Executive Summary

Cactus delivered solid Q1 with revenue $280.3M and adjusted EPS $0.73, both above S&P Global consensus ($272.2M and $0.69, respectively), while GAAP EBITDA of $84.3M was below the $89.1M consensus as corporate professional fees and a Pressure Control litigation reserve weighed on margins . EPS and revenue beats; EBITDA miss (S&P Global estimates)*.
Pressure Control outperformed on record product sold per rig; Spoolable Technologies saw seasonally softer revenue but posted record Q1 orders and 30% q/q international growth, supporting a stronger Q2 outlook for that segment .
Q2 guide: Pressure Control revenue down low-to-mid single digits vs Q1’s $190M; Spoolable up mid-to-high single digits; segment adjusted EBITDA margins stable (PC 33–35%, Spoolable 35–37%); corporate adjusted EBITDA charge ~$(4.5)M; FY25 net capex lowered to $40–$50M (from $45–$55M) .
Strategic supply-chain pivot: management expects tariff impact neutralized by mid next year via Vietnam ramp and alternative sourcing; near-term margins may compress modestly but absolute profitability expected to hold given customer support and inventory position .

What Went Well and What Went Wrong

What Went Well
- Record product per rig in Pressure Control drove 7.7% sequential revenue growth to $190M; segment outperformed company expectations .
- Spoolable Technologies booked record Q1 orders; international sales up 30% q/q with strongest Canada quarter since acquisition; first commercial sour-service pipe order shipped in April .
- Cash balance rose to $347.7M with no bank debt; dividend maintained at $0.13/share, reinforcing balance sheet strength and shareholder returns .
What Went Wrong
- GAAP EBITDA missed consensus as corporate professional fees tied to growth initiatives rose $3.7M q/q (62.7%); Pressure Control margins dipped 20 bps from litigation reserves .
- Spoolable revenues -3.6% q/q on seasonally slow domestic activity; segment margins slipped on lower operating leverage .
- Working capital build (strong March revenues) and deferred cash tax payment weighed on cash conversion; inventory elevated to mitigate tariff impacts .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025	Q1 2025 Consensus*
Revenue ($USD Millions)	$274.1	$293.2	$272.1	$280.3	$272.2*
Diluted EPS (GAAP) ($)	$0.59	$0.74	$0.68	$0.64	—
Diluted EPS, as adjusted ($)	$0.75	$0.79	$0.71	$0.73	$0.69*
EBITDA ($USD Millions)	$77.6	$91.9	$89.0	$84.3	$89.1*
Adjusted EBITDA ($USD Millions)	$95.3	$100.4	$92.7	$93.8	—
Net Income Margin (%)	18.2%	21.3%	21.1%	19.3%	—
Adjusted EBITDA Margin (%)	34.8%	34.2%	34.1%	33.5%	—

Results vs consensus (S&P Global): Revenue beat by $8.1M; Adjusted EPS beat by $0.04; GAAP EBITDA missed by ~$4.8M (corporate professional fees, litigation reserve) *.

Segment performance

Segment	Metric	Q3 2024	Q4 2024	Q1 2025
Pressure Control	Revenue ($M)	$185.1	$176.7	$190.3
	Operating Income ($M)	$52.5	$50.8	$54.3
	Adjusted Segment EBITDA ($M)	$62.0	$61.5	$64.8
	Adjusted Segment EBITDA Margin (%)	33.5%	34.8%	34.0%
Spoolable Technologies	Revenue ($M)	$108.2	$96.1	$92.6
	Operating Income ($M)	$32.9	$25.5	$23.9
	Adjusted Segment EBITDA ($M)	$42.5	$35.3	$33.5
	Adjusted Segment EBITDA Margin (%)	39.3%	36.7%	36.2%

KPIs and Cash

KPI	Q3 2024	Q4 2024	Q1 2025
Cash & Equivalents ($M)	$303.4	$342.8	$347.7
Operating Cash Flow ($M)	$85.3	$66.6	$41.5
Net Capital Expenditures ($M)	$10.0	$11.3	$15.5
Dividend per share ($)	$0.13	$0.13	$0.13 (June payment)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Pressure Control revenue	Q2 2025	—	Down low–mid single digits vs Q1’s $190M	New
Pressure Control adj. EBITDA margin	Q2 2025	33–35% (Q1 guide)	33–35%	Maintained
Spoolable Technologies revenue	Q2 2025	—	Up mid–high single digits vs Q1	New
Spoolable adj. EBITDA margin	Q2 2025	35–37% (Q1 guide)	35–37%	Maintained
Corporate adj. EBITDA	Q2 2025	$(4.5)M (Q1 guide)	$(4.5)M	Maintained
Effective tax rate (book)	Q2 2025	22% (Q1 guide)	21%	Lowered
Adjusted EPS tax rate	Q2 2025	26% (Q4 actual applied)	~25%	Lowered
D&A expense	Q2 2025	~$15.5M (Q1 guide)	~$16M	Slightly higher
FY25 net CapEx	FY 2025	$45–$55M	$40–$50M	Lowered
Dividend	Q2 2025	$0.13 (Jan declared for Mar)	$0.13 (June payment)	Maintained
Tariff impact mitigation	Through mid-2026	Ramp Vietnam; expected “significantly lower rate” vs China	Neutralize tariff impact by mid next year via Vietnam, alternative sourcing	Clarified timeline

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
Tariffs / Trade policy	Emerging risk, uncertain details; U.S. steel prices could rise; Bossier > China cost by ~35%	Paying +45% tariffs on China; Vietnam subject to 25% Section 232; neutralize impact by mid next year through Vietnam ramp, alternative sourcing, customer support	Intensifying headwind with clearer mitigation plan
Supply chain diversification (Vietnam)	Facility identified; shipments expected to begin in 1H25; API 6A accreditation pending	Primary Vietnam operation funded, producing goods; minimal further spend; pursuing more vertical integration; API monogram process underway	Execution progressing
Customer behavior / demand	Expect outperformance vs activity; stable rigs; Spoolable seasonal weakness in Q1	Record product per rig; denied pull-forward requests; anticipate U.S. land rigs declining through Q2; customers supportive on cost pass-through	Mixed: strong share/rig, softer macro
Spoolable product roadmap	Plan to introduce H2S-capable pipe; target 40% international revenue LT	First sour-service pipe shipped; strong Canada; pursuing Middle East H2S opportunities; 70% revenue from majors/large E&Ps/NOCs	Execution and international traction improving
M&A / Growth initiatives	Corporate fees in Q3 tied to growth initiatives; no longer pursuing that opportunity	Private-equity-owned OFS assets widely available; focus on core industry; potential FlexSteel-like opportunities	Opportunistic, disciplined

Management Commentary

“Record levels of Pressure Control product revenues per rig combined with record first quarter bookings in our Spoolable Technologies business… support our expectations about our ability to continue to [outperform].” — Scott Bender, CEO .
“By mid-next year, we expect the tariff impact to our business to be neutralized… ramping up production from our Vietnam facility and working with our customers to support these cost increases.” — Scott Bender .
“Corporate and Other expenses were $9.6 million in Q1… from professional fees associated with the evaluation of growth initiatives with a focus on international expansion.” — Jay Nutt, CFO .
“Sales to international locations were up 30% quarter-over-quarter… we also produced and shipped our first commercial order of sour service pipe.” — Scott Bender .

Q&A Highlights

Tariff mitigation and timing: Management expects tariff neutrality by mid next year via Vietnam and sourcing actions; start-up costs in Vietnam are “de minimis”; Vietnam to fully replace China for U.S. supply post-API monogram .
Customer support and pricing: Pull-forward requests were denied to protect pre-tariff inventory; management “very confident” customers will bridge interim cost gap—expect percentage margins to dip but maintain absolute profitability .
Inventory and margin cadence: Pre-tariff inventory and rolling standard costs will smooth impacts; expect some margin compression in 2H as inventory turns (~2x/year) .
Spoolable growth vectors: Strong Canada, first sour-service shipments, and Middle East H2S opportunity after qualifications; revenue base skewed to resilient majors/NOCs (~70%) .
M&A posture: Market rich with PE-owned OFS assets; focus remains on core industry; FlexSteel-like opportunities possible .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue $280.3M vs $272.2M* (beat); Adjusted/Primary EPS $0.73 vs $0.69* (beat); GAAP EBITDA $84.3M vs $89.1M* (miss). Corporate professional fees and a litigation reserve in Pressure Control pressured EBITDA; adjusted EBITDA was $93.8M .
Implications: Street may lift revenue/EPS trajectories modestly on resilient segment margins and record orders in Spoolable; EBITDA forecasts likely recalibrated for near-term tariff/corporate cost drag and margin compression before Vietnam neutralization .

Results vs S&P Global consensus marked with *; Values retrieved from S&P Global.

Key Takeaways for Investors

Revenue/EPS beats with resilient segment margins despite macro/tariff headwinds; EBITDA softness is transitory and linked to corporate and reserve items .
Clear tariff mitigation pathway (Vietnam, sourcing, customer support) targets neutrality by mid next year—key medium-term re-rating catalyst .
Q2 setup: Pressure Control digestion (units per rig normalizing, rigs drifting lower) offset by seasonal/international strength in Spoolable; segment margins guided stable .
Capex trimmed to $40–$50M (from $45–$55M) while funding supply-chain diversification and Baytown efficiencies—supportive for FCF and shareholder returns (dividend maintained) .
Spoolable growth optionality: sour-service product, Canada momentum, and Middle East pipeline should support mix/volume even in a softer U.S. macro .
Watch list: pace of API accreditation and Vietnam ramp, rig count declines vs guidance, steel input inflation pass-through, and cadence of corporate expenses .

Appendix: Additional Disclosures and Data

Other relevant press releases (Q1 2025)

Earnings timing (April 15): set release and call schedule .
Dividend (Jan 21): $0.13 per Class A share for March 20 payment .
Q1 PR and 8-K: full financials and segment disclosures .

Non-GAAP adjustments in Q1 2025

Transaction-related expenses: $3.5M; intangible amortization: $4.0M; stock-based comp: $6.1M; all detailed in reconciliations .

Notes:

All non-GAAP metrics per company definitions and reconciliations .
Estimates marked with * are from S&P Global; Values retrieved from S&P Global.

Cactus, Inc. (WHD)·Q1 2025 Earnings Summary