Q3 2025 Cactus Inc Earnings Call Transcript
Key Points
- Cactus Inc (WHD) reported a strong third-quarter performance with revenue of $264 million and an adjusted EBITDA of $87 million, maintaining a high EBITDA margin of 32.9%.
- The company successfully improved Pressure Control margins through tariff mitigation and cost reduction efforts.
- Spoolable Technology sales and margins exceeded expectations due to higher international shipments, showcasing the company's expanding global footprint.
- Cactus Inc (WHD) increased its cash balance to $446 million, reflecting strong cash flow management.
- The company paid a quarterly dividend of $0.14 per share, demonstrating a commitment to returning value to shareholders.
- Total Q3 revenues declined by 3.5% sequentially, with Pressure Control segment revenues down 6.2% due to lower frac rental revenues.
- Spoolable Technology segment revenues decreased by 1% sequentially, impacted by lower domestic customer activity levels.
- The company faced significant tariff challenges, with a 95% total tariff rate on goods imported from China and a 50% tariff on goods from Vietnam.
- Corporate and other expenses included $3.2 million of professional fees related to the acquisition of a majority interest in Baker Hughes' surface Pressure Control business.
- The company anticipates a low double-digit sequential decline in Spoolable Technologies revenue for the fourth quarter, consistent with typical seasonal patterns.
Good day and thank you for standing by. Welcome to the Cactus quarter three 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Alan Boyd, Director of Corporate Development and Investor Relations. Please go ahead.
Thank you and good morning. We appreciate you joining us on today's call. Our speakers will be Scott Bender, our Chairman and Chief Executive Officer; and Jay Nutt, our Chief Financial Officer. Also joining us today are Joel Bender, President; Stephen Bender, Chief Operating Officer; Steve Tadlock, CEO of FlexSteel; and Will Marsh, our General Counsel.
Please note that any comments we make on today's call regarding projections or expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to a number of risks and uncertainties, many
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