A month has gone by since the last earnings report for Cactus, Inc. (WHD). Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cactus due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Cactus, Inc. before we dive into how investors and analysts have reacted as of late.
Cactus Q3 Earnings Beat Estimates, Revenues Decline Y/Y
Cactus, Inc. reported third-quarter 2025 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 58 cents. The bottom line, however, declined from the year-ago quarter’s figure of 79 cents.
Total quarterly revenues of $264 million topped the Zacks Consensus Estimate of $254 million. However, the top line declined from the year-ago figure of $293 million.
Better-than-expected quarterly results were primarily aided by lower legal expenses in the quarter, along with increased international sales in the Spoolable Technologies segment. However, lower activity levels in the quarter largely offset the positives.
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 $168.7 million, down from $185.1 million reported in the year-ago quarter. The segment was affected by lower sales of wellhead and production equipment, primarily due to lower drilling activity in the third quarter and decreased rental revenues. The top line was marginally higher than our estimate of $168.3 million.
Adjusted Segment EBITDA for Pressure Control totaled $55.2 million, down from $62 million in the prior-year quarter. The reported figure was higher than our estimate of $48.3 million.
Revenues from the Spoolable Technologies segment totaled $95.2 million, down from $108.2 million in the prior-year quarter. The figure beat our estimate of $88.8 million. The segment was impacted due to lower domestic activity levels in the quarter, partially offset by growth in international sales.
Adjusted Segment EBITDA for the unit totaled $36 million, down from $42.5 million a year ago. The figure beat our estimate of $32 million.
Capex and Cash Flow
Cactus’ net capital expenditures for the quarter totaled $8.2 million. Operating cash flow totaled $61.8 million for the third quarter.
Balance Sheet
Cactus had cash and cash equivalents of $445.6 million at the end of the third quarter of 2025. The company had no bank debt outstanding as of Sept. 30, 2025.
Outlook
WHD expects the U.S. land rig count for the fourth quarter to be flat to slightly lower. For full-year 2025, WHD still expects net capital expenditures to be in the range of $40-$45 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Cactus has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Cactus, Inc. (WHD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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