Oilfield equipment maker Cactus beats Q2 revenue estimates; hikes FY capex view

Overview

• U.S. oilfield equipment maker's Q2 revenue rose and beat analyst expectations

• Q2 adjusted EBITDA exceeded analyst expectations

• Company raised quarterly dividend by 7% to $0.15 per share

Outlook

• Company expects Q3 consolidated revenue to be down slightly sequentially

• Pressure Control segment Q3 revenue seen down 10% versus Q2

• Spoolable Technologies segment activity expected to increase 15% to 20% in Q3

• Company raises 2026 capital expenditure guidance to $55 mln-$65 mln

Result Drivers

• SPOOLABLE TECHNOLOGIES MOMENTUM - Co said order and shipment momentum in Spoolable Technologies, including accelerated Latin America deliveries, contributed to improved sales and margin mix

• PRESSURE CONTROL SHIPMENTS - Pressure Control results outperformed expectations, driven by improved shipments in the Middle East and higher domestic activity

• LOWER CORPORATE EXPENSES - Corporate and other expenses decreased due to lower transaction and integration expenses

Company press release: ID:nBw91Dzv1a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy"

• Wall Street's median 12-month price target for Cactus Inc is $67.50, about 29% above its July 29 closing price of $52.32

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 29 - ProPetro Q2 revenue rises 13%, slightly beats estimates

• July 28 - NOV Inc Q2 revenue beats estimates, helped by offshore project strength

• July 27 - Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)