Cactus, Inc. (NYSE: WHD) grows Q1 2026 revenue to $388.3M after deal
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cactus, Inc. reported first quarter 2026 results showing strong top-line growth following its acquisition of a majority interest in Baker Hughes’ Surface Pressure Control business, now called Cactus International.
Revenue reached $388.3 million, up from both the prior quarter and prior year, with Adjusted EBITDA of $100.1 million and an adjusted EBITDA margin of 25.8%. GAAP net income was $40.2 million, but accretion related to redeemable non-controlling interest produced a diluted GAAP loss per Class A share of $(0.70), while diluted earnings per share, as adjusted, were $0.70.
Pressure Control revenue rose sharply on the Cactus International contribution, though margins compressed due to purchase price accounting items. Spoolable Technologies delivered higher revenue and operating income. The company ended the quarter with $291.6 million of cash, no bank debt, backlog of $537.5 million, and declared a quarterly dividend of $0.14 per Class A share.
Positive
- Strong revenue and EBITDA growth: Q1 2026 revenue reached $388.3 million and Adjusted EBITDA was $100.1 million, both higher than the prior quarter and prior year, reflecting expansion of the business.
- Transformative acquisition closed and contributing: Cactus completed the majority acquisition of Baker Hughes’ Surface Pressure Control business on January 1, 2026, significantly increasing Pressure Control revenue and expanding global reach.
- Solid balance sheet and liquidity: The company ended March 31, 2026 with $291.6 million of cash and cash equivalents, no bank debt, and $223.7 million available under its revolving credit facility.
- Visible demand via backlog and dividend: Remaining performance obligations totaled $537.5 million and the Board approved a quarterly dividend of $0.14 per Class A share, indicating ongoing cash returns to shareholders.
Negative
- Margin compression and lower GAAP profitability: Operating income margin fell to 12.7% from 24.5% a year earlier, and net income declined to $40.2 million, reflecting acquisition-related costs and purchase price accounting impacts.
- Diluted GAAP loss per share: Accretion of redeemable non-controlling interest led to a diluted GAAP loss per Class A share of $(0.70) for Q1 2026, despite positive net income.
- Significant cash outflow for acquisition: Net cash used in investing activities was $310.0 million in the quarter, primarily for the Cactus International acquisition, materially reducing total cash and restricted cash from the beginning of the period.
Insights
Acquisition-driven growth lifts revenue, but margins and GAAP EPS compress.
Cactus delivered Q1 2026 revenue of $388.3M, supported by closing the majority acquisition of Baker Hughes’ Surface Pressure Control business on January 1, 2026. Adjusted EBITDA was $100.1M with a 25.8% margin, showing solid cash-generation capacity.
However, GAAP profitability was pressured. Operating income of $49.5M and a 12.7% margin were well below prior periods, and accretion of redeemable non-controlling interest drove a diluted GAAP loss per Class A share of $(0.70). Non-GAAP diluted EPS, adjusted to assume full ownership of the operating subsidiary, was $0.70.
Segment data highlight the trade-off: Pressure Control revenue jumped on the Cactus International contribution, but purchase price accounting items, including $19.0M of inventory and intangible step-up amortization, weighed on margins. Spoolable Technologies grew revenue modestly with stable high margins. Liquidity remains strong with $291.6M in cash, no bank debt, and backlog of $537.5M, positioning the company to integrate the acquisition and support planned $40–$50M of 2026 capital expenditures.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $388.3M
Net income: $40.2M
Diluted EPS (GAAP): $(0.70) per Class A share
+5 more
8 metrics
Revenue
$388.3M
Three months ended March 31, 2026
Net income
$40.2M
Three months ended March 31, 2026
Diluted EPS (GAAP)
$(0.70) per Class A share
Three months ended March 31, 2026
Adjusted net income
$56.2M
Three months ended March 31, 2026
Adjusted EBITDA
$100.1M
Three months ended March 31, 2026
Cash and cash equivalents
$291.6M
As of March 31, 2026; no bank debt outstanding
Backlog
$537.5M
Remaining performance obligations at March 31, 2026
Quarterly dividend
$0.14 per Class A share
Approved for payment on June 18, 2026
Key Terms
Adjusted EBITDA, non-GAAP financial measures, inventory step-up expense, Tax Receivable Agreement, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA(2) and Adjusted EBITDA margin(2) of $100.1 million and 25.8%, respectively;"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP financial measures financial
"Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
inventory step-up expense financial
"Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting."
Inventory step-up expense is the one-time increase in the recorded cost of inventory after a company acquisition or revaluation, when unsold goods are revalued to their current fair market price. For investors it matters because that higher recorded cost becomes expense as those items are sold, which can reduce reported profits and change tax timing — like relabeling price tags higher so future sales show a bigger cost.
Tax Receivable Agreement financial
"revaluation of the Tax Receivable Agreement ("TRA") liability and the tax indemnity receivable asset related to the FlexSteel acquisition."
A contract in which a company agrees to pay a specified party (often former owners after a spinoff or IPO) a share of future tax savings the company realizes. Think of it like agreeing to share a future tax refund with someone who helped create the conditions for that refund. For investors it matters because those payments reduce the cash the company can use for dividends, buybacks, or reinvestment, and therefore affect valuation and returns.
Remaining Performance Obligations financial
"Remaining Performance Obligations, or backlog, closed the quarter at $537.5 million."
Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.
Earnings Snapshot
Revenue: $388.3M
Q1 2026
Revenue
$388.3M
Net income
$40.2M
Adjusted EBITDA
$100.1M
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________
FORM 8-K
______________________________________________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 6, 2026
______________________________________________________________________________
(Exact name of registrant as specified in its charter)
______________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices)
(Zip Code)
(713 ) 626-8800
(Registrant’s telephone number, including area code)
______________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 Results of Operations and Financial Condition.
The following information is furnished pursuant to Item 2.02.
On May 6, 2026 , Cactus, Inc. (the “Company”) issued a press release announcing its results for the first quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated in this Item 2.02 by reference.
The information being furnished pursuant to this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release of Cactus, Inc. dated May 6, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
2
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Cactus, Inc. | ||||||||
| By: | /s/ Jay A. Nutt | |||||||
| Date | Name: | Jay A. Nutt | ||||||
| Title: | Executive Vice President and Chief Financial Officer | |||||||
3
Exhibit 99.1
 | |||||
Cactus Announces First Quarter 2026 Results
HOUSTON – May 6, 2026 – Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the first quarter of 2026.
First Quarter Highlights
•On January 1, 2026, Cactus closed on its previously announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business (“Cactus International”);
•Revenue of $388.3 million and operating income of $49.5 million;
•Net income of $40.2 million and diluted loss per Class A share of $0.70;
•Adjusted net income(1) of $56.2 million and diluted earnings per share, as adjusted(1) of $0.70;
•Net income margin of 10.4% and adjusted net income margin(1) of 14.5%;
•Adjusted EBITDA(2) and Adjusted EBITDA margin(2) of $100.1 million and 25.8%, respectively;
•Cash flow from operations of $128.3 million; and
•Cash and cash equivalents of $291.6 million, including $97.8 million of cash retained to finalize certain legal restructuring activities related to the Cactus International acquisition, with no bank debt outstanding as of March 31, 2026.
Financial Summary
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Revenues | $ | 388,349 | $ | 261,203 | $ | 280,319 | |||||||||||
Operating income(3) | $ | 49,504 | $ | 59,850 | $ | 68,612 | |||||||||||
| Operating income margin | 12.7 | % | 22.9 | % | 24.5 | % | |||||||||||
| Net income | $ | 40,221 | $ | 48,302 | $ | 54,105 | |||||||||||
| Net income margin | 10.4 | % | 18.5 | % | 19.3 | % | |||||||||||
Adjusted net income(1) | $ | 56,172 | $ | 52,134 | $ | 58,816 | |||||||||||
Adjusted net income margin(1) | 14.5 | % | 20.0 | % | 21.0 | % | |||||||||||
Adjusted EBITDA(2) | $ | 100,050 | $ | 85,493 | $ | 93,841 | |||||||||||
Adjusted EBITDA margin(2) | 25.8 | % | 32.7 | % | 33.5 | % | |||||||||||
(1) Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in its operating subsidiary at the beginning of the period. Additional information regarding non-GAAP financial measures, including the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables.
(2) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables.
(3) Operating income reflects certain expenses related to the Cactus International and FlexSteel acquisitions, including expenses related to purchase price fair value adjustments of inventory, fixed assets, backlog and other intangible amortization expenses related to purchase price accounting. See the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables for further details.
1
Scott Bender, CEO and Chairman of the Board of Cactus, commented, “We achieved solid results in the first quarter of 2026 driven by disciplined execution. I am particularly pleased with the strong performance of the Spoolable Technologies segment in the quarter, as both revenues and margins exceeded expectations following a strong close to the quarter both domestically and abroad. Pressure Control results, which now include Cactus International, were in line with expectations despite the initial impacts of the conflict in the Middle East.
“We anticipate that the U.S. land rig count will be flat to up in the second quarter, as our customer base maintains capital discipline despite dramatically higher commodity prices. However, the sentiment among even our larger customers has recently turned more bullish. We expect second quarter Pressure Control revenues to be approximately flat as the Middle East conflict and associated logistics disruptions impacts our business, but is offset by domestic strength. Activity in our Spoolable Technologies segment should increase in the second quarter, as recent U.S. customer inquiries point toward continued momentum in the business, particularly for our higher diameter offerings.”
Mr. Bender concluded, “The global oil and gas market outlook has changed drastically in the past two months. Higher commodity prices have increased customer optimism in most of our markets. Despite numerous supply chain challenges, our team is working to meet our customers' needs. I would like to specially thank our new Cactus International associates for prioritizing safety while continuing to execute for our customers during this extraordinarily challenging time. Although the near-term activity outlook in the Middle East remains highly uncertain, I am confident in the positioning of our global business to participate in the upstream investment that will be required to restore market supply once the conflict abates.”
Segment Performance
We report two business segments, Pressure Control and Spoolable Technologies. Corporate and other expenses not directly attributable to either segment are presented separately as Corporate and Other expenses. Beginning this quarter, results of the Cactus International business are included in the Pressure Control segment.
Pressure Control
First quarter 2026 Pressure Control revenue increased $121.7 million, or 68.2%, sequentially, primarily due to the contribution of Cactus International. Operating income decreased $10.1 million, or 20.7%, sequentially, with margins decreasing 1,440 basis points, as increased operating income from Cactus International was more than offset by purchase price accounting-related adjustments. Adjustments included the amortization of the step-up of inventory and the amortization of the write-up of intangible values, which together totaled $19.0 million in the quarter. Adjusted Segment EBITDA increased $12.7 million, or 21.4%, sequentially, with Adjusted Segment EBITDA margins decreasing 930 basis points on the contribution of Cactus International at lower margins.
Spoolable Technologies
First quarter 2026 Spoolable Technologies revenues increased $5.7 million, or 6.8%, sequentially, due to higher domestic and international activity levels. Operating income increased $2.6 million, or 12.6%, sequentially, on higher volume, while margins increased 130 basis points. Adjusted Segment EBITDA was higher by $1.8 million, or 5.9%, sequentially, with Adjusted Segment EBITDA margins decreasing 30 basis points, as improved operating leverage was offset by higher input costs.
2
Corporate and Other Expenses
First quarter 2026 Corporate and Other expenses increased $2.9 million sequentially, primarily due to higher transaction and integration expenses. First quarter Corporate and Other expenses contained $5.8 million of transaction-related expenses resulting from the acquisition of Cactus International, $2.5 million higher than the fourth quarter.
Liquidity, Capital Expenditures and Other
As of March 31, 2026, the Company had $291.6 million of cash and cash equivalents, including $97.8 million of cash held for certain restructuring activities related to the Cactus International acquisition, no bank debt outstanding, and $223.7 million of availability on our revolving credit facility. Operating cash flow was $128.3 million for the first quarter of 2026. During the first quarter, the Company made dividend payments and associated distributions of $11.7 million.
Net cash used in investing activities represented $310.0 million for the first quarter, primarily attributable to the Cactus International acquisition. Net capital expenditures were $9.0 million during the first quarter of 2026. For the full year 2026, the Company still expects net capital expenditures to be in the range of $40 to $50 million.
Remaining Performance Obligations, or backlog, closed the quarter at $537.5 million. Backlog is primarily related to operations in our Cactus International business.
As of March 31, 2026, Cactus had 69,415,532 shares of Class A common stock outstanding (representing 86.6% of the total voting power) and 10,758,435 shares of Class B common stock outstanding (representing 13.4% of the total voting power).
Quarterly Dividend
The Board of Directors has approved a quarterly cash dividend of $0.14 per share of Class A common stock with payment to occur on June 18, 2026 to holders of record of Class A common stock at the close of business on June 1, 2026. A corresponding distribution of up to $0.14 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC.
Conference Call Details
The Company will host a conference call to discuss financial and operational results tomorrow, Thursday May 7, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).
The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call.
An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.
About Cactus, Inc.
3
Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers and manufacturing facilities globally with an emphasis in North America and the Middle East.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “plan,” “should,” “estimate,” “continue,” “potential,” “outlook,” “will,” “hope,” “opportunity,” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
Cactus, Inc.
Alan Boyd, 713-904-4669
Treasurer, Director of Corporate Development and Investor Relations
IR@CactusWHD.com
Source: Cactus, Inc.
4
Cactus, Inc.
Condensed Consolidated Statements of Income
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands, except per share data) | |||||||||||
| Revenues | |||||||||||
| Pressure Control | $ | 300,172 | $ | 190,277 | |||||||
| Spoolable Technologies | 89,900 | 92,578 | |||||||||
Corporate and other(1) | (1,723) | (2,536) | |||||||||
| Total revenues | 388,349 | 280,319 | |||||||||
| Operating income | |||||||||||
| Pressure Control | 38,605 | 54,333 | |||||||||
| Spoolable Technologies | 23,567 | 23,876 | |||||||||
| Total segment operating income | 62,172 | 78,209 | |||||||||
| Corporate and other expenses | (12,668) | (9,597) | |||||||||
| Total operating income | 49,504 | 68,612 | |||||||||
Interest income, net | 220 | 2,325 | |||||||||
| Income before income taxes | 49,724 | 70,937 | |||||||||
| Income tax expense | 9,503 | 16,832 | |||||||||
| Net income | $ | 40,221 | $ | 54,105 | |||||||
| Less: net income attributable to non-controlling interest | 7,315 | 9,882 | |||||||||
| Net income attributable to Cactus Inc. | $ | 32,906 | $ | 44,223 | |||||||
| Net income attributable to Cactus Inc. | $ | 32,906 | $ | 44,223 | |||||||
Less: Accretion of redeemable non-controlling interest to redemption value | 81,507 | — | |||||||||
Net (loss) income attributable to Cactus Inc. including accretion of redeemable non-controlling interest to redemption value | $ | (48,601) | $ | 44,223 | |||||||
(Loss) earnings per Class A share - basic | $ | (0.70) | $ | 0.65 | |||||||
(Loss) earnings per Class A share - diluted(2) | $ | (0.70) | $ | 0.64 | |||||||
| Weighted average shares outstanding - basic | 69,026 | 68,194 | |||||||||
Weighted average shares outstanding - diluted(2) | 69,026 | 68,664 | |||||||||
(1)Represents the elimination of inter-segment revenue for sales from our Pressure Control segment to our Spoolable Technologies segment.
(2)Dilution for the three months ended March 31, 2026 and 2025 excludes 10.9 million and 11.4 million shares, respectively, of Class B common stock as the effect would be antidilutive.
5
Cactus, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 291,609 | $ | 123,571 | |||||||
Restricted cash | — | 371,011 | |||||||||
| Accounts receivable, net | 459,954 | 164,493 | |||||||||
| Inventories | 404,210 | 276,613 | |||||||||
| Prepaid expenses and other current assets | 19,630 | 19,231 | |||||||||
| Total current assets | 1,175,403 | 954,919 | |||||||||
| Property and equipment, net | 394,976 | 342,592 | |||||||||
| Operating lease right-of-use assets, net | 34,434 | 19,491 | |||||||||
| Intangible assets, net | 364,278 | 148,004 | |||||||||
| Goodwill | 248,334 | 203,028 | |||||||||
| Deferred tax asset, net | 204,550 | 187,545 | |||||||||
Investment in unconsolidated affiliates | 5,946 | 5,923 | |||||||||
| Other noncurrent assets | 30,160 | 10,115 | |||||||||
| Total assets | $ | 2,458,081 | $ | 1,871,617 | |||||||
Liabilities, Mezzanine Equity, and Stockholders' Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 315,781 | $ | 71,541 | |||||||
| Accrued expenses and other current liabilities | 64,753 | 51,388 | |||||||||
Contract liabilities | 33,593 | 7,707 | |||||||||
| Current portion of liability related to tax receivable agreement | 21,314 | 21,314 | |||||||||
| Finance lease obligations, current portion | 7,669 | 7,476 | |||||||||
| Operating lease liabilities, current portion | 7,977 | 4,815 | |||||||||
| Total current liabilities | 451,087 | 164,241 | |||||||||
| Deferred tax liability, net | 38,710 | 2,786 | |||||||||
| Liability related to tax receivable agreement, net of current portion | 243,500 | 241,609 | |||||||||
| Finance lease obligations, net of current portion | 9,661 | 9,672 | |||||||||
| Operating lease liabilities, net of current portion | 29,927 | 15,786 | |||||||||
| Other noncurrent liabilities | 38,935 | 4,475 | |||||||||
| Total liabilities | 811,820 | 438,569 | |||||||||
Mezzanine equity | |||||||||||
Redeemable non-controlling interest | 240,608 | — | |||||||||
Total stockholders' equity | 1,405,653 | 1,433,048 | |||||||||
Total liabilities, mezzanine equity, and stockholders' equity | $ | 2,458,081 | $ | 1,871,617 | |||||||
6
Cactus, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands) | |||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 40,221 | $ | 54,105 | |||||||
| Reconciliation of net income to net cash provided by operating activities | |||||||||||
| Depreciation and amortization | 36,761 | 15,678 | |||||||||
| Deferred financing cost amortization | 639 | 280 | |||||||||
| Stock-based compensation | 7,039 | 6,064 | |||||||||
| Provision for expected credit losses | 1,060 | 133 | |||||||||
| Inventory obsolescence | 2,397 | (296) | |||||||||
| Gain on disposal of assets | (65) | (79) | |||||||||
| Deferred income taxes | 479 | 7,623 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (63,179) | (28,087) | |||||||||
| Inventories | (3,224) | (3,112) | |||||||||
| Prepaid expenses and other assets | (1,136) | 2,080 | |||||||||
| Accounts payable | 100,406 | (7,923) | |||||||||
| Accrued expenses and other liabilities | 5,190 | (4,921) | |||||||||
Contract liabilities | 1,683 | — | |||||||||
| Net cash provided by operating activities | 128,271 | 41,545 | |||||||||
| Cash flows from investing activities | |||||||||||
Acquisition of a business, net of cash and cash equivalents acquired | (301,011) | — | |||||||||
Investment in unconsolidated affiliate | — | (6,000) | |||||||||
| Capital expenditures and other | (9,724) | (10,230) | |||||||||
| Proceeds from sales of assets | 746 | 779 | |||||||||
| Net cash used in investing activities | (309,989) | (15,451) | |||||||||
| Cash flows from financing activities | |||||||||||
| Payments on finance leases | (1,914) | (1,988) | |||||||||
| Dividends paid to Class A common stock shareholders | (10,214) | (9,216) | |||||||||
| Distributions to members | (1,502) | (5,089) | |||||||||
| Repurchases of shares | (7,899) | (5,498) | |||||||||
| Net cash used in financing activities | (21,529) | (21,791) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 274 | 515 | |||||||||
| Net increase in cash and cash equivalents | (202,973) | 4,818 | |||||||||
| Cash, cash equivalents, and restricted cash | |||||||||||
| Beginning of period | 494,582 | 342,843 | |||||||||
| End of period | $ | 291,609 | $ | 347,661 | |||||||
7
Cactus, Inc. – Supplemental Information
Reconciliation of GAAP to non-GAAP Financial Measures
Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin
(unaudited)
Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin are not measures of net income as determined by GAAP but they are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income subject to the adjustments described in the table below. Among other things, those adjustments exclude income attributable to non-controlling interests in the Company's businesses, with the exception of income attributable to the non-controlling interests in the Company's principal operating subsidiary, Cactus Companies LLC. For these interests, Adjusted net income assumes Cactus, Inc. held all units in its principal operating subsidiary throughout the entire period, with net income reduced by the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by total revenue. The Company believes this supplemental information is useful for evaluating performance period over period.
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Net income | $ | 40,221 | $ | 48,302 | $ | 54,105 | |||||||||||
| Adjustments: | |||||||||||||||||
Severance expenses(1) | 934 | 164 | — | ||||||||||||||
Loss from revaluation of liability related to tax receivable agreement and other(2) | — | 1,015 | — | ||||||||||||||
Transaction related expenses(3) | 5,811 | 3,299 | 3,487 | ||||||||||||||
Intangible amortization expense(4) | 12,526 | 3,997 | 3,997 | ||||||||||||||
Inventory step-up expense(5) | 10,449 | — | — | ||||||||||||||
Non-controlling interest adjustment(6) | (7,429) | — | — | ||||||||||||||
Income tax expense differential(7) | (6,340) | (4,643) | (2,773) | ||||||||||||||
| Adjusted net income | $ | 56,172 | $ | 52,134 | $ | 58,816 | |||||||||||
| Diluted earnings per share, as adjusted | $ | 0.70 | $ | 0.65 | $ | 0.73 | |||||||||||
Weighted average shares outstanding, as adjusted(8) | 80,581 | 80,501 | 80,097 | ||||||||||||||
| Revenue | $ | 388,349 | $ | 261,203 | $ | 280,319 | |||||||||||
| Net income margin | 10.4 | % | 18.5 | % | 19.3 | % | |||||||||||
| Adjusted net income margin | 14.5 | % | 20.0 | % | 21.0 | % | |||||||||||
(1)Represents non-routine charges related to severance benefits.
(2)Represents non-cash adjustments for the revaluation of the Tax Receivable Agreement ("TRA") liability and the tax indemnity receivable asset related to the FlexSteel acquisition.
(3)Reflects transaction fees and expenses recorded in connection with the acquisition of Cactus International and other growth initiatives.
(4)Reflects amortization expense associated with the step-up in intangible value due to purchase price accounting.
(5)Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.
(6)Represents earnings attributable to non-controlling partners in both the Cactus International joint venture and Cactus International's business in Saudi Arabia.
(7)Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of its operating subsidiary at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 22% on income before income
8
taxes for the three months ended March 31, 2026, and 25.0% for the three months ended December 31, 2025 and March 31, 2025.
(8)Reflects 69.7, 69.5, and 68.2 million weighted average shares of basic Class A common stock outstanding and 10.9, 11.0 and 11.4 million additional shares for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively, as if the weighted average shares of Class B common stock were exchanged and cancelled for Class A common stock at the beginning of the period, plus the effect of dilutive securities.
9
Cactus, Inc. – Supplemental Information
Reconciliation of GAAP to non-GAAP Financial Measures
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin
(unaudited)
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below.
Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company’s business.
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Net income | $ | 40,221 | $ | 48,302 | $ | 54,105 | |||||||||||
| Interest income, net | (220) | (3,142) | (2,325) | ||||||||||||||
| Income tax expense | 9,503 | 13,675 | 16,832 | ||||||||||||||
| Depreciation and amortization | 26,313 | 16,162 | 15,678 | ||||||||||||||
| EBITDA | 75,817 | 74,997 | 84,290 | ||||||||||||||
Loss from revaluation of liability related to tax receivable agreement and other(1) | — | 1,015 | — | ||||||||||||||
Severance expenses(2) | 934 | 164 | — | ||||||||||||||
Transaction related expenses(3) | 5,811 | 3,299 | 3,487 | ||||||||||||||
Inventory step-up expense(4) | 10,449 | — | — | ||||||||||||||
| Stock-based compensation | 7,039 | 6,018 | 6,064 | ||||||||||||||
| Adjusted EBITDA | $ | 100,050 | $ | 85,493 | $ | 93,841 | |||||||||||
| Revenue | $ | 388,349 | $ | 261,203 | $ | 280,319 | |||||||||||
| Net income margin | 10.4 | % | 18.5 | % | 19.3 | % | |||||||||||
| Adjusted EBITDA margin | 25.8 | % | 32.7 | % | 33.5 | % | |||||||||||
(1) Represents non-cash adjustments for the revaluation of the TRA liability and the tax indemnity receivable asset related to the FlexSteel acquisition.
(2)Represents non-routine charges related to severance benefits.
(3)Reflects transaction fees and expenses recorded in connection with the acquisition of Cactus International and other growth initiatives.
(4)Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.
10
Cactus, Inc. – Supplemental Information
Reconciliation of GAAP to non-GAAP Financial Measures
Adjusted Segment EBITDA and Adjusted Segment EBITDA margin
(unaudited)
Adjusted Segment EBITDA and Adjusted Segment EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines Adjusted Segment EBITDA as segment operating income excluding depreciation and amortization and the other items outlined below, in each case, that are attributable to the segment.
Cactus management believes Adjusted Segment EBITDA is useful because it allows management to more effectively evaluate the Company’s segment operating performance and compare the results of its segment operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. Adjusted Segment EBITDA should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted Segment EBITDA margin as Adjusted Segment EBITDA divided by total segment revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company’s business.
11
| Three Months Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Pressure Control | |||||||||||||||||
| Revenue | $ | 300,172 | $ | 178,428 | $ | 190,277 | |||||||||||
| Operating income | 38,605 | 48,672 | 54,333 | ||||||||||||||
| Depreciation and amortization expense | 17,441 | 7,201 | 7,035 | ||||||||||||||
Severance expenses(1) | 908 | 67 | — | ||||||||||||||
Inventory step-up expense(2) | 10,449 | — | — | ||||||||||||||
| Stock-based compensation | 4,433 | 3,211 | 3,382 | ||||||||||||||
| Adjusted Segment EBITDA | $ | 71,836 | $ | 59,151 | $ | 64,750 | |||||||||||
| Operating income margin | 12.9 | % | 27.3 | % | 28.6 | % | |||||||||||
| Adjusted Segment EBITDA margin | 23.9 | % | 33.2 | % | 34.0 | % | |||||||||||
| Spoolable Technologies | |||||||||||||||||
| Revenue | $ | 89,900 | $ | 84,202 | $ | 92,578 | |||||||||||
| Operating income | 23,567 | 20,925 | 23,876 | ||||||||||||||
| Depreciation and amortization expense | 8,872 | 8,961 | 8,643 | ||||||||||||||
Severance expenses(1) | 26 | 97 | — | ||||||||||||||
| Stock-based compensation | 437 | 1,094 | 1,009 | ||||||||||||||
| Adjusted Segment EBITDA | $ | 32,902 | $ | 31,077 | $ | 33,528 | |||||||||||
| Operating income margin | 26.2 | % | 24.9 | % | 25.8 | % | |||||||||||
| Adjusted Segment EBITDA margin | 36.6 | % | 36.9 | % | 36.2 | % | |||||||||||
| Corporate and Other | |||||||||||||||||
Revenue(3) | $ | (1,723) | $ | (1,427) | $ | (2,536) | |||||||||||
| Corporate and other expenses | (12,668) | (9,747) | (9,597) | ||||||||||||||
| Stock-based compensation | 2,169 | 1,713 | 1,673 | ||||||||||||||
Transaction related expenses(4) | 5,811 | 3,299 | 3,487 | ||||||||||||||
| Adjusted Corporate EBITDA | $ | (4,688) | $ | (4,735) | $ | (4,437) | |||||||||||
| Total revenue | $ | 388,349 | $ | 261,203 | $ | 280,319 | |||||||||||
| Total operating income | $ | 49,504 | $ | 59,850 | $ | 68,612 | |||||||||||
| Total operating income margin | 12.7 | % | 22.9 | % | 24.5 | % | |||||||||||
| Total Adjusted EBITDA | $ | 100,050 | $ | 85,493 | $ | 93,841 | |||||||||||
| Total Adjusted EBITDA margin | 25.8 | % | 32.7 | % | 33.5 | % | |||||||||||
(1)Represents non-routine charges related to severance benefits.
(2)Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.
(3)Represents the elimination of inter-segment revenue for sales from our Pressure Control segment to our Spoolable Technologies segment.
(4)Reflects transaction fees and expenses recorded in connection with the acquisition of Cactus International and other growth initiatives.
12
FAQ
How did Cactus, Inc. (WHD) perform financially in Q1 2026?
Cactus generated $388.3 million in revenue and $40.2 million in net income in Q1 2026. Adjusted EBITDA reached $100.1 million, with an adjusted EBITDA margin of 25.8%, highlighting strong earnings power despite acquisition-related costs.
How did the Cactus International acquisition impact Cactus, Inc. (WHD)?
On January 1, 2026, Cactus closed its majority acquisition of Baker Hughes’ Surface Pressure Control business. This significantly increased Pressure Control revenue but also introduced purchase price accounting charges, including $19.0 million of inventory and intangible amortization.
What is Cactus, Inc. (WHD)’s liquidity and debt position after Q1 2026?
As of March 31, 2026, Cactus held $291.6 million of cash and cash equivalents, including $97.8 million earmarked for restructuring related to Cactus International. The company reported no bank debt and had $223.7 million available on its revolving credit facility.
Did Cactus, Inc. (WHD) declare a dividend for Q1 2026?
Yes. The Board approved a quarterly cash dividend of $0.14 per share of Class A common stock. Payment is scheduled for June 18, 2026 to holders of record on June 1, 2026, with a corresponding distribution per CC Unit.
What is Cactus, Inc. (WHD)’s backlog and what does it represent?
Remaining performance obligations, or backlog, totaled $537.5 million at the end of Q1 2026. This backlog mainly relates to operations in the Cactus International business and reflects contracted future revenue not yet recognized.
How did Cactus, Inc. (WHD)’s segments perform in Q1 2026?
In Q1 2026, Pressure Control revenue was $300.2 million with operating income of $38.6 million. Spoolable Technologies generated $89.9 million in revenue and $23.6 million in operating income, maintaining strong segment margins.