Cactus, Inc. (WHD) SEC Filings & Earnings Calls

Tariff cost pressure on margins

“We are incurring, and expect to continue to incur, elevated tariff expenses on our goods imported from Vietnam and China, and experience generally higher steel input costs at our Bossier City and Baytown manufacturing facilities primarily as a result of the broad Section 232 tariffs.” · word for word

Middle East operational disruption

“We have experienced and expect to continue to experience disruptions to our operations, our customers’ drilling activities, and our supply chain along with increased freight and logistics costs due to the conflict, and particularly the impediment of traffic through the Strait of Hormuz.” · word for word

Geopolitical disruption in Middle East could impact operations

“continued conflict disruption in the Middle East”

Uncertain global oil and gas market backdrop

“The global oil and gas market backdrop remains uncertain” · word for word

Geopolitical disruption in Middle East

“We have experienced and expect to continue to experience significant disruptions to our operations, our customers’ drilling activities, and our supply chain along with increased freight costs due to the conflict, and particularly the impediment of traffic through the Strait of Hormuz.” · word for word

Tariff cost pressure on margins

“Both tariffs and higher steel input costs have impacted profitability, although the impact has been partially mitigated by cost reduction and recovery efforts.” · word for word

Purchase accounting impact on earnings

“The decrease was primarily driven by higher operating income from Cactus International, which was more than offset by the impacts of purchase accounting and increased tariff-related costs affecting product margins compared to prior year.” · word for word

Middle East conflict and logistics disruptions impacting Pressure Control revenue

“despite the initial impacts of the conflict in the Middle East... the Middle East conflict and associated logistics disruptions impacts our business” · word for word

Purchase price accounting adjustments pressuring reported margins

“purchase price accounting-related adjustments... amortization of the step-up of inventory and the amortization of the write-up of intangible values, which together totaled $19.0 million” · word for word

Supply chain challenges

“Despite numerous supply chain challenges, our team is working to meet our customers' needs.” · word for word

Tax Receivable Agreement Liability

“Assuming no material changes in the relevant tax law, we expect that if the TRA was terminated as of December 31, 2025, the estimated termination payments, based on the assumptions discussed above, would be approximately $251.2 million (calculated using a discount rate equivalent to the Agreed TRA Rate, applied against an undiscounted liability of $348.4 mil” · word for word

Concentrated Control by Founders

“Scott Bender and Joel Bender control Cactus WH Enterprises, LLC and may be deemed to share voting and dispositive power over the 9,486,249 shares listed as being owned by Cactus WH Enterprises and, therefore, will also be deemed to be the beneficial owners of such shares.”

Integration risk from recent acquisition; unaudited financials for Cactus International.

“financial information related to Cactus International has been prepared based on information provided by Baker Hughes Holdings LLC and its affiliates, which has not been confirmed by Cactus and has not been audited.”

Forward-looking statements subject to risks including unanticipated challenges relating to the FlexSteel business or Cactus International.

“unanticipated challenges relating to the FlexSteel business or Cactus International” · word for word

Customer concentration

“For the years ended December 31, 2025, 2024, and 2023 one customer represented 17%, 15% and 10%, respectively, of total Company revenues” · word for word

Tariff and raw material cost increases

“U.S. tariff increases on imports of steel, aluminum, and derivative products worldwide may impact our costs and profitability.” · word for word

Cyclicality of oil and gas industry

“Demand for our products and services depends primarily upon the general level of activity in the oil and gas industry” · word for word

Safety incident rate increase in Pressure Control

“During fiscal year 2025, our Pressure Control segment reported a TRIR of 1.49, which compares to 0.81 in 2024” · word for word

Near-term macro overhang; tariff environment; US land activity flat to soft

“challenging macro and tariff environment; U.S. land activity levels will be relatively flat”

Leverage ratio covenant (2.5x) may constrain future borrowing; acquisition integration risk.

“leverage ratio no greater than 2.50 to 1.00” · word for word

Integration risk from acquiring SPC, including potential audit adjustments to preliminary financials.

“The SPC financial information presented herein is preliminary and subject to change, and material adjustments thereto may be necessary upon completion of the audit.” · word for word

Tariff cost pressure on margins

“We are incurring, and expect to continue to incur, elevated tariff expenses on our goods imported from Vietnam and China, and experience generally higher steel input costs at our Bossier City manufacturing facility as a result of the broad Section 232 tariffs, which should both impact profitability to the extent we cannot offset such increases with cost redu” · word for word

Patent litigation exposure

“Cameron has asserted infringement of certain of those patents by Cactus’ SafeLink® frac flow system and is seeking past royalties and other damages related to the alleged infringement.” · word for word

Oil price and activity decline

“The weaker oil demand and increased supply outlook and associated decline in commodity pricing has led and is likely to continue to lead to lower U.S. land drilling and completion activity levels as 2025 progresses, and correspondingly reduced demand for our products and services.” · word for word

Continued weakness in U.S. land rig count impacting Pressure Control revenue

“U.S. land rig count will be flat to slightly down in the fourth quarter of 2025” · word for word

Tariff environment volatility

“volatile tariff environment” · word for word