Cactus, Inc. Reports Mixed Q3 Results Amid Strategic Developments and Market Conditions

Cactus, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance amid strategic developments and market conditions. Total revenues for the third quarter reached $293.2 million, a 1.1% increase from $287.9 million in the same period of 2023. For the nine months, total revenues were $857.7 million, up 4.3% from $822.1 million year-over-year. Product revenue for the third quarter was $221.4 million, compared to $214.3 million in the prior year, while for the nine months, it increased to $649.8 million from $605.7 million.

Despite the revenue growth, Cactus experienced a decline in profitability. Operating income for the third quarter was $76.8 million, down from $87.6 million in the same quarter of 2023. Net income for the third quarter was $62.4 million, a decrease from $68.0 million in the prior year, with net income attributable to Cactus Inc. at $49.9 million, down from $52.6 million. For the nine months, net income rose to $175.3 million from $152.8 million, with net income attributable to Cactus Inc. increasing to $138.7 million from $120.2 million.

The company’s strategic developments included the acquisition of FlexSteel, completed on February 28, 2023, for a total cash consideration of $621.5 million, which has since enhanced Cactus' position in the exploration and production industry. Following this acquisition, Cactus operates in two segments: Pressure Control and Spoolable Technologies. The Pressure Control segment reported a revenue decrease of 5.0% for the first nine months of 2024, while the Spoolable Technologies segment saw a significant revenue increase of 26.5%.

Cactus also reported a substantial increase in cash and cash equivalents, rising to $303.4 million as of September 30, 2024, compared to $133.8 million at the end of 2023. The company maintained a strong balance sheet with total assets of $1.68 billion and total stockholders’ equity of $1.21 billion.

In terms of operational efficiency, net cash provided by operating activities for the nine months was $249.5 million, slightly up from $248.6 million in the previous year. However, net cash used in investing activities significantly decreased to $24.1 million from $645.2 million, primarily due to the absence of large acquisition costs compared to the previous year.

Cactus continues to navigate a challenging market environment, with U.S. land drilling and completion activity levels decreasing and fluctuating commodity prices impacting demand. The company remains focused on leveraging its recent acquisitions and optimizing its operational structure to enhance profitability moving forward.