Cactus, Inc.
For the period ended Mar 31, 2026. Filed May 8, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
WHD$58.12+5.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001628280-25-047500
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001628280-26-032636
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 67 previous paragraphs and 67 current paragraphs.
30 unchanged; 22 reworded; 12 added; 15 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
(1)EIA Europe Brent spot price.
Current report
The Company’s operating results continue to be impacted by conditions in the oil and gas industry, which are driven by global commodity prices, drilling and completion activity levels, and supply and demand dynamics.
Current report
Average WTI oil prices increased approximately 22% in the first quarter of 2026, as the outbreak of the conflict in Iran and associated supply disruption drove rapid price increases in March. WTI began the year on January 2 at $57.21 and closed March 31 at $102.86, an increase of approximately 80%. Brent oil prices similarly increased approximately 27% on average in the first quarter from the fourth quarter. Oil price levels remain elevated as geopolitical tensions continue in the Middle East, and the continued export of oil through the Strait of Hormuz remains uncertain. Average natural gas prices increased approximately 26% in the first quarter, largely due to a winter storm in the U.S. leading to elevated prices and low storage levels in January. Storage levels have since recovered to near five-year average levels and prices have moderated.
Current report
In the first quarter of 2026, average U.S. land drilling activity levels were relatively flat compared to the fourth quarter of 2025, as customers generally continued stable drilling programs despite elevated commodity prices reflecting E&P capital discipline. International land drilling levels increased approximately 1% from the fourth quarter of 2025, led by increased activity in the Middle East and Latin America, offset by declines in Asia.
Current report
Over the course of 2025 and 2026, the Trump administration implemented and announced a number of new tariffs, including new Section 232 tariffs of 50% on imports of steel and certain products made from steel from most countries outside of the U.S. Threats and actual implementation of tariffs continue to cause market and geopolitical uncertainty. Tariff announcements and implementation have caused global equity, bond, and currency markets to experience heightened levels of volatility as market participants incorporate potential effects of supply chain disruption, inflation, and consumer demand into pricing models. In February 2026, the United States Supreme Court ruled that certain tariffs were unlawful, resulting in the implementation of alternative tariffs under Section 122 and further market uncertainty. As a result of the Supreme Court ruling, we have filed a claim for certain tariff refunds and are monitoring the situation closely, but there is no guarantee that any claim will be honored. The refunds being pursued represent a limited component of the overall tariff impact incurred by the Company as the most material tariff incurred by the Company under Section 232 remains unchanged.
Current report
Conflict in Iran
Current report
The outbreak of the conflict between the United States, Israel, and Iran in February has significantly disrupted global oil supply. Our operations in the region have been adversely impacted, and we continue to prioritize the safety of personnel in the region. We have experienced and expect to continue to experience significant disruptions to our operations, our customers’ drilling activities, and our supply chain along with increased freight costs due to the conflict, and particularly the impediment of traffic through the Strait of Hormuz. Continued conflict in the region may lead to reduced revenues and profits and increased costs from our business in the region.
Current report
Pressure Control. Pressure Control revenue for the first quarter of 2026 was $300.2 million, an increase of $121.7 million, or 68.2%, from the fourth quarter of 2025 primarily driven by international contributions from the newly acquired Cactus International joint venture, partially offset by a decline in domestic rental revenue. Pressure Control operating income of $38.6 million for the first quarter of 2026 decreased $10.1 million, or 20.7% from the fourth quarter of 2025, as increased operating income from Cactus International was more than offset by the impacts of purchase accounting.
Current report
Other expense, net. Other expense, net had a decrease of $1.0 million compared to the fourth quarter of 2025 primarily related to the revaluation of the liability related to the tax receivable agreement as a result of changes to the forecasted state tax rate.
Current report
Pressure Control. Pressure Control revenue was $300.2 million for the first three months of 2026, an increase of $109.9 million, or 57.8%, from the first three months of 2025, primarily driven by international contributions from the newly acquired Cactus International joint venture. Operating income of $38.6 million in the first three months of 2026 decreased $15.7 million, or 28.9%, from the first three months of 2025. The decrease was primarily driven by higher operating income from Cactus
Current report
International, which was more than offset by the impacts of purchase accounting and increased tariff-related costs affecting product margins compared to prior year.
Current report
Net cash used in investing activities was $310.0 million and $15.5 million for the three months ended March 31, 2026 and 2025, respectively. The increase for the three months ended March 31, 2026 was primarily due to cash paid to acquire Cactus International for $371.0 million less $70.0 million in cash acquired from the acquisition.
Removed paragraphs (15)
Previous report
In the third quarter of 2025, average U.S. land drilling activity levels declined approximately 6% compared to the second quarter of 2025 as weaker commodity prices and an uncertain global economic outlook continued to impact activity levels. Average natural gas prices were down approximately 5% from the second quarter of 2025, as weaker demand persisted due to a milder summer than anticipated, and storage levels remained above five-year averages throughout the third quarter. The medium to long-term outlook for natural gas demand remains strong. Average oil prices increased 2% in the third quarter of 2025 compared to the second quarter of 2025. Prices remained relatively stable as concerns of OPEC+ supply increases were largely offset by increased risk premiums from ongoing global conflicts, driven by increased Ukrainian attacks on Russian oil infrastructure, and the imposition by the U.S. of tariffs on goods imported from India in response to India’s purchase of discounted Russian crude oil.
Previous report
Over the course of 2025, the Trump administration has implemented and announced a number of new tariffs, including new Section 232 tariffs of 50% on imports of steel and certain products made from steel from most countries outside of the U.S., Synthetic Opioid tariffs of 20% on all imports from China, and broad “Reciprocal” tariffs with varying rates applied to U.S. trading partners across the globe. In October 2025, China announced additional export controls regarding rare earth minerals. In response, the Trump administration announced its intention to apply an additional 100% tariff on goods imported from China effective in November 2025. After these tariff announcements, global equity, bond and currency markets have experienced heightened levels of volatility due to the potential disruption to global trade, the increasingly uncertain global economic and inflation outlook, and the negative implications of reduced consumer demand for potentially more expensive imported products and energy.
Previous report
2025 Tax Legislation
Previous report
On July 4, 2025, tax legislation colloquially known as the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA includes tax provisions such as the reinstatement of immediate deductibility of certain capital expenditures for tangible, depreciable personal property of domestic research and development expenditures. These provisions have the effect of accelerating tax deductions which, in turn, will reduce current tax expense with an offset to deferred tax expense. The Company continues to evaluate the impacts of this legislation but anticipates the impact to total income tax expense will be immaterial.
Previous report
Baker Hughes Transaction
Previous report
In June 2025, Cactus Companies entered into a Framework Agreement (the “Framework Agreement”) with Baker Hughes Holdings LLC (“Baker Hughes Holdings”) and Baker Hughes Pressure Control LP (“Baker Hughes Pressure Control”), each of which is an indirect subsidiary of Baker Hughes Company, pursuant to which the Company will acquire a controlling interest in Baker Hughes Company’s surface pressure control business.
Previous report
Prior to the closing of the transactions contemplated by the Framework Agreement (“the “Closing”), Baker Hughes Holdings will effect certain restructuring transactions on the terms and subject to the conditions set forth in the Framework Agreement, as a result of which Baker Hughes Pressure Control or certain of its subsidiaries will own the Business Assets and the Business Liabilities (each as defined in the Framework Agreement) (collectively, the “Acquired Business”).
Previous report
At Closing and pursuant to the Framework Agreement, Baker Hughes Holdings or one or more affiliates thereof will sell 65% of the limited liability company membership interests in Baker Hughes Pressure Control to Cactus Companies or an affiliate thereof for a cash purchase price of $344.5 million, subject to certain working capital, cash, debt, capital expenditure and other customary adjustments after Closing (such transaction, the “Baker Hughes Transaction” and the strategic relationship created thereby, the “Joint Venture”). Subject to satisfaction of the closing conditions, the Baker Hughes Transaction is expected to close early 2026.
Previous report
Pressure Control. Pressure Control revenue for the third quarter of 2025 was $168.7 million, a decrease of $11.1 million, or 6.2%, from the second quarter of 2025 primarily due to lower sales of wellhead and production related equipment, reflecting reduced customer activity during the third quarter, along with a decline in rental revenue. Pressure Control operating income of $44.5 million for the third quarter of 2025 increased $2.2 million, or 5.2% from the second quarter of 2025 primarily due to the implementation of cost reduction initiatives combined with reduced legal expenses.
Previous report
Other income, net. Other income, net of $0.2 million for the third quarter of 2025 relates to the revaluation of an indemnity receivable asset related to the FlexSteel acquisition.
Previous report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
Pressure Control. Pressure Control revenue was $538.8 million for the first nine months of 2025, a decrease of $8.6 million, or 1.6%, from the first nine months of 2024, primarily due to decreased sales of wellhead and production related equipment resulting from lower drilling and completion activity by our customers following a decline in rig counts. Operating income of $141.2 million in the first nine months of 2025 decreased $18.7 million, or 11.7%, from the first nine months of 2024. The decrease was primarily attributable to escalated tariff cost impacts on product margins in the third quarter of 2025, as well as increased legal expenses and reserves recognized in connection with litigation claims.
Previous report
Other income, net. Other income, net of $0.2 million for the first nine months of 2025 relates to the revaluation of an indemnity receivable asset related to the FlexSteel acquisition.
Previous report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
Net cash used in investing activities was $34.7 million and $24.1 million for the nine months ended September 30, 2025 and 2024, respectively. The increase for the nine months ended September 30, 2025 was primarily due to the initial investment of $6.0 million related to our joint venture in Vietnam intended to diversify our manufacturing capabilities as well as an increase in capital expenditures.
Reworded paragraphs (22)
Previous wording
Except as otherwise indicated or required by the context, all references in this Quarterly Report to the “Company,” “Cactus,” “we,” “us” and “our” refer to Cactus, Inc. (“Cactus Inc.”) and its consolidated subsidiaries. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes. The following discussion contains “forward-looking statements” that reflect our plans, estimates, beliefs and expected performance. Our actual results may differ materially from those anticipated as discussed in these forward-looking statements as a result of a variety of risks and uncertainties, which are difficult to predict, including those described above in “Cautionary Note Regarding Forward-Looking Statements,” and in the risk factors included in “Part I, Item 1A. Risk Factors” in our 2024 Annual Report and "Part II, Item 1A. Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and this Quarterly Report. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We assume no obligation to update any of these forward-looking statements except as otherwise required by law.
Current wording
Except as otherwise indicated or required by the context, all references in this Quarterly Report to the “Company,” “Cactus,” “we,” “us” and “our” refer to Cactus, Inc. (“Cactus Inc.”) and its consolidated subsidiaries. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes. The following discussion contains “forward-looking statements” that reflect our plans, estimates, beliefs and expected performance. Our actual results may differ materially from those anticipated as discussed in these forward-looking statements as a result of a variety of risks and uncertainties, which are difficult to predict, including those described above in “Cautionary Note Regarding Forward-Looking Statements,” and in the risk factors included in “Part I, Item 1A. Risk Factors” in this Quarterly Report. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. We assume no obligation to update any of these forward-looking statements except as otherwise required by law.
Previous wording
Cactus is an equipment solutions provider primarily for onshore oil and gas markets. Founded in 2011 by a management group that previously operated two of the largest wellhead providers at the time, Cactus has rapidly grown to be a leading provider of wellhead solutions to the U.S. onshore market. On February 28, 2023, Cactus acquired FlexSteel, which similarly grew from its founding in 2003 to its current status as a leading provider of spoolable pipe technologies, primarily to the U.S. onshore market. We believe this acquisition enhances our position as a premier manufacturer and provider of highly engineered equipment to the exploration and production ("E&P") industry and should provide meaningful growth. We further believe FlexSteel’s products are highly complementary to Cactus’ equipment as it expands our exposure to our customers’ operations from production trees to transportation of oil, gas and other liquids, as well as to additional customers operating in the midstream area.
Current wording
On February 28, 2023, Cactus acquired FlexSteel, which grew from its founding in 2003 to its current status as a leading provider of spoolable pipe technologies, primarily to the U.S. onshore market. We believe this acquisition enhanced our position as a premier manufacturer and provider of highly engineered equipment to the exploration and production ("E&P") industry and has provided opportunities for meaningful growth. FlexSteel’s spoolable technology products complement Cactus’ pressure control equipment, and the combined business allows for exposure to customers operations from production trees to transportation of oil, gas and other liquids, as well as to additional customers operating in the midstream area.
Previous wording
During the nine months ended September 30, 2025, we derived 76% of total revenues from the sale of our products, 8% of total revenues from rental and 16% of total revenues from field service and other. During the nine months ended September 30, 2024, we derived 76% of total revenues from the sale of our products, 9% of total revenues from rental and 15% of total revenues from field service and other. We have predominantly domestic operations, with more limited operations in Australia, Canada, and the Middle East, as well as sales in other international markets.
Current wording
During the three months ended March 31, 2026, we derived 77% of total revenues from the sale of our products, 4% of total revenues from rental and 19% of total revenues from field service and other. During the three months ended March 31, 2025, we derived 74% of total revenues from the sale of our products, 10% of total revenues from rental and 16% of total revenues from field service and other. We have worldwide operations, including the U.S., Saudi Arabia, UAE, and China, with more limited operations in Australia and Canada, as well as sales in other international markets.
Previous wording
The Pressure Control segment designs, manufactures, sells and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand. Products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of our customers’ wells. In addition, we provide field services for all of our products and rental items to assist with the installation, maintenance and handling of the equipment.
Current wording
The Pressure Control segment designs, manufactures, sells and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand. Products are sold and rented principally for onshore conventional and unconventional oil and gas wells, and are utilized during the drilling, completion and production phases of our customers’ wells. In addition, we provide field services for all of our products and rental items to assist with the installation, maintenance and handling of the equipment.
Previous wording
We operate through service centers in the United States, which are strategically located in the key oil and gas producing regions, and in Australia. These service centers support our field services and provide equipment assembly and repair services. We also provide rental and service operations in the Kingdom of Saudi Arabia. Pressure Control manufacturing and production facilities are located in Bossier City, Louisiana, Suzhou, China, and Vietnam.
Current wording
We operate through service centers in the United States, which are strategically located in the key oil and gas producing regions. These service centers support our field services and provide equipment assembly and repair services. We also provide rental and service operations in the Kingdom of Saudi Arabia and Australia. Pressure Control manufacturing and production facilities are located in Bossier City, Louisiana, Suzhou, China, Saudi Arabia, Abu Dhabi, and Hai Duong,Vietnam.
Previous wording
Demand for our product sales in the Pressure Control segment is driven primarily by the number of new wells drilled, as each new well requires a wellhead and, after the completion phase, a production tree. Demand for our rental items is driven primarily by the number of well completions as we rent frac trees to oil and gas operators to assist in hydraulic fracturing. Rental demand is also driven to a lesser extent by drilling activity as we rent tools used in the installation of wellheads. Field service and other revenues are closely correlated with revenues from product sales and rentals, as items sold or rented almost always have an associated service component.
Current wording
Demand for our product sales in the Pressure Control segment is driven primarily by the number of new wells drilled, as each new well requires a wellhead and, after the completion phase, a production tree. Demand for our rental items is driven primarily by well completions as we rent frac trees to oil and gas operators to assist in hydraulic fracturing. Rental demand is also driven to a lesser extent by drilling activity as we rent tools used in the installation of wellheads. Field service and other revenues are closely correlated with revenues from product sales and rentals, as items sold or rented almost always have an associated service component.
Previous wording
The following table summarizes average oil and natural gas prices in North America over the indicated periods, as well as industry activity levels as reflected by the average number of active onshore drilling rigs during the same periods.
Current wording
The following table summarizes average oil and natural gas prices over the indicated periods, as well as industry activity levels as reflected by the average number of active onshore drilling rigs during the same periods.
Previous wording
(1)EIA Cushing, OK West Texas Intermediate ("WTI") spot price.
Current wording
(2) EIA Cushing, OK West Texas Intermediate ("WTI") spot price.
Previous wording
We are incurring, and expect to continue to incur, elevated tariff expenses on our goods imported from Vietnam and China, and experience generally higher steel input costs at our Bossier City manufacturing facility as a result of the broad Section 232 tariffs, which should both impact profitability to the extent we cannot offset such increases with cost reduction efforts and increased pricing. The weaker oil demand and increased supply outlook and associated decline in commodity pricing has led and is likely to continue to lead to lower U.S. land drilling and completion activity levels as 2025 progresses, and correspondingly reduced demand for our products and services.
Current wording
We are incurring, and expect to continue to incur, elevated tariff expenses on our goods imported from Vietnam and China, and experience generally higher steel input costs at our Bossier City manufacturing facility as a result of the broad Section 232 tariffs. Both tariffs and higher steel input costs have impacted profitability, although the impact has been partially mitigated by cost reduction and recovery efforts.
Previous wording
Spoolable Technologies. Spoolable Technologies revenue for the third quarter of 2025 was $95.2 million, a decrease of $1.0 million, or 1.0% from the second quarter of 2025 primarily due to lower domestic activity levels, offset by stronger international sales. Total operating income for Spoolable Technologies for the third quarter of 2025 was $25.8 million, compared to operating income of $28.1 million for the second quarter of 2025, a decrease of $2.2 million, or 8.0%, from the second quarter of 2025. The decrease in operating income was primarily due to lower volume and margins decreased on higher input costs.
Current wording
Spoolable Technologies. Spoolable Technologies revenue for the first quarter of 2026 was $89.9 million, an increase of $5.7 million, or 6.8% from the fourth quarter of 2025 primarily due to higher domestic and international customer activity levels. Total operating income for Spoolable Technologies for the first quarter of 2026 was $23.6 million, compared to operating income of $20.9 million for the fourth quarter of 2025, an increase of $2.6 million, or 12.6%, from the fourth quarter of 2025. The increase in operating income was primarily due to higher volume and lower selling, general and administrative expenses.
Previous wording
Corporate and other. Corporate and other revenue represents the elimination of inter-segment sales from our Pressure Control segment to our Spoolable Technologies segment. Corporate and other expenses include costs associated with executive management and other administrative functions not directly attributable to our reporting segment. Corporate and other expenses for the third quarter of 2025 was $9.1 million, a decrease of $0.5 million, or 5.1% from the second quarter of 2025 primarily due to lower transaction and integration expenses. The expenses in both quarters include similar levels of expenses for professional fees associated with the Baker Hughes Transaction.
Current wording
Corporate and other. Corporate and other revenue represents the elimination of inter-segment sales from our Pressure Control segment to our Spoolable Technologies segment. Corporate and other expenses include costs associated with executive management and other administrative functions not directly attributable to our reporting segment. Corporate and other expenses for the first quarter of 2026 was $12.7 million, an increase of $2.9 million, or 30.0% from the fourth quarter of 2025 primarily due to higher transaction and integration expenses. The expenses in both quarters include similar levels of expenses for professional fees associated with the Baker Hughes Transaction.
Previous wording
Interest income, net. Interest income, net was $3.0 million for the third quarter of 2025 and $2.5 million for the second quarter of 2025. The interest income, net is primarily comprised of interest income earned on the invested cash balance.
Current wording
Interest income, net. Interest income, net was $0.2 million for the first quarter of 2026 and $3.1 million for the fourth quarter of 2025 resulting from lower levels of cash invested during the first quarter resulting from the completion of the Acquisition. The interest income, net is primarily comprised of interest income earned on the invested cash balance.
Previous wording
Income tax expense. Income tax expense for the third quarter of 2025 was $14.2 million compared to $14.3 million for the second quarter of 2025. Cactus Inc. is only subject to federal and state income tax on its share of income from Cactus Companies. Income allocated to the non-controlling interest is only taxable to the non-controlling interest.
Current wording
Income tax expense. Income tax expense for the first quarter of 2026 was $9.5 million compared to $13.7 million for the fourth quarter of 2025. Cactus Inc. is only subject to federal and state income tax on its share of income from Cactus Companies. Income allocated to the non-controlling interest is only taxable to the non-controlling interest.
Previous wording
Spoolable Technologies. Spoolable Technologies revenue for the first nine months of 2025 was $284.0 million, a decrease of $26.9 million, or 8.7%, from the first nine months of 2024, primarily due to reduced customer activity levels. Total operating income was $77.7 million in the first nine months of 2025, a decrease of $1.6 million, or 2.0%, compared to operating income of $79.3 million in the first nine months of 2024. Operating income for the first nine months of 2025 reflected the impact of the lower volume. Operating income for the first nine months of 2024 included approximately $16.3 million of expense related to the change in fair value of the estimated earn-out liability.
Current wording
Spoolable Technologies. Spoolable Technologies revenue for the first three months of 2026 was $89.9 million, a decrease of $2.7 million, or 2.9%, from the first three months of 2025, primarily due to reduced customer activity levels in the U.S. Total operating income was $23.6 million in the first three months of 2026, a decrease of $0.3 million, or 1.3%, compared to operating income of $23.9 million in the first three months of 2025. Operating income for the first three months of 2026 reflected the impact of the lower volume.
Previous wording
Corporate and other. Corporate and other revenue represents the elimination of inter-segment sales from our Pressure Control segment to our Spoolable Technologies segment. Corporate and other expenses include costs associated with executive management and other administrative functions not directly attributable to our reporting segment. Corporate and other expenses for the first nine months of 2025 was $28.3 million, an increase of $8.2 million, or 40.9% from the first nine months of 2024. The increase was largely attributable to professional fees associated with the Baker Hughes Transaction.
Current wording
Corporate and other. Corporate and other revenue represents the elimination of inter-segment sales from our Pressure Control segment to our Spoolable Technologies segment. Corporate and other expenses include costs associated with executive management and other administrative functions not directly attributable to our reporting segment. Corporate and other expenses for the first three months of 2026 was $12.7 million, an increase of $3.1 million, or 32.0% from the first three months of 2025. The increase was largely attributable to professional fees and integration expenses associated with the Baker Hughes Transaction.
Previous wording
Interest income, net. Interest income, net for the first nine months of 2025 was $7.8 million, compared to $4.2 million for the first nine months of 2024. The increase was due to an increase in interest income earned on cash invested during period.
Current wording
Interest income, net. Interest income, net for the first three months of 2026 was $0.2 million, compared to $2.3 million for the first three months of 2025. The decrease was due to lower interest income earned on lower amounts of cash invested during the current period.
Previous wording
Income tax expense. Income tax expense for the first nine months of 2025 was $45.4 million compared to $48.0 million for the first nine months of 2024. The decrease in income tax expense from the first nine months of 2024 was primarily due to a decrease in operating income during the first nine months of 2025, partially offset by an additional $1.2 million of expense related to the revaluation of our deferred tax asset as a result of a change in our forecasted state income tax rate.
Current wording
Income tax expense. Income tax expense for the first three months of 2026 was $9.5 million compared to $16.8 million for the first three months of 2025. The decrease in income tax expense from the first three months of 2025 was primarily due to a decrease in operating income during the first three months of 2026, and an income tax benefit from the Cactus International acquisition.
Previous wording
At September 30, 2025, we had $445.6 million of cash and cash equivalents. Our primary sources of liquidity and capital resources are cash on hand, cash flows generated by operating activities, and borrowings under our Amended ABL Credit Facility (as defined in Note 6 in the notes to the unaudited condensed consolidated financial statements). Depending upon market conditions and other factors, we may also have the ability to issue additional equity and debt if needed. As of September 30, 2025, we had $223.2 million of available borrowing capacity under our Amended ABL Credit Facility with no outstanding borrowings, and $1.8 million in letters of credit outstanding. We were in compliance with the covenants of the Amended ABL Credit Facility as of September 30, 2025.
Current wording
At March 31, 2026, we had $291.6 million of cash and cash equivalents, including $97.8 million of cash held for certain restructuring activities related to the Cactus International acquisition. Our primary sources of liquidity and capital resources are cash on hand, cash flows generated by operating activities, and borrowings under our Amended ABL Credit Facility (as defined in Note 7 in the notes to the unaudited condensed consolidated financial statements). Depending upon market conditions and other factors, we may also have the ability to issue additional equity and debt if needed. As of March 31, 2026, we had $223.7 million of available borrowing capacity under our Amended ABL Credit Facility with no outstanding borrowings, in addition to $100.0 million available under our Term Loan Facility (as defined in Note 7 in the notes to the unaudited condensed consolidated financial statements) and $1.3 million in letters of credit outstanding. We were in compliance with the covenants of the Amended ABL Credit Facility as of March 31, 2026. Additionally, we have indemnified Baker Hughes for $27.4 million of contingent liabilities associated with letters of credit in support of Cactus International operations, which do not reduce the borrowing capacity under our Amended ABL Credit Facility.
Previous wording
We believe that our existing cash on hand, cash generated from operations and available borrowings under our Amended ABL Credit Facility will be sufficient for at least the next 12 months to meet our short-term anticipated cash requirements, including working capital requirements, the cash purchase price related to the Baker Hughes Transaction, debt service obligations, anticipated capital expenditures, repurchases of shares of our Class A common stock, expected Tax Receivable Agreement ("TRA") liability payments, anticipated tax liabilities, and dividends to holders of our Class A common stock as well as pro rata cash distributions to holders of CC Units other than Cactus Inc. We expect to utilize cash on hand and funds from the undrawn Amended ABL Credit Facility to fund the cash purchase price related to the Baker Hughes Transaction. However, we may elect to pursue one or more debt financing transactions prior to the Closing to enhance liquidity.
Current wording
We expect that our existing cash on hand, cash generated from operations and available borrowings under our Amended ABL Credit Facility and Term Loan Facility will be sufficient for the next 12 months to meet our material cash requirements, including working capital requirements, debt service obligations, anticipated capital expenditures, lease obligations, repurchases of shares of our Class A common stock, expected TRA liability payments, anticipated tax liabilities and dividends to holders of our Class A common stock as well as pro rata cash distributions to holders of CC Units other than Cactus Inc.
Previous wording
We currently estimate our net capital expenditures for the year ending December 31, 2025 will range from $40 to $45 million. In the Pressure Control segment, capital expenditures are primarily related to rental fleet investments, international expansion and diversification of our low cost supply chain. In the Spoolable Technologies segment, capital expenditures are primarily related to manufacturing plant enhancements and additional deployment equipment used for product installation.
Current wording
We currently estimate our net capital expenditures for the year ending December 31, 2026 will range from $40 to $50 million. In the Pressure Control segment, capital expenditures are primarily related to U.S. service center enhancements, rental fleet investments, and international expansion, and less material investments in low-cost supply chain. In the Spoolable Technologies segment, capital expenditures are primarily related to manufacturing plant enhancements and additional deployment equipment used for product installation.
Previous wording
Net cash provided by operating activities was $186.1 million and $249.5 million for the nine months ended September 30, 2025 and 2024, respectively. Operating cash flows for the nine months ended September 30, 2025 decreased primarily due to lower earnings and an increase in working capital.
Current wording
Net cash provided by operating activities was $128.3 million and $41.5 million for the three months ended March 31, 2026 and 2025, respectively. Operating cash flows for the three months ended March 31, 2026 increased primarily due to an increase in working capital, largely driven by our recent acquisition of Cactus International.
Previous wording
Net cash used in financing activities was $49.8 million for the nine months ended September 30, 2025 compared to $56.4 million for the nine months ended September 30, 2024. The decrease in net cash used in financing activities for the nine months ended September 30, 2025 was primarily related to a decrease in share repurchases of $3.4 million and a $6.0 million decrease related to the payment of contingent consideration established as of the FlexSteel acquisition date. These decreases are partially offset by an increase in the payment of Class A share dividends of $3.0 million.
Current wording
Net cash used in financing activities was $21.5 million for the three months ended March 31, 2026 compared to $21.8 million for the three months ended March 31, 2025. The decrease in net cash used in financing activities for the three months ended March 31, 2026 was primarily related to a decrease in distributions to members of Cactus Companies of approximately $3.6 million. This decrease was partially offset by an increase in share repurchases of $2.4 million as well as an increase in the payment of Class A share dividends of $1.0 million.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Cactus is an equipment solutions provider primarily for onshore oil and gas markets. Cactus was founded in 2011 by a management group that previously operated two of the largest wellhead providers at the time. Since its formation, Cactus has rapidly grown to be a leading provider of wellhead solutions to the U.S. onshore market. With the acquisition of Cactus International, Cactus is now a global wellhead supplier.
Current report — wording carried from elsewhere
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Current report — wording carried from elsewhere
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025