Cactus (WHD) Stock Forecast & Price Target

Cactus Inc. reported an operating income margin of 23.2%, surpassing both expectations and prior performance, highlighting its operational efficiency and cost management. The company’s SafeDrill wellhead continues to dominate the market, which is expected to further enhance its market share. Additionally, the acquisition of Baker Hughes’s SPC business is anticipated to significantly boost Cactus's international presence and revenue potential, particularly in the Middle East, as it continues to strengthen its position amidst challenges in the North American market.

Cactus Inc. reported an adjusted EBITDA margin of 29.5%, which fell significantly short of the targeted 34.0% and represents a contraction from both the previous quarter and the same quarter last year, primarily due to tariffs. Additionally, the adjusted EBITDA of $53.1 million was 14.9% below estimates and reflected declines of 18.0% sequentially and 18.7% year-over-year, indicating persistent operational challenges. Furthermore, while total revenue of $264.0 million slightly exceeded projections, it still recorded a 3.5% sequential decline and a 10.0% year-over-year drop, which raises concerns about the company’s performance stability moving forward.