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 record Q1 bookings in Spoolable Technologies, despite a shifting market outlook and industry uncertainty.

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

• Net income attributable to Cactus Inc. rose 13.5% year-over-year to $44.2 million, with diluted EPS of $0.64 compared to $0.59 in Q1 2024.

• Working capital increased due to strong March revenue and deferred tax payment.

Financial highlights

• Q1 revenues were $280.3 million, up 2.3% year-over-year and 3% sequentially; Adjusted EBITDA was $94 million, up 1.2%.

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

• GAAP net income was $54.1 million, up 8.6% from $49.8 million in Q1 2024.

• Cash flow from operations was $41.5 million, down from $86.3 million in Q1 2024, mainly due to increased working capital needs.

• Net CapEx for Q1 was $15.5 million, including investment in Vietnam supply chain.

Outlook and guidance

• Q2 Pressure Control revenue expected to decline low to mid-single digits from Q1's $190 million; Spoolable Technologies revenue expected to rise mid to high single digits.

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

• Full-year 2025 net CapEx outlook reduced to $40-$50 million due to market uncertainty.

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

• U.S. land rig count expected to decline in Q2 2025 due to lower commodity prices and economic uncertainty.