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1. Company Snapshot

1.a. Company Description

Cactus, Inc.designs, manufactures, sells, and rents a range of wellheads and pressure control equipment in the United States, Australia, China, and the Kingdom of Saudi Arabia.The company's principal products include Cactus SafeDrill wellhead systems, Cactus SafeLink monobore, SafeClamp, and SafeInject systems, as well as frac stacks, zipper manifolds, and production trees.


It also provides field services, such as 24-hour service crews to assist with the installation, maintenance, repair, and safe handling of the wellhead and pressure control equipment; and repair and refurbishment services.The company sells or rents its products for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.In addition, it operates 15 service centers in the United States, as well as 3 service centers in Eastern Australia.


Cactus, Inc.was founded in 2011 and is headquartered in Houston, Texas.

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1.b. Last Insights on WHD

Cactus, Inc.'s recent performance was positively driven by its Q4 2025 earnings beat, fueled by higher Pressure Control revenues and rental income. The company's acquisition of a 65% controlling interest in Baker Hughes's Surface Pressure Control business expanded its global oilfield equipment footprint. Additionally, Cactus received a rating upgrade to Strong Buy from Zacks, citing growing optimism about its earnings prospects. According to MarketBeat, the stock has a consensus rating of "Hold" from brokerages, with two analysts issuing a buy recommendation.

1.c. Company Highlights

2. Strong Q4 Performance with Segment Highlights

The company reported a robust Q4 2025 with total revenues of $261 million, adjusted EBITDA of $85 million, and adjusted EBITDA margins of 32.7%. The Pressure Control segment revenues were $178 million, up 5.8% sequentially, while Spoolable Technologies segment revenues were $84 million, down 11.6% sequentially. The actual EPS came out at $0.65, beating estimates of $0.58. The company's adjusted EBITDA was down 1.7% sequentially, with the Pressure Control segment adjusted EBITDA at $40 million and Spoolable Technologies segment adjusted EBITDA at $45 million.

Publication Date: Feb -27

📋 Highlights
  • Q4 Revenue and EBITDA Performance: Total revenue reached $261M, with adjusted EBITDA of $85M (32.7% margin), despite a 1.7% sequential EBITDA decline.
  • Pressure Control Segment Growth: Revenue rose 5.8% sequentially to $178M, with $40M in adjusted EBITDA, exceeding expectations.
  • Spoolable Technologies Resilience: Revenue fell 11.6% sequentially to $84M but maintained $45M in adjusted EBITDA, reflecting profitability despite seasonality.
  • Strategic Cash Position and Dividend: Cash balance grew to $495M, and a $0.14/share dividend was paid, signaling financial strength.

Guidance and Outlook

For Q1 2026, the company expects total Pressure Control revenue to be approximately $295 million to $305 million, with adjusted EBITDA margins of 23% to 25%. Spoolable Technologies revenue is expected to be down mid-single digits relative to Q4 2025, with adjusted EBITDA margins of 33% to 35%. The management is optimistic about the growth prospects, particularly in the Middle East, and expects increased order activity in the second half of 2026 and into 2027. As Scott Bender mentioned, "We're anticipating increased order activity in the second half of 2026 and into 2027, and we believe that our U.S. conventional expertise and execution focus will benefit clients throughout the Mid-East."

Valuation and Growth Prospects

The company's valuation metrics indicate a P/E Ratio of 21.39, P/B Ratio of 2.48, and EV/EBITDA of 2.87. Analysts estimate next year's revenue growth at 5.4%. With a strong footprint in key oil and gas service markets, the company is well-positioned for growth. The dividend yield stands at 1.05%, and the free cash flow yield is 6.12%. The return on invested capital (ROIC) is 48.54%, and the return on equity (ROE) is 13.61%. The net debt to EBITDA ratio is -0.42, indicating a healthy balance sheet.

Segment Performance and Synergies

The Pressure Control segment is expected to drive growth, with revenue expected to be up significantly. The Spoolable Technologies segment is expected to see mid-single digit decline in revenue in Q1 2026. The company is optimistic about achieving synergies, particularly in the supply chain, and expects to exceed projected synergies even for 2026. The formation of the Cactus International joint venture is expected to bring significant opportunities, particularly in the Middle East.

3. NewsRoom

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ENHANCED NAMES CALIWATER THE OFFICIAL HYDRATION PARTNER OF THE ENHANCED GAMES

Mar -04

Source: prnewswire.com

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Cactus Q4 Earnings Top Estimates on Higher Pressure Control Revenues

Feb -27

Source: zacks.com

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Cactus, Inc. (WHD) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Cactus Announces Fourth Quarter and Full Year 2025 Results

Feb -25

Source: businesswire.com

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Cactus, Inc. (NYSE:WHD) Receives Consensus Rating of “Hold” from Brokerages

Feb -07

Source: defenseworld.net

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Cactus Announces Timing of Fourth Quarter and Full Year 2025 Earnings Release and Conference Call and Quarterly Cash Dividend

Feb -03

Source: businesswire.com

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Cactus, Inc. $WHD Holdings Cut by Maryland State Retirement & Pension System

Jan -24

Source: defenseworld.net

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Cactus Secures 65% Stake in BKR's Surface Pressure Control Business

Jan -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.59%)

6. Segments

Pressure Control

Expected Growth: 3.5%

Cactus, Inc.'s Pressure Control segment growth of 3.5% is driven by increasing demand for well intervention services, rising adoption of digital oil fields, and growing need for efficient production optimization. Additionally, the company's strategic expansion into new markets and innovative product offerings have contributed to this growth.

Spoolable Technologies

Expected Growth: 3.8%

Spoolable Technologies from Cactus, Inc. achieves 3.8% growth driven by increasing adoption in oil and gas, rising demand for efficient well intervention, and expanding presence in international markets. Additionally, innovative product offerings, strategic partnerships, and cost-effective solutions contribute to the segment's growth momentum.

7. Detailed Products

CactusCare

A comprehensive health and wellness program designed for individuals and families

CactusShield

A cutting-edge cybersecurity solution for businesses and individuals

CactusGrow

A suite of business growth and development services for entrepreneurs and small business owners

CactusLearn

An online learning platform offering courses and training programs in various fields

CactusConnect

A social networking platform for professionals and entrepreneurs

8. Cactus, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cactus, Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Cactus, Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative products.

Bargaining Power Of Suppliers

Cactus, Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

Cactus, Inc. operates in a moderately competitive industry, with some barriers to entry, but new entrants can still pose a threat.

Intensity Of Rivalry

Cactus, Inc. operates in a highly competitive industry, with intense rivalry among existing players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.41%
Debt Cost 13.62%
Equity Weight 95.59%
Equity Cost 13.62%
WACC 13.62%
Leverage 4.62%

11. Quality Control: Cactus, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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USA Compression Partners

A-Score: 6.8/10

Value: 6.0

Growth: 5.2

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

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Archrock

A-Score: 5.6/10

Value: 3.9

Growth: 4.9

Quality: 5.9

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

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NOV

A-Score: 5.4/10

Value: 7.7

Growth: 5.4

Quality: 5.0

Yield: 4.0

Momentum: 5.0

Volatility: 5.0

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Liberty Energy

A-Score: 5.0/10

Value: 7.8

Growth: 8.1

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 2.3

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Weatherford

A-Score: 4.7/10

Value: 5.9

Growth: 7.2

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Cactus

A-Score: 4.4/10

Value: 5.5

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.02$

Current Price

50.02$

Potential

-0.00%

Expected Cash-Flows