Cactus, Inc. (WHD) reported first-quarter 2025 adjusted earnings of 73 cents per share, which beat the Zacks Consensus Estimate of 70 cents. However, the bottom line declined from the year-ago quarter’s figure of 75 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total quarterly revenues of $280.3 million beat the Zacks Consensus Estimate of $268 million. The top line improved from the year-ago figure of $274 million.The better-than-expected quarterly earnings can be attribut ...

Cactus, Inc. (WHD) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.29%. A quarter ago, it was expected that this company would post earnings of $0.73 per share when it actually produced earnings of $0.71, delivering a surprise of -2.74%.Over the last four quarters, the company has s ...

Exhibit 99.1 Cactus Announces First Quarter 2025 Results HOUSTON – April 30, 2025 – Cactus, Inc. (NYSE: WHD) ("Cactus" or the "Company") today announced financial and operating results for the first quarter of 2025. First Quarter Highlights Financial Summary | | | | | Three Months Ended | | | | --- | --- | --- | --- | --- | --- | --- | | | | March 31, | | December 31, | | March 31, | | | | 2025 | | 2024 | | 2024 | | | | | | (in thousands) | | | | Revenues | $ | 280,319 | $ | 272,121 | $ | 274,123 | | (3) Op ...

Cactus, Inc. (WHD) reported fourth-quarter 2024 adjusted earnings of 71 cents per share, which missed the Zacks Consensus Estimate of 73 cents. The bottom line declined from the year-ago quarter’s figure of 81 cents.Total quarterly revenues of $272.1 million missed the Zacks Consensus Estimate of $276 million. The top line declined from the year-ago figure of $275 million.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The weak quarterly results can be attributed to decreased revenues ...

Cactus Inc. (NYSE:WHD) Q4 2024 Earnings Conference Call February 27, 2025 10:00 AM ET Company Participants Alan Boyd - Director of Corporate Development & Investor Relations Scott Bender - Chief Executive Officer & Chairman of the Board Jay Nutt - Executive Vice President, Chief Financial Officer and Treasurer Steven Bender - Chief Operating Officer Conference Call Participants Stephen Gengaro - Stifel Arun Jayaram - J.P. Morgan Securities Scott Gruber - Citigroup Operator Good day, and thank you for standi ...

Customer Dependence and Revenue - The company serves over 300 customers, with one customer representing 15% of total revenues in 2024 and 10% in 2023[47]. - The company is dependent on a relatively small number of customers in the oil and natural gas E&P business, which could adversely affect its financial condition if an important customer is lost[87]. Manufacturing and Operations - The manufacturing facility in Bossier City, Louisiana, is designed for rapid turnaround of made-to-order equipment, while the Suzhou facility in China is optimized for higher-volume orders[42]. - The company has advanced manufacturing capabilities in Baytown, Texas, producing pipe products in accordance with industry standards and utilizing advanced CNC machines[43]. - The company operates through service centers and pipe yards located in the United States, Canada, Australia, and provides services in the Middle East and other international markets[260]. Industry Dependency and Market Conditions - The company is substantially dependent on the oil and gas industry, with exploration and production activity directly affected by oil and natural gas prices, which have historically been volatile[45]. - The company’s business is heavily influenced by trends in the demand for and price of crude oil and natural gas, which have historically been volatile[81]. - The oilfield services industry is highly competitive, and increased competition could lead to lower prices and utilization rates for the company's services[89]. - The introduction of new technologies in the oilfield services industry may cause the company to lose market share if it cannot keep up with competitors[90]. - Ongoing global conflicts, particularly in Ukraine and the Middle East, have resulted in volatility in oil and natural gas prices, potentially dampening demand for the company's products[109]. Environmental and Regulatory Compliance - The company has established proactive environmental and worker safety policies to manage compliance with stringent governmental laws and regulations[52]. - The company is subject to various environmental laws and regulations, and failure to comply could result in significant penalties and increased costs[100]. - Changes in regulations related to greenhouse gas emissions could negatively impact demand for the company's products and services[103]. - Increased regulation on hydraulic fracturing in Texas has led to suspensions of deep wastewater disposal wells in certain areas, potentially increasing costs for oil and gas production companies[104]. Financial Performance and Metrics - Total revenues for 2024 reached $1,129,814, an increase of 3% from $1,096,960 in 2023 and a significant rise of 64% compared to $688,369 in 2022[249]. - Net income attributable to Cactus Inc. for 2024 was $185,407, representing an increase of 10% from $169,171 in 2023 and a substantial increase of 68% from $110,174 in 2022[249]. - The total stockholders' equity attributable to Cactus Inc. rose to $1,071.1 million in 2024, up from $865.5 million in 2023, reflecting an increase of about 23.8%[247]. - The company reported a foreign currency translation adjustment loss of $1,974 in 2024, compared to a gain of $239 in 2023[252]. - The company completed the acquisition of the FlexSteel business on February 28, 2023, which has been reflected in the financial statements from the closing date of the acquisition[262]. Employee and Workforce Management - The company employed approximately 1,600 people worldwide as of December 31, 2024, with over 100 employees located outside the United States, primarily in Australia and China[61]. - The company has developed targeted strategies for recruitment and retention to maintain high retention rates among key managers and associates[62]. - The company is committed to fostering a diverse workforce, with approximately 10% women and 46% of the workforce representing a minority population[67]. Risk Management and Insurance - The company relies on customer indemnifications and third-party insurance for risk mitigation, but limitations on these could expose it to substantial liabilities[93]. - The company’s insurance includes coverage for various liabilities, including pollution liability and cyber insurance, but may not cover all losses[59]. - The company relies on information technology systems, and any failure or cyberattack could disrupt operations and adversely affect financial performance[132]. Tax and Financial Obligations - Payments under the Tax Receivable Agreement (TRA) could be substantial, as Cactus Inc. is obligated to pay 85% of net cash savings from tax benefits realized[120]. - The liability related to the Tax Receivable Agreement (TRA) was reported at $278.7 million as of December 31, 2024, indicating a significant financial obligation[242]. - The effective tax rate for 2024 was 22.2%, compared to 18.1% in 2023 and 17.8% in 2022[318]. Capital and Investment Activities - The company reported a net cash used in investing activities of $35,388,000 for 2024, a significant decrease from $654,793,000 in 2023[258]. - Capital expenditures for 2024 were $39,176,000, a decrease from $43,977,000 in 2023[258]. - The company had no outstanding debt as of December 31, 2024, and maintained compliance with all covenants under the Amended ABL Credit Facility[308]. Audit and Internal Controls - The independent auditor, PricewaterhouseCoopers, LLP, confirmed the effectiveness of the internal control over financial reporting as of December 31, 2024[230]. - The company maintained effective internal control over financial reporting based on the COSO framework, as stated in the management's assessment[229]. - The audit report highlighted a critical audit matter related to the TRA liability, emphasizing the complexity and subjectivity involved in its calculation[241].

Financial Data and Key Metrics Changes - Total Q4 revenue was $272 million, down 7.2% sequentially, with adjusted EBITDA of $93 million, also down 7.6% sequentially, resulting in adjusted EBITDA margins of 34.1% [9][12][16] - GAAP net income for the quarter was $57 million, compared to $62 million in the previous quarter, with adjusted net income and earnings per share at $57 million and $0.71 per share, respectively, down from $63 million and $0.79 per share [17][18] Business Line Data and Key Metrics Changes - Pressure control segment revenues were $177 million, down 4.5% sequentially, with operating income decreasing by $1.7 million or 3.3% [13] - Spoolable technology segment revenues were $96 million, down 11.2% sequentially, with operating income decreasing by $7.4 million or 22.4% [14] Market Data and Key Metrics Changes - The company ended the year with a cash balance of $343 million, an increase of approximately $39 million from the previous quarter [20] - The average public ownership of the company was 85% and ended the quarter at 86% [17] Company Strategy and Development Direction - The company is focused on ramping up production at its new facility in Vietnam and introducing new products to enhance value in both segments [29][37] - The strategy includes managing manufacturing costs and expanding internationally, with a long-term goal of achieving 40% of revenue from international markets [34][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in outperforming underlying activity levels in the US market despite trade policy uncertainties [43][44] - The company anticipates a rebound in customer activity in the second and third quarters of 2025, with expectations for increased international orders [31][37] Other Important Information - The company paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $10 million [19] - Capital expenditures for Q4 were approximately $11 million, with full-year CapEx at around $35 million [21][23] Q&A Session Summary Question: Outlook for US activity in the next few quarters - Management is confident in their ability to outgrow underlying activity levels, anticipating a US rig count in the 550 to 560 range [43][44] Question: Margin headwind from Bossier City facility versus China - The cost comparison indicates that Bossier's costs are at least 35% higher than the Far East supply chain, with increasing tariffs impacting both [46][47] Question: Game plan for mitigating tariff impacts - The company has flexibility between its facilities in Vietnam and Bossier City to mitigate tariff impacts, with a focus on vertical manufacturing capabilities [58][61] Question: Commercialization of H2S solutions - The H2S product is commercialized, with shipments expected to begin in March or April, targeting the Middle East market [70][71] Question: International growth opportunities in pressure control - Management acknowledged progress in international growth but refrained from providing specific details due to ongoing developments [96][97]

Core Viewpoint - Cactus, Inc. reported quarterly earnings of $0.71 per share, missing the Zacks Consensus Estimate of $0.73 per share, and showing a decline from $0.81 per share a year ago, indicating a -2.74% earnings surprise [1][2] Financial Performance - The company posted revenues of $272.12 million for the quarter ended December 2024, which was 1.37% below the Zacks Consensus Estimate and a decrease from $274.87 million year-over-year [2] - Over the last four quarters, Cactus has surpassed consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - Cactus shares have declined approximately 1.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.78, with expected revenues of $283.66 million, and for the current fiscal year, the estimate is $3.22 on revenues of $1.17 billion [7] Industry Outlook - The Oil and Gas - Integrated - United States industry, to which Cactus belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Cactus's stock performance [5][6]

Financial Performance - Fourth quarter 2024 revenues were $272.1 million, a decrease of 1.0% from $274.9 million in the previous quarter[3]. - Operating income for the fourth quarter was $70.5 million, down 10.0% sequentially from $78.6 million[3]. - Net income for the fourth quarter was $57.4 million, resulting in a net income margin of 21.1%[3]. - Adjusted EBITDA for the fourth quarter was $92.7 million, with an adjusted EBITDA margin of 34.1%[3]. - For the twelve months ended December 31, 2024, net income increased to $232.8 million from $214.8 million in 2023, representing an 8.8% growth[34]. - Revenue for the twelve months ended December 31, 2024, was $1.13 billion, compared to $1.10 billion in 2023, reflecting a 3.1% increase[34]. - Adjusted net income for the twelve months ended December 31, 2024, was $245.1 million, slightly down from $253.1 million in 2023, a decrease of 3.2%[34]. - Diluted earnings per share, as adjusted, decreased to $3.07 for the twelve months ended December 31, 2024, from $3.19 in 2023, a decline of 3.8%[34]. - The net income margin for the three months ended December 31, 2024, was 21.1%, slightly lower than 21.3% in the previous quarter[39]. - Total operating income for the twelve months ended December 31, 2024, was $289,613,000, an increase from $264,366,000 in the previous year[45]. Segment Performance - Pressure Control segment revenue decreased by $8.4 million, or 4.5%, sequentially, while Spoolable Technologies revenue decreased by $12.1 million, or 11.2%[10][11]. - Pressure Control segment revenue for the three months ended December 31, 2024, was $176,719,000, down from $185,099,000 in the previous quarter[45]. - Spoolable Technologies segment revenue increased to $96,072,000 for the three months ended December 31, 2024, compared to $94,412,000 in the same period last year, representing a growth of approximately 1.8%[45]. - Adjusted Segment EBITDA margin for the Pressure Control segment was 34.8% for the three months ended December 31, 2024, compared to 33.5% in the previous quarter[45]. Cash Flow and Assets - Cash flow from operations for the fourth quarter was $66.6 million, with cash and cash equivalents totaling $342.8 million and no bank debt outstanding[7][13]. - Total assets as of December 31, 2024, reached $1.74 billion, up from $1.52 billion in 2023, indicating a 14.3% increase[30]. - Cash and cash equivalents significantly rose to $342.8 million in 2024, compared to $133.8 million in 2023, marking a 156.5% increase[31]. - The net cash provided by operating activities for the twelve months ended December 31, 2024, was $316.1 million, down from $340.3 million in 2023, a decrease of 7.1%[31]. - Total current liabilities increased to $178.8 million in 2024 from $175.7 million in 2023, a rise of 1.2%[30]. Future Outlook - The company expects net capital expenditures for 2025 to be in the range of $45 million to $55 million, focusing on supply chain diversification and efficiency improvements[14]. - The company anticipates U.S. land activity levels to remain unchanged in the first quarter of 2025, with expectations for Spoolable Technologies revenues to increase in the seasonally stronger second quarter[8]. - Cactus is implementing initiatives to grow its customer base and mitigate potential tariff impacts, including international sales growth and new product introductions[8]. Dividends and Expenses - In January 2025, the Board declared a quarterly cash dividend of $0.13 per Class A share[7][16]. - The company incurred transaction-related expenses of $2,793,000 in the three months ended December 31, 2024, related to growth initiatives including the FlexSteel acquisition[40].

Core Insights - Analysts expect Cactus, Inc. (WHD) to report quarterly earnings of $0.73 per share, reflecting a year-over-year decline of 9.9% [1] - Revenue projections stand at $275.89 million, indicating a slight increase of 0.4% from the previous year [1] - The consensus EPS estimate has been revised down by 1.5% over the last 30 days, showing a collective reevaluation by analysts [1][2] Revenue Projections - Revenue from Spoolable Technologies is projected to reach $100.73 million, representing a year-over-year increase of 6.7% [4] - Revenue from Pressure Control is estimated at $175.18 million, indicating a decline of 2.9% from the prior year [4] Operating Income Estimates - The consensus estimate for Operating Income from Spoolable Technologies is $27.35 million, down from $28.17 million in the previous year [4] - Analysts expect Operating Income from Pressure Control to be $50.62 million, compared to $56.05 million a year ago [5] Stock Performance - Cactus shares have decreased by 7.9% over the past month, contrasting with a minor decline of 0.5% in the Zacks S&P 500 composite [5] - Cactus holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near term [5]