What guidance did Cactus's management provide for the next earnings period?

What were the key takeaways from Cactus's earnings call?

What does Cactus do and what are its main business segments?

What is the market's earnings forecast for Cactus next quarter?

What factors drove the changes in Cactus's revenue and profit?

Did Cactus beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Cactus year over year?

What is Cactus's latest dividend and current dividend yield?

- **Q3 Financial Strength**: $264M revenue, $87M EBITDA (32.9% margin), $446M cash. 
- **Margin Expansion**: Pressure Control +320bps to 31-33%, Spoolable Tech 34-36%. 
- **Strategic Wins**: First Middle East sour service order, Vietnam plant ramping. 
- **Tariff Mitigation**: 70% China tariffs reduced, 50% Vietnam tariffs offset by Vietnam production. 
- **2026 Outlook**: Unconventional drilling growth in Middle East, SPC acquisition close Q1.

**【CEO Summary Section】**
- Q3 2025 revenue: $264 million, adjusted EBITDA: $87 million (32.9% margin), cash balance: $446 million (up $40M QoQ). 
- Pressure Control segment: Sequential margin improvement (+320bps) driven by cost reduction, tariff mitigation, and lower legal expenses. 
- Spoolable Technologies: International revenue growth offset domestic decline; awarded first sour service order in Middle East for 2026. 
- Vietnam plant progress: Shipment ramp-up underway; API certification audit expected Q1 2026. 
- Dividend: $0.14/share paid in Q3, with another $0.14 declared for Q4.

**【CFO Financial Commentary】**
- GAAP net income: $50 million (22% tax rate); adjusted net income: $54 million ($0.67 EPS). 
- Pressure Control: $169M revenue (-6.2% QoQ), operating margin +290bps to 31-33%. 
- Spoolable Tech: $95M revenue (-1% QoQ), EBITDA margin -160bps to 34-36%. 
- Corporate expenses: $9.1M (including $3.2M for Baker Hughes acquisition). 
- Cash flow: +$40M QoQ, offset by $23M TRA payment.

**【Q&A Highlights】**
- **Customer Sentiment**: U.S. customers cautious on $55-60 oil; international demand resilient. 
- **Tariff Mitigation**: 70% China tariffs reduced, 50% Vietnam Section 232 tariffs remain. 
- **International Growth**: Africa, Middle East sour service orders; first unconventional shipment Q1 2026. 
- **SPC Acquisition**: Integration planning on track for early 2026 close. 
- **Vietnam Plant**: API monogram expected Q1 2026; targeting 50%+ wellhead production by end-2026.

Cactus, Inc. (WHD) Q3 2025 Earnings Call Transcript

- **Strong Cash Flow Despite Challenges**: Generated $58 million free cash flow, increasing cash to $405 million, despite tariff-related margin compression.
- **Tariff Impact Mitigation**: Vietnam production ramp-up to offset 50% Section 232 tariffs, with full transition by summer 2026. U.S. supply chain costs partially offset tariff impact.
- **Strategic Diversification**: $87 million acquisition of Baker Hughes’ Surface Pressure Control business to expand into Middle East, expected to close late 2025/early 2026.
- **Dividend Confidence**: 8% dividend increase to $0.14 per share reflects management’s confidence in cash flow durability.
- **Operational Resilience**: Pressure Control margins stabilized at 28-30% in Q3, with Spoolable Technologies margins expanding to 35-37% despite activity declines.

**【CEO Summary Section】**
- **Q2 Financial Highlights**: Revenue of $274 million, adjusted EBITDA of $87 million (31.7% margin), and a $405 million cash balance. An 8% dividend increase to $0.14 per share was announced.
- **Strategic Acquisition**: Control of Baker Hughes’ Surface Pressure Control business to diversify into the Middle East market, expected to close late 2025/early 2026.
- **Tariff Impact**: Section 232 tariffs doubled to 50%, increasing costs for imports from Vietnam and China. Margins were depressed due to higher-cost U.S. supply chains and paused cost recovery efforts.
- **Operational Outlook**: Pressure Control revenue expected to decline mid-to-high single-digits in Q3, with margins stabilizing at 28-30%. Spoolable Technologies revenue down high-single-digits, with margins at 35-37%.

**【CFO Financial Commentary】**
- **Segment Performance**: Pressure Control revenue down 5.5% Q/Q to $180 million, Spoolable Technologies up 3.9% to $96 million. Adjusted EBITDA declined 7.6% to $87 million due to tariffs, legal expenses ($5.1 million), and lower rental activity.
- **Cost Management**: Free cash flow improved by $58 million, with CapEx reduced to $40-45 million for 2025. $24 million TRA payment expected in Q3.
- **Tariff Mitigation**: Vietnam production ramp-up to offset tariffs, though 50% incremental rate remains challenging. U.S. manufacturing scaling limited due to costs.

**【Q&A Highlights】**
- **Tariff and Margin Trends**: Q2 margins hit trough due to unexpected tariff hikes and legal costs. Q3 margins expected stable at 28-30%, with gradual improvement post-2025 from Vietnam production.
- **Activity Levels**: U.S. rig count decline moderating, but frac crew count down 12% Q/Q. Gas rig count up 50% Y/Y, but limited impact on revenue.
- **Middle East Expansion**: Acquisition to leverage Baker Hughes’ international network, with focus on supply chain efficiency and cultural integration.
- **Legal Expenses**: Ongoing IP dispute with Cameron; $2 million Q2 expenses, with further costs uncertain due to delayed trial.
- **Vietnam Production**: Full transition from China by summer 2026, reducing long-term tariff exposure despite current 50% rate.

Cactus (WHD)-31 Jul 25-2025 Q2 Earnings call transcript

- **Q1 2025 Strong Performance**: $280M revenue (+3% QoQ), $94M EBITDA (33.5% margin), $348M cash.
- **Tariff Neutralization by Mid-2026**: Vietnam replaces China with 25% Section 232 tariff, offsetting U.S. market impact.
- **Spoolable Growth**: Record Q1 orders (+30% intl. shipments), 35-37% EBITDA margin in Q2.
- **Sour Pipe Opportunity**: First commercial orders; Middle East growth potential.
- **2025 CapEx Guidance**: $40-50M (including $6M Vietnam equity).

**【CEO Opening Remarks】**
- Q1 2025 total revenue: $280 million, up 3% sequentially.
- Adjusted EBITDA: $94 million (33.5% margin), up 1.2% from Q4 2024.
- Record Pressure Control product revenues per rig and Spoolable Technologies bookings.
- Cash balance increased to $348 million; quarterly dividend of $0.13 per share paid.

**【CFO Financial Breakdown】**
- **Pressure Control Segment**: 
  - Q1 revenue: $190 million (+7.7% QoQ).
  - Adjusted EBITDA: $54 million (+5.3% QoQ), margin 28.4%.
  - Margin decline due to $3.5 million litigation reserves.
- **Spoolable Technologies Segment**: 
  - Q1 revenue: $93 million (-3.6% QoQ).
  - Adjusted EBITDA: $34 million (-5% QoQ), margin 36.6%.
  - International shipments offset U.S. activity decline.
- **Corporate Expenses**: $9.6 million (+40% QoQ) due to growth initiative fees.
- GAAP net income: $54 million; adjusted EPS: $0.73 (25% tax rate).

**【CEO Tariff & Vietnam Strategy】**
- **Tariff Impact**: 
  - 25% Section 232 tariff on Vietnam imports replaces 25% China tariff.
  - Neutralizes U.S. market tariff exposure by mid-2026.
  - $3 million annualized tariff cost until Vietnam fully operational.
- **Vietnam Expansion**: 
  - 100% replacement of China-sourced U.S. products by mid-2026.
  - API monogram approval expected Q3 2025 for standalone production.
  - Minimal incremental CapEx (~$1 million IT completion).
- **Customer Confidence**: 
  - 70% Spoolable revenue from majors/NOCs.
  - Record Q1 Spoolable orders (+30% intl. shipments).

**【Q&A Highlights】**
1. **Tariff Mitigation**: 
   - 2025 EBITDA impact: ~$10 million from steel cost pass-through.
   - 2026+ margin normalization via Vietnam diversification.
2. **Vietnam Costs**: 
   - De minimis start-up costs; $40-50M 2025 CapEx includes $6M Vietnam equity.
3. **Customer Behavior**: 
   - No pull-forward demand; customers prioritize supply chain sustainability.
   - Sour service pipe orders in Middle East expected to grow 2025+.
4. **M&A Strategy**: 
   - Focus on FlexSteel-like intl. expansion opportunities; no U.S. M&A.


Cactus (WHD)-1 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: $272M Q4 revenue, 34.1% EBITDA margin, $343M cash balance.
- **2025 Growth Drivers**: Vietnam factory to offset 35% U.S. tariff cost premium, H2S product expands Middle East oilfield market.
- **Resilience & Share Gains**: 4% Spoolable revenue growth vs. 13% industry rig decline, 90%+ Pressure Control retention rate.
- **Cash Deployment**: $45-55M CapEx for supply chain diversification, $0.13 quarterly dividend maintained.


**【CEO Opening Remarks】**
- Full-year 2024 revenue and earnings outpaced industry activity, with Q4 revenue of $272 million and adjusted EBITDA of $93 million.
- Key metrics: 34.1% adjusted EBITDA margin, $343 million cash balance, and $0.13 quarterly dividend.
- 2024 highlights include record FlexSteel sales and resilience despite industry softness.

**【CFO Financial Review】**
- Q4 revenue down 7.2% sequentially to $272 million, driven by Spoolable Technologies segment decline (11.2%).
- Pressure Control segment EBITDA margin improved 130bps to 34.1%, offsetting 22.4% operating income decline in Spoolable Technologies.
- Cash balance increased $39 million to $343 million, with $10 million dividend payout.
- 2025 CapEx guidance of $45-55 million includes $6 million Vietnam supply chain investment.

**【CEO Outlook for 2025】**
- Pressure Control: Q1 revenue flat to up vs. $177M Q4, with 33-35% EBITDA margin target.
- Spoolable Technologies: Q1 revenue down mid-single digits, but strong Feb activity signals 2H recovery.
- Vietnam production facility to begin shipments Q2, targeting 40% international revenue by 2025.
- New H2S-qualified product to expand addressable market in Middle East and Latin America.

**【Q&A Highlights】**
- **Tariff Mitigation**: Vietnam facility costs 35% lower than Bossier City, with $6M invested in Q1 to accelerate production.
- **U.S. Market Share**: 2024 Spoolable revenue up 4% despite 13% rig count decline, driven by large diameter share gains.
- **International Growth**: 2024 FlexSteel international orders >$5M, with H2S product targeting 40% international contribution.
- **Customer Support**: 90%+ retention rate for Pressure Control customers during tariff uncertainty.


WHD

WHD fundamentals

Earnings Call

You can ask Aime