칵투스(WHD) 2026년 3분기 실적 발표 콘퍼런스 콜: 스풀러블 매출 성장으로 수주 잔고 증가

핵심 요약

• 칵투스는 2026년 3분기 매출이 전 분기 대비 4% 감소한 4억 3,100만 달러를 기록했다고 발표했으나, 조정 EBITDA는 1억 3,200만 달러로 전반적으로 보합세를 유지했습니다.
• 비용 절감, 인수 시너지, 영업 믹스 개선, 스페어 부품 및 수리 부문의 이익률 향상에 힘입어 조정 EBITDA 마진은 2분기 29.5%에서 30.6%로 상승했습니다.
• 프레셔 컨트롤 매출은 미국 내 매출 증가에도 불구하고 중동 지역 제품 출하량이 감소하면서 전 분기 대비 11% 감소한 3억 500만 달러를 기록했습니다.
• 스풀러블 테크놀로지스 매출은 전 분기 대비 20% 이상 증가한 1억 2,700만 달러를 기록했습니다. 영업이익은 29% 증가했으며, 조정 세그먼트 EBITDA는 23% 증가했습니다.
• 총 수주잔고는 2분기 대비 약 1억 6,000만 달러 증가한 6억 1,560만 달러를 기록했습니다. 특히 중남미 지역의 주문에 힘입어 스풀러블 수주잔고는 두 배 가까이 늘었습니다.
• 칵투스는 중동 스풀러블 테크놀로지스 제조 시설에 약 1억 달러를 투자할 계획이며, 2029년에 가동을 시작할 것으로 예상됩니다.

주요 재무 데이터

사업 및 영업 실적

프레셔 컨트롤

프레셔 컨트롤 매출은 미국 내 활동 증가에도 불구하고 중동 지역의 제품 출하 감소 폭이 이를 상쇄하면서 감소했습니다. 세그먼트 영업이익은 전 분기 대비 4% 증가했으며, 영업이익률은 약 3%포인트 개선되었습니다.

조정 세그먼트 EBITDA는 980만 달러(10%) 감소했지만, 마진은 40bp 상승했습니다. 제품 믹스 개선, 스페어 부품 및 수리 부문의 견조한 수익성, 비용 절감 및 시너지 실현이 영업 레버리지 하락과 관세 환급 감소 효과를 상쇄했습니다.

칵투스는 해당 분기 동안 약 600만 달러의 관세 환급금을 수령했으며, 수령할 것으로 예상되는 환급금의 대부분을 이미 회수했다고 밝혔습니다.

2026년 상반기 고객사의 재고 감축 이후, 3분기 들어 칵투스 인터내셔널(Cactus International)의 수주 건수가 회복세를 보였습니다. 경영진은 이번 반등이 중동 여러 국가에 걸쳐 나타났으며, 납품 기간은 일반적으로 9개월에서 15개월 정도 소요된다고 밝혔습니다.

스풀러블 테크놀로지스

스풀러블 테크놀로지스는 국내 활동 호조와 지속적인 해외 확장의 수혜를 입었습니다. 영업이익은 940만 달러(29%) 증가했고 영업이익률은 230bp 상승했습니다. 조정 세그먼트 EBITDA는 980만 달러(23%) 증가했으며, 마진은 110bp 확대되었습니다.

경영진은 2026년 미국 외 매출이 세그먼트 매출의 약 20%를 차지하여, 10% 미만이었던 2025년 비중의 두 배 이상이 될 것으로 예상하고 있습니다. 또한 4분기에는 새로 승인된 PHMSA 면제 절차에 따라 미드스트림 고객사에 대한 첫 대규모 출하가 이루어질 것으로 기대하고 있습니다.

베이타운(Baytown) 공장 증설을 통해 시설 생산능력이 약 20% 확대될 것으로 기대됩니다. 이와 별개로, 칵투스는 인수 이후 플렉스스틸(FlexSteel) 매출의 약 2%만을 차지했던 중동 지역에 현지 생산 기반을 구축하기 위해 중동 스풀러블 파이프 공장을 건설할 계획입니다.

중동 공장 신설에는 약 1억 달러가 소요될 것으로 예상되며, 자체 창출 현금으로 자금을 조달할 예정입니다. 투자의 대부분은 2027년과 2028년에 계획되어 있으며, 가동은 2029년에 시작될 것으로 전망됩니다.

경영진 가이던스

• 프레셔 컨트롤 매출: 경영진은 안정적인 미국 육상 리그 활동과 견조한 국내 매출에 힘입어 4분기 매출이 3분기 대비 보합 또는 증가할 것으로 예상합니다.
• 프레셔 컨트롤 마진: 약 400만 달러의 주식 기준 보상을 제외한 조정 EBITDA 마진은 23%~25%로 예상됩니다. 이러한 마진 하락 전망은 관세 환급 효과의 소멸과 불리한 고객 및 장비 믹스를 반영합니다.
• 칵투스 인터내셔널: 4분기 매출은 3분기와 비슷한 수준을 유지할 것으로 예상됩니다. 경영진은 2027년 매출이 상저하고 양상을 보이며 2026년과 전반적으로 유사한 수준일 것으로 전망합니다.
• 스풀러블 테크놀로지스 매출: 해외 시장의 호조와 대규모 중남미 물량 출하가 북미 지역의 통상적인 계절성을 상쇄하면서, 4분기 매출은 전 분기 대비 한 자릿수 초반 대의 퍼센트 증가율을 기록할 것으로 예상됩니다.
• 스풀러블 테크놀로지스 마진: 약 100만 달러의 주식 기준 보상을 제외한 조정 EBITDA 마진은 39%~41%로 예상됩니다.
• 본사 비용: 주식 기준 보상 200만 달러를 제외한 조정 본사 EBITDA는 약 600만 달러의 비용이 발생할 것으로 예상됩니다.
• 연간 자본적 지출: 칵투스는 중동 공장과 베이타운 증설을 위한 장기 조달 장비를 포함하여 2026년 순 자본적 지출 전망치를 약 6,500만 달러로 상향 조정했습니다.
• 기타 4분기 전제조건: 경영진은 실효세율 24%, 조정 EPS 기준 세율 약 27%, 감가상각비 약 2,700만 달러를 예상하고 있습니다.

리스크 및 주시 영역

• 칵투스는 중국에서 수입하는 대부분의 물품에 대해 총 약 75%의 관세를 계속 부담하고 있는 반면, 관세 환급 혜택은 대부분 중단될 것으로 예상됩니다.
• 중동 지역 사업은 대부분 차질 없이 운영되고 있으나, 경영진은 지역적 분쟁, 고조된 긴장 상태 및 후티 반군의 동향을 지속적으로 모니터링하고 있습니다.
• 투입 원가 상승은 2027년 스풀러블 테크놀로지스의 원가 구조에 영향을 미칠 수 있습니다.
• 4분기 스풀러블 테크놀로지스 마진은 영업 레버리지 개선에도 불구하고 연휴 시즌 관련 제조 비효율성에 직면할 수 있습니다.
• 칵투스 인터내셔널의 주문은 인도 기간이 9개월에서 15개월 소요되어, 최근 수주 회복이 매출로 이어지기까지 시차가 발생합니다.

애널리스트 Q&A 하이라이트

경영진은 베이타운 프로젝트가 기존 생산능력을 약 20% 늘릴 것이라며 이번 증설이 스풀러블 테크놀로지스의 장기적 매출 기회에 중요한 의미를 갖는다고 설명했습니다. 또한 플렉스스틸이 대구경 및 고압 스풀러블 파이프 분야에서 차별화된 경쟁력을 유지하고 있어 해외 시장 성장이 매력적인 마진을 유지할 것으로 기대한다고 덧붙였습니다.

칵투스 인터내셔널과 관련하여 경영진은 수주 저점이 지났다고 밝혔습니다. 3분기 주문 활동은 중동 수개국에서 크게 회복되었으며, 이러한 흐름이 4분기까지 이어져 2027년에는 보다 정상적인 속도로 접어들 것으로 예상됩니다.

경영진은 3분기 프레셔 컨트롤 마진 강세의 원인으로 예상보다 좋았던 스페어 부품 및 수리 마진, 그리고 추가적인 시너지 실현을 꼽았습니다. 4분기 조정 EBITDA 마진이 23%~25% 수준으로 하락할 것으로 전망되는 주요 배경은 고객 믹스와 장비 대 서비스 매출 간의 비중 변화 때문입니다.

미국 프레셔 컨트롤 부문과 관련해 경영진은 고객사와의 논의 내용을 바탕으로 1분기 말까지 시장 점유율 지위가 강화될 것으로 예상했으나, 구체적인 변동 수치는 공개하지 않았습니다.

실적발표 콘퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day, and thank you for standing by. Welcome to Cactus Q3 2026 Earnings Call. [Operator Instructions] 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; Stephen Tadlock, CEO of Cactus International; and William 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'll 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 third quarter 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 Mid 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 second quarter 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 second quarter. 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 costs. Adjusted corporate EBITDA moved unfavorably from $5.3 million to $6.1 million of expense on higher personnel expenses.

On a total company basis, third quarter adjusted EBITDA was $132 million, down $800,000 from Q2. Adjusted EBITDA margin for the third quarter improved to 30.6% compared to 29.5% for the second quarter. Adjustments to total company EBITDA during the third quarter included noncash 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 right size 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 second quarter. 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 third quarter, 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 third quarter 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 third quarter, the public or Class A ownership of the company averaged and ended the period at 87%.

GAAP net income was $74 million in the third quarter versus $61 million during the second quarter. The increase was largely driven by lower purchase price accounting-related adjustments in the period.

Book tax expense during the third quarter 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 third quarter compared to $75 million and $0.93 per share in the second quarter. Adjusted net income for the third quarter was net of a 27% tax rate applied to our adjusted pretax 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've 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 third quarter of 2026.

In a moment, Scott will give you our fourth quarter operational outlook. Some additional financial considerations when looking ahead to the fourth quarter 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 fourth quarter 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 fourth quarter, we'll 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'll now turn the call back over to Scott.

Scott Bender

Thanks, Jay. I'd like to begin our outlook commentary with an overview of our plan to expand our Spoolable Technologies manufacturing footprint with a facility in the Mid East. There is a substantial market opportunity in the region as the Mid 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 Mid 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'll 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're enthusiastic about taking this next step in the evolution of growth for FlexSteel.

I'll now turn to our operational outlook for the fourth quarter. During the fourth quarter, we expect Pressure Control revenue to be flat to up from the third quarter. We expect the 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 third quarter and should result in resilient domestic revenues despite normal seasonal slowdowns.

We believe that Cactus International sales will remain in line with third quarter levels as we work through existing backlog. Our manufacturing operations in the Mid 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% to 25% range in the fourth quarter. This guidance excludes approximately $4 million of stock-based comp expense within the segment.

Margins are expected to decrease primarily due to the nonrecurrence of tariff recovery and will also be unfavorably impacted by customer mix in our Cactus International business.

Looking forward, with the increased 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'll 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 fourth quarter to be up low single digits from the third quarter 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 fourth quarter.

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 third quarter and nearly doubled our backlog, which further supports the demand underwriting our plan to expand our Baytown facility.

In the fourth quarter, we also expect to make our first substantial shipments to midstream customers resulting from the newly approved FEMSA exemption process, which fast tracks approvals for larger diameter spoolable pipe and regulated midstream pipelines. We believe we are in the early stages of growth in the market that's been slow to adopt spoolable pipe for these applications.

We expect Spoolable Technologies adjusted EBITDA margins to be approximately 39% to 41% in the fourth quarter, which excludes $1 million of stock-based compensation expense. We project margins to be relatively stable in the fourth quarter as increased operating leverage is offset by higher input costs and typical holiday-related manufacturing inefficiencies. We're 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 fourth quarter, which excludes $2 million of stock-based comp.

To close our remarks, I'd 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 to 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 Mid 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

[Operator Instructions] Our first question comes from the line of Arun Jayaram from JPMorgan Securities.

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Arun Jayaram

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 looks to be up 23% or so. And so, I guess we're just trying to understand as we start thinking about modeling the company over a multiyear basis, what kind of volume growth could we see between this combination of Baytown where I believe you're adding some roof line maybe moving to 3 shifts and then also this Middle East expansion.

Scott Bender

What a very surprising question. So the Baytown expansion, which is currently underway, but not fully realized, will add about 20% to our Baytown capacity. And then 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. So I'm sure you can do that math. But it has a very, very serious impact on our Spoolable Technologies revenue stream.

And I think importantly, although you didn't 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. Got it. That's super helpful. Last question for 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 kind of 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

So I'll let Tadlock respond to that, if you're already seeing it.

Stephen Tadlock

Yes. So we saw that happen this quarter. So in the Q&A last quarter, I mentioned we've 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 to 15 months depending on what their time line is. But yes, as I said, I think that should continue in Q4 and then hopefully, we're in more of a normal pace in 2027.

Operator

Our next question comes from the line of Derek Podhaizer from Piper Sandler.

Derek Podhaizer

I guess sticking on spoolables first. Just Scott, an 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 can 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. And so that certainly supports a margin that's consistent with what we see in the North America.

Derek Podhaizer

Got it. Okay. That's helpful. It makes sense. And then just switching over to Pressure Control. Just kind of looking back at the guide, I think you guide third quarter to be around that 23% to 25%. You came in greater than 28%. The 4Q guide went back to that original 3Q effect on the 23%, 25%. So 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% to 25% level?

Scott Bender

Okay. Jay?

Jay Nutt

Yes. 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% to 25%.

Operator

Our next question comes from the line of Stephen Gengaro with Stifel.

Stephen Gengaro

A couple of things for me. I think the first one, you mentioned the Middle East penetration. And can you talk -- 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 mean I'm just sort of thinking about the traction you're getting there and how to think about the ramp in that market. I mean, clearly, your building facility, you're ultraconfident, but I just wanted to understand that a little better.

Scott Bender

Yes. Well, Stephen, it isn't easy, but we are much, much further along -- it's -- we knew this was coming. And so, we've developed the products and began testing well in advance. Frankly, Baker had relaxed their attention on testing requirements for customers in the Middle East and whereas spoolables did not. So we're -- I think that we'll probably be done -- all the testing is underway and going as planned so that by the end of the first quarter, beginning of the second quarter, it will be done, but we're not seeing any hiccups at all.

Stephen Gengaro

And the other question is on the U.S. pressure control piece. And I know I'm not allowed to ask you specifically about market share anymore. But when you think about the activity levels we've seen in the U.S. market, and we've seen a lot of privates kind of ramp to my knowledge, and I'm hearing some publics are as well. Historically, your share with privates was lower, but I know it improved kind of post-COVID. I'm just curious how we should think about your growth relative to overall market growth, if it's 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 first quarter is going to be a strong market share quarter for us. So for those of you that are wondering when we stopped reporting market share, if that was sort of foreshadowing decline, the answer is no. And I think that you'll see -- although I can't quantify that for you, I think you'll see an improved market share statistic metric by the end of the first quarter -- through the end of the first quarter.

Stephen Gengaro

Okay. And just a quick follow-up to that. And based on your numbers, clearly, the share hasn't gone down. But the -- you mentioned in the first quarter, 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 first quarter.

Scott Bender

Yes. Do we have any other questions? If not.

Operator

This ends our question-and-answer session, and we'll 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 can't 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's 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.

Operator

Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.