Cactus (WHD) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $264 million, with adjusted EBITDA of $87 million (32.9% margin) and net income of $50.2 million; net income margin was 19.0%.

• Cash and equivalents increased to $446 million, with no bank debt and a quarterly dividend of $0.14 per share declared.

• Pressure Control margins improved due to tariff mitigation and cost reduction, while Spoolable Technologies exceeded expectations on higher international shipments.

• Integration planning for the acquisition of a controlling interest (65%) in Baker Hughes' Surface Pressure Control business is progressing, with closing expected in early 2026 for $344.5 million.

• For the nine months ended September 30, 2025, revenue was $817.8 million and net income attributable to shareholders was $126.2 million, both down year-over-year.

Financial highlights

• Q3 2025 revenue was $263.95 million, down 3.5% sequentially and 9.9% year-over-year; adjusted EBITDA was $86.9 million.

• Operating income for Q3 was $61.2 million (23.2% margin), and adjusted net income was $54 million ($0.67/share).

• Cash and cash equivalents at September 30, 2025, were $445.6 million, with no outstanding bank debt.

• Net CapEx for Q3 was $8.2 million; full-year CapEx outlook remains $40–$45 million.

• Dividend and distribution payments totaled $11.2 million in Q3.

Outlook and guidance

• Q4 Pressure Control revenue expected to be flat versus Q3, with adjusted EBITDA margins in the 31%-33% range.

• Spoolable Technologies Q4 revenue expected to decline low double digits sequentially, with adjusted EBITDA margins of 34%-36%.

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

• Management expects existing cash, operating cash flow, and available credit to be sufficient for at least the next 12 months, including funding the Baker Hughes transaction.

• Effective tax rate for Q4 projected at 22%; depreciation and amortization expected at $16 million.