Cactus, Inc.

Cactus reported first-quarter revenue of $388 million and adjusted EBITDA of $100 million, both sequentially higher, with adjusted EBITDA margin of 25.8% versus 32.7% in the fourth quarter. Adjusted EPS was $0.70 versus $0.65 in Q4, and GAAP net income was $40 million versus $48 million in Q4. Pressure Control revenue was $300 million, up nearly 70% sequentially due to the Cactus International acquisition, while Spoolable Technologies revenue was $90 million, up 6.8% sequentially. Cash ended the quarter at $292 million, and net CapEx was about $9 million. For Q2, management expects Pressure Control revenue to be approximately flat sequentially and adjusted EBITDA margins in the 22% to 24% range, while Spoolable revenue should rise mid-single digits with margins of approximately 36% to 38%. Full-year 2026 CapEx remains targeted at $40 million to $50 million; the quarterly dividend is $0.14 per share.

Scott Bender emphasized resilience in the core business and said the company is benefiting from momentum in premium engineered products and services. He highlighted strength in Spoolable Technologies, improved optimism among U.S. customers, and raised confidence in the medium-term outlook as oil and gas market sentiment has shifted. He was notably cautious on the Middle East conflict, repeatedly stressing employee safety and acknowledging that logistics and backlog remain disrupted, but he still framed the company as well positioned once conditions improve.

Jay Nutt said Q1 results were helped by the first full quarter contribution from Cactus International and detailed the main noncash adjustments: $7 million in stock-based compensation, $10.4 million of inventory step-up amortization, $5.8 million of transaction-related professional fees, and $900,000 of severance. He noted $98 million of cash is being held for legal restructuring transactions with Baker Hughes and that this is reflected as a payable, while cash was also affected by acquisition outflow and working-capital items. He guided to a 19% effective tax rate in Q2 and an estimated adjusted EPS tax rate of about 22%, expected D&A of approximately $37 million in Q2, and reiterated full-year CapEx of $40 million to $50 million.

Analysts focused on synergy potential, Middle East post-conflict demand recovery, cash flow conversion, tariffs, and Vietnam sourcing. Management said the newly raised $15 million synergy target is mainly from flattening the organization, while the bigger upside is supply chain improvements that should start to show after current inventory clears, likely by the end of Q2 into Q3 and with more meaningful supply-chain savings not expected before the second half of 2027. On cash flow, Jay Nutt said unbilled AR remains elevated and it may take a couple of quarters to improve invoicing velocity. On tariffs, Scott Bender and Joel Bender said the refund opportunity is modest relative to the total tariff burden because Section 232 and 301 remain in place, and Vietnam is tentatively API approved, which should allow more shipments at a lower 50% tariff rate rather than 75% from China.