A month has gone by since the last earnings report for Cactus, Inc. (WHD Quick QuoteWHD - Free Report) . Shares have added about 10.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cactus due for a pullback? Well, first let's take a quick look at its most recent 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.

WHD Q2 Earnings Beat Estimates on Pressure Control, Spoolable Growth.

Cactus, Inc. reported second-quarter 2026 adjusted earnings of 93 cents per share, up 40.9% from 66 cents per share a year earlier. The bottom line topped the Zacks Consensus Estimate of 71 cents per share by 31%.

Quarterly revenues surged 64.3% to $449.53 million from $273.58 million a year ago. The top line exceeded the consensus mark of $400.62 million by 12.2%.

Strong quarterly results were driven by higher contributions from Cactus International, stronger Middle East Pressure Control shipments and growing demand for Spoolable Technologies. Backlog ended the quarter at $455.8 million.

WHD's Pressure Control Revenues Surge

Pressure Control revenues increased 91.4% year over year to $344 million from $179.77 million a year ago. The figure is above our estimate of $307.2 million. The sharp rise primarily reflected the addition of Cactus International, which expanded WHD’s international operations and contributed significant Middle East revenues.

The segment also benefited from stronger U.S. customer activity and solid execution of international deliveries despite conflict-related logistics challenges. Aftermarket service activity in Saudi Arabia and Norway provided additional support, as customers focused on repairing and better utilizing existing equipment.

Pressure Control operating income rose 39.7% to $59.15 million from $42.33 million recorded a year earlier. Adjusted segment earnings before interest, taxes, depreciation and amortization (EBITDA) increased 80.7% to $95.92 million from $53.08 million in the prior-year quarter. However, the adjusted (EBITDA) margin declined to 27.9% from 29.5%, reflecting the changed business mix following the Cactus International acquisition.

Cactus' Spoolable Business Maintains Growth

Spoolable Technologies revenues increased 9.7% to $105.53 million from $96.23 million in the prior-year quarter. The figure is above our estimate of $95.5 million.

Segment operating income increased 14.7% year over year to $32.17 million from $28.05 million recorded a year earlier. Adjusted segment EBITDA rose 11% to $42.14 million from $37.95 million in the prior-year quarter, while the adjusted EBITDA margin improved to 39.9% from 39.4%. The expansion reflected favorable product mix and stronger operating leverage.

WHD's Earnings Benefit From Higher Scale

Total operating income increased 37.5% year over year to $83.58 million from $60.81 million a year earlier. The operating margin contracted to 18.6% from 22.2%, as results included acquisition-related purchase accounting expenses tied to Cactus International and FlexSteel.

These expenses included amortization associated with acquired intangible assets and the step-up in inventory values. The company recorded severance costs related primarily to efforts to resize and integrate the Cactus International organization.

Adjusted EBITDA rose 53.2% year over year to $132.78 million. The adjusted EBITDA margin was 29.5% compared with 31.7% in the prior-year quarter. Adjusted net income increased 41.1% to $75.11 million, supported by the substantial revenue contribution from Pressure Control and continued profitability in Spoolable Technologies.

Cactus' Strong Cash Flow, Maintained Dividend

Operating cash flow was $104.6 million in the quarter. Net capital expenditures totaled $15.6 million and dividend payments and related distributions totaled $11.2 million.

WHD Maintains Robust Liquidity

WHD ended June with $365.82 million in cash and cash equivalents and no bank debt. The balance included $92.5 million retained to finalize legal restructuring activities tied to the Cactus International acquisition. The company had $223.7 million available under its revolving credit facility.

Cactus Expands Capacity for Global Demand

Cactus raised its 2026 net capital expenditure guidance to a range of $55-$65 million. The increase primarily reflects investments in the Baytown Spoolable Technologies facility to support growing demand from international and midstream customers.

The Baytown project is expected to cost roughly $40 million and could expand the facility’s production capacity by as much as 20%. Management is evaluating additional Spoolable Technologies manufacturing capacity in the Eastern Hemisphere to serve opportunities in the Middle East and other international markets.

The company received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million, indicating continued demand across both operating segments.

WHD’s 2026 Outlook & Dividend Increase

For the third quarter, management expects Pressure Control adjusted EBITDA margins to be in the range of 22-24%, excluding about $4 million of stock-based compensation. Lower international operating leverage, reduced aftermarket service contributions and fewer tariff recoveries are expected to affect profitability.

Spoolable Technologies adjusted EBITDA margins are projected at 39-41%, excluding roughly $1 million of stock-based compensation. Management expects demand to remain supported by Latin American orders, international market expansion and increased adoption among U.S. customers.

The board increased the quarterly dividend by 7% to 15 cents per share, marking the fourth consecutive year of dividend growth. Cactus expects third-quarter depreciation and amortization of about $27 million and an adjusted tax rate of approximately 27%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in estimates revision.

VGM Scores

At this time, Cactus has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.