Cactus Announces Third Quarter 2025 Results

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].