Cactus 2Q26 Preview: Raising Estimates Above Street on Spoolables Strength, but Awaiting International Inflection Amid Middle East Supply Chain Constraints

Research evidence excerpt

Cactus 2Q26 Preview: Raising Estimates Above Street on Spoolables Strength, but Awaiting International Inflection Amid Middle East Supply Chain Constraints

up MSD-HSD vs. 1Q26 (from MSD) at 36-38% EBITDA Adj. EBITDA - 27E ($ mn) 473 498 5.2%

margins maintained, on the back of continued order momentum both domestically

and abroad. Quarterly Forecasts (FYE Dec)

Adj. EPS ($)

Operationally, Middle East disruption is easing, but logistics remains the pinch 2025A 2026E 2027E

Q1 0.73 0.70A 0.77

point with higher freight costs and extended lead times, with normalization Q2 0.77 0.71 0.86

expected to take another 1-2 quarters as shipping lanes reset. The company noted Q3 0.78 0.71 0.87

customer impacts varied across the region but were characterized as gradually Q4 0.75 0.70 0.91

normalizing as constraints and export routes improve. Importantly, management FY 3.03 2.82 3.41

described Spoolables as firing on all cylinders, highlighting strong international Style Exposure

momentum and highlighting its previously called out ~$30mm of incremental

revenue expected in 2H26. In terms of timing, management indicated international

Spoolable order cycles vary by customer but often run in the ~2-6 month range,

with the company’s April-received orders pushing initial shipments into 3Q, and

they expressed confidence that recent LatAm customer activity is durable into

2027 rather than a one-off. In the Middle East, the company also noted sour service

is critical for broader penetration (with WHD’s first sour product delivered in

April, with follow-on ordering expected late 3Q /early 4Q) and characterized the

company’s international mix as marginally accretive, with higher pressure/

temperature applications lending themselves to FlexSteel project work. Stepping