Key Highlights

  • Revenue reached USD 430.9 million in Q3 2026, up from USD 264.0 million a year earlier following acquisitions.
  • Adjusted EBITDA was USD 132.0 million at a 30.6% margin, compared with a 29.5% margin in Q2.
  • Spoolable Technologies revenue rose 20.2% sequentially to USD 126.9 million on record international shipments and bookings since the acquisition.
  • Backlog closed the quarter at USD 615.6 million, with cash of USD 354.2 million and no bank debt.

Cactus, Inc. (NYSE:WHD) reported third-quarter 2026 adjusted diluted EPS of USD 0.96, a non-GAAP figure that was above a consensus estimate of USD 0.77. Revenue of USD 430.9 million was below a consensus estimate of USD 437.9 million, though it stood well above the USD 264.0 million recorded in the third quarter of 2025 and 4.1% below the USD 449.5 million posted in the second quarter.

On a GAAP basis, net income was USD 74.1 million and diluted earnings per Class A share were USD 0.87, compared with USD 0.60 a year earlier. Adjusted net income was USD 78.0 million, an 18.1% margin, versus USD 53.7 million in the year-ago period. Adjusted diluted EPS was USD 0.96, up from USD 0.67 a year ago and USD 0.93 in the second quarter.

Segment Performance and Margins

Pressure Control revenue was USD 304.8 million, down 11.4% from the second quarter mainly on lower Middle East shipments. Segment operating income rose 4.0% sequentially to USD 61.5 million, and margin widened by 300 basis points as purchase price accounting charges fell from USD 20.0 million to USD 9.4 million and spares and repair margins held firm in the Middle East.

Spoolable Technologies revenue rose USD 21.3 million sequentially to USD 126.9 million, with domestic and international shipments both higher. Operating income climbed 29.3% to USD 41.6 million, and margin improved by 230 basis points. CEO Scott Bender noted that backlog grew by more than USD 150 million in the quarter, nearly doubling in Spoolable Technologies. Total operating income was USD 94.0 million, a 21.8% margin.

Fourth-Quarter Outlook and Capital Plans

Management projects a modest increase in consolidated fourth-quarter revenue. Pressure Control revenue is guided to rise modestly from the third quarter as domestic strength combines with flat Middle East activity, while Spoolable Technologies sales are projected up slightly as international momentum offsets typical North American seasonality. The company assumes the U.S. land rig count remains approximately flat from current levels through year end.

The board approved construction of a Spoolable Technologies manufacturing facility in the Middle East, targeted to begin operations in 2029, alongside the previously announced Baytown expansion. Net capital expenditures for 2026 are projected near USD 65 million, including long-lead equipment orders for the new site. A quarterly dividend of USD 0.15 per Class A share is payable on December 17, 2026 to holders of record on November 30.

Datapoints Worth Following

Four items stand out for the coming quarter. Backlog of USD 615.6 million, most of it tied to Cactus International, is the first. The second is operating cash flow, which was USD 18.4 million in the third quarter after a USD 91.0 million payment to Baker Hughes tied to legal entity formation. Third is the Pressure Control margin, which rose 300 basis points while revenue fell, and fourth is the USD 263.5 million of availability under the U.S. and UAE revolving credit facilities alongside USD 354.2 million of cash.