Cactus(WHD)2025-02-27 21:55Financial Data and Key Metrics Changes - Total Q4 revenue was 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 62 million in the previous quarter, with adjusted net income and earnings per share at 0.71 per share, respectively, down from 0.79 per share [17][18] Business Line Data and Key Metrics Changes - Pressure control segment revenues were 1.7 million or 3.3% [13] - Spoolable technology segment revenues were 7.4 million or 22.4% [14] Market Data and Key Metrics Changes - The company ended the year with a cash balance of 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 10 million [19] - Capital expenditures for Q4 were approximately 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]