A month has gone by since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 10.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cactus due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Cactus, Inc. before we dive into how investors and analysts have reacted as of late.
WHD Q2 Earnings Beat Estimates on Pressure Control, Spoolable Growth.Cactus, Inc. reported second-quarter 2026 adjusted earnings of 93 cents per share, up 40.9% from 66 cents per share a year earlier. The bottom line topped the Zacks Consensus Estimate of 71 cents per share by 31%.
Quarterly revenues surged 64.3% to $449.53 million from $273.58 million a year ago. The top line exceeded the consensus mark of $400.62 million by 12.2%.
Strong quarterly results were driven by higher contributions from Cactus International, stronger Middle East Pressure Control shipments and growing demand for Spoolable Technologies. Backlog ended the quarter at $455.8 million.
WHD's Pressure Control Revenues SurgePressure Control revenues increased 91.4% year over year to $344 million from $179.77 million a year ago. The figure is above our estimate of $307.2 million. The sharp rise primarily reflected the addition of Cactus International, which expanded WHD’s international operations and contributed significant Middle East revenues.
The segment also benefited from stronger U.S. customer activity and solid execution of international deliveries despite conflict-related logistics challenges. Aftermarket service activity in Saudi Arabia and Norway provided additional support, as customers focused on repairing and better utilizing existing equipment.
Pressure Control operating income rose 39.7% to $59.15 million from $42.33 million recorded a year earlier. Adjusted segment earnings before interest, taxes, depreciation and amortization (EBITDA) increased 80.7% to $95.92 million from $53.08 million in the prior-year quarter. However, the adjusted (EBITDA) margin declined to 27.9% from 29.5%, reflecting the changed business mix following the Cactus International acquisition.
Cactus' Spoolable Business Maintains GrowthSpoolable Technologies revenues increased 9.7% to $105.53 million from $96.23 million in the prior-year quarter. The figure is above our estimate of $95.5 million.
Segment operating income increased 14.7% year over year to $32.17 million from $28.05 million recorded a year earlier. Adjusted segment EBITDA rose 11% to $42.14 million from $37.95 million in the prior-year quarter, while the adjusted EBITDA margin improved to 39.9% from 39.4%. The expansion reflected favorable product mix and stronger operating leverage.
WHD's Earnings Benefit From Higher ScaleTotal operating income increased 37.5% year over year to $83.58 million from $60.81 million a year earlier. The operating margin contracted to 18.6% from 22.2%, as results included acquisition-related purchase accounting expenses tied to Cactus International and FlexSteel.
These expenses included amortization associated with acquired intangible assets and the step-up in inventory values. The company recorded severance costs related primarily to efforts to resize and integrate the Cactus International organization.
Adjusted EBITDA rose 53.2% year over year to $132.78 million. The adjusted EBITDA margin was 29.5% compared with 31.7% in the prior-year quarter. Adjusted net income increased 41.1% to $75.11 million, supported by the substantial revenue contribution from Pressure Control and continued profitability in Spoolable Technologies.
Cactus' Strong Cash Flow, Maintained DividendOperating cash flow was $104.6 million in the quarter. Net capital expenditures totaled $15.6 million and dividend payments and related distributions totaled $11.2 million.
WHD Maintains Robust LiquidityWHD ended June with $365.82 million in cash and cash equivalents and no bank debt. The balance included $92.5 million retained to finalize legal restructuring activities tied to the Cactus International acquisition. The company had $223.7 million available under its revolving credit facility.
Cactus Expands Capacity for Global DemandCactus raised its 2026 net capital expenditure guidance to a range of $55-$65 million. The increase primarily reflects investments in the Baytown Spoolable Technologies facility to support growing demand from international and midstream customers.
The Baytown project is expected to cost roughly $40 million and could expand the facility’s production capacity by as much as 20%. Management is evaluating additional Spoolable Technologies manufacturing capacity in the Eastern Hemisphere to serve opportunities in the Middle East and other international markets.
The company received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million, indicating continued demand across both operating segments.
WHD’s 2026 Outlook & Dividend IncreaseFor the third quarter, management expects Pressure Control adjusted EBITDA margins to be in the range of 22-24%, excluding about $4 million of stock-based compensation. Lower international operating leverage, reduced aftermarket service contributions and fewer tariff recoveries are expected to affect profitability.
Spoolable Technologies adjusted EBITDA margins are projected at 39-41%, excluding roughly $1 million of stock-based compensation. Management expects demand to remain supported by Latin American orders, international market expansion and increased adoption among U.S. customers.
The board increased the quarterly dividend by 7% to 15 cents per share, marking the fourth consecutive year of dividend growth. Cactus expects third-quarter depreciation and amortization of about $27 million and an adjusted tax rate of approximately 27%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates revision.
VGM ScoresAt this time, Cactus has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus, Inc. designs, manufactures, sells and rents wellhead, pressure control and spoolable pipe equipment. Its products are used during the drilling, completion and production phases of onshore oil and natural gas wells. The Houston, TX-based company also generates revenue from field services, equipment installation, maintenance, repair and refurbishment.
WHD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. WHD has a Momentum Style Score of A, and shares are up 26% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.31 to $3.12 per share. WHD boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WHD should be on investors' short list.
shares fell 6.6% to $68.85, a decline occurring amidst a 52-week range of $33.20 to $74.07. This recent drop follows a strong upward trend, with a notable gain of 51.5% year-to-date and 78.7% over the past year.
GF Value™ verdict: Current price is $68.85, which is 1.2% undervalued compared to the GF Value™ of $69.71. GF Score™ of 97/100 indicates a strong overall rating, suggesting solid fundamentals. Insider activity shows that insiders sold $51.3 million worth of shares over the past 12 months with no buying activity. Is WHD Overvalued or Undervalued? Cactus Inc
WHD -6.62% 97
is currently priced at $68.85, which is slightly below the GF Value™ estimate of $69.71, indicating that the stock is 1.2% undervalued. This suggests that there may be an opportunity for investors willing to enter at this price point. The GF Value™ is GuruFocus' proprietary estimate of a stock's intrinsic value, derived from a combination of historical trading multiples, business growth patterns, and forward-looking performance projections.
Given that the stock is undervalued relative to its GF Value™, there exists a margin of safety for potential investors. However, it is essential to consider that the valuation is close to fair value, and the current stock price reflects recent volatility in the market. The GF Valuation label classifies WHD as fairly valued, indicating that while there is some potential for appreciation, caution is warranted due to the proximity to its estimated intrinsic value.
How Does WHD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 58.9x 22.2x Forward P/E 23.9x N/A The current P/E ratio of 58.9x is significantly above its 5-year median P/E of 22.2x, indicating that the stock is trading at a premium compared to its historical valuation metrics. This analysis aligns with the GF Value™ verdict that suggests WHD is fairly valued, as the elevated P/E ratio may reflect market expectations that could lead to increased volatility in the stock price.
What Does WHD's GF Score™ Tell Us? The GF Score™ evaluates a company's overall financial health and growth potential based on various factors, including financial strength, profitability, growth, valuation, and momentum. Cactus Inc boasts a GF Score™ of 97/100, highlighting its strong fundamentals, with particularly high marks in growth and profitability.
Metric Rating GF Score™ 97 Financial Strength 9/10 Profitability 9/10 Growth 10/10 Valuation 7/10 Momentum 10/10 Cactus Inc's strongest sub-rank is in growth, with a perfect score of 10/10, indicating robust potential for revenue and earnings increases. However, the valuation rank of 7/10 suggests that while the company may be currently seen as fairly valued, there are areas for consideration, particularly in the context of its high P/E relative to historical averages.
What Are Gurus and Insiders Doing with WHD? Currently, six gurus hold shares of Cactus Inc
WHD -6.62% 97
, with five increasing their positions and two trimming their holdings in recent quarters. This suggests a generally positive sentiment among institutional investors, indicating confidence in the company's prospects. However, it is noteworthy that insiders have sold $51.3 million worth of shares over the past year, with no recent purchases. This selling activity may raise concerns about the management's confidence in the company's near-term outlook.
The mixed signals from guru activity combined with substantial insider selling suggest a cautious approach. While guru interest is strong, the lack of insider buying could imply that insiders do not see immediate upside in the stock price, which investors should consider when evaluating potential investments.
What This Means for Investors Based on the analysis, Cactus Inc
WHD -6.62% 97
appears to be fairly valued according to the GF Value™ estimate. With a current price of $68.85, which is 1.2% below the GF Value™ of $69.71, there may be some opportunity for investors, but caution is warranted given the high P/E ratio and recent insider selling. For a deeper dive into the financials and performance metrics of Cactus Inc, visit the Cactus Inc (WHD) stock page for a comprehensive overview.
Frequently Asked Questions What is WHD's GF Score™?
The GF Score™ for Cactus Inc is 97/100, indicating a strong overall rating that reflects solid financial health and growth potential.
Is WHD overvalued or undervalued?
Cactus Inc is currently undervalued based on the GF Value™ of $69.71 compared to its market price of $68.85, suggesting a slight opportunity for investors.
What is WHD's P/E ratio?
The P/E ratio for Cactus Inc is 58.9x, which is significantly above its 5-year median of 22.2x, indicating that the stock is trading at a substantial premium relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cactus, Inc. (WHD - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cactus, Inc. currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for WHD that show why this company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For WHD, shares are up 7.92% over the past week while the Zacks Oil and Gas - Integrated - United States industry is up 3.58% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 31.71% compares favorably with the industry's 0.43% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Cactus, Inc. have risen 21.59%, and are up 89.15% in the last year. On the other hand, the S&P 500 has only moved 5.09% and 21.46%, respectively.
Investors should also take note of WHD's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now WHD is averaging 830,008 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with WHD.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost WHD's consensus estimate, increasing from $2.81 to $3.12 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that WHD is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Cactus, Inc. on your short list.
Shares of Cactus, Inc. (WHD - Free Report) have been strong performers lately, with the stock up 31.7% over the past month. The stock hit a new 52-week high of $74.07 in the previous session. Cactus has gained 61.4% since the start of the year compared to the 31.6% gain for the Zacks Oils-Energy sector and the 37.4% return for the Zacks Oil and Gas - Integrated - United States industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 29, 2026, Cactus reported EPS of $0.93 versus consensus estimate of $0.71.
For the current fiscal year, Cactus is expected to post earnings of $3.12 per share on $1.67 in revenues. This represents a 15.99% change in EPS on a 54.61% change in revenues. For the next fiscal year, the company is expected to earn $3.54 per share on $1.79 in revenues. This represents a year-over-year change of 13.54% and 7.27%, respectively.
Valuation MetricsThough Cactus has recently hit a 52-week high, what is next for Cactus? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cactus has a Value Score of D. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 23.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 22.2X. On a trailing cash flow basis, the stock currently trades at 21X versus its peer group's average of 8.2X. Additionally, the stock has a PEG ratio of 2.6. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cactus currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cactus meets the list of requirements. Thus, it seems as though Cactus shares could have a bit more room to run in the near term.
Key Takeaways Patterson-UTI's services could see robust demand as producers increase exploration and production activity.Cactus makes pressure-control and spoolable-pipe technologies for onshore oil and gas wells.Cactus' handsome backlog reflects future cash flow generation in the favorable crude-price environment.
Fresh Middle East tensions, following the news that the United States has threatened to use its navy to block Iran’s maritime trade for an unspecified period, have renewed investor interest in the oil-energy space. With oil again in its glorious days, should investors bet on Patterson-UTI (PTEN - Free Report) and Cactus, Inc. (WHD - Free Report) ? Let’s dive in.
Oil Price Remains HighWest Texas Intermediate (“WTI”) is currently trading above $80 per barrel, according to data from Oilprice.com, significantly higher than the shut-in and breakeven prices for existing wells in key resources. The escalation of Middle East conflicts has been aiding the rally in commodity prices.
In its latest short-term energy outlook, the EIA projects the WTI spot price to average $88.88 per barrel this year, a level that should remain supportive of upstream operations, as many producers have considerably lower breakeven costs. With higher exploration and production activities, demand for oilfield services and drilling activities is also expected to improve.
2 Stocks to Buy: PTEN & WHDPatterson-UTI is expected to continue gaining from the prevailing crude-price scenario. This is because demand for the company’s services will likely remain robust, as the supportive commodity-price backdrop is expected to continue to bolster exploration and production operations. In other words, with increased exploration and production activities, upstream players will hire more drilling and completion services that will boost the bottom line of PTEN, which currently carries a Zacks Rank #2 (Buy).
Being a manufacturer of highly engineered pressure-control and spoolable-pipe technologies, Cactus is well-positioned to gain on the highly favorable crude pricing environment. This is because the Zacks Rank #2 company’s products and technologies support the drilling, completion and production of onshore oil and gas wells. Also, WHD’s handsome backlog reflects future cash flow generation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus (WHD) is evolving from a U.S.-centric wellhead supplier to a diversified global production infrastructure platform, reducing reliance on any single oilfield spending category. WHD's Q2 results demonstrated strong operating leverage, with revenue up 15.8% sequentially and robust margin expansion, particularly in FlexSteel and Pressure Control segments. International expansion via the Cactus International acquisition and rapid growth in Spoolable Technologies are driving a more resilient, less cyclical earnings profile.
Cactus, Inc. (NYSE:WHD – Get Free Report) CEO Steven Bender sold 25,000 shares of the firm’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $67.65, for a total value of $1,691,250.00. Following the sale, the chief executive officer directly owned 99,241 shares in the company, valued at approximately $6,713,653.65. This trade represents a 20.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.
Cactus Price Performance Shares of WHD opened at $70.85 on Tuesday. Cactus, Inc. has a 12-month low of $33.20 and a 12-month high of $71.09. The business has a 50-day simple moving average of $56.41 and a two-hundred day simple moving average of $54.95. The company has a quick ratio of 1.81, a current ratio of 2.59 and a debt-to-equity ratio of 0.01. The stock has a market cap of $5.68 billion, a PE ratio of 60.56, a PEG ratio of 2.43 and a beta of 1.36.
Cactus (NYSE:WHD – Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $0.93 EPS for the quarter, beating the consensus estimate of $0.64 by $0.29. Cactus had a return on equity of 16.66% and a net margin of 6.01%.The firm had revenue of $449.53 million during the quarter, compared to the consensus estimate of $400.82 million. During the same period last year, the company earned $0.66 earnings per share. The business’s quarterly revenue was up 64.3% on a year-over-year basis. Analysts anticipate that Cactus, Inc. will post 3.07 earnings per share for the current fiscal year.
Cactus Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Monday, August 31st will be issued a $0.15 dividend. This is a boost from Cactus’s previous quarterly dividend of $0.14. The ex-dividend date is Monday, August 31st. This represents a $0.60 dividend on an annualized basis and a yield of 0.8%. Cactus’s dividend payout ratio (DPR) is 47.86%.
Wall Street Analysts Forecast Growth A number of equities research analysts have weighed in on the stock. Citigroup boosted their target price on shares of Cactus from $65.00 to $67.00 and gave the stock a “buy” rating in a report on Thursday, June 18th. Stifel Nicolaus lifted their price target on shares of Cactus from $68.00 to $72.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Piper Sandler lifted their price target on shares of Cactus from $72.00 to $73.00 and gave the stock an “overweight” rating in a report on Tuesday, July 14th. Wall Street Zen raised shares of Cactus from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Barclays increased their price objective on Cactus from $70.00 to $74.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Cactus currently has a consensus rating of “Moderate Buy” and an average target price of $65.20.
Read Our Latest Stock Report on Cactus
Institutional Trading of Cactus A number of institutional investors and hedge funds have recently added to or reduced their stakes in WHD. VELA Investment Management LLC increased its holdings in Cactus by 24.2% in the fourth quarter. VELA Investment Management LLC now owns 146,042 shares of the company’s stock worth $6,671,000 after purchasing an additional 28,493 shares in the last quarter. Paradice Investment Management LLC boosted its holdings in shares of Cactus by 16.1% during the 4th quarter. Paradice Investment Management LLC now owns 675,932 shares of the company’s stock worth $30,877,000 after buying an additional 93,714 shares in the last quarter. UBS Group AG boosted its holdings in shares of Cactus by 81.8% during the 4th quarter. UBS Group AG now owns 380,513 shares of the company’s stock worth $17,382,000 after buying an additional 171,223 shares in the last quarter. Vest Financial LLC grew its position in shares of Cactus by 24.7% during the 4th quarter. Vest Financial LLC now owns 134,568 shares of the company’s stock worth $6,147,000 after buying an additional 26,669 shares during the period. Finally, Deprince Race & Zollo Inc. bought a new stake in shares of Cactus in the 1st quarter valued at $41,895,000. Institutional investors and hedge funds own 85.11% of the company’s stock.
About Cactus (Get Free Report)
Cactus, Inc, together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.
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Key Takeaways Cactus' growth is broadening as Cactus International and FlexSteel expand its earnings base.Cactus had $365.8M in cash, no bank debt and raised 2026 capital spending guidance.Cactus faces tariff exposure, backlog risks and premium valuation despite double-digit earnings growth. Cactus, Inc.(WHD - Free Report) is entering the second half of 2026 with faster earnings growth, expanding international exposure and substantial liquidity. Second-quarter results showed that the Cactus International and FlexSteel acquisitions are broadening the company’s earnings base.
The trade-off is valuation. WHD’s premium multiples, tariff exposure and uneven backlog conversion raise the execution bar even as estimates point to double-digit earnings growth.
Cactus’ Growth Engines Are BroadeningPressure Control revenues reached $344 million in the second quarter, helped by Cactus International and stronger Middle East deliveries. Spoolable Technologies generated $105.5 million in revenues and adjusted segment EBITDA of $42.1 million, with the margin improving to 39.9%.
The company also received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million. Baker Hughes Company (BKR - Free Report) , whose Surface Pressure Control operations formed the basis of Cactus International, remains a relevant reference point in global oilfield services and equipment.
WHD’s Cash Position Supports ExpansionAs of June 30, Cactus had $365.8 million in cash and no bank debt. Second-quarter operating cash flow reached $104.6 million, while net capital expenditures were $15.6 million, giving the company room to fund growth without depending on additional leverage.
Cactus raised its 2026 net capital expenditure guidance to $55-$65 million, mainly for the Baytown Spoolable Technologies facility. The roughly $40 million project could increase Baytown capacity by as much as 20%, with most spending expected in 2027.
WHD’s Premium Valuation Raises the BarWHD trades at 3.2X forward 12-month sales, above the sub-industry’s 1.8X and the broader Zacks sector’s 1.4X. It also stands modestly above the stock’s five-year median of 3.0X.
That premium leaves less room for disappointment if international orders, margins or domestic activity soften. The valuation does not negate the growth case, but it makes sustained earnings delivery more important. Image Source: Zacks Investment Research
Cactus Faces Tariff and Backlog RisksPressure Control continues to face a 75% total tariff on most goods sourced from China and a 50% tariff on goods from Vietnam. Steel and high-density polyethylene costs add another source of margin pressure.
Remaining performance obligations ended June at $455.8 million as project deliveries outpaced new awards and negotiations continued with a large Middle East customer. SLB (SLB - Free Report) , another global oilfield-services provider with active Middle East wellhead and drilling contracts, illustrates the competitive backdrop for international spending.
WHD’s Earnings Outlook Points to Faster GrowthThe Zacks Consensus Estimate calls for current-quarter earnings of 76 cents per share, up 13.4%. Next-quarter earnings are also projected at 76 cents, implying 16.9% growth.
For 2026, the consensus estimate of $3.07 per share indicates 14.1% growth from the prior year. The 2027 estimate rises to $3.54, representing another 15.4% increase and supporting the view that earnings momentum can extend beyond the current year. Image Source: Zacks Investment Research
Cactus’ Buy Signal Favors Growth and MomentumWHD’s accelerating earnings outlook, international expansion and debt-free balance sheet strengthen the growth case, while premium valuation and execution risks argue against ignoring price discipline. The stock therefore offers a favorable setup, but not one without meaningful operating and valuation risks.
WHD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Growth Score of B, Momentum Score of B and VGM Score of B complement that favorable rank, while the Value Score of C is more consistent with the stock’s richer valuation. Together, those signals favor investors focused on growth and momentum, while suggesting that valuation-sensitive buyers may want to remain selective.
William D. Marsh, who serves as GC, EVP and Secretary of Cactus(WHD +3.99%), reported a sale of 7,178 shares of Class A Common Stock on August 5, 2026, according to the SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$476,000Shares sold7,178Post-transaction shares (directly held)18,665Post-transaction value$1.23 millionTransaction value based on SEC Form 4 weighted average sale price ($66.32); post-transaction value based on August 5, 2026 market close ($65.91).
Key questionsWhat is the scale of the transaction relative to the insider's position?
The sale of 7,178 shares represented a 28% liquidation of the executive's direct equity stake. Marsh now holds a remaining direct position of 18,665 shares, representing approximately 0.0269% of the company's outstanding equity.How does the execution price compare to recent market activity?
Marsh executed the sale at $66.32 per share, slightly above the $65.91 price recorded at the August 5, 2026 market close. The stock has shown significant momentum, with a one-year return of 63% as of the transaction date.What is the company's current financial profile and operational focus?
Cactus is a Houston-based energy firm specializing in the engineering, fabrication, and leasing of subsurface pressure management equipment. As of the August 5, 2026 market close, it maintains a market capitalization of $4.8 billion and reported trailing twelve-month revenue of $1.4 billion.Does the insider hold any other interests in the company?
The reporting indicates that all currently held equity is in the form of Class A Common Stock held directly. The filing does not disclose any indirect holdings via trusts or other legal entities.Company OverviewMetricValueShare Price (as of market close 2026-08-05)$65.91Market Capitalization$4.8 billionRevenue (TTM)$1.4 billionNet Income (TTM)$81.9 millionCompany SnapshotCactus, Inc. specializes in the engineering, fabrication, distribution, and leasing of critical subsurface pressure management and wellhead apparatus, including proprietary systems such as Cactus SafeDrill wellheads, SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks and zipper manifold equipment that serve as primary revenue drivers for the organization.The company operates a diversified business model that generates revenue through both equipment sales and leasing services, enabling customers to either purchase critical wellhead apparatus outright or access these systems through flexible rental arrangements tailored to project-specific requirements.Cactus serves major oil and gas operators and drilling contractors across key international markets including the United States, Australia, China, and the Kingdom of Saudi Arabia, positioning itself as a critical supplier to the global upstream energy sector.Cactus, Inc. is a specialized provider of subsurface pressure management solutions with a market capitalization of $4.8 billion and TTM revenues of $1.4 billion, serving as a critical equipment supplier to the global oil and gas industry. The company maintains a geographically diversified operational footprint across major hydrocarbon-producing regions, leveraging proprietary technology and established customer relationships to drive competitive differentiation. With 1,500 employees headquartered in Houston, Cactus has demonstrated significant momentum, with its share price appreciating 62.98% over the trailing twelve-month period through August 2026.
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What this transaction means for investorsCactus just delivered one of its strongest quarters on record, making this insider sale worth understanding in that context.
William Marsh has served as Cactus' general counsel and top legal officer for several years, giving him deep institutional knowledge of the business. His Aug. 5 sale was a direct open-market transaction, the kind investors tend to watch more closely than pre-scheduled automatic sales because it reflects a deliberate choice made in the current market environment. The sale reduced his direct stake by roughly a quarter, though his remaining position represents a very small slice of the company's total outstanding shares.
Cactus is a leading provider of wellheads, valves, and spoolable pipe systems for the oil and gas industry, with a reputation for engineering quality that has made it a go-to supplier for drilling operators across North America and beyond. The company just posted record quarterly results, with revenue surging well above expectations on the back of a major acquisition and strong energy services demand. Management has been executing well against a favorable backdrop.
If you’re comfortable with the cyclical nature of energy equipment businesses, Cactus offers a profitable operation with impressive growth momentum. Just make sure to monitor whether oil and gas drilling activity stays robust enough to sustain it.
John A. O’Donnell, director, sold 10,000 shares of Cactus (WHD +3.99%) on Aug. 5, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$661,300Shares sold10,000Post-transaction shares (directly held)17,990Post-transaction value$1.19 millionTransaction value based on SEC Form 4 weighted average sale price ($66.13); post-transaction value based on August 05, 2026 market close ($65.91).
Key questionsHow substantial was this disposal relative to the insider's total equity?
The sale of 10,000 shares accounted for 36% of the director's total direct position, significantly adjusting his remaining exposure to the company.At what price level did the transaction occur?
Shares were sold at $66.13 per share, which was a slight premium to the $65.91 market close on the date of the transaction.What is the current market value of the remaining direct stake?
Following the transaction, John A. O'Donnell retains 17,990 shares held directly, representing a market value of $1.19 million as of the August 5, 2026 market close.Does the insider maintain any indirect exposure to the stock?
The current filing indicates that all remaining holdings are held directly, with no shares attributed to trusts, LLCs, or other indirect investment vehicles.Company OverviewMetricValueShare Price (as of market close 2026-08-05)$65.91Market Capitalization$4.8 billionRevenue (TTM)$1.4 billionNet Income (TTM)$81.9 millionCompany SnapshotCactus, Inc. specializes in the engineering, fabrication, distribution, and leasing of critical subsurface pressure management and wellhead apparatus, including proprietary systems such as Cactus SafeDrill wellheads, SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks and zipper manifold equipment that serve as primary revenue drivers for the organization.The company operates a diversified business model that generates revenue through both equipment sales and leasing services, enabling customers to either purchase critical wellhead apparatus outright or access these systems through flexible rental arrangements tailored to project-specific requirements.Cactus serves major oil and gas operators and drilling contractors across key international markets including the United States, Australia, China, and the Kingdom of Saudi Arabia, positioning itself as a critical supplier to the global upstream energy sector.Cactus, Inc. is a specialized provider of subsurface pressure management solutions with a market capitalization of $4.8 billion and TTM revenues of $1.4 billion, serving as a critical equipment supplier to the global oil and gas industry. The company maintains a geographically diversified operational footprint across major hydrocarbon-producing regions, leveraging proprietary technology and established customer relationships to drive competitive differentiation. With 1,500 employees headquartered in Houston, Cactus has demonstrated significant momentum, with its share price appreciating 62.98% over the trailing twelve-month period through August 2026.
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What this transaction means for investorsWhen a Cactus director sells more than a third of his direct stake on the open market, it is worth taking a closer look at both the transaction and the company behind it.
John O'Donnell has served on the Cactus board since 2015 and brings decades of oilfield industry experience. His Aug. 5 sale was a direct open-market transaction, the kind investors tend to watch more closely than pre-scheduled automatic sales because it reflects a deliberate choice made in the current market environment. The sale reduced his direct position by more than a third, a notable adjustment to his exposure even if personal financial considerations unrelated to the company's outlook may be at play.
Cactus has built a strong niche as a specialized manufacturer of wellhead and pressure control equipment for oil and gas drilling, growing from a domestic operator into a company with a growing international footprint. The company just posted record quarterly results, with revenue surging well above expectations, driven by a major acquisition and strong energy services demand.
If you’re comfortable with the cyclical nature of energy equipment businesses, Cactus offers a profitable operation with strong growth momentum. The central question is whether oil and gas drilling activity stays robust enough to sustain it.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool recommends Cactus. The Motley Fool has a disclosure policy.
Joel Bender, President of Cactus (WHD -1.46%), sold ~100,000 shares of Class A Common Stock on August 3, 2026, for a total value of $6.4 million, according to the SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$6.4 millionShares sold (direct)~100,000Post-transaction shares (total)~9.3 millionPost-transaction shares (directly held)41,519Post-transaction shares (indirectly held)~9.3 millionPost-transaction value$595.9 millionTransaction value based on SEC Form 4 weighted average sale price ($63.89); post-transaction value based on August 03, 2026 market close ($63.84).
Company snapshotSector: EnergyIndustry: Oil & Gas Equipment & ServicesMarket capitalization: $4.7 billionCactus specializes in the engineering, fabrication, distribution, and leasing of critical subsurface pressure management and wellhead apparatus. The company operates across key international markets such as the United States, Australia, China, and the Kingdom of Saudi Arabia.
Key questionsHow does this transaction affect the executive's overall alignment with the company?
While the sale significantly reduced direct ownership, Joel Bender maintains a substantial equity position of ~9.3 million shares held indirectly through Cactus Enterprises and Bender Investment Company.What was the structural nature of this share disposition?
The transaction was part of a non-discretionary Rule 10b5-1 trading plan, involving a redemption process where Bender Investment Company converted ownership units in Cactus WH Enterprises into Class A Common Stock for immediate liquidation.What is the current valuation context for Cactus shares?
As of the August 4, 2026 market close, the stock was priced at $67.21, which sits above the $63.89 weighted average execution price reported in the filing and the $63.84 closing price on the day of the trade.Company OverviewMetricValueShare Price (as of market close 2026-08-04)$67.21Market Capitalization$4.7 billionRevenue (TTM)$1.4 billionNet Income (TTM)$81.9 millionCompany SnapshotCactus specializes in the engineering, fabrication, distribution, and leasing of critical subsurface pressure management and wellhead apparatus, including proprietary systems such as Cactus SafeDrill wellheads, SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks and zipper manifold equipment.The company generates revenue through a diversified business model encompassing equipment sales, system distribution, and equipment leasing services to oil and gas operators across multiple geographic markets.Cactus serves major oil and gas operators and exploration companies across key international markets including the United States, Australia, China, and the Kingdom of Saudi Arabia, positioning itself as a critical supplier of wellhead and pressure management solutions to the global energy sector.Cactus operates as a specialized equipment and services provider in the oil and gas sector with a market capitalization of $4.7 billion and TTM revenues of $1.4 billion. The company maintains a competitive advantage through proprietary wellhead and subsurface pressure management technologies that address critical operational requirements for upstream oil and gas producers. With 1,500 employees and operations across major energy markets globally, Cactus has demonstrated strong financial performance, evidenced by a 60.85% one-year share price appreciation and TTM net income of $81.9 million.
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What this transaction means for investorsThe headline number on this Cactus insider sale is attention-grabbing, but the details are considerably less dramatic.
The sale was pre-scheduled and non-discretionary, and the structure is a common way for insiders to hold their stakes: through partnership units that must first be converted into common stock before they can be sold. Nothing here suggests a deliberate market call.
The more interesting backdrop is the company's momentum. Cactus just reported Q2 2026 revenue of nearly $450 million, up 64% year over year, beating analyst estimates by more than 12%. The company manufactures wellheads, valves, and spoolable pipes used in oil and gas drilling, and has been executing well against a strong energy services environment.
For investors comfortable with the ups and downs of the energy sector, Cactus is the kind of company that tends to reward patience. It carries no debt, returns cash to shareholders regularly, and has been growing faster than analysts expected. The main variable to keep an eye on here is oil and gas drilling activity. When energy companies are spending, Cactus benefits. When they pull back, results do too.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cactus, Inc. (WHD - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cactus, Inc. currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for WHD that show why this company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For WHD, shares are up 17.94% over the past week while the Zacks Oil and Gas - Integrated - United States industry is down 2.25% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 26.44% compares favorably with the industry's 2.05% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Cactus, Inc. have increased 12.93% over the past quarter, and have gained 60.24% in the last year. On the other hand, the S&P 500 has only moved 5.43% and 23.19%, respectively.
Investors should also take note of WHD's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now WHD is averaging 823,073 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with WHD.
Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost WHD's consensus estimate, increasing from $2.80 to $3.07 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that WHD is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Cactus, Inc. on your short list.
Cactus, Inc. (WHD - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Cactus, Inc., strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $0.79 per share, which is a change of +17.9% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Cactus has increased 5.47% because four estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $3.07 per share, representing a year-over-year change of +14.1%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Cactus. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 6.51%.
Favorable Zacks RankThanks to promising estimate revisions, Cactus currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on Cactus because of its solid estimate revisions, as evident from the stock's 26.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Shares of Cactus, Inc. (WHD - Free Report) have been strong performers lately, with the stock up 28.9% over the past month. The stock hit a new 52-week high of $65.19 in the previous session. Cactus has gained 42.3% since the start of the year compared to the 28% gain for the Zacks Oils-Energy sector and the 29% return for the Zacks Oil and Gas - Integrated - United States industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2026, Cactus reported EPS of $0.93 versus consensus estimate of $0.71.
For the current fiscal year, Cactus is expected to post earnings of $2.92 per share on $1.6 in revenues. This represents a 8.55% change in EPS on a 48.45% change in revenues. For the next fiscal year, the company is expected to earn $3.65 per share on $1.72 in revenues. This represents a year-over-year change of 25% and 7.68%, respectively.
Valuation MetricsThough Cactus has recently hit a 52-week high, what is next for Cactus? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cactus has a Value Score of C. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 20X. On a trailing cash flow basis, the stock currently trades at 18.5X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 2.45. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Cactus currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cactus passes the test. Thus, it seems as though Cactus shares could still be poised for more gains ahead.
3 Attractive Mid Cap Swing TradesCactus NYSE: WHD reported second-quarter revenue of $450 million, up 15.8% sequentially, as stronger Middle East Pressure Control deliveries and continued growth at Spoolable Technologies lifted results. Adjusted EBITDA rose 32.5% from the first quarter to $133 million, while adjusted EBITDA margin expanded to 29.5% from 25.8%.
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Chairman and Chief Executive Officer Scott Bender called the quarter “excellent,” citing higher-than-expected Pressure Control shipments and aftermarket service in the Middle East despite conflict-related disruptions. He also said Spoolable Technologies accelerated in the domestic market while maintaining international shipment and order momentum.
GAAP net income was $61 million, compared with $40 million in the first quarter. Adjusted net income totaled $75 million, or $0.93 per share, versus $56 million, or $0.70 per share, in the prior quarter. The company ended the quarter with $366 million in cash and raised its quarterly dividend 7% to $0.15 per share, payable in September.
Pressure Control deliveries support second-quarter gains Pressure Control revenue totaled $344 million, an increase of 14.6% sequentially. Chief Financial Officer Jay Nutt said the gain was driven primarily by stronger backlog conversion in the Middle East, where the company completed more deliveries than anticipated despite ongoing logistics challenges related to regional conflict. U.S. revenue also improved as customer activity increased alongside higher commodity prices.
The segment’s adjusted EBITDA rose 33.5% sequentially to $95.9 million, with margins increasing by 400 basis points. Nutt attributed the margin improvement to higher operating leverage, acquisition synergies and tariff-cost recovery efforts. The company received roughly $10 million in reciprocal and retaliatory tariff refunds during the quarter, representing less than 15% of the tariffs paid during the relevant period.
Pressure Control backlog, which consists largely of Cactus International obligations, ended the quarter at $455.8 million. Backlog declined more than anticipated as the company completed a high level of project deliveries and continued contract negotiations with a large Middle East customer. Management expects material third-quarter orders from multiple large Middle East customers.
For the third quarter, Cactus expects Pressure Control revenue to decline about 10% as Cactus International shipments return closer to first-quarter levels following an unusually strong second quarter. The anticipated decline in international shipments is expected to more than offset domestic growth. Pressure Control adjusted EBITDA margins are forecast at 22% to 24%, excluding approximately $4 million in stock-based compensation expense.
Bender said the company has increased its first-year post-close annualized synergy target for Cactus International by 33%, to a range of $15 million to $20 million, following substantially completed organizational restructuring. He said supply-chain initiatives could provide further benefits, though more meaningful effects are expected in the second half of 2027 as new orders are executed.
Spoolable Technologies outlook accelerates Spoolable Technologies generated second-quarter revenue of $106 million, up 17.4% sequentially, reflecting expanding U.S. activity during a seasonally strong period and resilient international demand. Adjusted EBITDA increased 21.8% to $42.1 million, and segment margins expanded 330 basis points on improved sales mix and operating leverage.
The company expects the segment’s revenue to grow another 15% to 20% in the third quarter as it accelerates shipments of previously announced Latin American orders and sees further domestic activity growth. Cactus also received more than $80 million of incremental international orders in July, with deliveries scheduled to begin in the fourth quarter and continue through the middle of next year.
Bender said the orders represent a significant shift in the international contribution to the Spoolable business, particularly in Latin America and the Middle East. He also pointed to growing U.S. demand from exploration and production and midstream customers for larger-diameter, higher-pressure products. A change in Pipeline and Hazardous Materials Safety Administration regulations has made the company’s products easier to use in midstream applications, he said.
Spoolable Technologies adjusted EBITDA margin is expected to be about 39% to 41% in the third quarter, excluding $1 million of stock-based compensation. Management said it continues to monitor steel and HDPE input costs, noting that HDPE prices have recently declined from highs associated with the Middle East conflict.
Capacity investments and tariff actions Cactus increased its 2026 net capital-expenditure guidance to $55 million to $65 million, largely to support capacity investments at its Baytown, Texas, Spoolable Technologies facility. The planned expansion is expected to cost approximately $40 million in total, with most spending occurring in 2027. Management said the added capacity could begin contributing to revenue toward the end of next year.
Bender said the Baytown project could add as much as 20% to facility capacity and is expected to be absorbed by Western Hemisphere demand. The company is also evaluating an Eastern Hemisphere manufacturing investment to serve additional global demand. He said an international facility could take roughly two years from start to finish, but the company has not yet included such an expansion in its capital-spending guidance.
On tariffs, Bender said Cactus continues to pay a 75% total tariff on most U.S. imports from China, consisting of a 25% Section 301 tariff and a 50% Section 232 tariff. The company expects roughly 15% of total U.S. Pressure Control imports to be sourced from Vietnam in the third quarter, with that share increasing modestly afterward. Management said Vietnam sourcing could eventually reach 40% of total Far East shipments for U.S. Pressure Control.
The company expects an effective tax rate of 24% in the third quarter and an adjusted EPS tax rate of approximately 27%. Third-quarter depreciation and amortization expense is expected to be about $27 million, down from the first-half run rate following the completion of inventory fair-value step-up amortization related to the Cactus International acquisition.
About Cactus (NYSE:WHD)Cactus, Inc, together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways WHD's Q2 earnings top estimates as Cactus International & stronger Pressure Control shipments boosted results.Pressure Control revenues increased 91.4%, aided by Cactus International and stronger U.S. customer activity.WHD raised 2026 capital spending to expand Spoolable capacity amid growing international and midstream demand. Cactus, Inc. (WHD - Free Report) reported second-quarter 2026 adjusted earnings of 93 cents per share, up 40.9% from 66 cents per share a year earlier. The bottom line topped the Zacks Consensus Estimate of 71 cents per share by 31%.
Quarterly revenues surged 64.3% to $449.53 million from $273.58 million a year ago. The top line exceeded the consensus mark of $400.62 million by 12.2%.
Strong quarterly results were driven by higher contributions from Cactus International, stronger Middle East Pressure Control shipments and growing demand for Spoolable Technologies. Backlog ended the quarter at $455.8 million.
WHD's Pressure Control Revenues SurgePressure Control revenues increased 91.4% year over year to $344 million from $179.77 million a year ago. The figure is above our estimate of $307.2 million. The sharp rise primarily reflected the addition of Cactus International, which expanded WHD’s international operations and contributed significant Middle East revenues.
The segment also benefited from stronger U.S. customer activity and solid execution of international deliveries despite conflict-related logistics challenges. Aftermarket service activity in Saudi Arabia and Norway provided additional support, as customers focused on repairing and better utilizing existing equipment.
Pressure Control operating income rose 39.7% to $59.15 million from $42.33 million recorded a year earlier. Adjusted segment earnings before interest, taxes, depreciation and amortization (EBITDA) increased 80.7% to $95.92 million from $53.08 million in the prior-year quarter. However, the adjusted (EBITDA) margin declined to 27.9% from 29.5%, reflecting the changed business mix following the Cactus International acquisition.
Cactus' Spoolable Business Maintains GrowthSpoolable Technologies revenues increased 9.7% to $105.53 million from $96.23 million in the prior-year quarter. The figure is above our estimate of $95.5 million.
Segment operating income increased 14.7% year over year to $32.17 million from $28.05 million recorded a year earlier. Adjusted segment EBITDA rose 11% to $42.14 million from $37.95 million in the prior-year quarter, while the adjusted EBITDA margin improved to 39.9% from 39.4%. The expansion reflected favorable product mix and stronger operating leverage.
WHD's Earnings Benefit From Higher ScaleTotal operating income increased 37.5% year over year to $83.58 million from $60.81 million a year earlier. The operating margin contracted to 18.6% from 22.2%, as results included acquisition-related purchase accounting expenses tied to Cactus International and FlexSteel.
These expenses included amortization associated with acquired intangible assets and the step-up in inventory values. The company recorded severance costs related primarily to efforts to resize and integrate the Cactus International organization.
Adjusted EBITDA rose 53.2% year over year to $132.78 million. The adjusted EBITDA margin was 29.5% compared with 31.7% in the prior-year quarter. Adjusted net income increased 41.1% to $75.11 million, supported by the substantial revenue contribution from Pressure Control and continued profitability in Spoolable Technologies.
Cactus' Strong Cash Flow, Maintained DividendOperating cash flow was $104.6 million in the quarter. Net capital expenditures totaled $15.6 million and dividend payments and related distributions totaled $11.2 million.
WHD Maintains Robust LiquidityWHD ended June with $365.82 million in cash and cash equivalents and no bank debt. The balance included $92.5 million retained to finalize legal restructuring activities tied to the Cactus International acquisition. The company had $223.7 million available under its revolving credit facility.
Cactus Expands Capacity for Global DemandCactus raised its 2026 net capital expenditure guidance to a range of $55-$65 million. The increase primarily reflects investments in the Baytown Spoolable Technologies facility to support growing demand from international and midstream customers.
The Baytown project is expected to cost roughly $40 million and could expand the facility’s production capacity by as much as 20%. Management is evaluating additional Spoolable Technologies manufacturing capacity in the Eastern Hemisphere to serve opportunities in the Middle East and other international markets.
The company received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million, indicating continued demand across both operating segments.
WHD’s 2026 Outlook & Dividend IncreaseFor the third quarter, management expects Pressure Control adjusted EBITDA margins to be in the range of 22-24%, excluding about $4 million of stock-based compensation. Lower international operating leverage, reduced aftermarket service contributions and fewer tariff recoveries are expected to affect profitability.
Spoolable Technologies adjusted EBITDA margins are projected at 39-41%, excluding roughly $1 million of stock-based compensation. Management expects demand to remain supported by Latin American orders, international market expansion and increased adoption among U.S. customers.
The board increased the quarterly dividend by 7% to 15 cents per share, marking the fourth consecutive year of dividend growth. Cactus expects third-quarter depreciation and amortization of about $27 million and an adjusted tax rate of approximately 27%.
WHD’s Zacks Rank & Other Key PicksCactus currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are PBF Energy Inc. (PBF), HF Sinclair Corporation (DINO - Free Report) and Valero Energy Corporation (VLO - Free Report) . PBF sports a Zacks Rank #1 (Strong Buy), while DINO and VLO carry a Zacks Rank #2 each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, which topped the Zacks Consensus Estimate of $4.05 per share.
As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.
HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, which surpassed the Zacks Consensus Estimate of $4.39 per share.
As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.
Valero reported second-quarter 2026 adjusted earnings of $12.54 per share, which beat the Zacks Consensus Estimate of $9.87 per share.
As of June 30, 2026, VLO had total debt of $9.10 billion, and cash and cash equivalents of $7.87 billion.
Cactus, Inc. (WHD - Free Report) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +30.99%. A quarter ago, it was expected that this company would post earnings of $0.65 per share when it actually produced earnings of $0.7, delivering a surprise of +7.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Cactus, which belongs to the Zacks Oil and Gas - Integrated - United States industry, posted revenues of $449.53 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 12.21%. This compares to year-ago revenues of $273.58 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cactus shares have added about 16.3% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Cactus?While Cactus has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cactus was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.76 on $409.21 million in revenues for the coming quarter and $2.92 on $1.6 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - United States is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Prairie Operating Co. (PROP - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -88.9%. The consensus EPS estimate for the quarter has been revised 18.6% lower over the last 30 days to the current level.
Prairie Operating Co.'s revenues are expected to be $108.22 million, up 58.9% from the year-ago quarter.
Cactus, Inc. (WHD - Free Report) reported $449.53 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 64.3%. EPS of $0.93 for the same period compares to $0.66 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $400.62 million, representing a surprise of +12.21%. The company delivered an EPS surprise of +30.99%, with the consensus EPS estimate being $0.71.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cactus performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Spoolable Technologies: $105.53 million compared to the $96 million average estimate based on four analysts. The reported number represents a change of +9.7% year over year.Revenues- Pressure Control: $344 million compared to the $306.29 million average estimate based on four analysts. The reported number represents a change of +91.4% year over year.Operating income (loss)- Pressure Control: $59.15 million versus $50.97 million estimated by three analysts on average.Operating Income- Corporate and other expenses: $-7.74 million compared to the $-9.81 million average estimate based on three analysts.Operating income (loss)- Spoolable Technologies: $32.17 million compared to the $23.96 million average estimate based on three analysts.View all Key Company Metrics for Cactus here>>>
Shares of Cactus have returned +3.7% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
HOUSTON--(BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the second quarter of 2026. Second Quarter Highlights Revenue of $449.5 million and operating income of $83.6 million; Net income of $61.4 million and diluted earnings per Class A share of $0.70; Adjusted net income(1) of $75.1 million and diluted earnings per share, as adjusted(1) of $0.93; Net income margin of 13.7% and adjusted net income margin(1) of 16.7%; Adju.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Cactus, Inc. (WHD - Free Report) , which belongs to the Zacks Oil and Gas - Integrated - United States industry.
This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 9.88%.
For the last reported quarter, Cactus came out with earnings of $0.7 per share versus the Zacks Consensus Estimate of $0.65 per share, representing a surprise of 7.69%. For the previous quarter, the company was expected to post earnings of $0.58 per share and it actually produced earnings of $0.65 per share, delivering a surprise of 12.07%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Cactus. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cactus has an Earnings ESP of +7.04% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 29, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus Inc is involved in manufacturing, designing and selling wellhead and pressure control equipment. The products are being utilized by customers for drilling and completing onshore oil and natural gas wells. The equipment are also used by upstream energy companies during production phases in oil and gas wells. Thus, Cactus, headquartered in Houston, TX, generates significant cashflow from selling and renting wellhead and pressure control equipment.
WHD is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. WHD has a Momentum Style Score of B, and shares are up 9.8% over the past four weeks.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $2.92 per share. WHD boasts an average earnings surprise of +8.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WHD should be on investors' short list.
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Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus Inc is involved in manufacturing, designing and selling wellhead and pressure control equipment. The products are being utilized by customers for drilling and completing onshore oil and natural gas wells. The equipment are also used by upstream energy companies during production phases in oil and gas wells. Thus, Cactus, headquartered in Houston, TX, generates significant cashflow from selling and renting wellhead and pressure control equipment.
WHD is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.92; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.12 to $2.92 per share. WHD also boasts an average earnings surprise of +8.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, WHD should be on investors' short list.
Wall Street expects a year-over-year increase in earnings on higher revenues when Cactus, Inc. (WHD - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +7.6%.
Revenues are expected to be $400.62 million, up 46.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cactus?For Cactus, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.04%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Cactus will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cactus would post earnings of $0.65 per share when it actually produced earnings of $0.70, delivering a surprise of +7.69%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cactus appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Bessemer Group Inc. lifted its position in shares of Cactus, Inc. (NYSE:WHD – Free Report) by 17.4% during the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 559,901 shares of the company’s stock after buying an additional 83,080 shares during the period. Bessemer Group Inc. owned 0.70% of Cactus worth $26,523,000 as of its most recent SEC filing.
Other hedge funds have also recently bought and sold shares of the company. Wellington Management Group LLP raised its holdings in Cactus by 20.0% in the 4th quarter. Wellington Management Group LLP now owns 3,963,961 shares of the company’s stock valued at $181,074,000 after acquiring an additional 659,366 shares during the last quarter. State Street Corp boosted its holdings in shares of Cactus by 3.0% during the fourth quarter. State Street Corp now owns 2,844,994 shares of the company’s stock worth $129,959,000 after purchasing an additional 83,190 shares during the last quarter. Capital International Investors boosted its holdings in shares of Cactus by 27.0% during the fourth quarter. Capital International Investors now owns 2,343,731 shares of the company’s stock worth $107,062,000 after purchasing an additional 498,210 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Cactus by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 1,964,059 shares of the company’s stock worth $89,729,000 after purchasing an additional 28,415 shares during the last quarter. Finally, First Trust Advisors LP grew its position in shares of Cactus by 17.4% in the fourth quarter. First Trust Advisors LP now owns 1,839,336 shares of the company’s stock valued at $84,021,000 after purchasing an additional 272,452 shares during the period. Institutional investors and hedge funds own 85.11% of the company’s stock.
Cactus Trading Up 1.6% Shares of WHD opened at $54.64 on Friday. The stock’s 50-day moving average is $56.13 and its two-hundred day moving average is $53.76. The stock has a market cap of $4.38 billion, a PE ratio of 51.55, a P/E/G ratio of 2.07 and a beta of 1.38. Cactus, Inc. has a 12 month low of $33.20 and a 12 month high of $64.30. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.61 and a quick ratio of 1.71.
Cactus (NYSE:WHD – Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.05. The business had revenue of $388.35 million during the quarter, compared to analyst estimates of $380.42 million. Cactus had a return on equity of 15.43% and a net margin of 6.17%.The company’s revenue for the quarter was up 38.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.73 earnings per share. Equities analysts forecast that Cactus, Inc. will post 2.92 earnings per share for the current fiscal year.
Cactus Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Monday, June 1st were given a $0.14 dividend. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.56 annualized dividend and a yield of 1.0%. Cactus’s dividend payout ratio (DPR) is 52.83%.
More Cactus News Here are the key news stories impacting Cactus this week:
Positive Sentiment: Zacks Research raised its earnings forecasts for Cactus across multiple future periods, including FY2027 to $3.55 per share and FY2028 to $3.99 per share, implying improved outlook and potentially supporting the stock. Positive Sentiment: Analysts also increased near- and medium-term quarterly EPS estimates, including Q4 2026, Q2 2027, Q3 2027, Q4 2027, Q1 2028, and Q2 2028, reinforcing expectations for steady earnings growth. Neutral Sentiment: Cactus announced it will release second-quarter 2026 earnings after market close on July 29 and host a conference call on July 30, setting up a near-term event that could move the shares depending on results. Article Title Analyst Ratings Changes Several research firms recently commented on WHD. Stifel Nicolaus reiterated a “buy” rating and issued a $68.00 target price (up from $66.00) on shares of Cactus in a research note on Tuesday, June 16th. Wall Street Zen lowered shares of Cactus from a “buy” rating to a “hold” rating in a report on Saturday, March 21st. Piper Sandler upped their price target on Cactus from $72.00 to $73.00 and gave the stock an “overweight” rating in a research note on Tuesday. Weiss Ratings upgraded Cactus from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, June 11th. Finally, Barclays boosted their target price on Cactus from $62.00 to $70.00 and gave the stock an “overweight” rating in a report on Monday, May 11th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $63.60.
Get Our Latest Research Report on WHD
Insider Buying and Selling In other news, Director Michael Y. Mcgovern sold 12,000 shares of Cactus stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.57, for a total transaction of $678,840.00. Following the sale, the director owned 15,990 shares in the company, valued at $904,554.30. This trade represents a 42.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Alan Semple sold 10,206 shares of the business’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $56.62, for a total transaction of $577,863.72. Following the transaction, the director directly owned 29,444 shares in the company, valued at approximately $1,667,119.28. The trade was a 25.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 12.91% of the company’s stock.
Cactus Company Profile (Free Report)
Cactus, Inc, together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.
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HOUSTON--(BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced that it will issue its second quarter 2026 earnings release after market close on Wednesday, July 29, 2026. The Company will host a conference call to discuss financial and operational results on Thursday, July 30, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).
The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast at least 10 minutes ahead of the start time to ensure a proper connection. An archived version will be available on the Company’s website shortly after the end of the call.
About Cactus, Inc.
Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers and manufacturing facilities globally with an emphasis in North America and the Middle East.
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Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus Inc is involved in manufacturing, designing and selling wellhead and pressure control equipment. The products are being utilized by customers for drilling and completing onshore oil and natural gas wells. The equipment are also used by upstream energy companies during production phases in oil and gas wells. Thus, Cactus, headquartered in Houston, TX, generates significant cashflow from selling and renting wellhead and pressure control equipment.
WHD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.93; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $2.88 per share. WHD also boasts an average earnings surprise of +8.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, WHD should be on investors' short list.
On June 29, 2026, Cactus Inc (WHD) shares fell 4.7% to a current price of $49.59. This decline is notable as the stock has traded within a 52-week range of $33.
Capital International Investors increased its stake in Cactus, Inc. (NYSE: WHD) by 2.9% in the undefined quarter, according to the company in its most recent filing with the SEC. The fund owned 1,845,521 shares of the company's stock after purchasing an additional 52,139 shares during the quarter. Capital International Investors owned approximately 2.31%
Webs Creek Capital Management bought 1,263,873 shares of Cactus in the fourth quarter. The quarter-end position value increased by $57.73 million as a result of the new position.
Cactus, Inc. (NYSE: WHD - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eight research firms that are presently covering the stock, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month target
Allspring Global Investments Holdings LLC lowered its holdings in shares of Cactus, Inc. (NYSE:WHD – Free Report) by 8.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 224,233 shares of the company’s stock after selling 20,327 shares during the period. Allspring Global Investments Holdings LLC owned approximately 0.28% of Cactus worth $10,546,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also bought and sold shares of the company. EverSource Wealth Advisors LLC grew its stake in shares of Cactus by 67.6% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 642 shares of the company’s stock worth $25,000 after buying an additional 259 shares during the last quarter. Salomon & Ludwin LLC purchased a new position in Cactus during the third quarter valued at $25,000. Johnson Financial Group Inc. bought a new stake in Cactus in the third quarter worth $33,000. Advisors Asset Management Inc. boosted its holdings in Cactus by 113.8% in the first quarter. Advisors Asset Management Inc. now owns 1,020 shares of the company’s stock worth $47,000 after acquiring an additional 543 shares in the last quarter. Finally, Huntington National Bank grew its stake in shares of Cactus by 55.4% in the third quarter. Huntington National Bank now owns 1,094 shares of the company’s stock worth $43,000 after acquiring an additional 390 shares during the last quarter. Hedge funds and other institutional investors own 85.11% of the company’s stock.
Insider Buying and Selling In other Cactus news, President Joel Bender sold 106,809 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $49.92, for a total value of $5,331,905.28. Following the completion of the transaction, the president owned 27,793 shares of the company’s stock, valued at approximately $1,387,426.56. This trade represents a 79.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In the last ninety days, insiders have sold 200,000 shares of company stock valued at $10,039,080. 13.75% of the stock is owned by company insiders.
Cactus Price Performance WHD stock opened at $47.78 on Monday. Cactus, Inc. has a 12 month low of $33.20 and a 12 month high of $59.25. The company has a 50-day moving average price of $52.42 and a 200 day moving average price of $46.65. The stock has a market cap of $3.82 billion, a PE ratio of 19.91, a P/E/G ratio of 4.73 and a beta of 1.31. The company has a current ratio of 5.81, a quick ratio of 4.13 and a debt-to-equity ratio of 0.01.
Cactus (NYSE:WHD – Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. Cactus had a net margin of 15.39% and a return on equity of 15.18%. The firm had revenue of $261.20 million for the quarter, compared to analysts’ expectations of $250.60 million. During the same period in the prior year, the business posted $0.71 earnings per share. The business’s revenue for the quarter was down 4.0% on a year-over-year basis. Equities research analysts anticipate that Cactus, Inc. will post 3.08 earnings per share for the current year.
Cactus Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Monday, March 2nd were given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Monday, March 2nd. Cactus’s dividend payout ratio (DPR) is presently 23.33%.
Analyst Ratings Changes WHD has been the subject of several analyst reports. Wall Street Zen downgraded shares of Cactus from a “buy” rating to a “hold” rating in a research report on Saturday, March 21st. Piper Sandler started coverage on Cactus in a research note on Tuesday, February 24th. They set an “overweight” rating and a $73.00 target price on the stock. Barclays lifted their target price on Cactus from $56.00 to $62.00 and gave the stock an “overweight” rating in a report on Monday, March 2nd. Zacks Research cut Cactus from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 26th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cactus in a report on Friday, March 27th. Four research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $56.33.
Check Out Our Latest Analysis on WHD
Cactus Profile (Free Report)
Cactus, Inc, together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.
Read More Five stocks we like better than Cactus Want to see what other hedge funds are holding WHD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cactus, Inc. (NYSE:WHD – Free Report).
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HOUSTON--(BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced that it will issue its first quarter 2026 earnings release after market close on Wednesday, May 6, 2026. The Company will host a conference call to discuss financial and operational results on Thursday, May 7, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).
The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast at least 10 minutes ahead of the start time to ensure a proper connection. An archived version will be available on the Company’s website shortly after the end of the call.
About Cactus, Inc.
Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers and manufacturing facilities globally with an emphasis in North America and the Middle East.
Cactus, Inc. (WHD - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 6. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of -21.9%.
Revenues are expected to be $380.81 million, up 35.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.49% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cactus?For Cactus, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.02%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Cactus will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cactus would post earnings of $0.58 per share when it actually produced earnings of $0.65, delivering a surprise of +12.07%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cactus appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerCactus, Inc. (WHD - Free Report) , another stock in the Zacks Oil and Gas - Integrated - United States industry, is expected to report earnings per share of $0.57 for the quarter ended March 2026. This estimate points to a year-over-year change of -21.9%. Revenues for the quarter are expected to be $380.81 million, up 35.9% from the year-ago quarter.
The consensus EPS estimate for Cactus has been revised 0.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +7.02%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Cactus will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cactus, Inc. (WHD - Free Report) , which belongs to the Zacks Oil and Gas - Integrated - United States industry, could be a great candidate to consider.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 13.79%.
For the last reported quarter, Cactus came out with earnings of $0.65 per share versus the Zacks Consensus Estimate of $0.58 per share, representing a surprise of 12.07%. For the previous quarter, the company was expected to post earnings of $0.58 per share and it actually produced earnings of $0.67 per share, delivering a surprise of 15.52%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Cactus. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cactus currently has an Earnings ESP of +7.02%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 6, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
HOUSTON--(BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced financial and operating results for the first quarter of 2026.
First Quarter Highlights
On January 1, 2026, Cactus closed on its previously announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business (“Cactus International”); Revenue of $388.3 million and operating income of $49.5 million; Net income of $40.2 million and diluted loss per Class A share of $0.70; Adjusted net income(1) of $56.2 million and diluted earnings per share, as adjusted(1) of $0.70; Net income margin of 10.4% and adjusted net income margin(1) of 14.5%; Adjusted EBITDA(2) and Adjusted EBITDA margin(2) of $100.1 million and 25.8%, respectively; Cash flow from operations of $128.3 million; and Cash and cash equivalents of $291.6 million, including $97.8 million of cash retained to finalize certain legal restructuring activities related to the Cactus International acquisition, with no bank debt outstanding as of March 31, 2026. Financial Summary
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
(in thousands)
Revenues
$
388,349
$
261,203
$
280,319
Operating income(3)
$
49,504
$
59,850
$
68,612
Operating income margin
12.7
%
22.9
%
24.5
%
Net income
$
40,221
$
48,302
$
54,105
Net income margin
10.4
%
18.5
%
19.3
%
Adjusted net income(1)
$
56,172
$
52,134
$
58,816
Adjusted net income margin(1)
14.5
%
20.0
%
21.0
%
Adjusted EBITDA(2)
$
100,050
$
85,493
$
93,841
Adjusted EBITDA margin(2)
25.8
%
32.7
%
33.5
%
Scott Bender, CEO and Chairman of the Board of Cactus, commented, “We achieved solid results in the first quarter of 2026 driven by disciplined execution. I am particularly pleased with the strong performance of the Spoolable Technologies segment in the quarter, as both revenues and margins exceeded expectations following a strong close to the quarter both domestically and abroad. Pressure Control results, which now include Cactus International, were in line with expectations despite the initial impacts of the conflict in the Middle East.
“We anticipate that the U.S. land rig count will be flat to up in the second quarter, as our customer base maintains capital discipline despite dramatically higher commodity prices. However, the sentiment among even our larger customers has recently turned more bullish. We expect second quarter Pressure Control revenues to be approximately flat as the Middle East conflict and associated logistics disruptions impacts our business, but is offset by domestic strength. Activity in our Spoolable Technologies segment should increase in the second quarter, as recent U.S. customer inquiries point toward continued momentum in the business, particularly for our higher diameter offerings.”
Mr. Bender concluded, “The global oil and gas market outlook has changed drastically in the past two months. Higher commodity prices have increased customer optimism in most of our markets. Despite numerous supply chain challenges, our team is working to meet our customers' needs. I would like to specially thank our new Cactus International associates for prioritizing safety while continuing to execute for our customers during this extraordinarily challenging time. Although the near-term activity outlook in the Middle East remains highly uncertain, I am confident in the positioning of our global business to participate in the upstream investment that will be required to restore market supply once the conflict abates.”
Segment Performance
We report two business segments, Pressure Control and Spoolable Technologies. Corporate and other expenses not directly attributable to either segment are presented separately as Corporate and Other expenses. Beginning this quarter, results of the Cactus International business are included in the Pressure Control segment.
Pressure Control
First quarter 2026 Pressure Control revenue increased $121.7 million, or 68.2%, sequentially, primarily due to the contribution of Cactus International. Operating income decreased $10.1 million, or 20.7%, sequentially, with margins decreasing 1,440 basis points, as increased operating income from Cactus International was more than offset by purchase price accounting-related adjustments. Adjustments included the amortization of the step-up of inventory and the amortization of the write-up of intangible values, which together totaled $19.0 million in the quarter. Adjusted Segment EBITDA increased $12.7 million, or 21.4%, sequentially, with Adjusted Segment EBITDA margins decreasing 930 basis points on the contribution of Cactus International at lower margins.
Spoolable Technologies
First quarter 2026 Spoolable Technologies revenues increased $5.7 million, or 6.8%, sequentially, due to higher domestic and international activity levels. Operating income increased $2.6 million, or 12.6%, sequentially, on higher volume, while margins increased 130 basis points. Adjusted Segment EBITDA was higher by $1.8 million, or 5.9%, sequentially, with Adjusted Segment EBITDA margins decreasing 30 basis points, as improved operating leverage was offset by higher input costs.
Corporate and Other Expenses
First quarter 2026 Corporate and Other expenses increased $2.9 million sequentially, primarily due to higher transaction and integration expenses. First quarter Corporate and Other expenses contained $5.8 million of transaction-related expenses resulting from the acquisition of Cactus International, $2.5 million higher than the fourth quarter.
Liquidity, Capital Expenditures and Other
As of March 31, 2026, the Company had $291.6 million of cash and cash equivalents, including $97.8 million of cash held for certain restructuring activities related to the Cactus International acquisition, no bank debt outstanding, and $223.7 million of availability on our revolving credit facility. Operating cash flow was $128.3 million for the first quarter of 2026. During the first quarter, the Company made dividend payments and associated distributions of $11.7 million.
Net cash used in investing activities represented $310.0 million for the first quarter, primarily attributable to the Cactus International acquisition. Net capital expenditures were $9.0 million during the first quarter of 2026. For the full year 2026, the Company still expects net capital expenditures to be in the range of $40 to $50 million.
Remaining Performance Obligations, or backlog, closed the quarter at $537.5 million. Backlog is primarily related to operations in our Cactus International business.
As of March 31, 2026, Cactus had 69,415,532 shares of Class A common stock outstanding (representing 86.6% of the total voting power) and 10,758,435 shares of Class B common stock outstanding (representing 13.4% of the total voting power).
Quarterly Dividend
The Board of Directors has approved a quarterly cash dividend of $0.14 per share of Class A common stock with payment to occur on June 18, 2026 to holders of record of Class A common stock at the close of business on June 1, 2026. A corresponding distribution of up to $0.14 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC.
Conference Call Details
The Company will host a conference call to discuss financial and operational results tomorrow, Thursday May 7, 2026 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time).
The call will be webcast on Cactus’ website at www.CactusWHD.com. Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call.
An archived webcast of the conference call will be available on the Company’s website shortly after the end of the call.
About Cactus, Inc.
Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers’ wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers and manufacturing facilities globally with an emphasis in North America and the Middle East.
Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus’ control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Forward-looking statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “plan,” “should,” “estimate,” “continue,” “potential,” “outlook,” “will,” “hope,” “opportunity,” or other similar words and include the Company’s expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release.
Cactus, Inc.
Condensed Consolidated Statements of Income
(unaudited)
Three Months Ended
March 31,
2026
2025
(in thousands, except per share data)
Revenues
Pressure Control
$
300,172
$
190,277
Spoolable Technologies
89,900
92,578
Corporate and other(1)
(1,723
)
(2,536
)
Total revenues
388,349
280,319
Operating income
Pressure Control
38,605
54,333
Spoolable Technologies
23,567
23,876
Total segment operating income
62,172
78,209
Corporate and other expenses
(12,668
)
(9,597
)
Total operating income
49,504
68,612
Interest income, net
220
2,325
Income before income taxes
49,724
70,937
Income tax expense
9,503
16,832
Net income
$
40,221
$
54,105
Less: net income attributable to non-controlling interest
7,315
9,882
Net income attributable to Cactus Inc.
$
32,906
$
44,223
Net income attributable to Cactus Inc.
$
32,906
$
44,223
Less: Accretion of redeemable non-controlling interest to redemption value
81,507
—
Net (loss) income attributable to Cactus Inc. including accretion of redeemable non-controlling interest to redemption value
$
(48,601
)
$
44,223
(Loss) earnings per Class A share - basic
$
(0.70
)
$
0.65
(Loss) earnings per Class A share - diluted(2)
$
(0.70
)
$
0.64
Weighted average shares outstanding - basic
69,026
68,194
Weighted average shares outstanding - diluted(2)
69,026
68,664
Cactus, Inc. Condensed Consolidated Balance Sheets
(unaudited)
March 31,
December 31,
2026
2025
(in thousands)
Assets
Current assets
Cash and cash equivalents
$
291,609
$
123,571
Restricted cash
—
371,011
Accounts receivable, net
459,954
164,493
Inventories
404,210
276,613
Prepaid expenses and other current assets
19,630
19,231
Total current assets
1,175,403
954,919
Property and equipment, net
394,976
342,592
Operating lease right-of-use assets, net
34,434
19,491
Intangible assets, net
364,278
148,004
Goodwill
248,334
203,028
Deferred tax asset, net
204,550 187,545
Investment in unconsolidated affiliates
5,946
5,923
Other noncurrent assets
30,160
10,115
Total assets
$
2,458,081 $
1,871,617
Liabilities, Mezzanine Equity, and Stockholders' Equity
Current liabilities
Accounts payable
$
315,781
$
71,541
Accrued expenses and other current liabilities
64,753
51,388
Contract liabilities
33,593
7,707
Current portion of liability related to tax receivable agreement
21,314
21,314
Finance lease obligations, current portion
7,669
7,476
Operating lease liabilities, current portion
7,977
4,815
Total current liabilities
451,087
164,241
Deferred tax liability, net
38,710
2,786
Liability related to tax receivable agreement, net of current portion
243,500
241,609
Finance lease obligations, net of current portion
9,661
9,672
Operating lease liabilities, net of current portion
29,927
15,786
Other noncurrent liabilities
38,935
4,475
Total liabilities
811,820
438,569
Mezzanine equity
Redeemable non-controlling interest
240,608
—
Total stockholders' equity
1,405,653 1,433,048
Total liabilities, mezzanine equity, and stockholders' equity
$
2,458,081 $
1,871,617
Cactus, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
March 31,
2026
2025
(in thousands)
Cash flows from operating activities
Net income
$
40,221
$
54,105
Reconciliation of net income to net cash provided by operating activities
Depreciation and amortization
36,761
15,678
Deferred financing cost amortization
639
280
Stock-based compensation
7,039
6,064
Provision for expected credit losses
1,060
133
Inventory obsolescence
2,397
(296
)
Gain on disposal of assets
(65
)
(79
)
Deferred income taxes
479
7,623
Changes in operating assets and liabilities:
Accounts receivable
(63,179
)
(28,087
)
Inventories
(3,224
)
(3,112
)
Prepaid expenses and other assets
(1,136
)
2,080
Accounts payable
100,406
(7,923
)
Accrued expenses and other liabilities
5,190
(4,921
)
Contract liabilities
1,683
—
Net cash provided by operating activities
128,271
41,545
Cash flows from investing activities
Acquisition of a business, net of cash and cash equivalents acquired
(301,011
)
—
Investment in unconsolidated affiliate
—
(6,000
)
Capital expenditures and other
(9,724
)
(10,230
)
Proceeds from sales of assets
746
779
Net cash used in investing activities
(309,989
)
(15,451
)
Cash flows from financing activities
Payments on finance leases
(1,914
)
(1,988
)
Dividends paid to Class A common stock shareholders
(10,214
)
(9,216
)
Distributions to members
(1,502
)
(5,089
)
Repurchases of shares
(7,899
)
(5,498
)
Net cash used in financing activities
(21,529
)
(21,791
)
Effect of exchange rate changes on cash and cash equivalents
274
515
Net increase in cash and cash equivalents
(202,973
)
4,818
Cash, cash equivalents and restricted cash
Beginning of period
494,582
342,843
End of period
$
291,609
$
347,661
Cactus, Inc. – Supplemental Information
Reconciliation of GAAP to non-GAAP Financial Measures
Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin
(unaudited)
Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin are not measures of net income as determined by GAAP but they are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements. Cactus defines adjusted net income as net income subject to the adjustments described in the table below. Among other things, those adjustments exclude income attributable to non-controlling interests in the Company's businesses, with the exception of income attributable to the non-controlling interests in the Company's principal operating subsidiary, Cactus Companies LLC. For these interests, Adjusted net income assumes Cactus, Inc. held all units in its principal operating subsidiary throughout the entire period, with net income reduced by the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by total revenue. The Company believes this supplemental information is useful for evaluating performance period over period.
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
(in thousands, except per share data)
Net income
$
40,221
$
48,302
$
54,105
Adjustments:
Severance expenses(1)
934
164
—
Loss from revaluation of liability related to tax receivable agreement and other(2)
—
1,015
—
Transaction related expenses(3)
5,811
3,299
3,487
Intangible amortization expense(4)
12,526
3,997
3,997
Inventory step-up expense(5)
10,449
—
—
Non-controlling interest adjustment(6)
(7,429
)
—
—
Income tax expense differential(7)
(6,340
)
(4,643
)
(2,773
)
Adjusted net income
$
56,172
$
52,134
$
58,816
Diluted earnings per share, as adjusted
$
0.70
$
0.65
$
0.73
Weighted average shares outstanding, as adjusted(8)
80,581
80,501
80,097
Revenue
$
388,349
$
261,203
$
280,319
Net income margin
10.4
%
18.5
%
19.3
%
Adjusted net income margin
14.5
%
20.0
%
21.0
%
(1)
Represents non-routine charges related to severance benefits.
(2)
Represents non-cash adjustments for the revaluation of the Tax Receivable Agreement ("TRA") liability and the tax indemnity receivable asset related to the FlexSteel acquisition.
(3)
Reflects transaction fees and expenses recorded in connection with the acquisition of Cactus International and other growth initiatives.
(4)
Reflects amortization expense associated with the step-up in intangible value due to purchase price accounting.
(5)
Represents amortization of the Cactus International inventory step-up adjustment due to purchase price accounting.
(6)
Represents earnings attributable to non-controlling partners in both the Cactus International joint venture and Cactus International's business in Saudi Arabia.
(7)
Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of its operating subsidiary at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 22% on income before income taxes for the three months ended March 31, 2026, and 25.0% for the three months ended December 31, 2025 and March 31, 2025.
(8)
Reflects 69.7, 69.5, and 68.2 million weighted average shares of basic Class A common stock outstanding and 10.9, 11.0 and 11.4 million additional shares for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively, as if the weighted average shares of Class B common stock were exchanged and cancelled for Class A common stock at the beginning of the period, plus the effect of dilutive securities.
Cactus, Inc. – Supplemental Information
Reconciliation of GAAP to non-GAAP Financial Measures
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin
(unaudited)
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below.
Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company’s business.
Three Months Ended
March 31,
December 31,
March 31,
2026
2025
2025
(in thousands)
Net income
$
40,221
$
48,302
$
54,105
Interest income, net
(220
)
(3,142
)
(2,325
)
Income tax expense
9,503
13,675
16,832
Depreciation and amortization
26,313
16,162
15,678
EBITDA
75,817
74,997
84,290
Loss from revaluation of liability related to tax receivable agreement and other(1)
—
1,015
—
Severance expenses(2)
934
164
—
Transaction related expenses(3)
5,811
3,299
3,487
Inventory step-up expense(4)
10,449
—
—
Stock-based compensation
7,039
6,018
6,064
Adjusted EBITDA
$
100,050
$
85,493
$
93,841
Revenue
$
388,349
$
261,203
$
280,319
Net income margin
10.4
%
18.5
%
19.3
%
Adjusted EBITDA margin
25.8
%
32.7
%
33.5
%
Cactus, Inc. – Supplemental Information
Reconciliation of GAAP to non-GAAP Financial Measures
Adjusted Segment EBITDA and Adjusted Segment EBITDA margin
(unaudited)
Adjusted Segment EBITDA and Adjusted Segment EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines Adjusted Segment EBITDA as segment operating income excluding depreciation and amortization and the other items outlined below, in each case, that are attributable to the segment.
Cactus management believes Adjusted Segment EBITDA is useful because it allows management to more effectively evaluate the Company’s segment operating performance and compare the results of its segment operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. Adjusted Segment EBITDA should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company’s computations of Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted Segment EBITDA margin as Adjusted Segment EBITDA divided by total segment revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company’s business.
HOUSTON--(BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) (“Cactus” or the “Company”) today announced that Ms. Tana Utley has been elected to the Company's Board of Directors (the “Board”) at the Company's Annual Meeting of Stockholders held May 12, 2026. Ms. Utley retired in 2022 after a 36-year career with Caterpillar Inc. (“Caterpillar”) and was an officer for Caterpillar for over 13 years of her tenure. She concluded her career at Caterpillar as Vice President of the Large Power Systems Division f.
Key Takeaways Cactus posted Q1 adjusted EPS of $0.70, beating consensus, as revenues jumped 38.5% to $388.35M.Pressure Control revenues climbed to $300.2M on Cactus International, despite purchase accounting impacts.Cactus generated $128.3M operating cash flow, maintained a 14 cents dividend and ended Q1 with no bank debt. Cactus, Inc. (WHD - Free Report) reported adjusted earnings of 70 cents per share in the first quarter of 2026, down 4.1% from the year-ago level of 73 cents but ahead of the Zacks Consensus Estimate of 65 cents by 7.7%.
Quarterly revenues rose 38.5% year over year to $388.35 million and topped the consensus mark of $380.81 million by 2%. Remaining performance obligations ended the quarter at $537.5 million, led by international Pressure Control work tied to the newly added Cactus International business.
The better-than-expected quarterly results can be attributed to higher revenues in the Pressure Control segment, aided by the acquisition of Cactus International. However, several transaction-related and acquisition-accounting charges partly offset the gains.
WHD Benefits From Cactus International DealThe quarter marked the first period to include results from Cactus International, following the Jan. 1 closing of the majority-interest acquisition. Management stated that Pressure Control revenues stayed resilient even as the conflict in the Middle East created shipment delays and operational friction.
Pressure Control revenues totaled $300.2 million for the quarter, higher than $190.3 million in the year-ago quarter and above our estimate of $300 million. Segment operating income totaled $38.6 million, down from $54.3 million in the prior-year quarter, reflecting the impact of purchase price accounting, including an inventory step-up and intangible value amortization.
Adjusted segment EBITDA for Pressure Control was $71.8 million, higher than $64.8 million in the prior-year quarter. Our estimate for the same was pinned at $74.9 million. Adjusted segment EBITDA margin was 23.9%.
Cactus’ Spoolable Technologies Segment Holds UpManagement highlighted that the Spoolable Technologies segment recorded non-U.S. revenues in the quarter, with strength cited in the Middle East and Latin America, alongside better-than-expected domestic activity. The segment witnessed stronger-than-typical seasonal demand and continued international order growth.
Spoolable Technologies' revenues were $89.9 million, lower than $92.6 million in the year-ago quarter and above our estimate of $83.7 million. The segment's operating income totaled $23.6 million, slightly lower than $23.9 million in the prior-year quarter.
Adjusted segment EBITDA totaled $32.9 million, translating to a 36.6% margin, as improved operating leverage helped offset higher input costs. This is comparable to adjusted segment EBITDA of $33.5 million, with a 36.2% margin in the year-ago period. On the call, management also pointed to a recent increase in polyethylene pricing as a cost item that the team expects to address through mitigation and recovery actions.
WHD’s Adjusted Profit Hit by Purchase AccountingWhile the acquisition expanded Cactus’ footprint, it also weighed on reported profitability comparisons due to non-cash items tied to purchase accounting. Operating income for the quarter totaled $49.5 million compared with $68.6 million in the first quarter of 2025. The company posted adjusted net income of $56.2 million, even as the income statement reflected several transaction-related and acquisition-accounting charges.
Adjusted EBITDA was $100.1 million, and key add-backs included $10.4 million of inventory step-up expenses, $5.8 million of transaction-related expenses and $7 million of stock-based compensation. Management emphasized that these adjustments are intended to improve comparability as integration work progresses.
Cactus' Strong Cash Flow, Maintained Dividend Cactus generated $128.3 million of cash flow from operations during the quarter, reflecting solid underlying cash conversion even as working-capital timing was influenced by acquisition-related restructuring steps. The company ended March with $291.6 million in cash and cash equivalents, including $97.8 million retained to finalize certain restructuring activities connected to Cactus International.
Capital allocation remained shareholder-friendly. The company paid a quarterly dividend of 14 cents per share, with cash outflows of $11.7 million, including related distributions. Net capital expenditures were $9 million, and the company repurchased $7.9 million of shares during the quarter while maintaining no bank debt outstanding.
WHD Sees Q2 Mix Shifting With Conflict EffectsFor the second quarter, management expects Pressure Control revenues to be approximately flat. Stronger sentiment and activity in the domestic market are expected to be offset by the full-quarter impact of the Middle East conflict on the Cactus International joint venture. Pressure Control adjusted EBITDA margins are guided to 22-24%, excluding stock-based compensation and inventory write-up amortization tied to purchase accounting.
Spoolable Technologies’ revenues are expected to grow at a mid-single-digit pace, driven primarily by higher North American activity, with adjusted EBITDA margins guided to 36-38%. On costs and planning items, management cited a 19% expected effective tax rate, second-quarter depreciation and amortization of roughly $37 million and reiterated full-year 2026 net capital expenditures of $40-$50 million.
WHD’s Zacks Rank and Key PicksWHD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Equinor ASA (EQNR - Free Report) , Matador Resources (MTDR - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . At present, Equinor and Matador sport a Zacks Rank #1 (Strong Buy) each, while Galp Energia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Equinor’s gas exports to Europe, positioning it to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.
Matador Resources is primarily involved in exploration and production activities, particularly in the prolific Delaware Basin of the United States. The company intends to grow its oil production by 3% in 2026. Since its overall production is mainly oil-weighted, MTDR is expected to significantly benefit from the current increase in crude prices.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.
Investors looking for stocks in the Oil and Gas - Integrated - United States sector might want to consider either ConocoPhillips (COP) or Cactus, Inc. (WHD). But which of these two stocks is more attractive to value investors?
On May 27, 2026, Cactus Inc (WHD) shares fell 3.4% to a current price of $60.64. This decline comes as the stock has seen a 52-week range of $33.20 to $64.30, r
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Stock to Watch: Cactus, Inc. (WHD - Free Report) Along with its consolidated affiliates, Cactus Inc is involved in manufacturing, designing and selling wellhead and pressure control equipment. The products are being utilized by customers for drilling and completing onshore oil and natural gas wells. The equipment are also used by upstream energy companies during production phases in oil and gas wells. Thus, Cactus, headquartered in Houston, TX, generates significant cashflow from selling and renting wellhead and pressure control equipment.
WHD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. WHD has a Momentum Style Score of B, and shares are up 5.9% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $2.86 per share. WHD also boasts an average earnings surprise of +8.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WHD should be on investors' short list.
A month has gone by since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cactus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Cactus Q1 Earnings Beat Estimates, Revenues Rise Y/YCactus, Inc. reported adjusted earnings of 70 cents per share in the first quarter of 2026, down 4.1% from the year-ago level of 73 cents but ahead of the Zacks Consensus Estimate of 65 cents by 7.7%.
Quarterly revenues rose 38.5% year over year to $388.35 million and topped the consensus mark of $380.81 million by 2%. Remaining performance obligations ended the quarter at $537.5 million, led by international Pressure Control work tied to the newly added Cactus International business.
The better-than-expected quarterly results can be attributed to higher revenues in the Pressure Control segment, aided by the acquisition of Cactus International. However, several transaction-related and acquisition-accounting charges partly offset the gains.
Pressure Control Benefits From Cactus International DealThe quarter marked the first period to include results from Cactus International, following the Jan. 1 closing of the majority-interest acquisition. Management stated that Pressure Control revenues stayed resilient even as the conflict in the Middle East created shipment delays and operational friction.
Pressure Control revenues totaled $300.2 million for the quarter, higher than $190.3 million in the year-ago quarter and above our estimate of $300 million. Segment operating income totaled $38.6 million, down from $54.3 million in the prior-year quarter, reflecting the impact of purchase price accounting, including an inventory step-up and intangible value amortization.
Adjusted segment EBITDA for Pressure Control was $71.8 million, higher than $64.8 million in the prior-year quarter. Our estimate for the same was pinned at $74.9 million. Adjusted segment EBITDA margin was 23.9%.
Spoolable Technologies Segment Holds UpManagement highlighted that the Spoolable Technologies segment recorded non-U.S. revenues in the quarter, with strength cited in the Middle East and Latin America, alongside better-than-expected domestic activity. The segment witnessed stronger-than-typical seasonal demand and continued international order growth.
Spoolable Technologies' revenues were $89.9 million, lower than $92.6 million in the year-ago quarter and above our estimate of $83.7 million. The segment's operating income totaled $23.6 million, slightly lower than $23.9 million in the prior-year quarter.
Adjusted segment EBITDA totaled $32.9 million, translating to a 36.6% margin, as improved operating leverage helped offset higher input costs. This is comparable to adjusted segment EBITDA of $33.5 million, with a 36.2% margin in the year-ago period. On the call, management also pointed to a recent increase in polyethylene pricing as a cost item that the team expects to address through mitigation and recovery actions.
WHD’s Adjusted Profit Hit by Purchase AccountingWhile the acquisition expanded Cactus’ footprint, it also weighed on reported profitability comparisons due to non-cash items tied to purchase accounting. Operating income for the quarter totaled $49.5 million compared with $68.6 million in the first quarter of 2025. The company posted adjusted net income of $56.2 million, even as the income statement reflected several transaction-related and acquisition-accounting charges.
Adjusted EBITDA was $100.1 million, and key add-backs included $10.4 million of inventory step-up expenses, $5.8 million of transaction-related expenses and $7 million of stock-based compensation. Management emphasized that these adjustments are intended to improve comparability as integration work progresses.
Strong Cash Flow and Dividend Payout Cactus generated $128.3 million of cash flow from operations during the quarter, reflecting solid underlying cash conversion even as working-capital timing was influenced by acquisition-related restructuring steps. The company ended March with $291.6 million in cash and cash equivalents, including $97.8 million retained to finalize certain restructuring activities connected to Cactus International.
Capital allocation remained shareholder-friendly. The company paid a quarterly dividend of 14 cents per share, with cash outflows of $11.7 million, including related distributions. Net capital expenditures were $9 million, and the company repurchased $7.9 million of shares during the quarter while maintaining no bank debt outstanding.
Q2 Outlook Shift With Conflict EffectsFor the second quarter, management expects Pressure Control revenues to be approximately flat. Stronger sentiment and activity in the domestic market are expected to be offset by the full-quarter impact of the Middle East conflict on the Cactus International joint venture. Pressure Control adjusted EBITDA margins are guided to 22-24%, excluding stock-based compensation and inventory write-up amortization tied to purchase accounting.
Spoolable Technologies’ revenues are expected to grow at a mid-single-digit pace, driven primarily by higher North American activity, with adjusted EBITDA margins guided to 36-38%. On costs and planning items, management cited a 19% expected effective tax rate, second-quarter depreciation and amortization of roughly $37 million and reiterated full-year 2026 net capital expenditures of $40-$50 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresCurrently, Cactus has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCactus belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, ConocoPhillips (COP - Free Report) , has gained 3.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
ConocoPhillips reported revenues of $16.05 billion in the last reported quarter, representing a year-over-year change of -6.1%. EPS of $1.89 for the same period compares with $2.09 a year ago.
For the current quarter, ConocoPhillips is expected to post earnings of $2.72 per share, indicating a change of +91.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +18% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ConocoPhillips. Also, the stock has a VGM Score of B.
