Cactus (WHD) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Oct. 29, 2026

CALL PARTICIPANTS

• Treasurer and Director of Corporate Development and Investor Relations - Alan Boyd
• Chairman and Chief Executive Officer - Scott Bender
• Chief Financial Officer - Jay Nutt
• President - Joel Bender
• Chief Operating Officer and CEO of Spoolable Technologies - Steven Bender
• CEO of Cactus International - Steve Tadlock
• General Counsel - Will Marsh

TAKEAWAYS

• Revenue -- $430.9 million, representing a 4.1% sequential decrease driven by lower product shipments in the Middle East Pressure Control segment.
• Adjusted EBITDA -- $132.0 million, remaining relatively flat compared to the second quarter despite lower total volumes.
• Adjusted EPS -- $0.96, increasing from $0.93 in the second quarter, reflecting lower purchase price accounting adjustments.
• Pressure Control Revenue -- $304.8 million, declining 11.4% sequentially due to lower volumes in the Cactus International joint venture.
• Spoolable Technologies Revenue -- $126.9 million, growing 20.2% sequentially on strength in both international shipments and domestic activity.
• Total Backlog -- $615.6 million, an increase of approximately $160 million from the end of the second quarter.
• Spoolable Technologies Backlog -- nearly doubled sequentially, primarily driven by continued order strength in Latin American markets.
• Cash and Cash Equivalents -- $354.2 million, including a $91 million cash disbursement to finalize legal entity formation transactions with Baker Hughes.
• Middle East Manufacturing Facility -- $100 million estimated investment for a new Spoolable Technologies plant expected to commence operations in 2029.
• 2026 Net Capital Expenditures Guidance -- approximately $65 million, including long-lead equipment for the Middle East facility and the Baytown expansion.
• Pressure Control Margin Guidance -- 23% to 25% for the fourth quarter, reflecting the non-recurrence of tariff recovery and unfavorable customer mix.
• Spoolable Technologies Margin Guidance -- 39% to 41% for the fourth quarter, as increased operating leverage is offset by higher input costs.
• International Spoolable Sales -- expected to represent 20% of 2026 segment sales, compared to less than 10% in 2025.
• Tariff Costs -- approximately 75% on most goods imported from China, with $6 million in refunds received during the third quarter.
• Tax Receivable Agreement Payment -- $25 million, scheduled for the fourth quarter of 2026 including related member distributions.
• Spoolable Technologies Capacity -- expected to increase by approximately 20% upon completion of the expansion at the Baytown, Texas, facility.
• Pressure Control Operating Income -- $61.5 million, a sequential increase of 4% as lower operating leverage was offset by strong spares and repair margins.
• Cactus International Orders -- accelerating in the second half of 2026, with revenue for 2027 expected to be broadly flat with 2026 levels.
• Midstream Spoolable Shipments -- scheduled to begin in the fourth quarter following a fast-track approval process for larger diameter pipes in regulated pipelines.
• Adjusted Corporate EBITDA -- an expense of approximately $6.1 million in the third quarter, compared to $5.3 million in the second quarter.

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RISKS

• Scott Bender warned that "margins are expected to decrease primarily due to the non-recurrence of tariff recovery and will also be unfavorably impacted by customer mix in our Cactus International business," for the Pressure Control segment in the fourth quarter.
• Jay Nutt noted that management is "closely monitoring elevated input costs that may affect our cost structure next year" in the Spoolable Technologies segment.
• The company indicated it continues to monitor the situation in the Middle East, "including the impacts of the recent Houthi activity," which could affect manufacturing operations and supply chains.

SUMMARY

Cactus, Inc. (NYSE:WHD) reported a sequential revenue decline as lower activity in its international Pressure Control segment offset growth in Spoolable Technologies. Management reported that while Pressure Control shipments in the Middle East declined, bookings have hit a trough and are beginning to accelerate for 2027 delivery. The company announced a strategic $100 million investment to establish a Spoolable Technologies manufacturing presence in the Middle East to capture demand in a region where steel pipe currently dominates. The Spoolable Technologies segment reported record international shipments and a meaningful expansion of its backlog, supported by new regulatory approvals for midstream applications in the United States.

• The company plans to fund the $100 million Middle East manufacturing plant through internal cash generation, with the majority of capital expenditures occurring in 2027 and 2028.
• CEO Scott Bender stated, "The Middle East offers one of the largest potential markets for spoolable pipe, where steel pipe currently dominates," noting that the region currently represents only 2% of segment revenue.
• Management expects international sales for Spoolable Technologies to reach 20% of the segment total in 2026, doubling the 2025 mix.
• The company is benefiting from a new PHMSA exemption process that fast-tracks approvals for larger diameter spoolable pipe in regulated midstream pipelines.
• Scott Bender noted that domestic U.S. land rig counts are expected to remain steady, which should result in "resilient domestic revenues despite normal seasonal slowdowns" in the fourth quarter.
• Management is executing a supply chain transformation in the Cactus International business, with associated cost savings expected to benefit results in 2028.

INDUSTRY GLOSSARY

• PHMSA: The Pipeline and Hazardous Materials Safety Administration, a U.S. agency that regulates the safety of pipeline transportation.
• TRA: Tax Receivable Agreement, a contract that requires a company to pay early investors for tax benefits generated by certain assets.
• Spoolable pipe: Flexible, reinforced thermoplastic pipe that is wound onto reels for efficient transport and rapid installation in oil and gas applications.
• Pressure Control: Systems and equipment, such as wellheads and valves, used to contain and manage high pressures during drilling and production.
• CC Unit: An ownership unit in Cactus Companies, LLC, the primary operating subsidiary of Cactus, Inc.
• Cactus International: The company's international division and joint venture focused on markets outside North America, primarily in the Middle East.
• Vetco Gray: A legacy brand of oilfield equipment; Cactus provides specialized replacement parts and services for this installed equipment base.

Full Conference Call Transcript

Operator: Thank you for standing by. Welcome to Cactus Q3 2026 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone, and you will then hear an automated message advising your hand is raised. To withdraw your question, press star one again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today, Alan Boyd, Treasurer and Director of Corporate Development and Investor Relations. Please go ahead.

Alan Boyd: Thank you, and good morning. We appreciate you joining us on today's call. Our speakers will be Scott Bender, our Chairman and Chief Executive Officer, and Jay Nutt, our Chief Financial Officer. Also joining us today are Joel Bender, President, Steven Bender, Chief Operating Officer and CEO of Spoolable Technologies, Steve Tadlock, CEO of Cactus International, and Will Marsh, our General Counsel. Please note that any comments we make on today's call regarding projections or expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control.

These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Any forward-looking statements we make today are only as of today's date, and we undertake no obligation to publicly update or review any forward-looking statements. In addition, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release. With that, I will turn the call over to Scott.

Scott Bender: Thanks, Alan, and good morning, everyone. Pressure Control sales declined as expected, but bookings accelerated and margins exceeded expectations on improved cost control, synergy realization, and strong domestic performance. Our Spoolable Technologies business grew sales and backlog substantially as international and domestic market momentum continued. Although the global market remains highly dynamic and uncertain, I'm confident that our business, which focuses on differentiated, highly engineered products, will continue to outperform. Some Q3 total company financial highlights include revenue of $431 million, adjusted EBITDA of $132 million, adjusted EBITDA margins of 30.6%. We closed the quarter with a cash balance of $354 million and paid a quarterly dividend of $0.15 per share.

Yesterday, we announced that we're planning to construct a Spoolable Technologies manufacturing facility in the Middle East. I'll now turn the call over to Jay Nutt, our CFO, who will review our financial results, and following his remarks, I'll provide some thoughts on our outlook for the near term before opening the lines for Q&A. Jay?

Jay Nutt: Thank you, Scott. As Scott noted, total Q3 revenues were $431 million, down 4% sequentially. Total adjusted EBITDA of $132 million was flat from the Q2, despite the lower volume and lower contributions from tariff refunds. For our Pressure Control segment, revenues of $305 million were down 11% sequentially, driven primarily by lower product shipments in the Middle East, which more than offset an increase in U.S. sales as domestic customers increased activity. Operating income increased $2.4 million or 4% sequentially, with operating margins increasing approximately 3%. Operating income was reduced by approximately $9 million due to purchase price accounting adjustments that we add back to our adjusted operating results, which declined from $20 million in the Q2.

Adjusted segment EBITDA was $9.8 million or 10% lower sequentially, with margins increasing by 40 basis points. Margins improved slightly on better mix and strength in spares and repair margins in our Cactus International business, combined with strong cost control and synergy realization, all of which offset lower operating leverage and lower tariff refunds in the quarter. Our refunds totaled approximately $6 million in the quarter, and we've received the vast majority of the refunds that we anticipate are due. For our Spoolable Technologies segment, revenues of $127 million increased over 20% sequentially, reflecting expanding domestic activity in a seasonally stronger quarter and continued expansion in international markets.

Operating income increased $9.4 million or 29% sequentially, with operating margins increasing 230 basis points. Adjusted segment EBITDA increased $9.8 million or 23% sequentially, while margins increased by 110 basis points as operating leverage improved. Corporate and other expenses increased by $1.3 million to $9.1 million in Q3, including $600,000 of transaction and integration cost. Adjusted corporate EBITDA moved unfavorably from $5.3 million to $6.1 million of expense on higher personnel expenses. On a total company basis, Q3 adjusted EBITDA was $132 million, down $800,000 from Q2. Adjusted EBITDA margin for the Q3 improved to 30.6% compared to 29.5% for the Q2.

Adjustments to total company EBITDA during the Q3 included non-cash charges of $7.8 million in stock-based compensation, $200,000 of inventory step-up amortization reversal due to purchase price accounting, and $600,000 for transaction-related professional fees, and $2.8 million of severance, primarily associated with continuing actions to rightsize the Cactus International organization in support of our previously communicated synergy target. Total company backlog ended the quarter at $615.6 million, an increase of approximately $160 million from the end of the Q2. Backlog in Cactus International business increased sequentially as anticipated, as certain customers had destocked inventory in the first half of the year and commenced order placements.

Backlog in our spoolable business expanded meaningfully in the Q3, primarily driven by continued order strength in the LATAM market. As a reminder, backlog does not include any U.S. Pressure Control contribution. Depreciation and amortization expense for the Q3 was $26.8 million, which included $200,000 of amortization reversal of the step-up in inventory values resulting from the Cactus International acquisition, and a combined $13.6 million of amortization expense related to intangible assets that arose from both the Cactus International and FlexSteel acquisitions. During the Q3, the public or Class A ownership of the company averaged and ended the period at 87%. GAAP net income was $74 million in the Q3 versus $61 million during the Q2.

The increase was largely driven by lower purchase price accounting related adjustments in the period. Book tax expense during the Q3 was $21 million, resulting in an effective tax rate of 22%. Adjusted net income and earnings per share were $78 million and $0.96 per share, respectively, during the Q3, compared to $75 million and $0.93 per share in the Q2. Adjusted net income for the Q3 was net of a 27% tax rate applied to our adjusted pre-tax income. During the quarter, we paid a quarterly dividend of $0.15 per share, resulting in a cash outflow of approximately $12 million, including related distributions to our members. We ended the quarter with a cash balance of $354 million.

This amount is net of $91 million of cash disbursed through accounts payable to finalize the Cactus International legal entity formation transactions with Baker Hughes during the quarter. We have now concluded all legal entity formations and deferred closing activities related to the Cactus International acquisition. The quarter end cash balance represented a sequential increase of $79 million, excluding the transaction-related outflows in the period. Net CapEx was $16.1 million during the Q3 of 2026. In a moment, Scott will give you our Q4 operational outlook. Some additional financial considerations when looking ahead to the Q4 include an effective tax rate of 24% and an estimated tax rate for adjusted EPS of approximately 27%.

Total depreciation and amortization expense during the Q4 is expected to be approximately $27 million. $18 million of the amortization expense is associated with our Pressure Control segment, and $9 million is in the Spoolable Technologies segment. These amounts include approximately $10 million of intangible amortization due to purchase price accounting in our Pressure Control segment and $4 million in our Spoolable Technologies segment. We now expect our full year 2026 net CapEx to be approximately $65 million. The estimate includes the placement of orders for long lead equipment related to the Middle East Spoolable Technologies manufacturing facility and the ongoing Baytown expansion. Scott will describe the Middle East plant initiative in more detail in just a moment.

During the Q4, we will be making the annual payment related to our tax receivable agreement and related member distributions. The payment and related distributions will be approximately $25 million. Finally, the board has approved a quarterly dividend of $0.15 per share, which will be paid in December. That covers the financial review, and I will now turn the call back over to Scott.

Scott Bender: Thanks, Jay. I would like to begin our outlook commentary with an overview of our plan to expand our Spoolable Technologies manufacturing footprint with a facility in the Middle East. There is a substantial market opportunity in the region, as the Middle East offers one of the largest potential markets for spoolable pipe, where steel pipe currently dominates. FlexSteel has been successful in cultivating relationships with key customers in the region. While we have had recent success in winning awards, this market remains essentially untapped for us right now, representing only about 2% of revenue since we acquired the business. In order to drive a step change in our sales in the Middle East, a local manufacturing presence is needed.

We expect that the investment required to construct the facility will be approximately $100 million, which we anticipate being funded with internal cash generation. The majority of the capital investment will be split between 2027 and 2028, with a modest amount to be incurred in 2026, as Jay mentioned. We expect that the plant will commence operations in 2029. We provided an indication of our potential long-term revenue impact last quarter, and we will provide further details regarding the facility as construction progresses.

I will remind you that our FlexSteel product offers customers the largest commercial spoolable pipe diameters, pressure ratings, temperature ratings to meet the wide range of customer needs, and many of our products are already fully qualified by the key customers in the region, providing confidence in our ability to penetrate the market. We are enthusiastic about taking this next step in the evolution of growth for FlexSteel. I will now turn to our operational outlook for the Q4. During the Q4, we expect Pressure Control revenue to be flat to up from the Q3.

We expect that domestic U.S. land rig counts will remain steady from today's level through the end of the year, which represents a slightly higher average activity level than seen in the Q3 and should result in resilient domestic revenues despite normal seasonal slowdowns. We believe that Cactus International sales will remain in line with Q3 levels as we work through existing backlog. Our manufacturing operations in the Middle East have been largely uninterrupted despite the ongoing conflict and increased tensions, and we continue to monitor the situation, including the impacts of the recent Houthi activity. Adjusted EBITDA margins in our Pressure Control segment are expected to be in the 23%-25% range in the Q4.

This guidance excludes approximately $4 million of stock-based comp expense within the segment. Margins are expected to decrease primarily due to the non-recurrence of tariff recovery and will also be unfavorably impacted by customer mix in our Cactus International business. Looking forward, with the increase of pace of order activity in our Cactus International business in the back half of this year, we expect revenue levels for next year to be broadly flat with 2026, with the back half of 2027 being stronger than the first half.

With these orders, our work is accelerating on supply chain related transformation and the associated cost savings we expect to achieve in the back half of 2027, which will more fully benefit 2028 results. We will share more detail on these initiatives in the coming quarters. We also remain encouraged by efforts to diversify sales into regions with a large installed base of legacy Vetco Gray equipment, which we expect to benefit our revenues in 2028. As it relates to our U.S. operations, the tariff situation has remained stable in the past several months, and we continue to pay approximately 75% total tariffs on the import of most of our goods from China.

Shifting to our Spoolable Technologies segment, I remain very pleased with the performance of this business. We expect revenues in the Q4 to be up low single digits from the Q3, as typical North American market seasonality is more than offset by continued international strength, benefiting from the timing of several large shipments into Latin America in the Q4. We expect non-U.S. sales to represent approximately 20% of sales for 2026, more than doubling from sub 10% in 2025. As we previewed on last quarter's call, we achieved a record level of orders in the Q3 and nearly doubled our backlog, which further supports the demand underwriting our plan to expand our Baytown facility.

In the Q4, we also expect to make our first substantial shipments to midstream customers, resulting from the newly approved PHMSA exemption process, which fast tracks approvals for larger diameter spoolable pipe in regulated midstream pipelines. We believe we are in the early stages of growth in a market that has been slow to adopt spoolable pipe for these applications. We expect Spoolable Technologies adjusted EBITDA margins to be approximately 39%-41% in the Q4, which excludes $1 million of stock-based compensation expense. We project margins to be relatively stable in the Q4 as increased operating leverage is offset by higher input costs and typical holiday-related manufacturing inefficiencies.

We are closely monitoring elevated input costs that may affect our cost structure next year. Adjusted corporate EBITDA is expected to be a charge of approximately $6 million in the Q4, which excludes $2 million of stock-based comp. To close our remarks, I would like to start by thanking our associates for sustaining such a high level of business performance this year. Both of our segments are undergoing transformational initiatives as we continue the full integration of our Cactus International business while expanding and diversifying the manufacturing footprint of our Spoolable Technologies business, all while safely executing at the high level our customers demand.

The Cactus culture is on display as our domestic business is as resilient and profitable as ever, and we are enthusiastic about the trajectory of midstream spoolable sales to come as the market digests the recent PHMSA ruling. Our international Pressure Control business is executing well in spite of challenging market conditions brought on by the war, and the business is beginning to secure meaningful orders for shipments next year through a transformed supply chain while our international Spoolable Technologies business is growing rapidly. I'm very pleased to begin the journey towards establishing a spoolable manufacturing footprint in the Middle East. As always, we'll continue to operate the business with a focus on safety, returns, margins, and customer execution.

With that, I'll turn it back over to the operator and we can begin Q&A. Operator?

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Arun Jayaram from J.P. Morgan Securities. Your line is now open.

Scott Bender: Good morning.

Arun Jayaram: Yeah, good morning, team. My question is, I wanted to see if you can maybe elaborate on how the capacity expansion that you previously announced at Baytown, plus this Middle East expansion, will support Cactus' ability to drive volumes higher in spoolables. If we look at this year, for example, your revenue in spoolables looked to be up 23% or so. So I guess we're just trying to understand, as we start thinking about modeling the company over a multi-year basis, what kind of volume growth could we see between this combination of Baytown, where I believe you're adding some roofline, maybe moving to three shifts, and then also this Middle East expansion?

Scott Bender: What a very surprising question. The Baytown expansion, which is currently underway but not fully realized, will add about 20% to our Baytown capacity. If we take that number and divide it, as I mentioned before, divide it by 0.6, that will give you our total potential revenue capacity or production capacity. I am sure you can do that math. It just has this very serious impact on our Spoolable Technologies revenue stream. I think importantly, although you did not ask the question, unlike Pressure Control, the margins are not going to suffer by virtue of being more exposed to international.

Arun Jayaram: Got it. That is super helpful. I did go to UT Austin, but I can do that math in my head as well. Anyways, a good school. I hope my kid is going to get in, but we will see. Last question from me is, I wanted to talk a little bit about your anticipation and where we could start to see a little bit of an order inflection in Cactus International. Obviously, a lot of security challenges near term, but, as you think about some of the destocking, when do you expect that to maybe soft, where we could start seeing backlog grow in Cactus International?

Scott Bender: I will let Tadlock respond to that, but you are already seeing it.

Steve Tadlock: Yeah. We saw that happen this quarter. I think in the Q&A last quarter, I mentioned we had seen a destocking of inventory in the Middle East for the first half of the year, which we believe was driven largely by the conflict and then a strong order activity in years prior. Orders in the first half for that region had been pretty much all services related, so repairs and spares, as that took priority for customers. But as we anticipated, we saw a significant recovery this quarter in multiple countries in the Middle East, not just one or two. These orders do have delivery terms of 9-15 months, depending on what their timeline is.

But, yeah, as I said, I think that should continue in Q4, and then hopefully we are in more of a normal pace in 2027.

Arun Jayaram: Great. Thank you very much.

Scott Bender: Thanks, Arun.

Operator: Thank you. Our next question comes from the line of Derek Podhaizer from Piper Sandler. Your line is now open.

Derek Podhaizer: Hey, good morning, everyone. [inaudible] Morning. I guess sticking on spoolables first, just got interesting comment to Arun's question as far as the margin profile should not suffer by virtue of international exposure. Obviously, this is an incredible growth opportunity for you guys, but maybe you could unpack that for us just a little bit more. Just considering international tends to be a lower price environment, but you guys have always historically driven premium margins. So maybe just a little more color on that as far as why you're able to hold the margins that you've been used to with spoolables ever since you bought FlexSteel a few years ago.

Scott Bender: I can probably sum that up by telling you that large diameter. We still are the only spoolable company that can produce large, high-pressure diameter pipe. That certainly supports a margin that is consistent with what we see in North America.

Derek Podhaizer: Got it. Okay. That is helpful. It makes sense. Switching over to Pressure Control, just looking back at the guide, I think you guide Q3 to be around that 23%-25%. You came in greater than 28%. The 4Q guide went back to that original 3Q, back down to 23%-25%. Could you just piece it together for us, maybe the drivers behind the big beat for this quarter exceeding 28%, but then also why returning back down to the 23%-25% level? Thanks.

Scott Bender: Okay. Jay?

Jay Nutt: Yeah. The outperformance in Q3, as I mentioned, we had some better than anticipated performance on spares and repairs margins, a little bit additional synergy realization accomplished from actions completed in Q2, Derek. Obviously, the tariffs we already knew about when we gave our guidance. Going into Q4, really the customer mix and the equipment versus service mix is the driver of the margin degradation quarter-over-quarter that will take us back to 23%-25%.

Derek Podhaizer: Great. Appreciate the comments, Scott and Jay. I will turn it back.

Scott Bender: Thank you, sir.

Operator: Thank you. Our next question comes from the line of Stephen Gengaro with Stifel. Your line is now open.

Scott Bender: Hi, Stephen. How are you?

Stephen Gengaro: Good. Thanks for taking the question. A couple of things from me. I think the first one, you mentioned the Middle East penetration. I think you talked about being qualified and having a lot of confidence. Is that process easier for spoolables than it is for the Pressure Control business? I am just thinking about the traction you are getting there and how to think about the ramp in that market. Clearly you are building a facility. You are ultra-confident, but I just wanted to understand that a little better.

Scott Bender: Yeah. Well, Stephen, it ain't easy, but we are much, much further along. We knew this was coming, and so we have developed the products and began testing well in advance. Frankly, Baker had relaxed their attention on testing requirements for customers in the Middle East, whereas spoolables did not. I think that we will probably be done. All the testing is underway and going as planned, so that by the end of the Q1, beginning of the Q2, it will be done, but we are not seeing any hiccups at all.

Stephen Gengaro: Thank you. The other question is on the U.S. Pressure Control piece, and I know I am not allowed to ask you specifically about market share anymore, but when you think about the activity levels we have seen in the U.S. market, and we have seen a lot of privates kind of ramp, to my knowledge, and I am hearing some public start as well. Historically, your share with privates was lower, and I know it improved post-COVID. I am just curious how we should think about your growth relative to overall market growth if it is driven by privates.

Scott Bender: Well, everything you said is true. But in conversations with our customers, which is really the best proxy for us, we see that the Q1 is going to be a strong market share quarter for us. For those of you that are wondering when we stopped reporting market share, if that was sort of foreshadowing a decline, the answer is no. I think that you will see, although I cannot quantify that for you, I think you will see an improved market share statistic metric through the end of the Q1.

Stephen Gengaro: Okay. Just a quick follow-up to that. Based on your numbers, clearly the share hasn't gone down. You mentioned in the Q1. Assuming based on your history, when you do gain share, it's very sticky. So that's a comment which should hold going forward through the Q1.

Scott Bender: Yeah.

Stephen Gengaro: Great. Thank you.

Scott Bender: Thank you. Thank you, Stephen. Do we have any other questions? If not.

Operator: Thank you. This ends our question and answer session, and we will turn it back to our speakers for closing remarks.

Scott Bender: Okay. Thanks everybody for your attention today. Let me just sum up our conversation, and that is that our Spoolable Technologies business is doing magnificently right now with, I think, some additional products in the pipeline, which I cannot really comment on right now, but some exciting news. Cactus International has hit its trough in terms of bookings, and our Pressure Control business in the U.S. has really never performed better than it is performing now, despite the impact of these tariffs on our business. So I thank you for your support and look forward to speaking to you at any time. Thank you. Have a good day.

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