Cactus (WHD) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $273.6 million, with net income of $49.0 million and adjusted EBITDA of $86.7 million, as margins were pressured by tariffs and lower U.S. land activity.

• Announced agreement to acquire a 65% majority interest in Baker Hughes' Surface Pressure Control business, expanding international presence and revenue diversification, expected to close late 2025 or early 2026.

• Spoolable Technologies outperformed profit expectations, with revenue up 3.9% sequentially and operating income rising 17.5%.

• Pressure Control segment revenue was $179.8 million, down 5.5% sequentially, with operating income declining 22.1% due to tariffs, lower leverage, and higher costs.

• Board approved an 8% increase in quarterly dividend to $0.14 per share.

Financial highlights

• Q2 2025 revenue was $273.6 million, down 2.4% sequentially and 5.8% year-over-year; adjusted EBITDA was $86.7 million, margin 31.7%.

• Net income was $49.0 million, down from $54 million in Q1; adjusted EPS was $0.66, down from $0.73 in Q1 and $0.81 in Q2 2024.

• Operating income for Q2 2025 was $60.8 million, a 23.8% decrease from Q2 2024.

• Cash and cash equivalents at June 30, 2025 were $405.2 million, up from $342.8 million at year-end 2024.

• No bank debt outstanding; $222.6 million available under the Amended ABL Credit Facility.

Outlook and guidance

• Q3 2025 Pressure Control revenue expected to decline mid to high single digits from Q2 due to lower rig count and Frac rental activity.

• Pressure Control adjusted EBITDA margin expected to remain stable at 28%-30%.

• Spoolable Technologies Q3 revenue expected to decline high single digits; adjusted EBITDA margin guidance at 35%-37%.

• Full-year 2025 net capital expenditures expected in the range of $40–$45 million.

• Management anticipates sufficient liquidity for at least the next 12 months to meet all anticipated cash requirements.