Cactus (WHD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $280.3 million, with Adjusted EBITDA of $93.8 million (33.5% margin) and net income of $54.1 million; adjusted net income was $58.8 million.

• Achieved record Pressure Control product revenues per rig and strong first-quarter bookings in Spoolable Technologies.

• Net income attributable to Cactus Inc. rose 13.5% year-over-year to $44.2 million, with diluted EPS of $0.64.

• Paid a quarterly dividend of $0.13 per share and increased cash balance to $347.7 million, with no outstanding bank debt.

• Strong customer base and resilient supply chain support performance despite market uncertainty.

Financial highlights

• Q1 2025 revenue was $280.3 million, up 2.3% year-over-year and 3% sequentially; Adjusted EBITDA was $93.8 million, up 1.2%.

• Operating income increased 9.7% year-over-year to $68.6 million.

• Net income was $54.1 million, up 8.6% from Q1 2024; adjusted net income was $58.8 million ($0.73/share).

• Ended Q1 with $347.7 million in cash, a $5 million sequential increase, and no bank debt.

• Net CapEx for Q1 was $15.5 million, including Vietnam investment; operating cash flow was $41.5 million.

Outlook and guidance

• Q2 Pressure Control revenue expected to decline low to mid-single digits from Q1's $190.3 million.

• Q2 Spoolable Technologies revenue projected to rise mid to high single digits from Q1.

• Adjusted EBITDA margins for Pressure Control expected at 33%-35%; Spoolable Technologies at 35%-37%.

• Full-year 2025 net CapEx outlook reduced to $40-$50 million, focused on rental fleet, international expansion, and manufacturing enhancements.

• Actions underway to mitigate tariff impacts, including accelerating Vietnam production, expected to complete within 12 months.