Cactus Operating Income Rebounds as Spoolable Growth Offsets Pressure Control

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter revenue was $430.9 million, with operating income of $94.0 million and diluted earnings of $0.87 a Class A share.

Cactus, Inc. (WHD), the designer and manufacturer of pressure control and spoolable pipe technologies for onshore unconventional wells, reported third-quarter 2026 revenue of $430.9 million, down from $449.5 million in the second quarter after a sequential increase from $388.3 million in the first quarter.

Operating income rose to $94.0 million from $83.6 million, and the operating margin expanded to 21.8% from 18.6%. Net income was $74.1 million, or $0.87 a share, compared with $61.4 million, or $0.70 a share, in the prior quarter. Adjusted net income was $78.0 million, or $0.96 a share. Adjusted EBITDA was $132.0 million, essentially unchanged from $132.8 million.

The mix of the two reportable segments moved in opposite directions. Pressure Control revenue fell $39.2 million, or 11.4%, sequentially to $304.8 million, primarily on lower product shipments in the Middle East. Spoolable Technologies revenue increased $21.3 million, or 20.2%, to $126.9 million on stronger domestic and international shipments.

Pressure Control operating income still rose $2.4 million, or 4.0%, to $61.5 million, with the operating margin up 300 basis points to 20.2%. The company said lower operating leverage was more than offset by continued strength in spares and repair margins in the Middle East and by a decline in purchase-price accounting-related adjustments, which fell from $20.0 million to $9.4 million. Adjusted Segment EBITDA decreased $9.8 million, or 10.2%, to $86.1 million, with the Adjusted Segment EBITDA margin up 40 basis points to 28.3%.

Spoolable Technologies operating income increased $9.4 million, or 29.3%, to $41.6 million, with the operating margin up 230 basis points to 32.8%. Adjusted Segment EBITDA rose $9.8 million, or 23.3%, to $52.0 million, with the Adjusted Segment EBITDA margin up 110 basis points to 41.0%. Chief Executive Scott Bender said the segment meaningfully expanded sales with record international shipments and bookings since the acquisition.

Corporate and Other expenses increased $1.3 million sequentially to $9.1 million, primarily on higher transaction and personnel expenses, including $0.6 million of Cactus International transaction-related expenses.

Backlog closed the quarter at $615.6 million. The company said backlog grew by more than $150 million in the quarter and nearly doubled in Spoolable Technologies. The majority of remaining performance obligations is associated with Cactus International, with the balance attributable to Spoolable Technologies.

Cash and cash equivalents were $354.2 million, with no bank debt outstanding as of September 30, 2026, and $263.5 million of availability on U.S. and UAE revolving credit facilities. Operating cash flow was $18.4 million for the quarter, reflecting a $91.0 million disbursement to Baker Hughes related to legal entity formation. Net capital expenditures were $16.1 million. For the full year, the company expects net capital expenditures of approximately $65 million, including long-lead equipment for a Middle East Spoolable Technologies plant and the ongoing Baytown expansion.

In September, the board approved construction of a Spoolable Technologies manufacturing facility in the Middle East, expected to commence operations in 2029. In October, the board declared a quarterly cash dividend of $0.15 a Class A share, payable December 17, 2026.

Bender said the company expects consolidated revenues in the fourth quarter to modestly increase. Pressure Control revenues are expected to increase modestly versus the third quarter, as strength in the domestic market is combined with flat activity in the Middle East. Spoolable Technologies sales are expected to be up slightly, as continued international shipment momentum more than offsets typical North American seasonality. The company said it believes the U.S. land rig count will remain approximately flat from current levels through the remainder of the year.