Cactus(US:WHD)2025-10-29 21:44Financial 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]