Cactus (WHD) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of $1.13 billion, outperforming industry activity levels despite sector softness.

• Q4 2024 revenue was $272.1 million with operating income of $70.5 million and net income of $57.4 million.

• Maintained strong margin performance in both Pressure Control and Spoolable Technologies segments.

• Focused on safety, cost control, execution, and supply chain flexibility with differentiated products.

• Cash and equivalents at year-end totaled $342.8 million with no bank debt.

Financial highlights

• Q4 2024 revenue was $272.1 million, down 7.2% sequentially due to seasonality.

• Adjusted EBITDA for Q4 was $92.7 million (34.1% margin); full year Adjusted EBITDA was $392.1 million (34.7% margin).

• Q4 net income was $57.4 million; adjusted EPS was $0.71, down from $0.79 in Q3.

• Ended the year with a cash balance of $343 million, up $39 million from the previous quarter.

• Paid a quarterly dividend of $0.13 per share, totaling about $10 million in outflows.

Outlook and guidance

• Pressure Control Q1 revenue expected to be flat to up from Q4, with EBITDA margins of 33%-35%.

• Spoolable Technologies Q1 revenue expected to decline mid to high single digits due to seasonality; Q2 revenues anticipated to increase.

• Full-year 2025 CapEx expected at $45–$55 million, up from 2024, driven by equipment upgrades and supply chain investments.

• Initiatives underway to grow customer base, mitigate tariff impacts, expand international sales, and introduce new products.

• International revenue contribution targeted to reach 40% long-term.