products sold per rig followed [20] - Management noted that major customers are sticking with the company due to its reliability and sustainability of supply chain [42] Other Important Information - The company paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $11 million [12] - The company ended the quarter with a cash balance of $348 million, a sequential increase of approximately $5 million [12] Q&A Session Summary Question: Transition from China to Vietnam - Management confirmed that transitioning sourcing to Vietnam will largely neutralize tariff impacts, maintaining absolute profitability despite margin percentage declines [33] Question: Customer Behavior During Downturns - Management noted that customers are attempting to pull forward purchases, but the company has denied these requests to maintain fairness among all customers [39] Question: M&A Opportunities - Management indicated that private equity firms are currently offering attractive prices for oil field service investments, but the focus remains on existing business operations [45] Question: Impact of Tariffs on Margins - Management acknowledged that while there may be some margin compression in the second half of the year due to tariffs, diversification of the supply chain will help mitigate impacts [65] Question: Market for Sour Flexible Pipe - Management expressed optimism about the growing market for sour flexible pipe, particularly in the Middle East, where demand is expected to increase [82]

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 ...