second quarter 2026
Filed Jul 29, 2026Cactus announced second-quarter revenue of $449.5 million, operating income of $83.6 million, adjusted EBITDA of $132.8 million, and raised its quarterly Class A dividend by 7% to $0.15 per share.
Revenue, operating income, net income, adjusted net income and adjusted EBITDA all increased sequentially, with improved reported margins. Cash flow from operations was $104.6 million, backlog closed at $455.8 million, and the company cited international purchase orders in excess of $130 million subsequent to quarter-end.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $449,528 (in thousands) | – | – |
| Operating incomeGAAP | $83,582 (in thousands) | – | – |
| Operating income marginGAAP | 18.6% | – | – |
| Net incomeGAAP | $61,380 (in thousands) | – | – |
| Net income marginGAAP | 13.7% | – | – |
| Diluted earnings per Class A shareGAAP | $0.70 | – | – |
| Adjusted net incomenon-GAAP | $75,113 (in thousands) | – | – |
| Adjusted net income marginnon-GAAP | 16.7% | – | – |
| Diluted earnings per share, as adjustednon-GAAP | $0.93 | – | – |
| Adjusted EBITDAnon-GAAP | $132,780 (in thousands) | – | – |
| Adjusted EBITDA marginnon-GAAP | 29.5% | – | – |
| Cash flow from operationsGAAP | $104.6 million | – | – |
| Net capital expendituresother | $15.6 million | – | – |
| Remaining Performance Obligations, or backlogother | $455.8 million | – | – |
| Cash and cash equivalentsGAAP | $365.8 million | – | – |
| Cash held for certain restructuring activities related to the Cactus International acquisitionother | $92.5 million | – | – |
| Availability on revolving credit facilityother | $223.7 million | – | – |
| Class A common stock outstandingother | 69,633,144 shares | – | – |
| Class B common stock outstandingother | 10,546,249 shares | – | – |
third quarter 2026 and full year 2026 outlook
- Revenueconsolidated revenues in the third quarter to be down slightly on a sequential basis
- Notethird quarter Pressure Control revenues will be down 10% versus the second quarter
- NoteActivity in our Spoolable Technologies segment should increase a further 15% to 20% in the third quarter
- NoteFor the full year 2026, the Company is increasing its expected capital expenditure range to $55 to $65 million
Capital returns
- During the second quarter, the Company made dividend payments and associated distributions of $11.2 million.
- The Board of Directors approved a quarterly cash dividend of $0.15 per share of Class A common stock.
- The approved dividend represents a 7% increase from the most recent dividend.
- Payment will occur on September 11, 2026 to holders of record of Class A common stock at the close of business on August 31, 2026.
- A corresponding distribution of up to $0.15 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC.
What drove it
- Pressure Control revenue increased $43.8 million, or 14.6%, sequentially, primarily due to increased revenues in the Middle East.
- Pressure Control operating income increased $20.5 million, or 53.2%, sequentially, as higher operating leverage and partial receipt of relatively modest reciprocal and fentanyl tariff-related refunds increased margins by 430 basis points.
- Spoolable Technologies revenues increased $15.6 million, or 17.4%, sequentially, due primarily to higher domestic activity levels.
- Spoolable Technologies operating income increased $8.6 million, or 36.5%, sequentially, on higher volume, while sales mix and operating leverage moved favorably.
- Corporate and Other expenses decreased $4.9 million sequentially, primarily due to lower transaction and integration expenses.
- Initial deliveries from previously discussed Latin America orders accelerated into the second quarter and contributed to improved sales and margin mix relative to expectations.
- Subsequent to quarter-end, the company received international purchase orders in excess of $130 million in its Spoolable Technologies and Pressure Control businesses.
Concerns
- Third-quarter consolidated revenues are expected to be down slightly sequentially.
- Third-quarter Pressure Control revenues are expected to be down 10% versus the second quarter, which benefitted from strong backlog execution in Cactus International.
- Pressure Control shipments in the Middle East occurred despite continued conflict disruption.
- The company stated that the global oil and gas market backdrop remains uncertain.
- Purchase price accounting-related adjustments in Pressure Control included amortization of the inventory step-up and intangible-value write-up totaling $20.0 million in the quarter.
What to watch
- Whether the U.S. land rig count increases in the third quarter as the company expects.
- Execution of the planned 15% to 20% third-quarter increase in Spoolable Technologies activity.
- The expected 10% sequential decline in third-quarter Pressure Control revenue following strong Cactus International backlog execution.
- Deployment of the increased full-year capital expenditure range of $55 to $65 million, including Baytown Spoolable Technologies manufacturing capacity investments.
- Progress on potential Spoolable Technologies capex in the Eastern hemisphere and conversion of international purchase orders in excess of $130 million.
Balance sheet and cash flow
- Cash and cash equivalents were $365.8 million as of June 30, 2026, including $92.5 million of cash held for certain restructuring activities related to the Cactus International acquisition.
- No bank debt was outstanding as of June 30, 2026.
- Availability on the revolving credit facility was $223.7 million.
- Operating cash flow was $104.6 million for the second quarter of 2026.
- Net capital expenditures were $15.6 million during the second quarter of 2026.
- Remaining Performance Obligations, or backlog, closed the quarter at $455.8 million and were primarily related to operations in the Cactus International business.
Analysis
Cactus reported a strong second quarter, with revenue of $449,528 (in thousands), operating income of $83,582 (in thousands), and net income of $61,380 (in thousands). The reported financial summary also showed sequential increases from $388,349 (in thousands) of revenue, $49,504 (in thousands) of operating income, and $40,221 (in thousands) of net income in the first quarter. Operating income margin improved to 18.6% from 12.7%, while net income margin improved to 13.7% from 10.4%.
The sequential improvement was led by both operating segments. Pressure Control revenue increased $43.8 million, or 14.6%, sequentially, primarily because of higher Middle East revenue. Its operating income increased $20.5 million, or 53.2%, sequentially, supported by higher operating leverage and partial receipt of relatively modest reciprocal and fentanyl tariff-related refunds. Spoolable Technologies revenue increased $15.6 million, or 17.4%, sequentially, driven primarily by higher domestic activity levels, while its operating income increased $8.6 million, or 36.5%, on higher volume and favorable sales mix and operating leverage.
Non-GAAP profitability also advanced sequentially. Adjusted net income was $75,113 (in thousands), adjusted EBITDA was $132,780 (in thousands), and adjusted EBITDA margin was 29.5%, compared with $56,172 (in thousands), $100,050 (in thousands), and 25.8%, respectively, in the first quarter. Pressure Control results included $20.0 million of purchase price accounting-related adjustments from inventory step-up amortization and intangible-value write-up amortization. Corporate and Other expenses declined $4.9 million sequentially, primarily because of lower transaction and integration expenses.
Liquidity and cash generation were meaningful features of the quarter. Operating cash flow was $104.6 million and net capital expenditures were $15.6 million. Cactus ended the quarter with $365.8 million of cash and cash equivalents, no bank debt outstanding, and $223.7 million of revolver availability. Backlog was $455.8 million, primarily related to Cactus International, and the company disclosed international purchase orders in excess of $130 million after quarter-end. The board raised the quarterly Class A dividend 7% to $0.15 per share.
The third-quarter outlook calls for consolidated revenue to be down slightly sequentially. Pressure Control revenue is expected to decline 10% from a second quarter that benefitted from strong Cactus International backlog execution, while Spoolable Technologies activity is expected to increase 15% to 20%. The company increased its full-year 2026 expected capital expenditure range to $55 to $65 million, primarily for initial capacity investments at the Baytown Spoolable Technologies manufacturing facility to meet increased global demand. Key operating risks identified in the release include continued Middle East conflict disruption and an uncertain global oil and gas market backdrop.
Management, verbatim
The second quarter was a particularly strong period for our business. Order and shipment momentum continued in our Spoolable Technologies segment, and the acceleration of initial deliveries from previously discussed Latin America orders into the second quarter contributed to improved sales and margin mix relative to expectations. Pressure Control results solidly outperformed expectations, driven primarily by improved shipments in the Middle East despite continued conflict disruption, as well as higher domestic activity levels.
Scott Bender, CEO and Chairman of the Board of Cactus
We expect consolidated revenues in the third quarter to be down slightly on a sequential basis. We believe that the U.S. land rig count will increase in the third quarter as supportive commodity prices continue to lead to modestly higher activity primarily from private operators. We anticipate that third quarter Pressure Control revenues will be down 10% versus the second quarter which benefitted from strong backlog execution in Cactus International, more than offsetting domestic resilience. Activity in our Spoolable Technologies segment, however, should increase a further 15% to 20% in the third quarter driven by continued growth in domestic and international markets.
Scott Bender, CEO and Chairman of the Board of Cactus
I am very pleased with the momentum across our business lines, particularly within our Spoolable Technologies segment where the pace of bookings and shipments continues to strengthen. Subsequent to the quarter, we received international purchase orders in excess of $130 million in our Spoolable Technologies and Pressure Control businesses.
Scott Bender, CEO and Chairman of the Board of Cactus
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating expenses were not reported as a consolidated line item.
- Free cash flow was not reported.
- Total debt beyond the statement that no bank debt was outstanding was not reported.
- Repurchase activity was not reported.
- GAAP diluted earnings per Class A share comparative figures were not reported.
- Non-GAAP diluted earnings per share comparative figures were not reported.
- Absolute second-quarter revenue for the Pressure Control segment was not reported.
- Absolute second-quarter revenue for the Spoolable Technologies segment was not reported.
- Segment year-over-year revenue comparisons were not reported.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Third-quarter gross-margin, operating-expense and tax-rate guidance was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.