Cactus Posts $430.9 Million in Third-Quarter Revenue as Earnings Beat Estimates
Key Facts
Cactus reported third-quarter 2026 revenue of $430.9 million and adjusted earnings per share of $0.96, beating analysts’ estimate of $0.77, according to results data cited by Investing.com. Revenue, however, fell short of the analyst consensus estimate of $438.13 million, presenting a mixed picture between profitability and sales. Company data showed net income of $74.091 million and operating income of $94.048 million. Compared with the second quarter, revenue declined from $449.528 million, while operating income rose from $83.582 million and net income increased from $61.380 million. Results reflected diverging performance across the two main segments: lower shipments of pressure control products in the Middle East weighed on revenue, while coiled tubing technologies recorded growth in shipments and orders.
Year over year, third-quarter revenue rose from $263.954 million in the same period of 2025 to $430.888 million, while net income increased from $50.188 million to $74.091 million. Operating income margin, however, declined to 21.8% from 23.2% a year earlier, despite higher operating income than in the third quarter of 2025. The sequential comparison also shows that lower sales did not prevent operating income and net income from improving from the second quarter. In the pressure control segment, quarterly revenue fell by $39.2 million, or 11.4%, mainly due to lower product shipments in the Middle East. Despite the revenue decline, the segment’s operating income rose by $2.4 million, or 4%, from the second quarter, and margins improved by 300 basis points.
By contrast, revenue in the coiled tubing technologies segment increased by $21.3 million, or 20.2%, from the second quarter, with growth in domestic and international shipments. Chief Executive Scott Bender said the segment posted record international shipments during the quarter and that its order book grew by more than $150 million, nearly doubling in that business. Remaining performance obligations, which the company also calls backlog, totaled $615.6 million at quarter-end, most of it tied to Cactus’ international operations. In September, the board approved a coiled tubing technologies manufacturing facility in the Middle East, which is expected to begin operating in 2029. The facility is part of the company’s capital investments: Cactus expects net capital expenditures of about $65 million in 2026, including long-lead equipment for the facility and ongoing expansion in Baytown.
On liquidity, the company said cash and cash equivalents totaled $354.2 million on September 30, 2026, and it had no bank debt on that date. Operating cash flow was $18.4 million in the third quarter, a figure the company said reflected a $91 million payment to Baker Hughes related to legal entity formation activities. Cactus also declared a quarterly cash dividend of $0.15 per Class A share, payable on December 17, 2026, to shareholders of record on November 30. These figures provide financial context for the investment and expansion plans the company announced, alongside the segments’ mixed performance during the quarter. The company’s shares, which trade under the ticker WHD, closed at $65.56 on October 27, according to EL7 data.
For the fourth quarter, the company expects a slight increase in consolidated revenue, with a modest rise in pressure control segment revenue from the third quarter and stable activity in the Middle East. It also expects a slight increase in coiled tubing technologies sales, extending the shipment and order growth trend reported for the third quarter. Cactus scheduled a call to discuss its operating and financial results for October 29, 2026, at 9 a.m. Central Time, or 10 a.m. Eastern Time. The company characterized its revenue outlook for the next quarter as a slight increase, following third-quarter revenue that fell short of analyst estimates. The new Middle East facility also sets a longer timeline for expansion, with operations not expected to begin before 2029.