Cactus(US:WHD)2025-10-30 19:11Acquisition and Business Development - Cactus Companies entered into an agreement to acquire a controlling interest in Baker Hughes Company's surface pressure control business on June 2, 2025[33]. Revenue and Financial Performance - For the three months ended September 30, 2025, total revenues were $263.954 million, a decrease from $293.181 million for the same period in 2024, representing a decline of approximately 10%[54]. - Product revenue for the three months ended September 30, 2025, was $206.822 million, accounting for 78% of total revenues, compared to $221.406 million and 76% in the prior year[54]. - For the nine months ended September 30, 2025, total consolidated revenues reached $817,848,000, with external customer revenues of $533,805,000 from Pressure Control and $284,043,000 from Spoolable Technologies[78]. - Total consolidated revenues for the three months ended September 30, 2024, were $293,181,000, with external customer revenues of $185,026,000 from Pressure Control and $108,155,000 from Spoolable Technologies[77]. Profitability and Earnings - Segment profit for Pressure Control was $44.523 million and for Spoolable Technologies was $25.806 million for the three months ended September 30, 2025, contributing to a total segment profit of $70.329 million[75]. - The total operating income for the three months ended September 30, 2025, was $61.234 million, reflecting the company's operational efficiency[75]. - The total operating income for the three months ended September 30, 2024, was $76,792,000, while for the nine months ended September 30, 2025, it was $190,651,000[77][78]. - Basic earnings per share for the three months ended September 30, 2025, was $0.61, compared to $0.75 for the same period in 2024[82]. - Diluted earnings per share for the nine months ended September 30, 2025, was $1.83, down from $2.09 in 2024[82]. - Segment profit for the three months ended September 30, 2024, was $85,444,000, and for the nine months ended September 30, 2025, it was $218,924,000[77][78]. Assets and Liabilities - As of September 30, 2025, total unbilled revenue included in accounts receivable was $30.7 million, up from $29.8 million as of December 31, 2024, representing a 3% increase[39]. - The allowance for credit losses increased from $3.905 million at the end of September 30, 2024, to $4.223 million at the end of September 30, 2025, reflecting a 8% rise[41]. - Total inventories as of September 30, 2025, amounted to $271.3 million, compared to $226.8 million as of December 31, 2024, indicating a 19.6% increase[42]. - Net property and equipment as of September 30, 2025, was $346.6 million, slightly up from $346.0 million as of December 31, 2024, showing a marginal increase of 0.2%[43]. - The total gross cost of intangible assets as of September 30, 2025, was $200.3 million, with a net cost of $152.0 million after accumulated amortization[44]. - The total liability from the Tax Receivable Agreement (TRA) was $281.7 million as of September 30, 2025, with $20.3 million classified as current liabilities[57]. Financing and Debt - Cactus Companies had no bank debt outstanding as of September 30, 2025, and maintained compliance with all covenants under the Amended ABL Credit Facility[46]. - The Amended ABL Credit Facility provides a term loan of $125.0 million and up to $225.0 million in revolving commitments, with a maximum borrowing capacity of $275.0 million[47]. Cash Dividends and Share Repurchase - Cactus Inc. declared cash dividends of $0.40 per share for the nine months ended September 30, 2025, totaling $28.0 million, compared to $24.9 million for the same period in 2024[64]. - During the nine months ended September 30, 2025, Cactus Companies distributed $62.3 million to Cactus Inc. for dividend and tax payments, an increase from $51.9 million in the prior year[66]. - The company did not repurchase any shares of Class A common stock under the share repurchase program during the nine months ended September 30, 2025, leaving $146.3 million authorized for future repurchases[65]. Operational Segments - The company operates in two segments: Pressure Control and Spoolable Technologies, focusing on equipment and technologies for oil and gas operations[76]. - Selling, general, and administrative expenses for the nine months ended September 30, 2025, totaled $49,504,000 for Pressure Control and $36,852,000 for Spoolable Technologies[78]. - The company recognized revenue when performance obligations are satisfied, primarily through short-term contracts for fixed consideration[52]. Interest Income - The company reported interest income of $2,062,000 for the three months ended September 30, 2024, and $7,820,000 for the nine months ended September 30, 2025[77][78].