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Cactus: Strong Q4 Performance with Segment Highlights

The company reported a robust Q4 2025 with total revenues of $261 million, adjusted EBITDA of $85 million, and adjusted EBITDA margins of 32.7%. The Pressure Control segment revenues were $178 million, up 5.8% sequentially, while Spoolable Technologies segment revenues were $84 million, down 11.6% sequentially. The actual EPS came out at $0.65, beating estimates of $0.58. The company's adjusted EBITDA was down 1.7% sequentially, with the Pressure Control segment adjusted EBITDA at $40 million and Spoolable Technologies segment adjusted EBITDA at $45 million.

WHD

USD 52.62

2.06%

A-Score: 4.4/10

Publication date: February 26, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Q4 Revenue and EBITDA Performance Total revenue reached $261M, with adjusted EBITDA of $85M (32.7% margin), despite a 1.7% sequential EBITDA decline.
  • Pressure Control Segment Growth Revenue rose 5.8% sequentially to $178M, with $40M in adjusted EBITDA, exceeding expectations.
  • Spoolable Technologies Resilience Revenue fell 11.6% sequentially to $84M but maintained $45M in adjusted EBITDA, reflecting profitability despite seasonality.
  • Strategic Cash Position and Dividend Cash balance grew to $495M, and a $0.14/share dividend was paid, signaling financial strength.

Guidance and Outlook

For Q1 2026, the company expects total Pressure Control revenue to be approximately $295 million to $305 million, with adjusted EBITDA margins of 23% to 25%. Spoolable Technologies revenue is expected to be down mid-single digits relative to Q4 2025, with adjusted EBITDA margins of 33% to 35%. The management is optimistic about the growth prospects, particularly in the Middle East, and expects increased order activity in the second half of 2026 and into 2027. As Scott Bender mentioned, "We're anticipating increased order activity in the second half of 2026 and into 2027, and we believe that our U.S. conventional expertise and execution focus will benefit clients throughout the Mid-East."

Valuation and Growth Prospects

The company's valuation metrics indicate a P/E Ratio of 21.39, P/B Ratio of 2.48, and EV/EBITDA of 2.87. Analysts estimate next year's revenue growth at 5.4%. With a strong footprint in key oil and gas service markets, the company is well-positioned for growth. The dividend yield stands at 1.05%, and the free cash flow yield is 6.12%. The return on invested capital (ROIC) is 48.54%, and the return on equity (ROE) is 13.61%. The net debt to EBITDA ratio is -0.42, indicating a healthy balance sheet.

Segment Performance and Synergies

The Pressure Control segment is expected to drive growth, with revenue expected to be up significantly. The Spoolable Technologies segment is expected to see mid-single digit decline in revenue in Q1 2026. The company is optimistic about achieving synergies, particularly in the supply chain, and expects to exceed projected synergies even for 2026. The formation of the Cactus International joint venture is expected to bring significant opportunities, particularly in the Middle East.

Cactus's A-Score