Cactus, Inc. Reports Revenue Decline and Decreased Net Income in Q2 2025

Cactus, Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $273.6 million, down from $290.4 million in the same period last year. The company’s net income attributable to Cactus Inc. was $40.3 million, a decrease of 19.1% compared to $49.8 million in the prior year. For the first half of 2025, total revenues were $553.9 million, down 1.9% from $564.5 million in the first half of 2024, while net income attributable to Cactus Inc. decreased by 4.8% to $84.6 million from $88.8 million.

The decrease in revenue was primarily driven by lower product and rental revenues, which fell to $208.3 million and $21.8 million, respectively, compared to $220.9 million and $25.2 million in the prior year quarter. The company attributed the decline to reduced customer activity levels and increased tariff impacts on product margins. Additionally, selling, general, and administrative expenses rose significantly to $39.2 million from $31.2 million a year ago, reflecting higher legal expenses and professional fees associated with ongoing litigation and the recent Baker Hughes transaction.

Cactus, Inc. has made strategic moves to enhance its market position, including the acquisition of FlexSteel Holdings, which was completed in February 2023. This acquisition is expected to expand Cactus's product offerings and customer base in the oil and gas sector. Furthermore, in June 2025, the company entered into a Framework Agreement with Baker Hughes to acquire a controlling interest in its surface pressure control business for $344.5 million, which is anticipated to close in late 2025 or early 2026.

Operationally, Cactus reported a slight increase in its Pressure Control segment revenues to $370.0 million for the first half of 2025, while the Spoolable Technologies segment saw a decline to $188.8 million. The company’s cash and cash equivalents increased to $405.2 million as of June 30, 2025, up from $342.8 million at the end of 2024, providing a solid liquidity position. Cactus also maintained a strong balance sheet with no outstanding bank debt and $222.6 million of available borrowing capacity under its Amended ABL Credit Facility.

Looking ahead, Cactus anticipates that demand for its products and services will be influenced by oil and gas industry activity levels, which have been affected by fluctuating commodity prices and economic conditions. The company expects to continue facing challenges related to increased costs from tariffs and legal expenses, but remains optimistic about the growth potential from its recent acquisitions and ongoing operational improvements.