Cactus, Inc. Class A (WHD)

Several events impacted Cactus, Inc.'s stock price in the past six months. Cactus announced its first quarter 2025 results on April 30, 2025, reporting revenues of $280.3 million and operating income of $68.6 million, with a cash balance of $347.7 million and no outstanding bank debt. On June 2, 2025, Cactus announced an agreement to acquire a 65% controlling interest in Baker Hughes' Surface Pressure Control business. Cactus reported its Q2 2025 financial results on July 30, 2025, with revenue of $273.6 million and net income of $49.0 million, leading to investor concern and an 11.1% drop in the stock price. In September 2025, the company's Executive Vice President and Secretary, William D. Marsh, sold 10,172 shares. Cactus announced on October 16, 2025, that it would release its third quarter 2025 earnings after market close on October 29, 2025. As of October 2025, analysts have a "Hold" consensus rating for WHD, with an average price target of $51.67.

Cactus, Inc. experiences some demand seasonality for its products and services. The Spoolable Technologies segment saw revenues decrease in Q4 2024 due to seasonal slowdowns, with management expecting softer performance in Q1 2025. The second and third quarters are typically seasonally stronger for the Spoolable business, leading to inventory build-up in anticipation. The company's rental business, part of the Pressure Control segment, can see pricing weaken disproportionately when overall demand softens. Overall U.S. land activity levels are anticipated to drift lower in Q2 2024 due to gas commodity weakness and geopolitical uncertainty.

Cactus, Inc., based in Houston, Texas, specializes in engineered equipment and technologies for the oil and natural gas industry, operating within the Energy sector, specifically in the Oil & Gas Equipment & Services industry. The company designs, manufactures, sells, and rents wellheads and pressure control equipment for onshore unconventional oil and gas wells during drilling, completion, and production. Its major product families include SafeDrill® wellhead systems, SafeLink® frac systems, and production systems. Cactus also offers spoolable pipe technologies under the FlexSteel brand for transporting oil, gas, and other liquids, and provides field services such as installation, maintenance, repair, and safe handling of its equipment.

Cactus, Inc. has a significant presence in the United States, with service centers in major oil and gas producing regions, including the Permian Basin, Eagle Ford Shale, SCOOP/STACK, Marcellus/Utica Shale, Haynesville, and Bakken. The company also operates in Australia, China, Canada, and the Kingdom of Saudi Arabia. In June 2025, Cactus announced an agreement to acquire a 65% controlling interest in Baker Hughes' Surface Pressure Control business, which is expected to diversify operations, with approximately 85% of the acquired business's revenues generated in the Middle East, aiming for a more stable consolidated revenue profile through market cycles.

Cactus, Inc. has a reputation for high-quality manufacturing, strong customer service, and advanced engineering, driving efficiency and safety in onshore unconventional drilling, completion, and production operations. The company emphasizes product reliability, customer service, and technological innovation as key differentiators. Customer responses to post-job completion surveys confirm satisfaction and confidence in their relationship with Cactus. However, family relationships in the executive suite could challenge standard corporate governance approaches, reflecting in "poor governance scores" for the company.

Institutional investors are the primary holders of Cactus, Inc. stock. Major institutional owners include BlackRock, Inc. (14.49%), FMR LLC (13.66%), The Vanguard Group, Inc. (11.13%), State Street Global Advisors, Inc. (4.05%), T. Rowe Price Group, Inc. (3.95%), and JP Morgan Asset Management (3.67%). Individual ownership is relatively small, at 1.01%. The three top executives, who are family members, hold a significant portion of the non-public Class B shares, which comprise 18% of the equity with proportionate voting rights.