Cactus Q4 Earnings Top Estimates on Higher Pressure Control Revenues

Cactus, Inc. WHD reported fourth-quarter 2025 adjusted earnings of 65 cents per share, which beat the Zacks Consensus Estimate of 58 cents. The bottom line declined from the year-ago quarter’s figure of 71 cents.

Total quarterly revenues of $261 million topped the Zacks Consensus Estimate of $251 million. The top line declined from the year-ago figure of $272 million.

The better-than-expected quarterly results were primarily aided by higher sales of drilling equipment and higher rental income in the Pressure Control segment. Lower customer activity levels affected the Spoolable Technologies segment, partially offsetting the positives.

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 $178.4 million, up from $176.7 million reported in the year-ago quarter. The segment was aided by an increase in the product sold per rig, resulting in higher product revenues. The segment benefited from higher rental income driven by increased customer activity. The figure surpassed our estimate of $169 million.

Adjusted Segment EBITDA for Pressure Control totaled $59.2 million, down from $61.5 million in the prior-year quarter. The reported figure was higher than our estimate of $52.3 million.

Revenues from the Spoolable Technologies segment totaled $84.2 million, down from $96.1 million in the prior-year quarter. The figure beat our estimate of $82.2 million. The segment was affected by lower customer activity levels in the quarter.

Adjusted Segment EBITDA for the Spoolable Technologies totaled $31 million, down from $35 million a year ago. The figure beat our estimate of $28 million.

Capex and Cash Flow

Cactus’ net capital expenditures for the quarter totaled $4.3 million. Operating cash flow was $72.3 million for the fourth quarter.

Balance Sheet

Cactus had cash and cash equivalents of $123.6 million at the end of the fourth quarter of 2025. The company had no bank debt outstanding as of Dec. 31, 2025.

2026 Outlook

WHD expects the U.S. land rig count for the first quarter of 2026 to be relatively flat compared to the fourth quarter of 2025. For full-year 2026, WHD still anticipates net capital expenditures to be in the range of $40-$50 million.

WHD’s Zacks Rank and Key Picks

WHD currently has a Zacks Rank #4 (Sell).

Some top-ranked stocks from the energy sector are Archrock Inc. AROC, TechnipFMC plc FTI and Oceaneering International OII. While Archrock and TechnipFMC sport a Zacks Rank #1 (Strong Buy), Oceaneering carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company ended the year with a strong backlog of $16.6 billion, providing revenue visibility. FTI also prioritizes rewarding its investors, having returned $1 billion to shareholders in 2025.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

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

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