Cactus Posts Lower Profit for Q4

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Cactus Posts Lower Profit for Q4

Cactus Inc., a specialist in wellhead and pressure control equipment for oil and gas companies, has reported a net income of $57.4 million for the fourth quarter of 2024, down from the previous quarter’s $62.4 million. However, full-year net income landed at $232.7 million, surpassing the $214.8 million for the year prior. “Full-year results for […]

“Full-year results for 2024 reflect solid performance in both of our business segments. In the fourth quarter, adjusted EBITDA margins remained strong, although revenues were softer than anticipated in our Spoolable Technologies segment due to elevated seasonal industry slowdowns”, Scott Bender, CEO and Chairman of the Board of Cactus, said.

“In the first quarter of 2025, we anticipate that U.S. land activity levels will be unchanged from the fourth quarter of 2024. In Pressure Control, we expect revenues to be flat to up sequentially. In Spoolable Technologies, we anticipate revenues to be softer than the fourth quarter. Activity in the first quarter has been slow to recover from deeper than anticipated seasonal declines at the end of the fourth quarter. Similar to prior years, we expect that Spoolable Technologies revenues will increase in the seasonally stronger second quarter”, Bender said.

“Although expectations for 2025 U.S. land activity levels remain soft, we have several initiatives underway that are intended to grow our customer base and mitigate potential tariff impacts, including further international sales growth, diversifying our supply chain, and introducing new products”, he said.

For the fourth quarter of 2024, Cactus reported a decline in revenue in both its segments. Pressure Control revenue fell by $8.4 million due to reduced customer activity, though operating income margins improved slightly due to the absence of prior-quarter reserves. Spoolable Technologies revenue decreased by $12.1 million, also driven by lower customer activity.

However, Bender noted that the two segments outperformed the lower year-over-year average industry activity levels in 2024.

To contact the author, email [email protected]

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