Loading...
•
Mar 31, 2025
Cactus Q1 2025 Earnings Report
Cactus reported strong first quarter 2025 revenues, exceeding expectations in both Pressure Control and Spoolable Technologies segments, with resilient margins despite lower cash flow conversion due to increased working capital and strategic investments.
Key Takeaways
Cactus, Inc. announced strong first quarter 2025 results with total revenues of $280.3 million and net income of $54.1 million. The company exceeded revenue expectations in both segments, driven by non-U.S. product sales in Spoolable Technologies and record product sales per rig in Pressure Control. Despite resilient margins, cash flow conversion was lower due to increased working capital and significant investments in a Vietnam supply chain facility.
Total revenue reached $280.3 million, with operating income of $68.6 million.
Net income was $54.1 million, resulting in diluted earnings per Class A share of $0.64.
Adjusted EBITDA stood at $93.8 million, with an Adjusted EBITDA margin of 33.5%.
The company maintained a strong cash position of $347.7 million with no bank debt, and declared a quarterly cash dividend of $0.13 per Class A share.
Revenue by Segment
Forward Guidance
For the second quarter of 2025, Cactus anticipates a decline in the U.S. land rig count due to customer budget resets and an uncertain global economic outlook. Pressure Control revenues are expected to decrease modestly, while Spoolable Technologies anticipates seasonal sales expansion despite industry headwinds, driven by strong first quarter orders.
Positive Outlook
- Record first quarter orders achieved in Spoolable Technologies, supporting seasonal sales expansion.
- Strong balance sheet provides resilience to navigate market challenges.
- Diversifying supply chain to mitigate future risks.
- Historically supportive customer base.
- Capital-light business model enabling navigation through downcycles.
Challenges Ahead
- Anticipated decline in U.S. land rig count in Q2 2025.
- Potential for further activity reductions as the year progresses.
- Headwinds from increased input costs in both segments due to elevated tariff rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...