Cactus Q2 Earnings Call Highlights

Cactus delivered strong second-quarter results: Revenue rose 15.8% sequentially to $450 million, while adjusted EBITDA increased 32.5% to $133 million and margins expanded to 29.5%. The company also raised its quarterly dividend 7% to $0.15 per share. Growth is expected to continue at Spoolable Technologies, with third-quarter revenue projected to increase 15%–20% and more than $80 million in incremental international orders received in July. Pressure Control revenue, however, is expected to decline about 10% as unusually strong Middle East shipments normalize. Cactus raised 2026 capital-expenditure guidance to $55 million–$65 million, primarily to expand capacity at its Baytown, Texas, facility, which could increase output by up to 20%. Management is also pursuing tariff mitigation through increased Vietnam sourcing for U.S. Pressure Control imports.

Cactus NYSE: WHD reported second-quarter revenue of $450 million, up 15.8% sequentially, as stronger Middle East Pressure Control deliveries and continued growth at Spoolable Technologies lifted results. Adjusted EBITDA rose 32.5% from the first quarter to $133 million, while adjusted EBITDA margin expanded to 29.5% from 25.8%. Chairman and Chief Executive Officer Scott Bender called the quarter “excellent,” citing higher-than-expected Pressure Control shipments and aftermarket service in the Middle East despite conflict-related disruptions. He also said Spoolable Technologies accelerated in the domestic market while maintaining international shipment and order momentum.

GAAP net income was $61 million, compared with $40 million in the first quarter. Adjusted net income totaled $75 million, or $0.93 per share, versus $56 million, or $0.70 per share, in the prior quarter. The company ended the quarter with $366 million in cash and raised its quarterly dividend 7% to $0.15 per share, payable in September.

Pressure Control revenue totaled $344 million, an increase of 14.6% sequentially. Chief Financial Officer Jay Nutt said the gain was driven primarily by stronger backlog conversion in the Middle East, where the company completed more deliveries than anticipated despite ongoing logistics challenges related to regional conflict. U.S. revenue also improved as customer activity increased alongside higher commodity prices. The segment’s adjusted EBITDA rose 33.5% sequentially to $95.9 million, with margins increasing by 400 basis points. Nutt attributed the margin improvement to higher operating leverage, acquisition synergies and tariff-cost recovery efforts. The company received roughly $10 million in reciprocal and retaliatory tariff refunds during the quarter, representing less than 15% of the tariffs paid during the relevant period. Pressure Control backlog, which consists largely of Cactus International obligations, ended the quarter at $455.8 million. Backlog declined more than anticipated as the company completed a high level of project deliveries and continued contract negotiations with a large Middle East customer. Management expects material third-quarter orders from multiple large Middle East customers. For the third quarter, Cactus expects Pressure Control revenue to decline about 10% as Cactus International shipments return closer to first-quarter levels following an unusually strong second quarter. The anticipated decline in international shipments is expected to more than offset domestic growth. Pressure Control adjusted EBITDA margins are forecast at 22% to 24%, excluding approximately $4 million in stock-based compensation expense. Bender said the company has increased its first-year post-close annualized synergy target for Cactus International by ...