Thu, May 1, 9:02 PM (11 days ago)
**Cactus, Inc. (WHD) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue increased by 3.0% to $280.3 million, with product revenue contributing 74%, rental revenue 10%, and field service and other revenue 16%. - **Profit Margins:** Operating income rose by 2.4% to $68.6 million, with a slight decrease in margins due to litigation reserves. - **Cash Flow:** Net cash provided by operating activities decreased to $41.5 million due to increased working capital and inventory levels. - **Earnings:** Net income attributable to Cactus Inc. increased by 13.5% to $44.2 million, with earnings per share (EPS) rising to $0.65 (basic) and $0.64 (diluted). **Segment Performance:** - **Pressure Control:** Revenue increased by 7.7% to $190.3 million, driven by higher sales of wellhead and production equipment. Operating income rose by 6.9% to $54.3 million. - **Spoolable Technologies:** Revenue decreased by 3.6% to $92.6 million due to reduced customer activity. Operating income decreased by 6.5% to $23.9 million. **Trends and Uncertainties:** - **Market Conditions:** Oil and natural gas prices showed mixed trends, with natural gas prices increasing significantly. U.S. land drilling and completion activity levels were relatively flat. - **Trade Policies:** Tariff increases and trade policy changes may impact operating expenses and demand for products. - **Litigation:** Ongoing patent litigation with Cameron could have material impacts if resolved adversely. **Future Operations Impact:** - **Capital Expenditures:** Estimated net capital expenditures for 2025 range from $40 to $50 million, focusing on rental fleet investments and manufacturing enhancements. - **Liquidity:** Cactus Inc. has $347.7 million in cash and cash equivalents and $222.6 million in available borrowing capacity under the Amended ABL Credit Facility. - **Share Repurchase:** $146.3 million remains authorized for future repurchases of Class A common stock. **Conclusion:** Cactus, Inc. demonstrated solid financial health in Q1 2025, with increased revenue and earnings despite market uncertainties and litigation risks. The company's strategic investments and liquidity position support future growth and operational stability.