Cactus, Inc. Announces Fourth Quarter and Full Year 2025 Results, Closes Transformational Acquisition

Key Highlights for Investors

• Fourth quarter 2025 revenue: \$261.2 million
• Operating income: \$59.9 million
• Net income: \$48.3 million; diluted EPS of \$0.57 per Class A share
• Adjusted net income (non-GAAP): \$52.1 million; diluted EPS, as adjusted, of \$0.65
• Net income margin: 18.5%; adjusted net income margin: 20.0%
• Adjusted EBITDA: \$85.5 million; Adjusted EBITDA margin: 32.7%
• Operating cash flow: \$72.3 million (Q4)
• Cash and cash equivalents: \$494.6 million, including \$371.0 million of restricted cash; No bank debt outstanding at year-end 2025
• Major acquisition: On January 1, 2026, Cactus closed its acquisition of a majority interest in Baker Hughes’ Surface Pressure Control business (“Cactus International”)
• Dividend: Quarterly cash dividend of \$0.14 per Class A share approved for March 2026 payment

Financial Performance Breakdown

Year-on-Year and Sequential Results

Cactus, Inc. delivered solid results for both 4Q and FY2025, with revenues totaling \$1,079.1 million for the full year. Operating income for FY2025 was \$250.5 million. Net income for the year came in at \$201.6 million, with adjusted net income at \$215.7 million. Adjusted EBITDA for the year rose to \$352.9 million, representing a robust 32.7% margin.

Segment Analysis

• Pressure Control:
  • Revenue in Q4 2025 increased by \$9.7 million (5.8%) sequentially, driven by higher products sold per rig and increased rental revenues.
  • Operating income rose \$4.1 million (9.3%) sequentially, with margins improving by 90 basis points due to cost reduction and recovery initiatives.
  • Adjusted Segment EBITDA improved \$4.0 million (7.2%) sequentially, and margins expanded by 50 basis points.
• Spoolable Technologies:
  • Revenues decreased by \$11.0 million (11.6%) in Q4, attributed to seasonally lower customer activity.
  • Operating income dropped \$4.9 million (18.9%) sequentially, with operating margins down 220 basis points.
  • Adjusted Segment EBITDA fell by \$4.9 million (13.6%) and margins decreased by 90 basis points.
• Corporate and Other Expenses:
  • Q4 2025 expenses increased \$0.7 million (7.2%) versus Q3, including \$3.3 million in transaction-related costs for the Baker Hughes acquisition.

Balance Sheet & Liquidity

• Cash and cash equivalents: \$494.6 million at year-end 2025, with \$371.0 million restricted for SPC acquisition closing.
• No bank debt outstanding.
• Credit facilities: \$222.9 million available on revolving credit, \$100.0 million undrawn term loan.
• Net capital expenditures: \$4.3 million in Q4 2025; \$39.1 million for FY2025. FY2026 capex forecasted at \$40-50 million, including Cactus International spend.
• Share count: 68.89 million Class A shares (86.3% voting power), 10.96 million Class B shares (13.7% voting power).

Shareholder Actions & Dividend

• Quarterly Dividend: Board approved \$0.14 per Class A share, payable March 19, 2026, to holders of record as of March 2, 2026.
• Corresponding distribution up to \$0.14 per CC Unit for LLC members.

Strategic Acquisition: Baker Hughes Surface Pressure Control Business

Major Price-Sensitive Event: On January 1, 2026, Cactus successfully closed the acquisition of a majority interest in Baker Hughes’ Surface Pressure Control business, now branded as “Cactus International”. This deal is expected to geographically diversify Cactus’ earnings base and represents a multi-year growth and integration opportunity.

• Acquisition is transformative and likely to impact future earnings, margins, and international market exposure.
• Transaction-related expenses for Q4 2025 totaled \$3.3 million, with further integration costs expected.
• Restricted cash held in escrow (\$371M) was released for closing the deal.

2026 Guidance & Outlook

• U.S. Land Activity: Expected to be relatively flat in Q1 2026 compared to Q4 2025.
• Pressure Control: Anticipated to soften in Q1 2026 due to fewer products sold per rig and reduced rental activity after a strong Q4; results will now include Cactus International.
• Spoolable Technologies: Revenues expected to be softer than Q4, but activity is rebounding from holiday lows.
• Capex: Forecasted at \$40-50 million for FY2026, including integration of Cactus International, manufacturing upgrades, facility improvements in the U.S., and investment in Saudi Arabia wellhead operations.
• Management Commentary:
  • CEO Scott Bender expressed confidence in the company’s execution during 2025, citing strong margins, sustainable cash generation, and excitement about the integration opportunities from the SPC acquisition.
  • Cautioned that near-term macroeconomic and tariff environments remain challenging.

Risks and Forward-Looking Statements

Management notes that forward-looking statements are subject to risks and uncertainties, including those outside of Cactus’ control, which may cause actual results to differ materially. Investors are reminded to review risk factors in the company’s SEC filings.

Conference Call and Investor Communications

Cactus will host a conference call on February 26, 2026 at 9:00 a.m. Central Time to discuss results. The webcast will be available at www.CactusWHD.com.

Summary for Investors

• The closing of the Baker Hughes Surface Pressure Control acquisition is a significant, price-sensitive event likely to affect future share value.
• Strong liquidity position, no debt, and ongoing dividend payments are positives for shareholders.
• Management’s outlook is cautiously optimistic, but notes near-term macro challenges and expects a soft start to 2026.
• Continued focus on manufacturing efficiency, facility expansions, and integration of new international business lines may further enhance earnings and margins over the medium term.

Disclaimer: This article is based on Cactus, Inc.’s official financial filings and press releases. Forward-looking statements are subject to risks and uncertainties. Investors should review the company’s SEC filings and consult with their financial advisors before making investment decisions. This article does not constitute investment advice or a solicitation to buy or sell securities.

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