Cactus, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third quarter 2026 revenue of $430.9 million, a decrease from $449.5 million in the second quarter of 2026 and an increase from $264.0 million in the third quarter of 2025.
• Operating income was $94.0 million, up from $83.6 million in the prior quarter and $61.2 million in the prior year period; operating margin was 21.8%.
• Net income was $74.1 million, compared to $61.4 million in the second quarter of 2026 and $50.2 million in the third quarter of 2025; net income margin was 17.2%.
• Adjusted net income was $78.0 million, with adjusted net income margin of 18.1%; adjusted diluted earnings per share were $0.96.
• Adjusted EBITDA was $132.0 million with a margin of 30.6%, compared to $132.8 million (29.5% margin) in the second quarter and $86.9 million (32.9% margin) in the third quarter of 2025.
• Cash and cash equivalents totaled $354.2 million as of September 30, 2026, with no bank debt outstanding.
• Operating cash flow for the quarter was $18.4 million.
• Net capital expenditures were $16.1 million for the quarter.
• Backlog (Remaining Performance Obligations) closed the quarter at $615.6 million.

Guidance and Future Outlook:

• Expects consolidated revenues in the fourth quarter of 2026 to modestly increase.
• Anticipates the U.S. land rig count will remain approximately flat through the remainder of 2026.
• Forecasts fourth quarter Pressure Control revenues to increase modestly versus the third quarter, driven by domestic strength offsetting flat Middle East activity.
• Projects Spoolable Technologies sales to be up slightly in the fourth quarter as international shipment momentum offsets typical North American seasonality.
• Expects full-year 2026 net capital expenditures to be approximately $65 million, including orders for the Middle East facility and Baytown expansion.
• The new Middle East Spoolable Technologies manufacturing facility is expected to commence operations in 2029.

Business Segments and Product Lines:

• Pressure Control: Revenue decreased $39.2 million (11.4%) sequentially to $304.8 million due to lower product shipments in the Middle East. Operating income increased $2.4 million (4.0%) sequentially to $61.5 million, with margins rising 300 basis points to 20.2% due to strong spares/repair margins and lower purchase price accounting adjustments. Adjusted Segment EBITDA decreased $9.8 million (10.2%) sequentially.
• Spoolable Technologies: Revenue increased $21.3 million (20.2%) sequentially to $126.9 million due to strong domestic and international shipments. Operating income increased $9.4 million (29.3%) sequentially to $41.6 million, with margins rising 230 basis points to 32.8%. Adjusted Segment EBITDA increased $9.8 million (23.3%) sequentially to $52.0 million.
• Corporate and Other: Expenses increased $1.3 million sequentially to $9.1 million, primarily due to higher transaction and personnel expenses, including $0.6 million in transaction-related expenses from the Cactus International acquisition.
• Announced the Board's approval to construct a new Spoolable Technologies manufacturing facility in the Middle East in September 2026.
• Announced the expansion of the Baytown manufacturing facility.

Market and Competitive Landscape:

• Spoolable Technologies achieved record international shipments and bookings following the acquisition.
• Customer demand for Spoolable products continues to accelerate.
• The Middle East is identified as a critically important long-term oil and gas region with a rapidly expanding unconventional market.
• Order intake in the third quarter grew backlog by more than $150 million, nearly doubling the backlog in the Spoolable Technologies segment.

Risks and Challenges:

• Pressure Control business declined as anticipated due to lower product shipments in the Middle East.
• Operating leverage was lower in the Cactus International Joint Venture, though margins remained resilient.
• Forward-looking statements are subject to risks, uncertainties, and factors outside the Company's control, including assumptions used and market conditions.

Management Commentary and Tone:

• CEO Scott Bender described overall company performance as "exceptionally strong" in the third quarter.
• Management noted that Spoolable Technologies margins were excellent and that Pressure Control margins were more resilient than expected.
• Bender expressed pleasure regarding the Board's approval of the Middle East facility, citing it as a strategic move to provide local footprint and capacity for several years of growth at attractive returns.
• Management highlighted that the backlog growth in Spoolable Technologies was nearly double the previous quarter.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.15 per Class A share in October 2026, payable on December 17, 2026, to holders of record as of November 30, 2026.
• A corresponding distribution of up to $0.15 per CC Unit was approved for holders of Cactus Companies, LLC units.
• Total dividend payments and associated distributions during the third quarter were $12.0 million.
• The Company disbursed $91.0 million to Baker Hughes related to legal entity formation activities during the quarter.
• As of September 30, 2026, the Company had $263.5 million of availability on its U.S. and UAE revolving credit facilities.
• The Company had 70,119,569 shares of Class A common stock outstanding (87.5% voting power) and 10,061,249 shares of Class B common stock outstanding (12.5% voting power).