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Why Is Cactus (WHD) Down 5.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have lost about 5.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cactus due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Cactus, Inc. before we dive into how investors and analysts have reacted as of late.
Cactus Q4 Earnings Beat Estimates on Higher Pressure Control Revenues
Cactus, Inc. reported fourth-quarter 2025 adjusted earnings of 65 cents per share, which beat the Zacks Consensus Estimate of 58 cents. The bottom line declined from the year-ago quarter’s figure of 71 cents.
Total quarterly revenues of $261 million topped the Zacks Consensus Estimate of $251 million. The top line declined from the year-ago figure of $272 million.
The better-than-expected quarterly results were primarily aided by higher sales of drilling equipment and higher rental income in the Pressure Control segment. Lower customer activity levels affected the Spoolable Technologies segment, partially offsetting the positives.
Business Segments
Following the closure of the FlexSteel acquisition, Cactus started reporting under two business segments — Pressure Control and Spoolable Technologies.
The Pressure Control segment generated revenues of $178.4 million, up from $176.7 million reported in the year-ago quarter. The segment was aided by an increase in the product sold per rig, resulting in higher product revenues. The segment benefited from higher rental income driven by increased customer activity. The figure surpassed our estimate of $169 million.
Adjusted Segment EBITDA for Pressure Control totaled $59.2 million, down from $61.5 million in the prior-year quarter. The reported figure was higher than our estimate of $52.3 million.
Revenues from the Spoolable Technologies segment totaled $84.2 million, down from $96.1 million in the prior-year quarter. The figure beat our estimate of $82.2 million. The segment was affected by lower customer activity levels in the quarter.
Adjusted Segment EBITDA for the Spoolable Technologies totaled $31 million, down from $35 million a year ago. The figure beat our estimate of $28 million.
Capex and Cash Flow
Cactus’ net capital expenditures for the quarter totaled $4.3 million. Operating cash flow was $72.3 million for the fourth quarter.
Balance Sheet
Cactus had cash and cash equivalents of $123.6 million at the end of the fourth quarter of 2025. The company had no bank debt outstanding as of Dec. 31, 2025.
Outlook
WHD expects the U.S. land rig count for the first quarter of 2026 to be relatively flat compared to the fourth quarter of 2025. For full-year 2026, WHD still anticipates net capital expenditures to be in the range of $40-$50 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.69% due to these changes.
VGM Scores
Currently, Cactus has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cactus has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Cactus is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Occidental Petroleum (OXY - Free Report) , a stock from the same industry, has gained 25.1%. The company reported its results for the quarter ended December 2025 more than a month ago.
Occidental reported revenues of $5.42 billion in the last reported quarter, representing a year-over-year change of -20.7%. EPS of $0.31 for the same period compares with $0.80 a year ago.
Occidental is expected to post earnings of $0.44 per share for the current quarter, representing a year-over-year change of -49.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +91.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Occidental. Also, the stock has a VGM Score of B.
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Why Is Cactus (WHD) Down 5.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have lost about 5.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cactus due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Cactus, Inc. before we dive into how investors and analysts have reacted as of late.
Cactus Q4 Earnings Beat Estimates on Higher Pressure Control Revenues
Cactus, Inc. reported fourth-quarter 2025 adjusted earnings of 65 cents per share, which beat the Zacks Consensus Estimate of 58 cents. The bottom line declined from the year-ago quarter’s figure of 71 cents.
Total quarterly revenues of $261 million topped the Zacks Consensus Estimate of $251 million. The top line declined from the year-ago figure of $272 million.
The better-than-expected quarterly results were primarily aided by higher sales of drilling equipment and higher rental income in the Pressure Control segment. Lower customer activity levels affected the Spoolable Technologies segment, partially offsetting the positives.
Business Segments
Following the closure of the FlexSteel acquisition, Cactus started reporting under two business segments — Pressure Control and Spoolable Technologies.
The Pressure Control segment generated revenues of $178.4 million, up from $176.7 million reported in the year-ago quarter. The segment was aided by an increase in the product sold per rig, resulting in higher product revenues. The segment benefited from higher rental income driven by increased customer activity. The figure surpassed our estimate of $169 million.
Adjusted Segment EBITDA for Pressure Control totaled $59.2 million, down from $61.5 million in the prior-year quarter. The reported figure was higher than our estimate of $52.3 million.
Revenues from the Spoolable Technologies segment totaled $84.2 million, down from $96.1 million in the prior-year quarter. The figure beat our estimate of $82.2 million. The segment was affected by lower customer activity levels in the quarter.
Adjusted Segment EBITDA for the Spoolable Technologies totaled $31 million, down from $35 million a year ago. The figure beat our estimate of $28 million.
Capex and Cash Flow
Cactus’ net capital expenditures for the quarter totaled $4.3 million. Operating cash flow was $72.3 million for the fourth quarter.
Balance Sheet
Cactus had cash and cash equivalents of $123.6 million at the end of the fourth quarter of 2025. The company had no bank debt outstanding as of Dec. 31, 2025.
Outlook
WHD expects the U.S. land rig count for the first quarter of 2026 to be relatively flat compared to the fourth quarter of 2025. For full-year 2026, WHD still anticipates net capital expenditures to be in the range of $40-$50 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.69% due to these changes.
VGM Scores
Currently, Cactus has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Cactus has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Cactus is part of the Zacks Oil and Gas - Integrated - United States industry. Over the past month, Occidental Petroleum (OXY - Free Report) , a stock from the same industry, has gained 25.1%. The company reported its results for the quarter ended December 2025 more than a month ago.
Occidental reported revenues of $5.42 billion in the last reported quarter, representing a year-over-year change of -20.7%. EPS of $0.31 for the same period compares with $0.80 a year ago.
Occidental is expected to post earnings of $0.44 per share for the current quarter, representing a year-over-year change of -49.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +91.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Occidental. Also, the stock has a VGM Score of B.