Cactus Inc. Class A press release

Cactus Announces Third Quarter 2026 Results

2026-10-28

NYSE - New York Stock Exchange · Oil · Natural Gas · United States · Corporate Finance

Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the third quarter of 2026.

Third Quarter Highlights

Revenue of $430.9 million and operating income of $94.0 million; Net income of $74.1 million and diluted earnings per Class A share of $0.87; Adjusted net income (1) of $78.0 million and diluted earnings per share, as adjusted (1) of $0.96; Net income margin of 17.2% and adjusted net income margin (1) of 18.1%; Adjusted EBITDA (2) and Adjusted EBITDA margin (2) of $132.0 million and 30.6%, respectively; Cash and cash equivalents of $354.2 million, with no bank debt outstanding as of September 30, 2026; In September 2026, the Board of Directors approved the construction of a new Spoolable Technologies manufacturing facility in the Middle East; and In October 2026, the Board of Directors declared a quarterly cash dividend of $0.15 per Class A share.

Financial Summary

| | Three Months Ended | | | | | | | | | | | | | September 30, | | June 30, | | September 30, | | | | | | | | | | 2026 | | | | 2026 | | | | 2025 | | | | (in thousands) | | | | | | | | | | | | Revenues | $ | 430,888 | | | $ | 449,528 | | | $ | 263,954 | | | Operating income (3) | $ | 94,048 | | | $ | 83,582 | | | $ | 61,234 | | | Operating income margin | | 21.8 | % | | | 18.6 | % | | | 23.2 | % | | Net income | $ | 74,091 | | | $ | 61,380 | | | $ | 50,188 | | | Net income margin | | 17.2 | % | | | 13.7 | % | | | 19.0 | % | | Adjusted net income (1) | $ | 77,987 | | | $ | 75,113 | | | $ | 53,719 | | | Adjusted net income margin (1) | | 18.1 | % | | | 16.7 | % | | | 20.4 | % | | Adjusted EBITDA (2) | $ | 132,025 | | | $ | 132,780 | | | $ | 86,943 | | | Adjusted EBITDA margin (2) | | 30.6 | % | | | 29.5 | % | | | 32.9 | % |

| (1) | Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in its operating subsidiary at the beginning of the period. Additional information regarding non-GAAP financial measures, including the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables. | | (2) | Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables. | | (3) | Operating income reflects certain expenses related to the Cactus International and FlexSteel acquisitions, including expenses related to purchase price fair value adjustments of inventory, fixed assets, backlog and other intangible amortization expenses related to purchase price accounting. See the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables for further details. |

Scott Bender, CEO and Chairman of the Board of Cactus, commented, “Overall company performance remained exceptionally strong in the third quarter. Our Spoolable Technologies segment meaningfully expanded sales with record international shipments and bookings since the acquisition, while achieving excellent margins. Our Pressure Control business declined as anticipated, but margins were more resilient than expected as strong domestic performance and synergy realization helped offset lower operating leverage in our Cactus International Joint Venture. I am also pleased with our order intake in the third quarter as our backlog grew by more than $150 million, nearly doubling in our Spoolable Technologies segment.

“We expect consolidated revenues in the fourth quarter to modestly increase. We believe that the U.S. land rig count will remain approximately flat from today's levels through the remainder of the year. We anticipate that fourth quarter Pressure Control revenues will increase modestly versus the third quarter, as strength in the domestic market is combined with flat activity in the Middle East. In Spoolable Technologies, we expect sales to be up slightly in the fourth quarter, as continued international shipment momentum more than offsets typical North American market seasonality.”

Mr. Bender concluded, “This is a very exciting time for Cactus, and I am pleased to announce the Board's approval of the construction of a Spoolable Technologies manufacturing facility in the Middle East. This facility, expected to commence operations in 2029, will offer a local footprint in a critically important long-term oil and gas region and further benefits from the rapidly expanding unconventional market in the Middle East. Customer demand for our Spoolable products continues to accelerate, and the previously announced expansion of our Baytown manufacturing facility coupled with the development in the Middle East is expected to provide the necessary capacity for several years of growth at what we believe are attractive returns.”

Segment Performance

We report two business segments, Pressure Control and Spoolable Technologies. Corporate and other expenses not directly attributable to either segment are presented separately as Corporate and Other expenses. Cactus International business results are included in the Pressure Control segment.

Pressure Control

Third quarter 2026 Pressure Control revenue decreased $39.2 million, or 11.4%, sequentially, primarily due to lower product shipments in the Middle East. Operating income increased $2.4 million, or 4.0%, sequentially, with margins increasing 300 basis points, as lower operating leverage was more than offset by continued strength in spares and repair margins in the Middle East and lower purchase price accounting-related adjustments, which declined from $20.0 million to $9.4 million in the quarter. Adjusted Segment EBITDA decreased $9.8 million, or 10.2%, sequentially, with Adjusted Segment EBITDA margins increasing 40 basis points.

Spoolable Technologies

Third quarter 2026 Spoolable Technologies revenues increased $21.3 million, or 20.2%, sequentially, due to strong growth in both domestic and international shipments. Operating income increased $9.4 million, or 29.3%, sequentially, on higher volume, while margins increased 230 basis points. Adjusted Segment EBITDA was higher by $9.8 million, or 23.3%, sequentially, with Adjusted Segment EBITDA margins increasing 110 basis points, as operating leverage moved favorably.

Corporate and Other Expenses

Third quarter 2026 Corporate and Other expenses increased $1.3 million sequentially, primarily due to higher transaction and personnel expenses. Third quarter Corporate and Other expenses included $0.6 million of transaction-related expenses resulting from the acquisition of Cactus International, $0.4 million higher than the second quarter.

Liquidity, Capital Expenditures and Other

As of September 30, 2026, the Company had $354.2 million of cash and cash equivalents, no bank debt outstanding, and $263.5 million of availability on our U.S. and UAE revolving credit facilities. Operating cash flow was $18.4 million for the third quarter of 2026, reflecting the $91.0 million amount disbursed to Baker Hughes related to legal entity formation activities. During the third quarter, the Company made dividend payments and associated distributions of $12.0 million.

Net capital expenditures were $16.1 million during the third quarter of 2026. For the full year 2026, the Company expects its net capital expenditures to be approximately $65 million. The estimate includes the placement of orders for long-lead equipment related to the Middle East Spoolable Technologies manufacturing facility and the ongoing Baytown facility expansion.

Remaining Performance Obligations, or backlog, closed the quarter at $615.6 million. The majority of this backlog is associated with our Cactus International business, with the balance attributable to Spoolable Technologies.

As of September 30, 2026, Cactus had 70,119,569 shares of Class A common stock outstanding (representing 87.5% of the total voting power) and 10,061,249 shares of Class B common stock outstanding (representing 12.5% of the total voting power).

Quarterly Dividend

The Board of Directors has approved a quarterly cash dividend of $0.15 per share of Class A common stock. Payment will occur on December 17, 2026 to holders of record of Class A common stock at the close of business on November 30, 2026. A corresponding distribution of up to $0.15 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC.

Conference Call Details

The Company will host a conference call to discuss financial and operational results tomorrow, Thursday October 29, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).

The call will be webcast on Cactus’ website at www.CactusWHD.com . Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call.

An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.

About Cactus, Inc.

Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers and manufacturing facilities globally with an emphasis in North America and the Middle East.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Forward-looking statements can be identified by the use of forward-looking terminology including “anticipate,” “backlog,” “believe,” “continue,” “estimate,” “expect,” “guidance,” “hope,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “should,” “will,” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations, financial condition, or expenditures or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.

| Cactus, Inc.

Condensed Consolidated Statements of Income

(unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended

September 30, | | Nine Months Ended

September 30, | | | | | | | | | | | | | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | (in thousands, except per share data) | | | | | | | | | | | | | | | | Revenues | | | | | | | | | | | | | | | | | Pressure Control | $ | 304,829 | | | $ | 168,714 | | | $ | 948,996 | | | $ | 538,763 | | | Spoolable Technologies | | 126,868 | | | | 95,240 | | | | 322,301 | | | | 284,043 | | | Corporate and other (1) | | (809 | ) | | | — | | | | (2,532 | ) | | | (4,958 | ) | | Total revenues | | 430,888 | | | | 263,954 | | | | 1,268,765 | | | | 817,848 | | | | | | | | | | | | | | | | | | | | Operating income | | | | | | | | | | | | | | | | | Pressure Control | | 61,528 | | | | 44,523 | | | | 159,287 | | | | 141,189 | | | Spoolable Technologies | | 41,597 | | | | 25,806 | | | | 97,332 | | | | 77,735 | | | Total segment operating income | | 103,125 | | | | 70,329 | | | | 256,619 | | | | 218,924 | | | Corporate and other expenses | | (9,077 | ) | | | (9,095 | ) | | | (29,485 | ) | | | (28,273 | ) | | Total operating income | | 94,048 | | | | 61,234 | | | | 227,134 | | | | 190,651 | | | | | | | | | | | | | | | | | | | | Interest income, net | | 766 | | | | 2,977 | | | | 1,935 | | | | 7,820 | | | Other income, net | | — | | | | 221 | | | | — | | | | 221 | | | Income before income taxes | | 94,814 | | | | 64,432 | | | | 229,069 | | | | 198,692 | | | Income tax expense | | 20,723 | | | | 14,244 | | | | 53,377 | | | | 45,352 | | | Net income | $ | 74,091 | | | $ | 50,188 | | | $ | 175,692 | | | $ | 153,340 | | | Less: net income attributable to non-controlling interest | | 11,927 | | | | 8,564 | | | | 31,626 | | | | 27,164 | | | Net income attributable to Cactus Inc. | $ | 62,164 | | | $ | 41,624 | | | $ | 144,066 | | | $ | 126,176 | | | | ​ | | ​ | | ​ | | ​ | | | | | | | | | | Net income attributable to Cactus Inc. | $ | 62,164 | | | $ | 41,624 | | | $ | 144,066 | | | $ | 126,176 | | | Less: Accretion of redeemable non-controlling interest to redemption value | | — | | | | — | | | | 81,507 | | | | — | | | Net income attributable to Cactus Inc. including accretion of redeemable non-controlling interest to redemption value | $ | 62,164 | | | $ | 41,624 | | | $ | 62,559 | | | $ | 126,176 | | | | | | | | | | | | | | | | | | | | Earnings per Class A share - basic | $ | 0.89 | | | $ | 0.61 | | | $ | 0.90 | | | $ | 1.84 | | | Earnings per Class A share - diluted (2) | $ | 0.87 | | | $ | 0.60 | | | $ | 0.89 | | | $ | 1.83 | | | | ​ | | ​ | | ​ | | ​ | | | | | | | | | | Weighted average shares outstanding - basic | | 69,899 | | | | 68,681 | | | | 69,487 | | | | 68,465 | | | Weighted average shares outstanding - diluted (2) | | 81,108 | | | | 69,196 | | | | 70,143 | | | | 68,877 | |

| (1) | Represents the elimination of inter-segment revenue for sales from our Pressure Control segment to our Spoolable Technologies segment. | | (2) | Dilution for the nine months ended September 30, 2026, and three and nine months ended September 30, 2025, excludes 10.6, 11.2 million, and 11.3 million shares of Class B common stock, respectively, as the effect would be antidilutive. Dilution for the three months ended September 30, 2026 includes an additional $11.8 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 27%, and 10.3 million weighted average shares of Class B common stock, plus the effect of dilutive securities. |

| Cactus, Inc.

Condensed Consolidated Balance Sheets

(unaudited) | | | | | | | | | | | | | | | September 30, | | December 31, | | | | | | 2026 | | | 2025 | | | (in thousands) | | | | | | Assets | | | | | | | Current assets | | | | | | | Cash and cash equivalents | $ | 354,221 | | $ | 123,571 | | Restricted cash | | — | | | 371,011 | | Accounts receivable, net | | 506,342 | | | 164,493 | | Inventories | | 401,575 | | | 276,613 | | Prepaid expenses and other current assets | | 23,806 | | | 19,231 | | Total current assets | | 1,285,944 | | | 954,919 | | | | | | | | | Property and equipment, net | | 403,621 | | | 342,592 | | Operating lease right-of-use assets, net | | 30,761 | | | 19,491 | | Intangible assets, net | | 336,158 | | | 148,004 | | Goodwill | | 285,579 | | | 203,028 | | Deferred tax asset, net | | 200,015 | | | 187,545 | | Investment in unconsolidated affiliates | | 5,980 | | | 5,923 | | Other noncurrent assets | | 31,969 | | | 10,115 | | Total assets | $ | 2,580,027 | | $ | 1,871,617 | | | | | | | | | Liabilities, Mezzanine Equity, and Stockholders' Equity | | | | | | | Current liabilities | | | | | | | Accounts payable | $ | 211,331 | | $ | 71,541 | | Accrued expenses and other current liabilities | | 104,209 | | | 51,388 | | Contract liabilities | | 66,545 | | | 7,707 | | Current portion of liability related to tax receivable agreement | | 21,314 | | | 21,314 | | Finance lease obligations, current portion | | 8,321 | | | 7,476 | | Operating lease liabilities, current portion | | 9,196 | | | 4,815 | | Total current liabilities | | 420,916 | | | 164,241 | | | | | | | | | Deferred tax liability, net | | 14,432 | | | 2,786 | | Liability related to tax receivable agreement, net of current portion | | 251,568 | | | 241,609 | | Finance lease obligations, net of current portion | | 9,584 | | | 9,672 | | Operating lease liabilities, net of current portion | | 27,000 | | | 15,786 | | Other noncurrent liabilities | | 84,402 | | | 4,475 | | Total liabilities | | 807,902 | | | 438,569 | | | | | | | | | Mezzanine equity | | | | | | | Redeemable non-controlling interest | | 240,905 | | | — | | | | | | | | | Total stockholders' equity | | 1,531,220 | | | 1,433,048 | | Total liabilities, mezzanine equity, and stockholders' equity | $ | 2,580,027 | | $ | 1,871,617 |

| Cactus, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited) | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | | | | | | | | | 2026 | | | | 2025 | | | | (in thousands) | | | | | | | | Cash flows from operating activities | | | | | | | | | Net income | $ | 175,692 | | | $ | 153,340 | | | Reconciliation of net income to net cash provided by operating activities | | | | | | | | | Depreciation and amortization | | 100,203 | | | | 47,752 | | | Deferred financing cost amortization | | 1,212 | | | | 839 | | | Stock-based compensation | | 22,187 | | | | 18,475 | | | Provision for expected credit losses | | 470 | | | | 874 | | | Inventory obsolescence | | 5,733 | | | | 2,439 | | | Gain on disposal of assets | | (3,817 | ) | | | (2,101 | ) | | Deferred income taxes | | 8,824 | | | | 22,678 | | | Gain from revaluation of liability related to tax receivable agreement and other | | — | | | | (221 | ) | | Changes in operating assets and liabilities: | | | | | | | | | Accounts receivable | | (84,086 | ) | | | (9,463 | ) | | Inventories | | (21,791 | ) | | | (46,561 | ) | | Prepaid expenses and other assets | | (7,911 | ) | | | 2,350 | | | Accounts payable | | (13,314 | ) | | | (5,446 | ) | | Accrued expenses and other liabilities | | 32,415 | | | | 1,193 | | | Contract liabilities | | 35,438 | | | | — | | | Net cash provided by operating activities | | 251,255 | | | | 186,148 | | | | | | | | | | | | Cash flows from investing activities | | | | | | | | | Acquisition of a business, net of cash and cash equivalents acquired | | (301,011 | ) | | | — | | | Investment in unconsolidated affiliate | | — | | | | (6,000 | ) | | Capital expenditures and other | | (47,568 | ) | | | (32,351 | ) | | Proceeds from sales of assets | | 6,928 | | | | 3,626 | | | Net cash used in investing activities | | (341,651 | ) | | | (34,725 | ) | | | | | | | | | | | Cash flows from financing activities | | | | | | | | | Payments of deferred financing costs | | (100 | ) | | | — | | | Payments on finance leases | | (5,970 | ) | | | (5,823 | ) | | Dividends paid to Class A common stock shareholders | | (30,482 | ) | | | (27,793 | ) | | Distributions to members | | (6,902 | ) | | | (10,303 | ) | | Repurchases of shares | | (8,066 | ) | | | (5,914 | ) | | Net cash used in financing activities | | (51,520 | ) | | | (49,833 | ) | | Effect of exchange rate changes on cash and cash equivalents | | 1,555 | | | | 1,181 | | | Net (decrease) increase in cash and cash equivalents | | (140,361 | ) | | | 102,771 | | | | | | | | | | | | Cash, cash equivalents, and restricted cash | | | | | | | | | Beginning of period | | 494,582 | | | | 342,843 | | | End of period | $ | 354,221 | | | $ | 445,614 | |