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Dec 31, 2024
Cactus Q4 2024 Earnings Report
Cactus reported a strong Q4 2024 with stable profitability despite revenue decline.
Key Takeaways
Cactus, Inc. posted Q4 2024 revenue of $272.1 million, slightly down from Q4 2023. Net income was $57.4 million, and adjusted EPS stood at $0.71. While Pressure Control revenues declined due to lower customer activity, the Spoolable Technologies segment faced seasonal slowdowns. Despite revenue pressures, the company maintained strong operating margins and continued to generate positive cash flow.
Revenue of $272.1 million, a 1% decline from Q4 2023.
Net income of $57.4 million, with a 21.1% net income margin.
Adjusted EPS was $0.71, down from $0.81 in Q4 2023.
Cash and cash equivalents rose to $342.8 million with no bank debt.
Forward Guidance
Cactus expects stable U.S. land activity in Q1 2025, with flat to slightly increased revenue in Pressure Control, while Spoolable Technologies may experience further seasonal softness before recovering in Q2.
Positive Outlook
- Expected stability in U.S. land activity levels.
- Pressure Control revenue anticipated to remain flat or improve.
- Spoolable Technologies expected to recover in Q2.
- Ongoing efforts to expand international sales.
- Strong balance sheet with no bank debt and ample liquidity.
Challenges Ahead
- Seasonal slowdowns affecting Spoolable Technologies.
- Lower customer activity impacting Pressure Control revenues.
- Potential tariff impacts on supply chain costs.
- Operating margins facing pressure from input costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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