Cactus Beats on Q1 Earnings and Revenues, Lowers '25 Capex View

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].