The following is a summary of the Cactus Inc. (WHD) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Cactus Inc. reported a third-quarter total company revenue of $293 million, a slight increase of 1% sequentially.

• Adjusted EBITDA was $100 million, reflecting a marginal decrease of 3% sequentially, with an EBITDA margin of 34.2%.

• GAAP net income for the third quarter was $62 million, slightly down from $63 million in the previous quarter.

• Adjusted net income and earnings per share were $63 million and $0.79, respectively.

• Cash and cash equivalents increased by $57 million, closing the quarter with a balance of $303 million.

Business Progress:

• Cactus Inc. has successfully closed out the earn-out liability with the Flexsteel acquisition during this quarter.

• The company has increased investments in its international expansion, particularly targeting the Mideast region.

• Continues to focus on enhancing product portfolios such as the next generation wellhead system and a new frac valve design aimed at reducing maintenance costs.

Opportunities:

• The company's international revenue in the spoolable Technologies segment has doubled compared to the previous year's full-year performance, indicating robust growth potential.

• Plans for international expansion are highlighted particularly with a focus on establishing a business in the Mideast, which shows potential for increasing market share and revenue.

Risks:

• Anticipated lower fourth-quarter revenue in the Pressure Control segment due to reduced U.S. land drilling activity and seasonal customer budget exhaustion, which could affect production equipment shipments and financial performance.

• Higher material costs experienced in the third quarter are expected to continue affecting profitability through the end of the year.

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