WHD · Cactus, Inc.

Cactus, Inc. reported first quarter 2026 results that reflect the initial impact of the Cactus International acquisition, which closed on January 1, 2026. Revenue surged 38.5% sequentially to $388.3 million, driven by the addition of Cactus International's Pressure Control revenue. However, GAAP net income fell to $40.2 million from $48.3 million in Q4 2025, primarily due to $19.0 million in purchase price accounting adjustments (inventory step-up and intangible amortization) and $5.8 million in transaction expenses. Adjusted net income, which excludes these items, was $56.2 million, up from $52.1 million sequentially. Adjusted EBITDA rose to $100.1 million, but margins contracted to 25.8% from 32.7% as the acquired business operates at lower margins. The Pressure Control segment saw revenue increase 68.2% sequentially, but operating income declined 20.7% due to the accounting adjustments. Spoolable Technologies revenue grew 6.8% sequentially, with operating income up 12.6%, driven by higher domestic and international activity. Management noted that the U.S. land rig count is expected to be flat to up in Q2, but the Middle East conflict is creating uncertainty. They anticipate Q2 Pressure Control revenue to be approximately flat sequentially, as Middle East disruptions are offset by domestic strength. Spoolable Technologies activity is expected to increase. The company ended the quarter with $291.6 million in cash, no bank debt, and $223.7 million in revolver availability. Operating cash flow was strong at $128.3 million. A quarterly dividend of $0.14 per share was declared. Overall, the quarter demonstrates successful integration of a major acquisition, though near-term headwinds from geopolitical tensions and margin dilution are evident.