Cactus, Inc. (WHD): History, Ownership, Mission, How It Works & Makes Money

How does a specialized oilfield equipment provider like Cactus, Inc. (WHD) maintain a strong financial footing even while navigating a volatile energy market?

The answer is in the numbers: for the third quarter of 2025 alone, the company reported revenue of $264.0 million and a net income of $50.2 million, underscoring the demand for its highly engineered wellhead and pressure control systems. Plus, with a cash and cash equivalents balance of $445.6 million as of September 30, 2025, and a major strategic move to acquire a majority interest in Baker Hughes' Surface Pressure Control business underway, its story goes way beyond just drilling rigs, so let's defintely dig into the history, ownership, and the two-pronged business model that makes it all work.

Cactus, Inc. (WHD) History

Given Company's Founding Timeline

Year established

Cactus Wellhead, LLC, the company's operating subsidiary and accounting predecessor, was founded in 2011. Cactus, Inc. (WHD), the public holding company, was formally incorporated in February 2017 to facilitate the Initial Public Offering (IPO).

Original location

The corporate headquarters are in Houston, Texas. The company's initial operational footprint started with its first manufacturing facility opening in Bossier City, Louisiana, in 2011.

Founding team members

The company was co-founded by the Bender family-Scott Bender, Joel Bender, and Steven Bender-in partnership with the private equity firm Cadent Energy Partners. The Benders brought deep industry knowledge, having previously founded and profitably expanded Wood Group Pressure Control before its sale to General Electric in 2011.

Initial capital/funding

The initial capital was derived from the founders' previous successful venture and the backing of Cadent Energy Partners, leveraging their industry expertise and relationships. The major capital infusion came later, when the company completed its IPO in February 2018, raising approximately $435.2 million to fund expansion and reduce debt.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by a few critical decisions that moved it from a regional player focused on unconventional U.S. shale to a globally diversified technology provider. You can see this shift by Exploring Cactus, Inc. (WHD) Investor Profile: Who's Buying and Why?

The first major pivot was the 2018 IPO. Going public not only raised substantial capital-over $435 million-but it also structured the company to attract institutional investment and fund its expansion into new product lines and service centers across major U.S. oil and gas basins.

More recently, the acquisition of the FlexSteel business in 2023 was a defintely smart move to diversify revenue streams. It added Spoolable Technologies, a high-growth segment, which helped offset some of the cyclicality in the traditional Pressure Control business. This segment alone reported Q1 2025 revenues of $93 million.

However, the most transformative decision in the near-term is the 2025 agreement to acquire a 65% controlling interest in Baker Hughes' Surface Pressure Control business. This deal immediately transforms the geographic risk profile.

• It shifts the revenue mix, with the acquired SPC business generating approximately 85% of its revenue internationally, primarily in the Middle East.
• The acquisition adds a substantial backlog of over $600 million as of late 2024, providing greater revenue and cash flow visibility for the combined entity.
• This move establishes Cactus, Inc. as a major, capital-light international player, a significant evolution from its U.S. shale roots.

For the first three quarters of 2025, the company has maintained strong cash flow, reporting $445.6 million in cash and equivalents with no bank debt as of September 30, 2025, which gives them the financial flexibility to close and integrate this major acquisition.

Cactus, Inc. (WHD) Ownership Structure

Cactus, Inc. (WHD) operates with a dual-class stock structure, which concentrates significant voting power among its founders and insiders, even as the vast majority of shares are held by institutional investors. This structure means that while the company is publicly traded, control remains largely in the hands of the original stakeholders and the management team.

Cactus, Inc.'s Current Status

Cactus, Inc. is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol WHD. As of the 2025 fiscal year, the company maintains a strong financial position, reporting revenue of $263.95 million for the third quarter of 2025, which beat analyst expectations. The company's market capitalization is approximately $3.30 billion. This public status subjects the company to rigorous reporting requirements from the Securities and Exchange Commission (SEC), providing transparency for investors seeking comprehensive data and strategic frameworks like the Mission Statement, Vision, & Core Values of Cactus, Inc. (WHD).

Cactus, Inc.'s Ownership Breakdown

The company's ownership profile is heavily skewed toward large financial institutions, a typical pattern for mid-cap energy service companies. Institutional investors own the lion's share, but the dual-class stock structure (Class A and Class B shares) gives insiders disproportionate control. As of late 2025, the breakdown looks like this:

Here's the quick math: Institutional ownership is 85.11%, and insider ownership is around 13.75%, so the rest-retail and other investors-hold about 1.14% of the stock. What this estimate hides is the power of the Class B shares; while they represent a smaller number of total shares outstanding, they often carry more votes per share, defintely impacting the true control structure.

Cactus, Inc.'s Leadership

The company is steered by an experienced executive team, many of whom are founders or have deep, long-tenured experience in the oilfield services sector. This stability in leadership is a key factor for investors looking for consistent strategy execution.

• Scott Bender: Chairman and Chief Executive Officer (CEO). He has served as Chairman and CEO since August 2023, having co-founded the company in 2011.
• Joel Bender: President and Director. Co-founder of the company, he was appointed President in August 2023.
• Jay Nutt: Executive Vice President, Chief Financial Officer (CFO), and Treasurer. He joined in June 2024, bringing extensive financial leadership from companies like ChampionX Corporation.
• Steven Bender: Chief Operating Officer (COO). He has served as COO since 2023, having been with the company since 2011.
• Stephen Tadlock: Executive Vice President and CEO of Spoolable Pipe Segment. He transitioned to this role in October 2023, having previously served as CFO.

The average tenure of the board of directors is about 10.8 years, which shows a long-term, committed governance structure.

Cactus, Inc. (WHD) Mission and Values

Cactus, Inc.'s core purpose transcends simply manufacturing oilfield equipment; it is a commitment to operational excellence and customer loyalty, built on a foundation of unyielding safety and integrity.

This focus on service-driven performance is the cultural DNA that allows the company to consistently outperform peers, as evidenced by its strong financial health, including a Q1 2025 revenue of $280.3 million and a Q3 2025 diluted earnings per share (EPS) of $0.67. You can dive deeper into the financial mechanics here: Breaking Down Cactus, Inc. (WHD) Financial Health: Key Insights for Investors.

Cactus, Inc.'s Core Purpose

Official mission statement

The company's mission is a clear directive that links superior service directly to shareholder returns. It's a simple, defintely effective formula: customer loyalty equals maximum owner value.

• Maximize owner value through resulting customer loyalty.
• Strive for operational excellence in all dealings with clients, associates, and suppliers.
• Consistently outperform peers by refusing to compromise on safety, honesty, and professionalism.

This isn't corporate fluff; it's a measurable mandate. You can see the operational excellence in their balance sheet, which showed $347.7 million in cash and cash equivalents with zero bank debt as of March 31, 2025.

Vision statement

While Cactus, Inc. does not publish a single-sentence vision statement, its long-term aspiration is clear: to be the premier, capital-light, and geographically diversified oilfield equipment manufacturer that delivers superior returns through market cycles.

• Establish a premier, capital-light global footprint, exemplified by the acquisition of a controlling interest in Baker Hughes' Surface Pressure Control business, which is expected to diversify revenue with over 85% of its revenue coming from the Middle East.
• Maintain a strong balance sheet and flexible cost structure to navigate industry downturns.
• Drive long-term value for shareholders by operating with a relentless focus on margins, returns, and customer execution.

The strategy is to grow, but to do it smartly and without taking on excessive debt. That's a realist's vision.

Cactus, Inc. slogan/tagline

Cactus Wellhead, the company's primary brand, uses a concise phrase that encapsulates its market positioning and the attributes it delivers to customers in the high-pressure environment of oil and gas drilling.

• Innovation, Experience & Responsiveness.

This tagline highlights the company's competitive edge: leveraging decades of collective management experience to deliver technologically advanced wellhead and frac solutions that improve reliability and save time on the rig.

Cactus, Inc. (WHD) How It Works

Cactus, Inc. delivers highly-engineered equipment and services essential for extracting oil and natural gas from unconventional onshore wells, focusing on the critical phases of drilling, completion, and production. The company makes money by selling and renting its core products-wellhead and pressure control systems-and by providing the field services required to install and maintain them.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

Cactus, Inc.'s operational framework is built on a capital-efficient, variable-cost model that allows for rapid response to changes in drilling activity. This model is crucial in the volatile oil and gas equipment sector.

• Design and Manufacture: The company designs and manufactures its wellhead and pressure control equipment, allowing it to control quality and innovate, such as with its SafeDrill® Wellhead Systems.
• Supply Chain Diversification: To mitigate geopolitical risks and high tariffs-which currently include a total tariff rate of approximately 95% on certain Chinese imports-Cactus is aggressively ramping up its new Vietnam forging manufacturing facility. This strategic move is expected to neutralize the tariff impact by mid-2026.
• Service Center Network: A network of service centers, primarily across North America and Australia, supports the Pressure Control segment, ensuring rapid deployment and field service for installation, maintenance, and equipment rental.
• Segment Performance (Q3 2025): The company reported total revenue of $264.0 million for the third quarter of 2025. Pressure Control margins improved sequentially due to cost reduction and tariff mitigation efforts, while the Spoolable Technologies segment saw stronger-than-expected margins and revenue, driven by robust international shipments.

Given Company's Strategic Advantages

The company maintains its market position by combining strong financial discipline with product differentiation, giving it a clear edge over competitors.

• Superior Profitability: Cactus, Inc. consistently generates industry-leading margins. For Q3 2025, the Adjusted EBITDA margin was 32.9%, reflecting operational efficiency and pricing power.
• Financial Strength: The balance sheet is defintely a key advantage. As of September 30, 2025, the company had $445.6 million in cash and cash equivalents with essentially no bank debt, providing significant flexibility for strategic investments and acquisitions.
• Differentiated Technology: The Spoolable Technologies segment, acquired through FlexSteel, offers a non-metallic, corrosion-resistant alternative to conventional steel pipe, which is highly valued by customers for its lower installation cost and durability in harsh environments.
• Strategic Growth via Acquisition: The announced plan to acquire a 65% controlling interest in the Surface Pressure Control business from Baker Hughes Company, expected to close in early 2026, will significantly expand its product and service offering and market reach.

Cactus, Inc. (WHD) How It Makes Money

Cactus, Inc. generates revenue by designing, manufacturing, selling, and renting highly engineered wellhead and pressure control equipment, plus providing essential field services for onshore unconventional oil and gas wells, primarily in the United States. The business model is built on providing mission-critical, high-margin equipment and services that ensure safe and efficient drilling, completion (fracking), and production operations.

Cactus, Inc.'s Revenue Breakdown

The company operates through two main segments: Pressure Control, which is the historical core business of wellhead and frac equipment, and Spoolable Technologies, which focuses on flexible pipe systems for production. Based on the third quarter of 2025 results, the revenue split clearly favors the Pressure Control segment, though Spoolable Technologies is a significant and growing contributor, especially internationally.

Here's the quick math: Total revenue for Q3 2025 was $264.0 million. Pressure Control revenue was $169 million, representing 64.0% of the total. The remaining $95 million, or 36.0%, came from the Spoolable Technologies segment. The Pressure Control segment saw a sequential revenue decrease of 6.2%, mainly due to lower rental activity, but the Spoolable Technologies segment revenue actually increased sequentially, up about 1.6%, driven by stronger international sales.

Business Economics

Cactus, Inc.'s economic engine is characterized by high-margin products and services, operational flexibility, and a strong balance sheet that insulates it from some industry volatility. The company uses a competitive pricing strategy, balancing market share with profitability, but its true advantage lies in its cost structure and operational efficiency.

• Pricing Power: The highly engineered nature of its wellhead and pressure control systems, branded as Cactus Wellhead, gives the company some pricing power, particularly for its proprietary SafeDrill wellhead systems.
• Cost Mitigation: Management has been proactive in implementing cost reduction initiatives and diversifying its supply chain to mitigate the impact of rising input costs and steel tariffs, including ramping up production from its Vietnam facility.
• Rental vs. Sales Mix: Revenue from rentals (historically around 9% of total revenue) offers a recurring, albeit cyclical, revenue stream, while product sales (historically around 75% of total revenue) provide the bulk of the top line.
• Resilient Customer Base: The Spoolable Technologies segment, in particular, has a high-quality customer base, with roughly 70% of its revenue coming from major oil companies, large Exploration & Production (E&P) firms, and National Oil Companies (NOCs), which tend to be more resilient in lower commodity price environments.

The business is defintely tied to the U.S. land rig count, but its focus on consumables and international expansion helps smooth out the cycles. Breaking Down Cactus, Inc. (WHD) Financial Health: Key Insights for Investors

Cactus, Inc.'s Financial Performance

As of the end of the third quarter of 2025, Cactus, Inc. continues to demonstrate strong profitability and a fortress-like balance sheet, which is rare in the cyclical oilfield services sector. The company's full-year 2025 revenue is projected to be around $1.06 billion, according to consensus estimates.

• Adjusted EBITDA Margin: The Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin for Q3 2025 was strong at 32.9%, reflecting efficient operations and cost control efforts.
• Net Income: Net income for Q3 2025 was $50.2 million, with an adjusted net income of $53.7 million, resulting in an adjusted diluted earnings per share of $0.67.
• Liquidity and Debt: The balance sheet is exceptionally clean. As of September 30, 2025, the company reported a cash and cash equivalents balance of $445.6 million with no bank debt outstanding.
• Capital Expenditures: Net capital expenditures for the full year 2025 are expected to be in the range of $40 million to $45 million, demonstrating a disciplined approach to investment, including spending on supply chain diversification.

What this estimate hides is the potential impact of the announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business, which is expected to close in early 2026 and will significantly expand the company's geographic footprint and revenue base, particularly into the Middle East.

Cactus, Inc. (WHD) Market Position & Future Outlook

Cactus, Inc. is strategically positioned as the premier pure-play provider of wellhead and pressure control equipment for the North American onshore market, but its future hinges on successfully scaling its international presence. The company's financial health remains robust, with full-year 2025 revenue projected at approximately $1.06 billion and an estimated adjusted earnings per share (EPS) of $2.58, showcasing resilience despite a softening U.S. rig count.

The near-term focus is on integrating the Baker Hughes Surface Pressure Control (SPC) acquisition, a move that immediately diversifies Cactus's revenue stream beyond the volatile North American shale cycle and into the more stable, high-margin international markets like the Middle East.

Competitive Landscape

In the highly specialized wellhead and pressure control space, Cactus competes against the integrated oilfield service supermajors. While these giants offer a wider suite of services, Cactus maintains its edge with superior product design and a more focused, agile operating model, which helps it sustain industry-leading Adjusted EBITDA margins-around 32.9% in Q3 2025.

Here's the quick math: the global wellhead equipment market is valued at roughly $7.38 billion in 2025, so even a small percentage shift is a huge revenue opportunity.

Opportunities & Challenges

You're looking at a company making a defintely calculated shift from a domestic pure-play to an international hybrid, so the risks and opportunities are tied directly to that transition.

Industry Position

Cactus, Inc. holds a leading position in the U.S. onshore wellhead market due to its proprietary, technically superior equipment like the SafeDrill® Wellhead Systems. This focus on innovation for unconventional wells-which require faster, safer, and more efficient equipment for pad drilling-is its primary competitive moat against the supermajors who often prioritize integrated, full-service packages. The company's balance sheet is exceptionally strong, reporting $445.6 million in cash and no bank debt as of September 30, 2025. This financial strength provides the dry powder for organic growth and further strategic M&A, which is crucial in a consolidating industry. You can see how that cash pile supports their strategy in Breaking Down Cactus, Inc. (WHD) Financial Health: Key Insights for Investors.

• Maintain a high Adjusted EBITDA margin of over 30%, significantly higher than many diversified peers.
• The acquisition of the Baker Hughes SPC business is transformative, immediately boosting international revenue from roughly 20% of sales to a much larger, more balanced mix.
• The company is prioritizing capital expenditures of $40 million to $45 million for full-year 2025, focusing on manufacturing diversification (Vietnam) and efficiency upgrades.