Cactus (WHD) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of $1.13 billion and net income of $232.8 million, outperforming industry activity levels despite sector softness.

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

• Maintained strong margin performance in both Pressure Control and Spoolable Technologies segments, even with Q4 seasonality.

• Focused on safety, cost control, execution, and supply chain flexibility, with differentiated products and no bank debt.

• Board declared a $0.13 per share dividend for January 2025.

Financial highlights

• Q4 revenue was $272 million, down 7.2% sequentially; adjusted EBITDA was $93 million (34.1% margin), and net income was $57 million.

• Full year 2024 adjusted EBITDA was $392.1 million (34.7% margin); net income margin for Q4 was 21.1%.

• Q4 diluted EPS was $0.68; adjusted EPS was $0.71, down from $0.79 in Q3.

• Ended Q4 with a cash balance of $343 million, up $39 million sequentially, and no bank debt.

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

Outlook and guidance

• Pressure Control Q1 2025 revenue expected to be flat to up from Q4, with adjusted EBITDA margins of 33%-35%.

• Spoolable Technologies Q1 revenue expected to decline mid to high single digits due to seasonality, with recovery in Q2; EBITDA margins projected at 35%-37%.

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

• Initiatives underway to grow customer base, expand international sales, diversify supply chain, and introduce new products.

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