Cactus, Inc.

What they do

Cactus makes and rents highly engineered pressure control equipment (wellheads and related surface equipment) and spoolable pipe technologies used during drilling, completion and production. It also provides field services for installation, maintenance and handling of its products and rental items, plus repair and refurbishment. Manufacturing is based in Bossier City, Louisiana, Baytown, Texas and Suzhou, China, with a new plant commencing production in Vietnam; the company operates through service centers and pipe yards in the U.S., Canada and Australia.

Revenue drivers

• Pressure Control — Design, manufacture, sale and rental of wellhead and surface pressure control equipment, plus field service, for onshore unconventional wells; this is the larger of the two segments.
• Spoolable Technologies — Spoolable pipe products, largely from the FlexSteel business acquired in February 2023 for total cash consideration of $658.6 million; management cited continued order and shipment momentum in this segment in Q2 2026.
• Cactus International (Baker Hughes Pressure Control JV) — On January 1, 2026 the company acquired 65% of Baker Hughes Pressure Control LLC, holding Baker Hughes' former surface pressure control business; Q2 2026 results included Latin America deliveries from previously discussed international orders.
• Rental and field service — Rental of equipment and field service for all products and rental items, plus repair and refurbishment, across U.S., Canadian, Australian, Middle East and other select international operations.

Recent performance

Second quarter 2026 revenue was $449.5 million with operating income of $83.6 million, net income of $61.4 million and diluted earnings per Class A share of $0.70. Adjusted net income was $75.1 million, or $0.93 per diluted share as adjusted, and Adjusted EBITDA was $132.8 million (29.5% margin). Cash flow from operations was $104.6 million, and the company ended the quarter with $365.8 million of cash and cash equivalents and no bank debt outstanding. Revenue rose from $388.3 million in Q1 2026 and $273.6 million in Q2 2025, though operating income margin of 18.6% was below the 22.2% reported a year earlier. The company said the quarter benefited from Latin America order deliveries and Middle East shipments in Pressure Control despite continued conflict disruption.

Strategy

Cactus is expanding internationally, most recently through the January 1, 2026 acquisition of a 65% interest in Baker Hughes Pressure Control LLC, and reported international purchase orders in excess of $130 million in Spoolable Technologies subsequent to the quarter. It continues integrating the FlexSteel acquisition completed in 2023 and is adding manufacturing capacity with a new plant commencing production in Vietnam. In July 2026 the Board approved a 7% dividend increase to $0.15 per Class A share per quarter and expanded the Board with the appointment of Joseph Elkhoury. Management has highlighted Spoolable Technologies bookings and shipments momentum as a priority alongside Pressure Control backlog execution.

Risks

• Oil and gas activity dependence — Demand depends on rig counts, well completions and customer capital spending, which are directly affected by volatile oil and natural gas prices and OPEC+ supply actions.
• Customer order cancellation or deferral — The 10-K states that declines in oil and gas prices can result in cancellation, modification or rescheduling of existing and expected orders and affect customers' ability to pay.
• Acquisition and integration risk — Cactus completed the $658.6 million FlexSteel acquisition in February 2023 and the 65% Baker Hughes Pressure Control acquisition on January 1, 2026, and Q2 2026 operating income included purchase-accounting and acquisition-related expenses.
• International and geopolitical exposure — The company operates in Canada, Australia, the Middle East and other select international markets, and Q2 2026 results reflected continued conflict disruption affecting Middle East shipments.

Outlook

Management expects third quarter 2026 consolidated revenues to be down slightly sequentially. Pressure Control revenues are expected to fall 10% versus the second quarter as strong Cactus International backlog execution normalizes, more than offsetting domestic resilience. Spoolable Technologies activity is expected to increase 15% to 20% in the third quarter on continued domestic and international growth, and management believes the U.S. land rig count will rise in the third quarter on supportive commodity prices, primarily from private operators.