The following is a summary of the Cactus Inc (WHD) Q1 2024 Earnings Call Transcript:
Financial Performance:
Cactus Inc reported Q1 total revenue of $274 million with adjusted EBITDA of $95 million.
The company's Pressure Control segment contributed $175 million and the Spoolable Technologies segment contributed $99 million to the revenue.
Adjusted EBITDA decreased by 4.8% compared to the previous quarter, mainly due to a decrease in operating income and increased expenses in the Spoolable Technologies segment.
The company declared a Q1 dividend of $0.12 per share and reported an ending cash balance of $194 million.
Business Progress:
The company has revealed plans to release their latest generation wellhead, focusing on inventory positioning to impact future operating results.
Expansion in the Middle East, particularly aiming at Saudi Arabia's surface pressure control equipment market, is a major strategic move.
Cactus Inc is in the final stages of negotiating terms for a significant international order outside of the Middle East.
There's potential growth in the Spoolable Technologies business driven by inquiries for large international projects and increasingly the number of orders from a new midstream customer.
In addition to hydrogen transmission testing, the company is advancing low-cost supply chain diversification strategy, enhanced frac innovations and international market expansion.
More details: Cactus IR
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