Cactus Q2 Earnings Miss, Revenues Fall Year Over Year

Cactus, Inc. WHD reported second-quarter 2025 adjusted earnings of 66 cents per share, which missed the Zacks Consensus Estimate of 67 cents. The bottom line declined from the year-ago quarter’s figure of 81 cents.

Total quarterly revenues of $273.6 million missed the Zacks Consensus Estimate of $276 million. The top line declined from the year-ago figure of $290 million.

The weak quarterly earnings can be attributed to lower U.S. land activity and tariff impacts.

Cactus, Inc. Price, Consensus and EPS Surprise

Cactus, Inc. price-consensus-eps-surprise-chart | Cactus, Inc. Quote

Business Segments

Following the closure of the FlexSteel acquisition, Cactus started reporting under two business segments — Pressure Control and Spoolable Technologies.

The Pressure Control segment generated revenues of $179.8 million, down from $187.2 million reported in the year-ago quarter. The segment was impacted by lower frac equipment rental. The top line was below our estimate of $180.5 million.

Adjusted Segment EBITDA for Pressure Control totaled $53.1 million, down from $64.8 million in the prior-year quarter. The reported figure missed our estimate of $59.7 million.

Revenues from the Spoolable Technologies segment totaled $96.2 million, down from $103.7 million in the prior-year quarter. The figure beat our estimate of $93.7 million. The segment was aided by improved manufacturing efficiency in the quarter.

Adjusted Segment EBITDA for the unit totaled $37.9 million, down from $42.5 million a year ago. The figure beat our estimate of $32.8 million.

Capex and Cash Flow

Cactus’ capital expenditure and other amounts for the quarter totaled $11.1 million. Operating cash flow totaled $82.8 million.

Balance Sheet

Cactus had cash and cash equivalents of $405.2 million at the end of the second quarter of 2025. The company had no bank debt outstanding as of June 30, 2025.

Outlook

WHD expects a decline in the U.S. land rig count for the third quarter of 2025. For full-year 2025, WHD expects net capital expenditures to be in the range of $40-$45 million.

Zacks Rank and Key Picks

Currently, WHD has a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Midstream Corporation AM, Viper Energy, Inc. VNOM and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Viper Energy generates strong, steady royalty income from its royalty acres in the prolific Permian Basin, with active rigs providing ample growth potential. The company boasts a lower debt-to-capitalization ratio than the composite stocks in the energy sector, indicating a healthier financial position.

VNOM’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 20.41%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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This article originally published on Zacks Investment Research (zacks.com).

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