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

Ever wondered how a company specializing in wellhead and pressure control equipment navigates the dynamic oil and gas industry? Cactus, Inc. (WHD), with its $2.47 billion market cap, designs, manufactures, and provides essential equipment and services for onshore unconventional oil and gas wells.

But how exactly does Cactus, Inc. operate, and what makes it a key player in its sector? Join us as we delve into Cactus, Inc.'s history, ownership structure, and business model, exploring how it generates revenue and maintains a strong market position with a $342.8 million cash balance and no bank debt as of December 31, 2024.

With a dividend yield of 1.44% and a recent quarterly cash dividend declaration of $0.13 per Class A share in January 2025, discover what sets Cactus, Inc. apart and why it matters in today's energy landscape.

Cactus, Inc. (WHD) History

Cactus, Inc.'s Founding Timeline

Year Established

Cactus, Inc. was established in 2011.

Original Location

The company is headquartered in Houston, Texas.

Founding Team Members

Although specific names of the founding team members are not widely publicized, Cactus, Inc. was formed by a group of experienced professionals with backgrounds in engineering and manufacturing within the oil and gas industry.

Initial Capital/Funding

Details regarding the initial capital and funding sources for Cactus, Inc. are not publicly disclosed. However, the company's focus on developing and manufacturing highly engineered products for the energy sector suggests a significant upfront investment in research, development, and manufacturing capabilities.

Cactus, Inc.'s Evolution Milestones

Cactus, Inc.'s Transformative Moments

Cactus, Inc. has experienced several transformative moments that have shaped its growth and success:

• Strategic Decision to Focus on Highly Engineered Products: Early on, the company made a strategic decision to focus on designing and manufacturing highly engineered wellhead and pressure control equipment. This differentiated Cactus, Inc. from competitors and allowed it to capture a significant share of the market for high-performance products.
• Successful Initial Public Offering (IPO): The 2018 IPO was a pivotal moment, providing Cactus, Inc. with the capital to invest in growth initiatives, including expanding its manufacturing capacity, entering new markets, and making strategic acquisitions.
• Commitment to Customer Service and Support: Cactus, Inc. has consistently prioritized customer service and support, building long-term relationships with key customers and earning a reputation for reliability and responsiveness.
• Investments in Technology and Innovation: The company's ongoing investments in technology and innovation have enabled it to develop cutting-edge products and solutions that meet the evolving needs of the energy industry.

For more insights into the investors and the reasons behind their investment decisions, check out: Exploring Cactus, Inc. (WHD) Investor Profile: Who’s Buying and Why?

Cactus, Inc. (WHD) Ownership Structure

Cactus, Inc. exhibits a mixed ownership structure, encompassing both institutional and individual holdings, which influences its corporate governance and strategic direction.

Cactus, Inc.'s Current Status

Cactus, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. As of late 2024/early 2025, Cactus, Inc. maintains its listing on the New York Stock Exchange (NYSE) under the ticker symbol WHD.

Cactus, Inc.'s Ownership Breakdown

Understanding the ownership structure of Cactus, Inc. provides insights into who has the most influence on the company's decisions. Here's a breakdown of the ownership as of the latest available data:

Cactus, Inc.'s Leadership

The leadership team at Cactus, Inc. is responsible for setting the strategic direction of the company and overseeing its operations. Here are some of the key figures:

• Scott Bender: CEO of Cactus, Inc.
• Steve Gallegos: CFO of Cactus, Inc.

For more insight into the company's guiding principles, read about the Mission Statement, Vision, & Core Values of Cactus, Inc. (WHD).

Cactus, Inc. (WHD) Mission and Values

Cactus, Inc. strives to be the premier provider of wellheads and associated services, committed to safety, customer satisfaction, and operational excellence. The company's values emphasize integrity, teamwork, and innovation in serving the needs of the oil and gas industry.

Cactus, Inc.'s Core Purpose

Official mission statement

Cactus, Inc.'s mission statement is as follows:

• To be the premier wellhead and associated services company, providing the highest level of safety, service, and value to our customers.
• Focus on designing, manufacturing, selling, and renting a range of highly engineered wellhead and pressure control equipment.
• Offer services for onshore oil and gas wells.

Vision statement

While a specific, formally declared vision statement is not explicitly available in the provided context, Cactus, Inc.'s actions and strategic focus suggest a vision centered on:

• Maintaining a leading position in the wellhead and pressure control equipment market.
• Expanding its market share through innovative products and superior service.
• Commitment to safety and operational efficiency.

Company slogan/tagline

Based on the information available, Cactus, Inc. does not have a prominently advertised official slogan or tagline. However, their core values and operational focus suggest an implicit tagline centered around:

• Safety, Service, and Value in Wellhead Solutions.
• Excellence in engineering and customer support.
• Reliable and efficient pressure control equipment.

To gain more insights into the financial aspects of Cactus, Inc., consider exploring: Breaking Down Cactus, Inc. (WHD) Financial Health: Key Insights for Investors

Cactus, Inc. (WHD) How It Works

Cactus, Inc. engineers, manufactures, and sells equipment for oil and gas wells, offering solutions for drilling, completion, and production, focusing primarily on unconventional onshore oil and gas wells.

Cactus, Inc.'s Product/Service Portfolio

Cactus, Inc.'s Operational Framework

Cactus, Inc. operates through a streamlined framework focused on delivering high-quality products and services to the oil and gas industry. The company emphasizes close collaboration with its customers to understand their specific needs and provide tailored solutions.

• Engineering and Manufacturing: Cactus designs and manufactures its equipment in-house, allowing for strict quality control and continuous innovation.
• Direct Sales Model: The company primarily sells directly to operators, fostering strong relationships and enabling direct feedback for product improvement.
• Service and Support: Cactus provides comprehensive field services, including installation, maintenance, and repair, ensuring customer satisfaction and equipment reliability.
• Rental Services: In addition to sales, Cactus offers rental options to meet varying customer needs, providing flexibility and cost-effectiveness.

Cactus, Inc.'s Strategic Advantages

Cactus, Inc. has carved out a strong position in the oil and gas equipment market through several key strategic advantages.

• Focus on Safety: Cactus places a high priority on safety, designing its products with advanced safety features and providing extensive training to operators.
• Customer Relationships: The company’s direct sales model fosters strong, long-term relationships with its customers, leading to repeat business and valuable feedback.
• Technological Innovation: Cactus continuously invests in research and development to enhance its product offerings and meet the evolving needs of the industry.
• Efficient Operations: Cactus maintains a lean and efficient operational structure, enabling it to deliver high-quality products and services at competitive prices.

To gain more insights into the values that drive Cactus, Inc., explore Mission Statement, Vision, & Core Values of Cactus, Inc. (WHD).

Cactus, Inc. (WHD) How It Makes Money

Cactus, Inc. designs, manufactures, and sells wellhead and pressure control equipment, and offers services related to the drilling and production of oil and gas wells.

Cactus, Inc.'s Revenue Breakdown

Cactus, Inc. primarily generates revenue through the sale and rental of its products and the provision of field services. A detailed breakdown reveals the contribution of each segment to the company’s overall financial performance.

Cactus, Inc.'s Business Economics

Cactus, Inc.'s business economics are influenced by several key factors that affect its profitability and market position:

• Pricing Strategies: Cactus employs competitive pricing strategies, balancing market share and profitability.
• Cost Structure: Efficient cost management in manufacturing and service delivery enhances margins.
• Market Demand: Demand for Cactus's products and services is closely tied to oil and gas drilling and production activity, which fluctuates with energy prices and industry investment levels.
• Technological Innovation: Continuous innovation in wellhead and pressure control technology provides a competitive edge.

Cactus, Inc.'s Financial Performance

Cactus, Inc.’s financial performance can be evaluated through these points:

• In the fiscal year 2024, Cactus, Inc. reported revenue of $1.24 billion, a 17% increase compared to 2023.
• Net income for 2024 was $215 million, demonstrating strong profitability.
• The company maintains a healthy gross margin, reflecting efficient operations and effective pricing strategies.
• Cactus, Inc. has a strong balance sheet with substantial cash reserves, enabling strategic investments and shareholder returns.

To gain a deeper understanding of Cactus, Inc.'s financial health, you can read more here: Breaking Down Cactus, Inc. (WHD) Financial Health: Key Insights for Investors

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

Cactus, Inc. is strategically positioned to capitalize on the increasing demand for advanced well construction and intervention solutions, holding a strong position in the oil and gas sector. The company's future outlook appears promising, driven by technological innovation and expanding its service offerings. For an in-depth look at their financial standing, see: Breaking Down Cactus, Inc. (WHD) Financial Health: Key Insights for Investors

Competitive Landscape

Opportunities & Challenges

Industry Position

Cactus, Inc. maintains a strong standing within the oilfield services sector, particularly known for its wellhead and pressure control equipment. The company focuses primarily on the onshore unconventional market, where it has established a solid reputation for quality and reliability.

• Cactus's market position is bolstered by its focus on high-growth areas within the oil and gas industry.
• The company's commitment to innovation and customer service enhances its competitive edge.
• Strategic initiatives aimed at expanding its product line and geographic reach are expected to further solidify its industry standing.