Cactus Inc. reported fourth‑quarter 2025 results on February 26, 2026, with revenue of $261.2 million, a 1% decline from the prior quarter and a 7.2% drop from the same period a year earlier. Operating income reached $59.9 million, translating to a 22.9% operating margin, while adjusted EBITDA for the quarter was $85.5 million, a 32.7% margin. Full‑year adjusted EBITDA was $392.1 million, a 34.7% margin, underscoring the company’s ability to maintain profitability amid a modest revenue decline.
The company’s adjusted earnings per share of $0.65 beat the consensus estimate of $0.58 by $0.07, a 12% upside. The beat was driven by disciplined cost management and a variable‑cost model that helped cushion the impact of lower drilling volumes, while strong demand for pressure‑control equipment and a rebound in rental activity supported revenue growth.
Segment performance highlighted a mixed picture. Pressure Control revenue grew, driven by higher product sales per rig and increased rental activity, whereas Spoolable Technologies experienced a seasonal slowdown. The acquisition of Baker Hughes’ Surface Pressure Control business, closed on January 1, 2026, is expected to diversify Cactus’s geographic footprint and add new growth markets. "This transaction is transformational for Cactus as it diversifies our geographic footprint and provides us with access to new growth markets," said CEO Scott Bender.
Management revised its first‑quarter 2026 revenue guidance to $295–$305 million for the Pressure Control segment, with total Q1 2026 revenue projected at approximately $316.8 million. EBITDA margin guidance for the quarter remains in the 31–33% range, reflecting confidence in maintaining profitability while integrating the new business. CFO Jay Nutt noted that "total Q4 revenues were $261 million, which were lower 1% sequentially. Total adjusted EBITDA of $85 million was down 1.7% sequentially," highlighting the impact of integration costs.
The market reaction was muted, with investors adopting a wait‑and‑see approach as they assess the integration of the Baker Hughes acquisition and the company’s near‑term performance. Analysts noted the EPS beat but cautioned that the guidance reflects a cautious outlook amid headwinds such as tariff‑related pressures and seasonal softness in Spoolable Technologies. Cactus declared a quarterly cash dividend of $0.14 per share, reinforcing its commitment to shareholder returns.
With $494.6 million in cash and no debt, Cactus is well positioned to fund further expansion into Middle‑East markets and support the Vietnam manufacturing ramp, while the acquisition of Cactus International under new CEO Steve Tadlock is expected to accelerate growth in international markets.
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