Start here if you're new
what it is
Cactus sells and services the hardware that lets U.S. oil and gas wells keep pumping without costly downtime.
how it gets paid
Last year Cactus made $1.1B in revenue.
why growth slowed
Revenue fell 4.5% last year. The quarter was about scale, not surprise. Revenue exploded 210% vs. prior year after the surface pressure control deal, while earnings stayed disciplined rather than flashy.
what just happened
Cactus reported $818 million in quarterly revenue, and adjusted EPS landed at $0.65, matching expectations.
At a glance
B+ balance sheet — decent shape, but not bulletproof
45/100 earnings predictability — expect surprises
20.9x trailing p/e — priced about right
1.1% dividend yield — cash in your pocket every quarter
22.5% return on capital — every dollar works hard here
xvary composite: 56/100 — below average
What they do
Cactus sells and services the hardware that lets U.S. oil and gas wells keep pumping without costly downtime.
If your wellhead fails, your crew waits and your well stops making money. That is why reliability sells. Cactus runs at a 23.2% operating margin and a 22.5% return on capital, which means it turns specialized hardware into unusually strong profits for an oilfield supplier.
How they make money
$1.1B
annual revenue · revenue declined -4.5% last year
total revenue
$1.1B
4.5%
The products that matter
wellhead and drilling equipment
Upstream Wellhead Equipment
$550M · 50% of revenue
it's roughly half of the $1.1B business, so when drilling activity slows, this is usually where you feel it first.
50% of revenue
refining and downstream equipment
Downstream Refining Equipment
$440M · 40% of revenue
this line contributes about $440M, or 40% of sales, which gives WHD more ballast than a one-segment oilfield supplier.
40% of revenue
Key numbers
22.5%
return on capital
Return on capital → profit generated from each dollar invested → so what: Cactus earns far more from its assets than a typical industrial supplier.
20.9x
trailing p/e
P/E → stock price divided by profit per share → so what: you are paying a market-like multiple for an oilfield company with above-average margins.
$68
18-month target
That sits $16.72 above the current $51.28 price, or 32.6% upside, if the acquired business performs the way bulls expect.
1.1%
dividend yield
Dividend yield → yearly cash payout as a share of price → so what: this is a nice extra, not the reason you own the stock.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- net profit margin 22.0% — keeps 22 cents of every dollar in revenue
- return on equity 22% — $0.22 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in WHD 3 years ago → it's now worth $9,650.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Cactus reported $818 million in quarterly revenue, and adjusted EPS landed at $0.65, matching expectations.
The quarter was about scale, not surprise. Revenue exploded 210% vs. prior year after the surface pressure control deal, while earnings stayed disciplined rather than flashy.
$818M
revenue
$0.65
eps
23.2%
operating margin
the number that mattered
The $818 million revenue print matters most because it shows how radically the acquisition changed the size of the business in one quarter.
-
cactus has completed a major acquisition.
-
in early 2026, it officially purchased 65% of baker hughes’ surface pressure control (spc) business for about $345 million in cash, or $530 million when debt is included.
-
the company will give formal guidance for the entity later in the first quarter.
-
the baker hughes addition will diversify the company’s revenue stream.one of the few things revealed about the spc joint-venture operation was that it has a $600 million backlog.
-
moreover, cactus stated that 85% of the jv’s sales are derived from the middle east.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is a drop in drilling and completion activity.
med
oilfield activity slowdown
Upstream is 50% of revenue and downstream is 40%. When energy spending rolls over, 90% of the business feels it.
revenue exposure: 90% of sales tied to energy end markets
med
middle east concentration in the joint venture
85% of the joint venture's sales come from one region. That is concentration risk wearing a diversification costume.
regional exposure: 85% of JV sales tied to the Middle East
med
baker hughes integration risk
The surface pressure control deal is supposed to deepen the portfolio. If the $600M backlog does not convert cleanly, investors are left with more complexity and the same growth problem.
execution watch: $600M backlog needs to turn into reported revenue
A downturn hits the 90% of revenue tied to energy, while the joint venture adds an 85% single-region concentration on top.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
$600M backlog conversion
That backlog is the cleanest scorecard for the acquired pressure control assets. If it converts, the growth case gets real.
risk
middle east revenue concentration
85% of joint venture sales come from one region. You want that number moving down, not up.
trend
technical score of 5
Bottom 5% momentum means the stock has not earned the benefit of the doubt. Price action is still part of the story here.
calendar
next results for margin proof
There is no fresh earnings block on this page. The next report matters because you need to see whether integration holds up the current 18.8% net margin profile.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts do not see a short-term edge here.
risk profile
average
stability score 3. This is a middle-of-the-road risk setup, not a bunker stock and not a blowtorch either.
chart momentum
bottom 5%
technical score 5. That's the weakest rating on this scale, and it tells you recent price action has been ugly.
earnings predictability
45 / 100
Forecasting earnings is harder here than in steadier businesses. In human-speak: expect a bumpier ride than the average industrial.
source: institutional data
Institutional activity
142 buyers vs. 164 sellers in 3q2025. total institutional holdings: 73.3M shares.
source: institutional data
Price targets
3-5 year target range
$38
$97
$51
current price
$68
target midpoint · +33% from current · 3-5yr high: $100 (+95% · 19% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive