WHDMEDIUM SIGNALOPERATIONAL10-K

Cactus acquired 65% of Baker Hughes' surface pressure control business on January 1, 2026, marking a meaningful strategic expansion while profitability and cash flow moderated year-over-year.

The Baker Hughes Pressure Control joint venture represents a material strategic pivot, broadening Cactus's pressure control footprint and adding international manufacturing capacity via a new Vietnam facility. However, investors should note that this expansion is occurring alongside declining operating income (down 13.5%) and operating cash flow (down 18.3%), suggesting near-term integration costs or business mix headwinds may be pressuring margins. The acquisition's ultimate contribution to earnings quality and free cash flow generation will be a key metric to monitor in upcoming quarters.

Comparing 2026-02-26 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

Operating income declined 13.5% and net income fell 10.5%, while SG&A expense grew 14.1% — a combination that suggests cost pressures are outpacing revenue-side contributions in the current period. On the balance sheet, cash and equivalents declined 64% (to $123.6M from $342.8M), likely reflecting acquisition-related deployment, though current assets overall grew 23.3% and stockholders' equity expanded 14.5%, indicating the business remains well-capitalized. A notably positive development is the sharp reduction in interest expense (down 82.7%), which meaningfully improved the company's net financing cost profile; operating cash flow of $258.4M, while lower than the prior year, remains robust and supports continued investment capacity.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-82.7%
$20.8M→$3.6M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Cash & Equivalents
Balance Sheet
-64%
$342.8M→$123.6M

Cash declined 64% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Share Buybacks
Cash Flow
-36.5%
$9.3M→$5.9M

Buyback activity reduced 36.5% — capital being redeployed elsewhere or cash conservation underway.

Current Assets
Balance Sheet
+23.3%
$774.7M→$954.9M

Current assets grew 23.3% — improving short-term liquidity or inventory/receivables build.

Operating Cash Flow
Cash Flow
-18.3%
$316.1M→$258.4M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Stockholders Equity
Balance Sheet
+14.5%
$1.1B→$1.2B

Equity base grew 14.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Accounts Receivable
Balance Sheet
-14.2%
$191.6M→$164.5M

Receivables declined — improved collection efficiency or conservative revenue recognition.

SG&A Expense
P&L
+14.1%
$130.5M→$148.9M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Operating Income
P&L
-13.5%
$289.6M→$250.5M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Net Income
P&L
-10.5%
$185.4M→$166.0M

Net income declined 10.5% — review whether driven by operations, interest costs, or non-recurring items.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-27
ADDED
As of February 25, 2026, the registrant had 68,899,841 shares of Class A common stock, $0.01 par value per share, and 10,958,435 shares of Class B common stock, $0.01 par value per share, outstanding.
"The Company" is primarily engaged in the design, manufacture, sale and rental of highly engineered pressure control and spoolable pipe technologies.
In addition, a new plant is commencing production in Vietnam.
On January 1, 2026, the Company acquired 65% of Baker Hughes Pressure Control LLC, which holds Baker Hughes Company's former surface pressure control business.
See "Cactus International Joint Venture with Baker Hughes" below.
Current Ownership Structure On February 27, 2023, an internal reorganization (the CC Reorganization ) was completed to facilitate the Merger.
Cactus Companies, LLC ( Cactus Companies ), a wholly-owned subsidiary of Cactus Inc., acquired all of the outstanding units representing limited liability ownership interests in Cactus LLC ( CW Units ), the operating subsidiary of Cactus Inc., in exchange for an equal number of units representing limited liability company interests in Cactus Companies ( CC Units ).
is a holding company whose only material assets are CC Units, which Cactus Inc.
(directly and through a wholly owned subsidiary) and the other owners of CC Units entered into the Amended and Restated Limited Liability Company Operating Agreement of Cactus Companies (the Cactus Companies LLC Agreement ), which provides for Cactus Inc.
to be responsible for all operational, management and administrative decisions relating to Cactus Companies business.
REMOVED
As of February 25, 2025, the registrant had 68,151,542 shares of Class A common stock, $0.01 par value per share, and 11,432,545 shares of Class B common stock, $0.01 par value per share, outstanding.
and its consolidated subsidiaries (the Company, we, us, our and Cactus ) are primarily engaged in the design, manufacture, sale and rental of highly engineered pressure control and spoolable pipe technologies.
CC Reorganization and Current Ownership Structure On February 27, 2023, in order to facilitate the Merger with HighRidge, an internal reorganization (the CC Reorganization ) was completed in which Cactus Companies, LLC ( Cactus Companies ), a wholly-owned subsidiary of Cactus Inc., acquired all of the outstanding units representing limited liability ownership interests in Cactus LLC ( CW Units ), the operating subsidiary of Cactus Inc., in exchange for an equal number of units representing limited liability company interests in Cactus Companies ( CC Units ).
was converted into a limited liability company and is now named FlexSteel Holdings, LLC ( FlexSteel ).
contributed HighRidge to Cactus Acquisitions LLC ( Cactus Acquisitions ), a newly created entity, whereby HighRidge was converted into a limited liability company.
Lastly, Cactus Acquisitions contributed FlexSteel to Cactus Companies.
is a holding company whose only material asset is a direct and indirect equity interest consisting of CC Units following the completion of the CC Reorganization (which were CW Units from the IPO until the CC Reorganization).
was the sole managing member of Cactus LLC upon completion of our IPO until the CC Reorganization and became the sole managing member of Cactus Companies upon completion of the CC Reorganization.
In connection with the CC Reorganization, Cactus Inc., Cactus Acquisitions and the remaining owners of CC Units entered into the Amended and Restated Limited Liability Company Operating Agreement of Cactus Companies (the Cactus Companies LLC Agreement ), which contains substantially the same terms and conditions as the Second Amended and Restated Limited Liability Company Operating Agreement of Cactus LLC (the Cactus Wellhead LLC Agreement ), which was the limited liability company operating agreement of Cactus LLC prior to the CC Reorganization.
was responsible for all operational, management and administrative decisions relating to Cactus LLC s business for the period from completion of our IPO until the CC Reorganization and for the Cactus Companies business for periods after the CC Reorganization.
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