Investment Thesis on Cactus, Inc. Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: Yahoo Finance
- Market Performance: As of April 29, Cactus, Inc. (WHD) shares were trading at $55.77 with a market capitalization of $4.6 billion, indicating strong performance and investment appeal in the oil and gas sector.
- Profitability Analysis: WHD's trailing and forward P/E ratios are 23.20 and 48.08 respectively, reflecting its high-margin Surface Pressure Control and Spoolable Pipe segments, which generate mid-to-high 30% EBITDA margins, showcasing robust financial health.
- Strategic Acquisition: In early 2026, Cactus acquired 65% of Baker Hughes' Surface Pressure Control business for $365 million, enhancing its leadership in the Middle East market and expected to unlock synergies and cross-selling opportunities.
- Management Team Advantage: The Bender family, holding approximately 15% ownership, brings a wealth of experience in building pressure control businesses, demonstrating strong operational resilience and market adaptability, which further boosts investor confidence.
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Analyst Views on WHD
Wall Street analysts forecast WHD stock price to fall
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 56.130
Low
40.00
Averages
50.25
High
56.00
Current: 56.130
Low
40.00
Averages
50.25
High
56.00
About WHD
Cactus, Inc. is a holding company. The Company operates through two segments. The Pressure Control segment designs, manufactures, sells and rents a range of wellheads and pressure control equipment under the Cactus Wellhead brand. The segment’s products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers' wells. In addition, it provides field services for all of its products and rental items to assist with the installation, maintenance and handling of the equipment. The Spoolable Technologies segment designs, manufactures and sells spoolable pipe and associated end fittings under the FlexSteel brand. Its customers use these products primarily as production, gathering and takeaway pipelines to transport oil, gas or other liquids. In addition, it also provides field services and rental items to assist its customers with the installation of these products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cactus, Inc. Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Cactus, Inc. reported total revenues of $388 million and adjusted EBITDA of $100 million in Q1, with an EBITDA margin of 25.8%, demonstrating resilience amid Middle East conflict impacts and indicating a solid business foundation.
- Pressure Control Segment Growth: The Pressure Control segment achieved revenues of $300 million, nearly a 70% increase from the previous quarter, primarily driven by the acquisition of Cactus International, reflecting enhanced competitiveness in the market.
- Optimistic Future Outlook: Management expects total Pressure Control revenue to remain flat in Q2, with adjusted EBITDA margins projected between 22% and 24%, showcasing confidence in sustained profitability.
- International Business Expansion: The company achieved a record quarter for non-U.S. revenues, with an increase of approximately $30 million in Latin America orders, indicating significant global market expansion potential, while also facing high tariff pressures from China.
See More
Cactus Declares $0.14 Quarterly Dividend in Line with Previous
- Quarterly Dividend Announcement: Cactus has declared a quarterly dividend of $0.14 per share, consistent with previous distributions, indicating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 1.03% reflects the company's dedication to shareholder returns while providing investors with a relatively stable cash flow amidst market fluctuations.
- Payment Schedule: The dividend is payable on June 18, with a record date of June 1 and an ex-dividend date also set for June 1, ensuring shareholders receive their earnings promptly.
- Financial Performance Highlights: Cactus reported a non-GAAP EPS of $0.70, beating expectations by $0.03, and revenue of $388.3 million, exceeding forecasts by $7.53 million, showcasing the company's robust financial performance despite cyclical pressures.
See More
Cactus Reports Q1 Earnings, Exceeds Expectations
- Profitability Improvement: Cactus reported a Q1 non-GAAP EPS of $0.70, beating expectations by $0.03, indicating strong performance and ongoing improvement in profitability within the energy sector.
- Significant Revenue Growth: The company achieved Q1 revenue of $388.3 million, a 38.5% year-over-year increase, exceeding market expectations by $7.53 million, reflecting robust demand and an expanding market share in the energy industry.
- Strong Cash Flow: Cactus generated $128.3 million in cash flow from operations, demonstrating effective financial management, while cash and cash equivalents reached $291.6 million, ensuring flexibility for future investments and legal restructuring activities.
- No Bank Debt: As of March 31, 2026, the company reported no bank debt, providing a solid financial foundation that enhances Cactus's competitiveness in the face of cyclical pressures in the market.
See More
Cactus, Inc. Reports Strong Q1 2026 Financial Results
- Acquisition Impact: Cactus completed its acquisition of Baker Hughes' Surface Pressure Control business on January 1, 2026, resulting in Q1 revenue of $388.3 million, a 48.7% increase sequentially, showcasing the integration benefits of the acquisition.
- Profitability Fluctuations: With a net income of $40.2 million and a net margin of 10.4%, operating income decreased by 20.7% sequentially due to acquisition-related accounting adjustments, indicating short-term pressure on profitability.
- Strong Cash Flow: The company reported operating cash flow of $128.3 million for Q1, with total cash and cash equivalents reaching $291.6 million, demonstrating robust liquidity post-acquisition and no bank debt, enhancing future investment flexibility.
- Optimistic Market Outlook: Despite some business impacts from the Middle East conflict, Cactus anticipates stable revenues in the Pressure Control segment for Q2, while activity in the Spoolable Technologies segment is expected to increase, reflecting ongoing customer demand for larger diameter products.
See More
CACTUS REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
- Company Announcement: Cactus has announced its financial results for the first quarter of 2026.
- Performance Overview: The results indicate key performance metrics and financial health of the company during this period.
See More
Investment Thesis on Cactus, Inc. Stock
- Market Performance: As of April 29, Cactus, Inc. (WHD) shares were trading at $55.77 with a market capitalization of $4.6 billion, indicating strong performance and investment appeal in the oil and gas sector.
- Profitability Analysis: WHD's trailing and forward P/E ratios are 23.20 and 48.08 respectively, reflecting its high-margin Surface Pressure Control and Spoolable Pipe segments, which generate mid-to-high 30% EBITDA margins, showcasing robust financial health.
- Strategic Acquisition: In early 2026, Cactus acquired 65% of Baker Hughes' Surface Pressure Control business for $365 million, enhancing its leadership in the Middle East market and expected to unlock synergies and cross-selling opportunities.
- Management Team Advantage: The Bender family, holding approximately 15% ownership, brings a wealth of experience in building pressure control businesses, demonstrating strong operational resilience and market adaptability, which further boosts investor confidence.
See More
Cactus, Inc. Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Cactus, Inc. reported total revenues of $388 million and adjusted EBITDA of $100 million in Q1, with an EBITDA margin of 25.8%, demonstrating resilience amid Middle East conflict impacts and indicating a solid business foundation.
- Pressure Control Segment Growth: The Pressure Control segment achieved revenues of $300 million, nearly a 70% increase from the previous quarter, primarily driven by the acquisition of Cactus International, reflecting enhanced competitiveness in the market.
- Optimistic Future Outlook: Management expects total Pressure Control revenue to remain flat in Q2, with adjusted EBITDA margins projected between 22% and 24%, showcasing confidence in sustained profitability.
- International Business Expansion: The company achieved a record quarter for non-U.S. revenues, with an increase of approximately $30 million in Latin America orders, indicating significant global market expansion potential, while also facing high tariff pressures from China.
See More
Cactus Declares $0.14 Quarterly Dividend in Line with Previous
- Quarterly Dividend Announcement: Cactus has declared a quarterly dividend of $0.14 per share, consistent with previous distributions, indicating the company's stability and commitment to shareholder returns in the current economic climate.
- Dividend Yield: The forward yield of 1.03% reflects the company's dedication to shareholder returns while providing investors with a relatively stable cash flow amidst market fluctuations.
- Payment Schedule: The dividend is payable on June 18, with a record date of June 1 and an ex-dividend date also set for June 1, ensuring shareholders receive their earnings promptly.
- Financial Performance Highlights: Cactus reported a non-GAAP EPS of $0.70, beating expectations by $0.03, and revenue of $388.3 million, exceeding forecasts by $7.53 million, showcasing the company's robust financial performance despite cyclical pressures.
See More
Cactus Reports Q1 Earnings, Exceeds Expectations
- Profitability Improvement: Cactus reported a Q1 non-GAAP EPS of $0.70, beating expectations by $0.03, indicating strong performance and ongoing improvement in profitability within the energy sector.
- Significant Revenue Growth: The company achieved Q1 revenue of $388.3 million, a 38.5% year-over-year increase, exceeding market expectations by $7.53 million, reflecting robust demand and an expanding market share in the energy industry.
- Strong Cash Flow: Cactus generated $128.3 million in cash flow from operations, demonstrating effective financial management, while cash and cash equivalents reached $291.6 million, ensuring flexibility for future investments and legal restructuring activities.
- No Bank Debt: As of March 31, 2026, the company reported no bank debt, providing a solid financial foundation that enhances Cactus's competitiveness in the face of cyclical pressures in the market.
See More
Cactus, Inc. Reports Strong Q1 2026 Financial Results
- Acquisition Impact: Cactus completed its acquisition of Baker Hughes' Surface Pressure Control business on January 1, 2026, resulting in Q1 revenue of $388.3 million, a 48.7% increase sequentially, showcasing the integration benefits of the acquisition.
- Profitability Fluctuations: With a net income of $40.2 million and a net margin of 10.4%, operating income decreased by 20.7% sequentially due to acquisition-related accounting adjustments, indicating short-term pressure on profitability.
- Strong Cash Flow: The company reported operating cash flow of $128.3 million for Q1, with total cash and cash equivalents reaching $291.6 million, demonstrating robust liquidity post-acquisition and no bank debt, enhancing future investment flexibility.
- Optimistic Market Outlook: Despite some business impacts from the Middle East conflict, Cactus anticipates stable revenues in the Pressure Control segment for Q2, while activity in the Spoolable Technologies segment is expected to increase, reflecting ongoing customer demand for larger diameter products.
See More
CACTUS REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
- Company Announcement: Cactus has announced its financial results for the first quarter of 2026.
- Performance Overview: The results indicate key performance metrics and financial health of the company during this period.
See More
Investment Thesis on Cactus, Inc. Stock
- Market Performance: As of April 29, Cactus, Inc. (WHD) shares were trading at $55.77 with a market capitalization of $4.6 billion, indicating strong performance and investment appeal in the oil and gas sector.
- Profitability Analysis: WHD's trailing and forward P/E ratios are 23.20 and 48.08 respectively, reflecting its high-margin Surface Pressure Control and Spoolable Pipe segments, which generate mid-to-high 30% EBITDA margins, showcasing robust financial health.
- Strategic Acquisition: In early 2026, Cactus acquired 65% of Baker Hughes' Surface Pressure Control business for $365 million, enhancing its leadership in the Middle East market and expected to unlock synergies and cross-selling opportunities.
- Management Team Advantage: The Bender family, holding approximately 15% ownership, brings a wealth of experience in building pressure control businesses, demonstrating strong operational resilience and market adaptability, which further boosts investor confidence.
See More
