Cactus' Q2 revenue misses estimates

Cactus

30/07/2025 22:41

Overview

Cactus Q2 revenue of $273.6 mln missed analyst expectations, per LSEG data

Adjusted EBITDA of $86.7 mln also missed estimates, per LSEG data

Co to acquire 65% of Baker Hughes Surface Pressure Control business

Outlook

Cactus expects Q3 2025 U.S. land rig count to decline further

Company anticipates modest revenue declines in both segments for Q3 2025

Cactus adjusting operations due to lower North American activity levels

Result Drivers

FLEXSTEEL ACQUISITION - Portfolio diversification through FlexSteel acquisition helped maintain cash flows despite reduced U.S. land activity

SPOOLABLE TECHNOLOGIES - Increased revenues driven by improved manufacturing efficiency

PRESSURE CONTROL DECLINE - Lower rental revenues and sales affected by tariffs and litigation expenses led to decreased Pressure Control revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$273.6 mln
$277.60 mln (5 Analysts)
Q2 Adjusted Net Income
$53.25 mln
Q2 Net Income
$49.05 mln
Q2 Adjusted EBITDA
Miss
$86.7 mln
$90.40 mln (7 Analysts)
Q2 Adjusted EBITDA Margin
31.7%
Q2 Operating Income
$60.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy"

Wall Street's median 12-month price target for Cactus Inc is $52.00, about 10% above its July 30 closing price of $46.80

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw2pqgYMa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)