Cactus (WHD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $388.3 million, with Adjusted EBITDA of $100.1 million and a margin of 25.8%.

• Closed acquisition of a majority interest in Baker Hughes' Surface Pressure Control business (Cactus International), expanding global wellhead supplier status and product offerings.

• Spoolable Technologies segment outperformed expectations in both revenue and margin, while Pressure Control results included Cactus International and were impacted by Middle East conflict.

• Revenue mix for Q1 2026: 77% products, 4% rentals, 19% field service and other, with operations in the U.S., Middle East, and select international markets.

• Quarterly dividend of $0.14 per share paid; cash balance at quarter-end was $291.6 million.

Financial highlights

• Q1 2026 revenue: $388.3 million, up 38.5% year-over-year; Adjusted EBITDA up $14.6 million sequentially from Q4; margin declined to 25.8% from 32.7%.

• GAAP net income was $40.2 million, down from $48 million in Q4 and 25.6% lower year-over-year, mainly due to purchase price accounting.

• Adjusted net income was $56.2 million ($0.70/share), up from $52 million ($0.65/share) in Q4.

• Cash and cash equivalents at March 31, 2026: $291.6 million; no bank debt outstanding; $223.7 million available under credit facility.

• Net cash from operations: $128.3 million; net cash used in investing: $310.0 million (mainly for acquisition); net CapEx for Q1 was $9 million.

Outlook and guidance

• Q2 Pressure Control revenue expected to be flat, with Adjusted EBITDA margins of 22%-24%, while Spoolable Technologies Q2 revenue projected to rise mid-single digits with margins of 36%-38%.

• Full-year 2026 CapEx outlook remains $40-$50 million, focused on service center enhancements, rental fleet, and manufacturing upgrades.

• Sufficient liquidity expected for the next 12 months to meet all material cash requirements, including capex, dividends, and debt service.

• Board approved another $0.14/share dividend for June.

• U.S. land rig count expected to be flat to up in Q2 2026, with customer sentiment turning more bullish.