Cactus, Inc. 2026 Q2 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. Cactus, Inc. operates as a leading provider of wellhead and pressure control equipment and spoolable pipe technologies for the oil and gas industry. The reporting period is significantly impacted by the acquisition of Cactus International (a 65% interest in Baker Hughes Pressure Control LLC) which closed on January 1, 2026. The company operates in two segments: Pressure Control and Spoolable Technologies.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Revenues | $449.5 million | $273.6 million | $837.9 million | $553.9 million |
| Operating Income | $83.6 million | $60.8 million | $133.1 million | $129.4 million |
| Net Income (Total) | $61.4 million | $49.0 million | $101.6 million | $103.2 million |
| Net Income Attributable to Cactus Inc. | $49.0 million | $40.3 million | $81.9 million | $84.6 million |
| Diluted EPS (Class A) | $0.70 | $0.59 | $0.01 | $1.23 |
| Cash & Equivalents | $365.8 million | $123.6 million (Dec '25) | N/A | |
| Operating Cash Flow (YTD) | N/A | $232.8 million | $124.4 million | |
| Debt | No bank debt outstanding; $223.7M available under ABL facility. |
Note: YTD 2026 EPS is significantly reduced by an $81.5 million accretion charge related to the redeemable non-controlling interest from the Cactus International acquisition.
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenue increased 64% year-over-year, driven primarily by the inclusion of Cactus International. Pressure Control segment revenue grew 94% YoY, while Spoolable Technologies grew 9%.
- Operating Income: Q2 operating income rose 38% YoY. Segment operating income increased 47% due to higher volumes and operating leverage.
- Balance Sheet: Total assets increased to $2.58 billion from $1.87 billion at year-end 2025, reflecting the acquisition. Accounts receivable and inventory increased significantly due to the new business integration.
- EPS Volatility: While Q2 EPS grew 19% YoY, YTD EPS dropped to $0.01 from $1.23 in the prior year due to the one-time accretion of the redeemable non-controlling interest to its redemption value ($81.5 million charge).
Guidance, Outlook, and Risks
- Capital Expenditure Guidance: Management increased full-year 2026 net capex guidance to $55–$65 million (previously $40–$50 million) to support capacity investments in the Baytown facility and international expansion.
- Geopolitical Risks: Ongoing conflict in the Middle East (Iran/US/Israel) poses risks to operations in Saudi Arabia and the UAE, including supply chain disruptions via the Strait of Hormuz and safety concerns for personnel.
- Tariffs: The company faces elevated costs from Section 232 and 301 tariffs on steel imports from Vietnam and China, though some mitigation has been achieved through cost recovery and refunds.
- Legal Proceedings: A patent infringement lawsuit with Cameron International Corporation remains pending with no trial date set.
- Liquidity: The company maintains strong liquidity with $365.8 million in cash and significant unused credit facility capacity. A new $75 million credit facility was secured in July 2026 for Cactus UAE operations.
Investor Verification Checklist
- Acquisition Integration: Verify the progress of integrating Cactus International controls and the realization of projected synergies, given the exclusion of the acquired entity from internal control assessments for one year.
- Non-Controlling Interest Accretion: Confirm the impact of the $81.5 million accretion charge on YTD earnings and understand the future redemption obligations associated with the Baker Hughes joint venture.
- Tariff Exposure: Assess the sustainability of margin recovery efforts against ongoing Section 232/301 tariffs and the volatility of steel input costs.
- Geopolitical Exposure: Evaluate the specific operational risks and potential revenue loss associated with the conflict in the Middle East, particularly regarding the Strait of Hormuz.
- Working Capital: Monitor the significant increase in accounts receivable ($510M) and inventory ($387M) to ensure collection and obsolescence risks are managed post-acquisition.