Cactus' Q1 revenue rises on higher domestic and international activity

Cactus, Inc. Class A

Cactus, Inc. Class A

WHD

0.00


Overview

  • U.S. oilfield equipment maker's Q1 revenue rose and beat analyst expectations

  • Adjusted EBITDA for Q1 beat analyst expectations

  • Cactus International acquisition drove revenue growth but increased transaction expenses


Outlook

  • Cactus expects Q2 Pressure Control revenue to be approximately flat due to Middle East disruptions

  • Company anticipates increased Q2 Spoolable Technologies activity, driven by U.S. customer momentum

  • Cactus expects 2026 net capital expenditures in the range of $40 mln to $50 mln


Result Drivers

  • ACQUISITION IMPACT - Revenue growth was primarily driven by the addition of Cactus International, though related purchase price accounting adjustments and transaction expenses reduced operating income and margins

  • SPOOLABLE TECHNOLOGIES GROWTH - Higher domestic and international activity drove increased revenue and margins in the Spoolable Technologies segment

  • MIDDLE EAST DISRUPTIONS - Pressure Control results were affected by logistics disruptions related to the conflict in the Middle East, though domestic strength helped offset these impacts


Company press release: ID:nBw5VHnr1a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$388.35 mln

$381.60 mln (6 Analysts)

Q1 Adjusted Net Income

$56.17 mln

Q1 Net Income

$40.22 mln

Q1 Adjusted EBITDA

Beat

$100.05 mln

$93.79 mln (8 Analysts)

Q1 Adjusted EBITDA Margin

25.80%

Q1 Operating Income

$49.50 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy"

  • Wall Street's median 12-month price target for Cactus Inc is $62.00, about 13.7% above its May 6 closing price of $54.51

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago


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