Cactus, Inc. announces strong fourth-quarter performance, highlights full-year 2025 financial growth and operational milestones.
Cactus, Inc.reported its financial and operating results for the fourth quarter and full year ended December 31, 2025, highlighting resilient margins, strong cash generation, and a transformational acquisition that positions the company for long-term geographic diversification and growth.
Strong Fourth Quarter Performance Caps a Solid 2025
Cactus delivered fourth-quarter 2025 revenue of $261.2 million, generating operating income of $59.9 million and an operating margin of 22.9%. Net income for the quarter totaled $48.3 million, representing a net income margin of 18.5%, while diluted earnings per Class A share came in at $0.57.
On an adjusted basis, which assumes Cactus held all units in its operating subsidiary at the beginning of the period, adjusted net income was $52.1 million, with diluted earnings per share, as adjusted, of $0.65. Adjusted net income margin stood at 20.0%, underscoring the company’s continued operational discipline.
Adjusted EBITDA for the fourth quarter reached $85.5 million, translating into an Adjusted EBITDA margin of 32.7%. Operating cash flow remained robust at $72.3 million, reflecting the company’s consistent ability to convert earnings into cash.
For the full year 2025, Cactus generated $1.08 billion in revenue, compared to $1.13 billion in 2024. Operating income totaled $250.5 million, with a margin of 23.2%, while net income reached $201.6 million. Adjusted EBITDA for the year amounted to $353.0 million, reflecting an Adjusted EBITDA margin of 32.7%.
Although year-over-year comparisons reflect some moderation in revenues and margins due to broader macroeconomic pressures and industry conditions, Cactus maintained strong profitability metrics throughout 2025.
Transformational Acquisition Completed
A major milestone for the company occurred on January 1, 2026, when Cactus closed its previously announced acquisition of a majority interest in Baker Hughes’ Surface Pressure Control business. The newly acquired business will operate under the name Cactus International, marking a significant step in the company’s strategic expansion.
CEO and Chairman Scott Bender described the transaction as a key element in a multi-year journey to diversify the company’s earnings base geographically. By integrating Cactus International into its operations, the company expects to strengthen its presence beyond North America and enhance its competitive positioning in global markets.
Beginning in the first quarter of 2026, the results of Cactus International will be included within the Pressure Control segment.
Segment Highlights
Cactus operates through two primary business segments: Pressure Control and Spoolable Technologies, with corporate and other expenses reported separately.
Pressure Control
The Pressure Control segment delivered a strong fourth quarter. Revenue increased by $9.7 million sequentially, or 5.8%, driven by higher products sold per rig and increased rental revenues. Improved customer activity and strong drilling equipment sales exceeded internal expectations.
Operating income in the segment rose $4.1 million sequentially, an increase of 9.3%, with operating margins improving by 90 basis points. These gains were supported by cost reduction initiatives, recovery efforts, and improved rental equipment utilization.
Adjusted Segment EBITDA for Pressure Control increased 7.2% sequentially, with margins expanding by 50 basis points, reflecting enhanced operating efficiency.
Looking ahead to the first quarter of 2026, management expects U.S. land activity levels to remain relatively flat compared to the fourth quarter of 2025. However, sales in the legacy Pressure Control business are anticipated to soften following a particularly strong fourth quarter, due to lower products sold per rig and reduced rental activity. The inclusion of Cactus International’s results is expected to partially offset this softness.
Spoolable Technologies
In contrast, the Spoolable Technologies segment experienced seasonal softness during the fourth quarter. Revenue declined by $11.0 million sequentially, or 11.6%, primarily due to reduced customer activity in what is typically a slower seasonal period.
Operating income decreased by $4.9 million sequentially, with margins contracting by 220 basis points as reduced operating leverage impacted profitability. Adjusted Segment EBITDA also declined by 13.6% sequentially, with margins decreasing by 90 basis points.
Despite near-term headwinds, management indicated that activity in Spoolable Technologies has recently begun to rebound from late-year holiday lows, suggesting improved momentum heading into 2026.
Corporate Expenses and Transaction Costs
Corporate and Other expenses rose modestly in the fourth quarter, increasing by $0.7 million sequentially. The quarter included $3.3 million in transaction-related expenses associated with the acquisition of the Surface Pressure Control business, slightly higher than in the prior quarter.
These costs reflect the company’s preparation for integration activities and strategic repositioning tied to the Cactus International acquisition.
Strong Liquidity Position and Capital Allocation
As of December 31, 2025, Cactus maintained a robust liquidity position, with $494.6 million in cash and cash equivalents, including $371.0 million in restricted cash held in escrow to facilitate the acquisition closing. Importantly, the company had no bank debt outstanding at year-end.
Additionally, Cactus had $222.9 million available under its revolving credit facility and $100.0 million available under an undrawn term loan facility, providing significant financial flexibility.
During the fourth quarter, the company paid $11.2 million in dividends and associated distributions, along with $23.3 million in Tax Receivable Agreement (TRA) payments related to 2024 tax savings.
Net capital expenditures totaled $4.3 million in the fourth quarter and $39.1 million for the full year 2025. For 2026, the company expects capital expenditures in the range of $40 million to $50 million, including investments related to Cactus International.
Planned capital spending priorities include:
- Manufacturing efficiency investments at FlexSteel
- Routine upgrades to U.S. branch facilities
- Wellhead facility investments in Saudi Arabia
Dividend Declaration
In February 2026, the Board approved a quarterly cash dividend of $0.14 per share of Class A common stock, payable on March 19, 2026, to shareholders of record as of March 2, 2026. A corresponding distribution of up to $0.14 per CC Unit was also approved.
This continued dividend reflects management’s confidence in the company’s cash generation capabilities and disciplined capital allocation strategy.
Outlook for 2026
Management anticipates relatively stable U.S. land activity levels in the near term but acknowledges potential softness in legacy Pressure Control sales after a strong fourth quarter. Spoolable Technologies revenues are also expected to be softer in the first quarter before seasonal recovery progresses.
Despite macroeconomic and tariff-related challenges, Cactus remains optimistic about integration opportunities and long-term value creation stemming from the Cactus International acquisition. Leadership emphasized the company’s sustainable cash generation, operational resilience, and ability to execute strategically in a challenging environment.
About Cactus
Cactus designs, manufactures, sells, and rents highly engineered pressure control equipment and spoolable pipe technologies primarily used in onshore unconventional oil and gas wells. Its products support drilling, completion, and production phases, and the company provides field services to assist customers with installation, maintenance, and equipment handling.
With service centers and manufacturing facilities across North America and the Middle East, and now expanded through Cactus International, Cactus continues to strengthen its global footprint while maintaining a disciplined financial profile and strong operational performance.
As the company enters 2026, it does so with a solid balance sheet, enhanced international presence, and a clear strategic roadmap aimed at sustainable growth and long-term shareholder value creation.
