Cactus (NYSE:WHD) Issues Quarterly Earnings Results

Key Points

• Q1 beat: Cactus reported adjusted EPS of $0.70 versus $0.65 expected and revenue of $388.35M (vs. $380.42M), up 38.5% year‑over‑year, with adjusted EBITDA of $100M (25.8% margin) and $292M in cash (including $98M reserved for legal restructurings).
• Mixed outlook: Management raised expected annualized synergies from the Cactus International acquisition to $15M (from $10M) and completed organizational cost actions, but the Middle East conflict and heavy tariff exposure (paying ~75% on most China imports) are weighing on near‑term pressure‑control revenues and margins; supply‑chain savings are targeted to materialize in H2 2027.
• Market reaction and ownership: Shares rose ~3% to $56.14 and several analysts raised price targets (Barclays, Citi), yielding a "Moderate Buy" consensus target of $56.33, while insiders sold ~200,000 shares (~$10M) this quarter and institutions own about 85% of the stock.

Cactus (NYSE:WHD - Get Free Report) issued its earnings results on Thursday. The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.65 by $0.05, FiscalAI reports. The firm had revenue of $388.35 million for the quarter, compared to analysts' expectations of $380.42 million. Cactus had a return on equity of 15.18% and a net margin of 15.39%.The company's revenue was up 38.5% compared to the same quarter last year. During the same quarter last year, the business earned $0.73 earnings per share.

Here are the key takeaways from Cactus' conference call:

• Management raised the expected annualized synergies from the Cactus International acquisition to $15 million (from $10 million) and says the organizational cost actions to realize those savings are complete, with supply‑chain savings targeted to materialize in the second half of 2027.
• The conflict in the Middle East has delayed shipments, reduced backlog in the region and is expected to keep pressure control revenues roughly flat in Q2 with segment adjusted EBITDA margins of ~22%–24%, while logistics costs and lower manufacturing absorption weigh on near‑term results.
• Spoolable Technologies outperformed in Q1 with record non‑U.S. revenues and management expects mid‑single digit revenue growth in Q2 and adjusted EBITDA margins of ~36%–38%, driven by improving international bookings and stronger North American activity.
• Q1 highlights: total revenue $388 million, adjusted EBITDA $100 million (25.8% margin), adjusted EPS $0.70, and cash of $292 million — which includes $98 million earmarked for legal entity restructurings with Baker Hughes and reflected as a related payable.
• Tariff exposure remains a meaningful headwind (currently paying a 75% tariff on most China imports); a tentative API approval for the Vietnam facility should lower tariffs on some imports to 50%, but any tariff refunds are uncertain and timing/amounts remain unclear.

Cactus Stock Up 3.0%

Shares of Cactus stock traded up $1.63 on Thursday, hitting $56.14. The company had a trading volume of 935,742 shares, compared to its average volume of 775,793. The stock has a 50-day moving average of $51.13 and a 200-day moving average of $49.15. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.81 and a quick ratio of 4.13. Cactus has a twelve month low of $33.20 and a twelve month high of $59.25. The firm has a market capitalization of $4.48 billion, a P/E ratio of 23.39, a P/E/G ratio of 2.08 and a beta of 1.37.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Barclays lifted their price objective on shares of Cactus from $56.00 to $62.00 and gave the stock an "overweight" rating in a research note on Monday, March 2nd. Weiss Ratings reiterated a "hold (c)" rating on shares of Cactus in a report on Friday, March 27th. Wall Street Zen cut shares of Cactus from a "buy" rating to a "hold" rating in a research report on Saturday, March 21st. Zacks Research lowered shares of Cactus from a "strong-buy" rating to a "hold" rating in a report on Monday, January 26th. Finally, Citigroup upped their price objective on shares of Cactus from $55.00 to $63.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Four equities 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, Cactus presently has a consensus rating of "Moderate Buy" and a consensus target price of $56.33.

Insider Buying and Selling

In related news, President Joel Bender sold 106,809 shares of the business'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 sale, the president directly owned 27,793 shares of the company's stock, valued at approximately $1,387,426.56. The trade was a 79.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 200,000 shares of company stock valued at $10,039,080. Insiders own 12.91% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP raised its position in Cactus by 52.8% in the 3rd quarter. Wellington Management Group LLP now owns 3,304,595 shares of the company's stock valued at $130,432,000 after buying an additional 1,141,249 shares during the last quarter. Balyasny Asset Management L.P. bought a new position in shares of Cactus during the 2nd quarter worth approximately $30,648,000. Franklin Resources Inc. raised its holdings in shares of Cactus by 559.4% in the fourth quarter. Franklin Resources Inc. now owns 544,998 shares of the company's stock valued at $24,896,000 after purchasing an additional 462,345 shares during the last quarter. Millennium Management LLC acquired a new stake in shares of Cactus in the fourth quarter valued at approximately $19,103,000. Finally, Ameriprise Financial Inc. lifted its position in shares of Cactus by 130.7% in the second quarter. Ameriprise Financial Inc. now owns 694,149 shares of the company's stock worth $30,340,000 after purchasing an additional 393,260 shares in the last quarter. 85.11% of the stock is owned by institutional investors and hedge funds.

About Cactus

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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