Core Laboratories Inc (CLB)

CORE LAB REPORTS FIRST QUARTER 2026 RESULTSApril 29, 2026 5:15 PM
PR Newswire (US)

REVENUE OF $121.8 MILLION, DOWN 12% SEQUENTIALLY AND FLAT YEAR-OVER-YEAROPERATING INCOME OF $1.9 MILLION; EX-ITEMS, $6.6 MILLION, DOWN 58% SEQUENTIALLY AND
44% YEAR-OVER-YEARGAAP LOSS PER SHARE OF $0.02; EPS EX-ITEMS OF $0.06, DOWN 72% SEQUENTIALLY AND
58% YEAR-OVER-YEARFREE CASH FLOW OF $0.5 MILLIONNET DEBT INCREASED BY $3.9 MILLION; LEVERAGE RATIO AT 1.20COMPANY REPURCHASED 51,781 SHARES OF COMMON STOCK, FOR $0.9 MILLION AGGREGATE PURCHASE PRICECOMPANY ANNOUNCES Q2 2026 QUARTERLY DIVIDENDHOUSTON, April 29, 2026 /PRNewswire/ -- Core Laboratories Inc. (NYSE: "CLB") ("Core," "Core Lab," or the "Company") reported first quarter 2026 revenue of $121,800,000. Core's operating income was $1,900,000, with a loss per diluted share of $0.02, all in accordance with U.S. generally accepted accounting principles ("GAAP"). Operating income, ex-items, a non-GAAP financial measure, was $6,600,000, yielding operating margins of over 5% and earnings per diluted share ("EPS"), ex-items, of $0.06. A full reconciliation of non-GAAP financial measures is included in the attached financial tables.Core's CEO, Larry Bruno, stated, "First and foremost, our thoughts remain with our employees and their families across our Middle East operations during this period of heightened geopolitical instability. As we continue to prioritize the safety of our people, the conflict has impacted client activity, project timelines, and operations across the region, factors that materially affected Core Lab's first quarter operating results. For Reservoir Description, and for the service part of Production Enhancement, operational disruptions in the Middle East were extensive, including: 1) client office closures and delayed progression of client projects, 2) suspension of field access for sample acquisition and wellsite services, and 3) halted maritime transportation of crude oil, natural gas, and derived products. In addition, completion product deliveries into the region for Production Enhancement were also delayed. Core Lab has persevered through previous conflicts in the Middle East, and I am fully confident that we will again. As we have in the past, the Company and its dedicated employees remain committed to servicing our long-standing clients throughout this vital region. The ongoing conflict in Russia-Ukraine and severe weather events across North America and Europe also disrupted client activity and operations, creating additional headwinds for the first quarter. Despite these near-term challenges, Core remains focused on delivering long-term shareholder value through disciplined execution and continued innovation, including the advancement and commercialization of next-generation technologies that have gained early client adoption across multiple regions."Reservoir DescriptionReservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately 80% of revenue sourced from projects originating outside the United States. Revenue for Reservoir Description in the first quarter of 2026 was $81,900,000, down 11% sequentially and up slightly from last year. Operating income on a GAAP basis was $1,100,000. Operating income, ex-items, was $4,800,000, with operating margins of 6%. The first quarter of 2026 was negatively impacted by two primary factors: 1) the conflict in the Middle East, and 2) severe weather events across North America and the Mediterranean region, which also disrupted client operations and the demand for laboratory services in the quarter. As global consumption has remained resilient throughout the conflict, Core anticipates a strong rebound in the global maritime transportation and trade of hydrocarbon cargoes, and the associated demand for the Company's assay laboratory work.Although client activities in and around the Middle East were negatively impacted by the ongoing geopolitical conflict, other regions across the globe continue to be active and growing. For example, during the first quarter of 2026, Core Lab supported multiple reservoir characterization programs for major operators on Alaska's North Slope, focused on development planning and reserve calculations in complex, low-resistivity, low-contrast reservoir systems. These technically challenging North Slope operations require specialized expertise, beginning with the Company's proprietary wellsite handling protocols. Core Lab's wellsite procedures mitigate the risks of inaccurate reserve assessments and suboptimal development decisions. Immediately upon reaching the Company's laboratory in Anchorage, Core's proprietary NITRO? (Non-Invasive Technologies for Reservoir Optimization) workflow was applied to core samples that were evaluated through advanced CT scanning. This non-destructive technology allowed Core Lab to quickly assess core integrity and identify lithologic heterogeneities. The CT technology also facilitated sample selection in advance of traditional physical laboratory measurements. By preserving data integrity from the time the core reaches the rig floor and throughout laboratory processing, Core provides its clients with high-confidence reservoir insights that help de-risk field development plans, improve reserve estimates, and support more informed capital investment decisions.Production EnhancementProduction Enhancement operations, which are focused on complex completions in unconventional oil and gas reservoirs in the U.S., as well as conventional and unconventional projects across the globe, posted first quarter 2026 revenue of $39,900,000, down 13% sequentially and 7% year-over-year. Operating income for the first quarter on a GAAP basis was $800,000. Operating income, ex-items, was $1,800,000, yielding operating margins of 5%. Over the past several years, U.S. land drilling and completion activity has been seasonally low in the first quarter of each year, and in the first quarter of 2026 the average number of active frac fleets was at its lowest level in the last five years. Additionally, freezing temperatures in North America, which extended into the southern states, shut down well completion activity for a period of time during the first quarter, and also resulted in the temporary closure of Core's completion product manufacturing facilities. Product shipments to international markets are typically larger bulk orders, which were down sequentially, and can vary from quarter to quarter. The Middle East conflict disrupted and delayed product shipments into the region in the first quarter. The headwinds in the first quarter of 2026 were partially offset by increased adoption of Core Lab's diagnostic services by clients operating in the Gulf of America and international markets. The Company has continued to have success with these proprietary diagnostic technologies and is actively pursuing expansion of these service offerings in international markets, such as North and West Africa and South America.In the fourth quarter of 2025, Core Lab advanced its Radio Frequency ("RF") safe product portfolio with the commercial release of its proprietary RF-5TF™ detonator. RF-safe detonators allow operators and service companies to conduct perforating operations with reduced wellsite risk by maintaining immunity to RF energy sources and stray voltage. This technology enables normal rig activities while minimizing the potential for unintended initiation. This next generation, proprietary design eliminates field assembly, thus reducing wellsite handling and wiring complexities. Following successful field trials in the first quarter of 2026, Core Lab's RF-5TF™ has been adopted across parts of the Eastern Hemisphere, including the Middle East, Asia, Europe, and the United Kingdom. On these deployments, the system achieved a 100% operational success rate in a wide range of onshore and offshore operating environments. Based on this performance, multiple service and operating companies have selected the RF-5TF™ as their preferred RF-safe detonator solution.Also during the first quarter, Core Lab's proprietary PackScan® density logging technology played a critical role in helping an offshore Trinidad operator de-risk a high-value completion and avoid a potential multi-million-dollar well failure. Successful offshore cased-hole gravel pack completions require the sand control screen to be completely packed with gravel, leaving no annular voids that could compromise well integrity and long-term hydrocarbon production. Using Core Lab's proprietary washpipe-deployed PackScan® density logging tool, the operator was able to determine that no effective gravel pack had been placed, likely due to gravel loss to the lower portion of the well. Leveraging this diagnostic insight, the operator was able to intervene before bringing the well online. The client removed and replaced the sand control completion hardware and executed a second gravel pack operation. A follow-up PackScan® run confirmed a successful gravel pack, enabling the operator to proceed confidently with production operations, while significantly reducing the risk of costly remedial work and deferred hydrocarbon production. This application highlights the differentiated value of Core Lab's completion diagnostics portfolio in helping clients protect capital investments, improve completion reliability, and support long-term production performance in complex offshore environments across the globe.Liquidity, Free Cash Flow, Share Repurchases, and DividendCore continues to focus on maximizing free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures. For the first quarter of 2026, cash from operations was $4,000,000, and capital expenditures associated with operations were $3,500,000, yielding FCF of $500,000. The Company's days sales outstanding increased from 69 days in the fourth quarter to 74 days for the first quarter of 2026, primarily driven by the conflict in the Middle East, which impacted both revenue and collection efforts for the quarter.As mentioned in the Company's prior earnings releases, in February 2024, fire damaged a building on the campus of Core Lab's Advanced Technology Center in Aberdeen, Scotland. Losses caused by the fire are covered by Core Lab's property and casualty insurance. Insurance proceeds and the capital expenditures associated with replacing the equipment and restoring the building are disclosed separately in the investing section of the cash flow statement. Capital expenditures associated with these items were $1,400,000 for the first quarter of 2026, and are not included in the calculation of FCF.In the first quarter of 2026, Core Lab repurchased 51,781 shares at an aggregate purchase price of approximately $900,000.As of March 31, 2026, Core's net debt (defined as long-term debt less cash and cash equivalents) was $94,200,000, increasing by $3,900,000 during the quarter. Also, during the first quarter of 2026, the Company's leverage ratio (calculated as total net debt divided by trailing twelve months adjusted EBITDA) was at 1.20. The Company remains focused on executing its strategic business initiatives and continues to evaluate allocation of capital to reduce debt and other uses of free cash to return value to shareholders.On February 4, 2026, Core's Board of Directors ("Board") announced a quarterly cash dividend of $0.01 per share of common stock, which was paid on March 9, 2026, to shareholders of record on February 16, 2026.On April 29, 2026, the Board approved a cash dividend of $0.01 per share of common stock, payable on June 1, 2026, to shareholders of record on May 11, 2026. Return On Invested CapitalThe Board and the Company's Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and FCF, factors that have high correlation to total shareholder return. Core's commitment to an asset-light business model and disciplined capital stewardship promotes capital efficiency and are designed to produce more predictable and superior long-term ROIC.The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield services companies listed as Core's Comp Group by Bloomberg, as the Company continues to believe superior ROIC will result in higher total shareholder return. Using Bloomberg's formula, Core Lab's ROIC for the first quarter of 2026 was 9.1%.Industry and Core Lab Outlook and Guidance The IEA, EIA, and OPEC are projecting global crude oil demand growth in 2026 of approximately 0.6 to 1.4 million barrels per day, supporting constructive long-term market fundamentals despite near-term volatility. The IEA also continues to highlight that accelerating natural decline rates in existing producing fields remain a significant long-term supply risk, reinforcing the need for sustained investment. Recent disruptions, including the closure of the Strait of Hormuz and damage to regional refining infrastructure, have reduced global crude oil supply by approximately 20%. These geopolitical events are likely to support the need for new oil and gas developments to address energy security risks. In the U.S., year-over-year production growth is expected to remain measured as capital discipline and maturing shale plays offset efficiency gains. Combined, these trends suggest new hydrocarbon exploration will come from international, offshore, conventional reservoir targets.In the near term, geopolitical instability in the Middle East, sanctions, and evolving trade policies, along with OPEC+ production decisions will continue to contribute to market volatility. However, a multi-year cycle of international, offshore exploration and development activity will be required to support future demand. Core Lab maintains a constructive multi-year outlook and is positioned to support ongoing client investment needs.Recent changes in client activity levels across the Middle East are directly impacting Core's operations. Client-driven project disruptions have led to delays in project execution, and logistical constraints. For Core Lab, the disruption of hydrocarbon trading routes extends beyond the Middle East region and into the Company's global lab network, which services the maritime transportation and trading of crude oil, natural gas, and refined products. The impact has been more pronounced in Reservoir Description and the service side of Production Enhancement due to Core Lab's unique role supporting regional client studies, reservoir rock and fluid characterization, completion diagnostics, and hydrocarbon assay testing. These services rely on predictable field access, sample movement, and laboratory operations. Production Enhancement products have been comparatively less affected; however, shipments of energetic systems into certain countries have experienced delays.U.S. land completion activity is expected to remain below prior-year levels, with modest improvement likely driven by small- to mid-sized operators. Growth in demand for Core's diagnostic services, production optimization technologies, and proprietary energetic systems are expected to partially offset softer year-over-year U.S. onshore activity. However, costs for certain imported raw materials used in Production Enhancement continue to increase, and remain subject to tariffs and supply chain volatility.Client discussions indicate that international projects outside the Middle East are proceeding; however, circumstances in the Middle East create difficulty in forecasting the pace and timing of activity recovery for the affected region. Collectively, these factors support expectations for modest sequential operational improvement for Core Lab.Reservoir Description's second quarter 2026 revenue is projected to range from $77,500,000, to $82,500,000, with operating income of $3,500,000 to $5,375,000. Production Enhancement's second quarter revenue is estimated to range from $45,500,000 to $48,500,000, with operating income of $2,800,000 to $4,700,000. Core's second quarter 2026 revenue is projected to range from $123,000,000 to $131,000,000, with operating income of $6,400,000 to $10,200,000, yielding operating margins of approximately 7%. EPS for the second quarter of 2026 is expected to be $0.06 to $0.12.The Company's guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange, and assumes an effective tax rate of 25%.Earnings Call ScheduledThe Company has scheduled a conference call to discuss Core's first quarter 2026 earnings announcement. The call will begin at 7:30 a.m. CDT / 8:30 a.m. EDT on Thursday, April 30, 2026. To log on to the listen-only webcast, visit www.corelab.com/investors 15 minutes before the start of the call. For those not available to listen to the live webcast, a replay and transcript will be available on the Company's website shortly after the call. Analysts may contact investor.relations@corelab.com for conference call dial-in information.Core Laboratories Inc. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements Core Lab makes, includes forward-looking statements regarding the Company's future revenue, profitability, business strategies and developments, demand for the Company's products and services and for products and services of the oil and gas industry generally, made in reliance upon the safe harbor provisions of Federal securities law. The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business and general economic conditions, including inflationary pressures, the impact of tariffs, supply chain disruptions, trade policies and sanctions, international civil unrest or geopolitical tensions, including the continuing armed conflict between Russia and Ukraine, escalation of military conflict between the United States, Israel and Iran, and political conditions in South America, most recently in Venezuela, severe weather events, the severity and duration of public health crises, and any related actions taken by businesses and governments, and other factors as more fully described in the Company's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. These important factors could cause the Company's actual results to differ materially from those described in these forward-looking statements. Such statements are based on current expectations of the Company's performance and are subject to a variety of factors, some of which are not under the control of the Company. Because the information herein is based solely on data currently available, and because it is subject to change as a result of changes in conditions over which the Company has no control or influence, such forward-looking statements should not be viewed as assurance regarding the Company's future performance.The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.Visit the Company's website at www.corelab.com.CORE LABORATORIES INC. & SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)


Three Months Ended

% Variance

March 31,
2026

December 31,
2025

March 31,
2025

vs. Q4-25
vs. Q1-25REVENUE
$121,797

$138,255

$123,585

(11.9) %
(1.4) %













OPERATING EXPENSES:












Costs of services and product sales

102,073


109,516


99,469

(6.8) %
2.6 %General and administrative expense

14,718


10,631


13,647

38.4 %
7.8 %Depreciation and amortization

3,764


3,668


3,717

2.6 %
1.3 %Other (income) expense, net

(645)


(1,392)


2,335

NM
NMTotal operating expenses

119,910


122,423


119,168

(2.1) %
0.6 %













OPERATING INCOME

1,887


15,832


4,417

(88.1) %
(57.3) %Interest expense

2,891


2,609


2,602

10.8 %
11.1 %Income (loss) before income taxes

(1,004)


13,223


1,815

NM
NMIncome tax (benefit) expense

(251)


8,094


1,746

NM
NMNet income (loss)

(753)


5,129


69

NM
NMNet income attributable to non-controlling interest

36


181


223

NM
NMNet income (loss) attributable to Core Laboratories Inc.
$(789)

$4,948

$(154)

NM
NM













Diluted earnings (loss) per share
$(0.02)

$0.11

$—

NM
NM













Diluted earnings (loss) per share attributable to Core Laboratories Inc.
$(0.02)

$0.11

$—

NM
NM













Weighted average common shares outstanding - assuming dilution

46,073


46,697


46,773

(1.3) %
(1.5) %













Effective tax rate

25%

61%

96%
NM
NM













SEGMENT INFORMATION:


























Revenue:












Reservoir Description
$81,931

$92,282

$80,897

(11.2) %
1.3 %Production Enhancement

39,866


45,973


42,688

(13.3) %
(6.6) %Consolidated
$121,797

$138,255

$123,585

(11.9) %
(1.4) %













Operating income:












Reservoir Description
$1,146

$12,823

$2,339

(91.1) %
(51.0) %Production Enhancement

804


3,025


1,503

(73.4) %
(46.5) %Corporate and Other

(63)


(16)


575

NM
NMConsolidated
$1,887

$15,832

$4,417

(88.1) %
(57.3) %













"NM" means not meaningful












 CORE LABORATORIES INC. & SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)








% VarianceASSETS:
March 31,
2026

December 31,
2025

vs. Q4-25








Cash and cash equivalents
$22,819

$22,702

0.5 %Accounts receivable, net

108,277


113,528

(4.6) %Inventories

57,784


54,496

6.0 %Other current assets

25,491


23,939

6.5 %Total current assets

214,371


214,665

(0.1) %








Property, plant and equipment, net

99,985


99,447

0.5 %Right of use assets

54,708


54,346

0.7 %Intangibles, goodwill and other long-term assets, net

218,664


215,552

1.4 %Total assets
$587,728

$584,010

0.6 %








LIABILITIES AND EQUITY:
















Accounts payable
$39,982

$37,275

7.3 %Short-term operating lease liabilities

12,097


11,456

5.6 %Other current liabilities

52,655


57,284

(8.1) %Total current liabilities

104,734


106,015

(1.2) %








Long-term debt, net

114,460


110,255

3.8 %Long-term operating lease liabilities

41,285


42,309

(2.4) %Other long-term liabilities

52,105


53,223

(2.1) %








Total equity

275,144


272,208

1.1 %Total liabilities and equity
$587,728

$584,010

0.6 % CORE LABORATORIES INC. & SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)


Three Months Ended March 31,


2026

2025
CASH FLOWS FROM OPERATING ACTIVITIES:





Net income (loss)
$(753)

$69
Adjustments to reconcile net income (loss) to net cash provided by operating activities:





Stock-based compensation

5,032


4,159
Depreciation and amortization

3,764


3,717
Deferred income taxes

(3,719)


(1,817)
Accounts receivable

5,010


(6,606)
Inventories

(3,456)


(272)
Accounts payable

2,847


2,971
Other adjustments to net income

(4,760)


4,439
Net cash provided by operating activities

3,965


6,660







CASH FLOWS FROM INVESTING ACTIVITIES:





Capital expenditures - operations

(3,448)


(2,785)
Capital expenditures - rebuilding of Aberdeen facility

(1,443)


(794)
Net proceeds from insurance recovery - Aberdeen facility

—


3,121
Other investing activities

1,500


1,230
Net cash provided by (used in) investing activities

(3,391)


772







CASH FLOWS FROM FINANCING ACTIVITIES:





Repayment of long-term debt

(62,000)


(15,000)
Proceeds from long-term debt

66,000


13,000
Dividends paid

(460)


(469)
Repurchase of common stock

(3,997)


(2,022)
Other financing activities

—


9
Net cash used in financing activities

(457)


(4,482)







NET CHANGE IN CASH AND CASH EQUIVALENTS

117


2,950
CASH AND CASH EQUIVALENTS, beginning of period

22,702


19,157
CASH AND CASH EQUIVALENTS, end of period
$22,819

$22,107
 Non-GAAP InformationManagement believes that the exclusion of certain income and expenses enables it to evaluate more effectively the Company's operations period-over-period and to identify operating trends that could otherwise be masked by the excluded Items. For this reason, management uses certain non-GAAP measures that exclude these Items and believes that this presentation provides a clearer comparison with the results reported in prior periods. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, the financial results prepared in accordance with GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.Reconciliation of Operating Income, Net Income (Loss) and Diluted Earnings (Loss) Per Share
Attributable to Core Laboratories Inc.(In thousands, except per share data)(Unaudited)


Operating Income

Three Months Ended

March 31,
2026
December 31,
2025
March 31,
2025GAAP reported
$1,887
$15,832
$4,417Stock compensation (1)

3,687

—

3,505Inventory and asset write-downs, lease termination,
other exit costs and severance (2)

650

—

3,416Foreign exchange losses (gains)

379

(95)

480Excluding specific items
$6,603
$15,737
$11,818


Net Income (Loss) Attributable to Core Laboratories Inc.

Three Months Ended

March 31,
2026
December 31,
2025
March 31,
2025GAAP reported
$(789)
$4,948
$(154)Stock compensation (1)

2,765

—

2,629Inventory and asset write-downs, lease termination,
other exit costs and severance (2)

487

—

2,562Foreign exchange losses (gains)

285

(72)

360Effect of higher (lower) tax rate (3)

—

4,788

1,292Excluding specific items
$2,748
$9,664
$6,689


Diluted Earnings (Loss) Per Share Attributable to Core Laboratories Inc.

Three Months Ended

March 31,
2026
December 31,
2025
March 31,
2025GAAP reported
$(0.02)
$0.11
$—Stock compensation (1)

0.06

—

0.05Inventory and asset write-downs, lease termination,
other exit costs and severance (2)

0.01

—

0.05Foreign exchange losses (gains)

0.01

—

0.01Effect of higher (lower) tax rate (3)

—

0.10

0.03Excluding specific items
$0.06
$0.21
$0.14
(1) The three months ended March 31, 2025 and 2026 includes the acceleration of stock compensation expense associated with employees reaching eligible retirement age.(2) The three months ended March 31, 2025 includes severance costs, the write-down of inventory, right of use assets and leasehold improvements, and other exit costs associated with consolidation of certain facilities. The three months ended March 31, 2026 includes the write-down of leasehold improvements and lease exit costs.(3) The three months ended March 31, 2025 and December 31, 2025 reflects tax expense at a normalized rate of 25%.  Segment Information(In thousands)(Unaudited)


Operating Income


Three Months Ended March 31, 2026


Reservoir
Description

Production
Enhancement

Corporate and
Other
GAAP reported
$1,146

$804

$(63)
Stock compensation

2,531


1,156


—
Inventory and asset write-downs, lease termination, other exit costs and severance (2)

650


—


—
Foreign exchange losses (gains)

478


(140)


41
Excluding specific items
$4,805

$1,820

$(22)
Return on Invested CapitalReturn on Invested Capital ("ROIC") is presented based on management's belief that this non-GAAP measure is useful information to investors and management when comparing profitability and the efficiency with which capital has been employed over time relative to other companies. The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg. ROIC is not a measure of financial performance under GAAP and should not be considered as an alternative to net income.ROIC of 9.1% is defined by Bloomberg as Net Operating Profit After Tax ("NOPAT") of $35.7 million divided by Average Total Invested Capital ("Average TIC") of $394.0 million, where NOPAT is defined as GAAP net income before non-controlling interest plus the sum of income tax expense, interest expense, and pension expense, less pension service cost and tax effect on income before interest and tax expense for the last four quarters. Average TIC is defined as the average of beginning and ending periods' GAAP stockholders' equity, plus the sum of net long-term debt, lease liabilities, allowance for credit losses, net of deferred taxes and income taxes payable.Free Cash FlowCore uses the non-GAAP financial measure of free cash flow to evaluate its cash flows and results of operations. Free cash flow is defined as net cash provided by operating activities (which is the most directly comparable GAAP measure) less cash paid for capital expenditures - operations. Management believes that free cash flow provides useful information to investors regarding the cash available in the period in excess of Core's needs to fund its capital expenditures and operating activities. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative to operating income, net income, or cash flows from operating, investing, or financing activities, each as determined in accordance with GAAP. Free cash does not represent residual cash available for distribution because Core may have other non-discretionary expenditures that are not deducted from the measure. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented may not be comparable to similarly titled measures presented by other companies.Computation of Free Cash Flow(In thousands)(Unaudited)


Three Months Ended



March 31, 2026

Net cash provided by operating activities
$3,965

Capital expenditures - operations

(3,448)

Free cash flow
$517

 





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Original: CORE LAB REPORTS FIRST QUARTER 2026 RESULTS

CORE LAB ANNOUNCES IMPACT OF THE MIDDLE EAST CONFLICT TO FIRST QUARTER 2026 GUIDANCEMarch 23, 2026 5:00 PM
PR Newswire (US)

FIRST QUARTER 2026 EARNINGS WEBCAST AT 7:30 A.M. CDT / 8:30 A.M. EDT ON APRIL 30, 2026HOUSTON, March 23, 2026 /PRNewswire/ -- Core Laboratories Inc. (NYSE: "CLB") ("Core," "Core Lab," or the "Company") continues to evaluate and monitor the evolving geopolitical conflict in the Middle East and its effect on the Company's first quarter 2026 financial results. Core Lab is working with clients and its local teams to manage operations and mitigate impacts on project execution through a rapidly changing operating environment. The safety and security of the Company's employees remain its highest priority.At this time, due to regional instability, including client-driven project delays, travel constraints, and supply-chain disruptions, the Company expects first quarter 2026 revenue and earnings to be below its previously issued guidance provided on February 4, 2026.Changes in client activity levels across the Middle East are directly impacting operations in the countries where Core Lab operates. Damage to oil refining infrastructure and storage terminals has created capacity limitations, forcing operators to shut in or limit oil production. These effects have extended to regional supply chains and the maritime transportation of crude oil and refined products—particularly through the Strait of Hormuz—resulting in logistical constraints and delays in project execution. The impact has been more pronounced in Reservoir Description due to its unique role in supporting regional client studies, crude oil assay testing, and reservoir rock and fluid characterization, all of which rely on predictable field access, sample movement, and laboratory operations. Production Enhancement has been comparatively less affected; however, shipments of energetics products into certain parts of the region have been delayed or temporarily suspended.Core's revised guidance for first quarter 2026 revenue ranges from $119,000,000 to $123,000,000, while operating income, ex-items, is projected to range from $5,700,000 to $7,100,000. The Company is now projecting Earnings Per Share, ex-items, to be between $0.05 to $0.07 for the first quarter of 2026.Core Lab will continue to monitor developments and will provide additional updates as appropriate.Earnings Call Scheduled The Company has scheduled a conference call to discuss Core's first quarter 2026 earnings. The call will begin at 7:30 a.m. CDT / 8:30 a.m. EDT on Thursday, April 30, 2026. An earnings press release will be issued after market close on April 29, 2026, and may be accessed through the Company's website at www.corelab.com/investors. To register for the listen-only webcast, log on to www.corelab.com at least fifteen minutes prior to the start of the call.  For those not available to listen to the live webcast, a replay and transcript will be available on the Company's website shortly after the call.Core Laboratories Inc. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements Core Lab makes, includes forward-looking statements regarding the Company's future revenue, profitability, business strategies and developments, demand for the Company's products and services and for products and services of the oil and gas industry generally, made in reliance upon the safe harbor provisions of Federal securities law. The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business and general economic conditions, including inflationary pressures, the impact of tariffs, trade policies and sanctions, international civil unrest or geopolitical tensions, including the continuing armed conflict between Russia and Ukraine, the escalation of military conflict between the United States, Israel and Iran, and political conditions in South America, most recently in Venezuela, the severity and duration of public health crises, and any related actions taken by businesses and governments, and other factors as more fully described in the Company's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. These important factors could cause the Company's actual results to differ materially from those described in these forward-looking statements. Such statements are based on current expectations of the Company's performance and are subject to a variety of factors, some of which are not under the control of the Company. Because the information herein is based solely on data currently available, and because it is subject to change as a result of changes in conditions over which the Company has no control or influence, such forward-looking statements should not be viewed as assurance regarding the Company's future performance.The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.Visit the Company's website at www.corelab.com.





View original content to download multimedia:https://www.prnewswire.com/news-releases/core-lab-announces-impact-of-the-middle-east-conflict-to-first-quarter-2026-guidance-302722501.htmlSOURCE Core Laboratories Inc

Original: CORE LAB ANNOUNCES IMPACT OF THE MIDDLE EAST CONFLICT TO FIRST QUARTER 2026 GUIDANCE

CORE LAB REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTSFebruary 4, 2026 5:15 PM
PR Newswire (US)

FOURTH QUARTER REVENUE OF $138.3 MILLION, UP 3% SEQUENTIALLY AND UP 7% YEAR-OVER-YEARFOURTH QUARTER OPERATING INCOME OF $15.8 MILLION; EX-ITEMS, $15.7 MILLION, DOWN 5% SEQUENTIALLY AND FLAT YEAR-OVER-YEARFOURTH QUARTER OPERATING MARGINS, EX-ITEMS, OF OVER 11%, DOWN 100 BASIS POINTS SEQUENTIALLY AND 80 BASIS POINTS YEAR-OVER-YEARFOURTH QUARTER GAAP EPS OF $0.15; EX-ITEMS, $0.21, DOWN 4% SEQUENTIALLY AND YEAR-OVER-YEARFOURTH QUARTER FREE CASH FLOW OF $5.1 MILLIONNET DEBT REDUCED BY $1.2 MILLION; LEVERAGE RATIO IMPROVED TO 1.09COMPANY REPURCHASED 363,207 SHARES OF COMMON STOCK, FOR $5.7 MILLION AGGREGATE PURCHASE PRICECOMPANY ANNOUNCES Q1 2026 QUARTERLY DIVIDENDFULL YEAR REVENUE OF $526.5 MILLION, UP SLIGHTLY FULL YEAR OPERATING INCOME OF $56.5 MILLION; EX-ITEMS, $58.7 MILLION, DOWN 10% FULL YEAR GAAP EPS OF $0.68 UP 3%; EX-ITEMS, EPS OF $0.75, DOWN 14% FULL YEAR FREE CASH FLOW OF $26.0 MILLIONFULL YEAR NET DEBT REDUCED BY $18.7 MILLION OR OVER 17%FULL YEAR COMPANY REPURCHASED APPROXIMATELY 1.2 MILLION SHARES OF COMMON STOCK, $15.5 MILLION AGGREGATE PURCHASE PRICEHOUSTON, Feb. 4, 2026 /PRNewswire/ -- Core Laboratories Inc. (NYSE: "CLB") ("Core," "Core Lab," or the "Company") reported fourth quarter 2025 revenue of $138,300,000. Core's operating income was $15,800,000, with earnings per diluted share ("EPS") of $0.15, all in accordance with U.S. generally accepted accounting principles ("GAAP"). Operating income, ex-items, a non-GAAP financial measure, was $15,700,000, yielding operating margins of over 11% and EPS, ex-items, of $0.21. For the full year 2025, revenue of $526,500,000 was up slightly compared to 2024, generating operating income on a GAAP basis of $56,500,000 and operating income, ex-items, of $58,700,000. The Company's full year EPS, ex-items, was $0.75. A full reconciliation of non-GAAP financial measures is included in the attached financial tables.Core's CEO, Larry Bruno, stated, "Core Lab's fourth quarter results were highlighted by sequential and year-over-year revenue growth that exceeded our provided guidance range for the quarter. This was driven by strong international demand for the Company's proprietary technologies, which helped offset a seasonally soft U.S. land market. Core Lab's recent investments to bring unconventional reservoir rock testing capabilities to the Middle East produced immediate returns, as the Company executed and expedited a large unconventional reservoir rock analytical program for a National Oil Company ("NOC") during the fourth quarter. Also during the fourth quarter, Core returned free cash to its shareholders through the Company's quarterly dividend and by repurchasing 363,207 shares of Company stock, marking five consecutive quarters of share repurchases. For full year 2025, the Company repurchased approximately 1.2 million shares, or over 2.5% of the Company's outstanding share count. Aligned with our long-standing strategy, Core remains committed to returning excess free cash to its shareholders, while maintaining a strong balance sheet and executing our strategic growth initiatives. As the Company celebrates its 90th anniversary, Core's consistent performance reflects the strength of our asset-light business model, global technology leadership, client focus, and long-standing commitment to shareholder returns."Reservoir DescriptionReservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately 80% of revenue sourced from projects originating outside the United States. Revenue for Reservoir Description in the fourth quarter of 2025 was $92,300,000, up 5% sequentially and up over 6% from last year. Operating income on a GAAP basis was $12,800,000. Operating income, ex-items, was $12,700,000, up 9% sequentially, yielding operating margins of 14%, with incremental margins of 27%. Sequential incremental margins were negatively impacted by three factors: 1) expanded international sanctions arising from the Russia-Ukraine conflict, 2) pass-through revenue with low margins associated with a collaborative project, and 3) increased labor costs. For the full year 2025, the segment's revenue of $347,700,000, up slightly from last year, generated operating income on a GAAP basis of $43,900,000, and operating income, ex-items, of $42,900,000, yielding operating margins of over 12%.In the fourth quarter, Core Lab successfully completed phase one of a comprehensive study for an NOC in the Middle East focused on evaluating unconventional reservoir rock properties. Unconventional reservoirs require highly specialized laboratory workflows to accurately determine rock properties, reservoir quality, and production potential. The analytical program leveraged Core Lab's array of internally developed laboratory technologies, including high-frequency nuclear magnetic resonance, NANOk™ Nano Permeametry, and the Company's Shale Matrix Permeameter. These complementary technologies delivered the precision, repeatability, and scalability required to meet the operator's technical objectives as they evaluate these challenging reservoirs. The next phase of the program will focus on correlating newly generated laboratory data with legacy datasets and downhole log response, yielding a more robust reservoir model and improved forecasts of long-term production potential.Also during the fourth quarter, Core Lab experienced an increase in regional study sales focused on Africa and Brazil, reflecting renewed industry interest in exploration activity. Demand was particularly strong along the West African Offshore Equatorial Margin, including Côte d'Ivoire, Ghana, Gabon, and Liberia, as well as North Africa. In addition, interest heightened along the South Atlantic Margin in Brazil's offshore Pelotas Basin. Collectively, demand for Core Lab's data sets highlight the Company's reputation as a trusted, independent provider of geological insights that enable clients to reduce uncertainty and make informed exploration and development decisions.Production EnhancementProduction Enhancement operations, which are focused on complex completions in unconventional oil and gas reservoirs in the U.S., as well as conventional and unconventional projects across the globe, posted fourth quarter 2025 revenue of $46,000,000, down slightly sequentially and up over 8% year-over-year. Operating income for the fourth quarter on both a GAAP basis and ex-items was $3,000,000, yielding operating margins, ex-items, of 7%, expanding 300 basis points year-over-year. Sequential margin performance was negatively impacted by increased raw material expenses associated with tariffs and a provision for a potentially uncollectible receivable balance. There are no additional receivables at risk associated with this contract. For the full year 2025, the segment's revenue of $178,800,000 increased slightly compared to 2024, generated operating income on a GAAP basis of $12,100,000, and operating income, ex-items, of $15,100,000, up over 25% and up 165 basis points, despite lower levels of U.S. onshore well completion activity.In the fourth quarter of 2025, Core Lab successfully completed an offshore plug and abandonment project on a deepwater Gulf of America well using its proprietary PAC™ technology. Core's PAC™ system was selected to enable annular access for permanent cement barrier placement where conventional section milling presented operational and scheduling risks. The operation was completed in approximately four days, exceeding client expectations. Based on typical offshore milling durations and current day rates, the use of Core Lab's PAC™ system is estimated to have reduced execution time by up to five days and lowered well cost by approximately half-million dollars. Core's PAC™ system is a widely proven and accepted technology, and adoption of this technology is expanding beyond its traditional geographic markets.Also, during the fourth quarter, a major deepwater operator engaged Core Lab to deploy its innovative, thru-pipe top-of-cement tracing technology using Core's proprietary SpectraStim® tracers for their riserless completions. Riserless cementing is often employed offshore as a cost-effective technique for setting conductor and surface casings where the seabed is unstable or where shallow gas hazards exist. Due to the instability of these zones, lightweight, low-density foamed cement is often utilized for setting these shallow casing strings. It is very important to ensure zonal coverage with the foamed cement. However, because foamed cement has a low acoustic impedance, traditional cement bond logs are notoriously ineffective in evaluating coverage. Core's SpectraStim® tracing successfully confirmed zonal coverage by the foamed cement and satisfied the offshore regulatory requirements in a cost-effective manner.Liquidity, Free Cash Flow, Share Repurchases, and DividendCore continues to focus on maximizing free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures. For the fourth quarter of 2025, cash from operations was $8,100,000, and capital expenditures associated with operations were $3,000,000, yielding FCF of $5,100,000. The Company had cash from operations of $37,200,000 and generated $26,000,000 of FCF for the twelve months ending December 31, 2025.As mentioned in the Company's prior earnings releases, in February 2024, fire damaged a building on the campus of Core Lab's Advanced Technology Center in Aberdeen, Scotland. Losses caused by the fire are covered by Core Lab's property and casualty insurance. Insurance proceeds and the capital expenditures associated with replacing the equipment and restoring the building are disclosed separately in the investing section of the cash flow statement. Capital expenditures associated with these items were $700,000 for the fourth quarter of 2025 and $3,400,000 for the twelve months ending December 31, 2025. Capital expenditures associated with these items are not included in the calculation of FCF.On October 1, 2025, Core Lab completed the acquisition of Brazilian-based Solintec Consultoria E Servicos De Geologia Ltda. ("Solintec"), for an initial cash payment of approximately $2,300,000.In the fourth quarter of 2025, Core Lab repurchased 363,207 shares at an aggregate purchase price of approximately $5,700,000.As of December 31, 2025, Core's net debt (defined as long-term debt less cash and cash equivalents) was $90,200,000, which was reduced by $1,200,000 during the quarter. Also, during the fourth quarter of 2025, the Company's leverage ratio (calculated as total net debt divided by trailing twelve months adjusted EBITDA) improved to 1.09, and is now at its lowest level in nine years. For the full year, Core's net debt was reduced by $18,700,000, or over 17% from last year. This marked the sixth consecutive year of reducing the Company's net debt, with aggregate total reduction of $205,800,000, or approximately 70%. The Company remains focused on executing its strategic business initiatives and continues to evaluate allocation of capital and other uses of free cash to return value to shareholders, while also reducing debt.On October 22, 2025, Core's Board of Directors ("Board") announced a quarterly cash dividend of $0.01 per share of common stock, which was paid on November 24, 2025, to shareholders of record on November 3, 2025.On February 4, 2026, the Board approved a cash dividend of $0.01 per share of common stock, payable on March 9, 2026, to shareholders of record on February 16, 2026. Return On Invested CapitalThe Board and the Company's Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and FCF, factors that have high correlation to total shareholder return. Core's commitment to an asset-light business model and disciplined capital stewardship promotes capital efficiency and are designed to produce more predictable and superior long-term ROIC.The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield services companies listed as Core's Comp Group by Bloomberg, as the Company continues to believe superior ROIC will result in higher total shareholder return. Using Bloomberg's formula, the Company's ROIC for the fourth quarter of 2025 at 9.7%.Industry and Core Lab Outlook and Guidance The IEA, EIA, and OPEC+ forecast global crude oil demand growth of approximately 0.9–1.4 million barrels per day in 2026, a slight increase from their previous forecasts. As discussed in Core Lab's third quarter release, the IEA published a report in September 2025 which noted accelerating natural decline rates in existing producing fields pose a significant long-term supply risk. This analysis underpins the need for sustained investment in oil and gas developments to maintain energy security and market stability. In the U.S., oil production growth is moderating as capital discipline, maturing shale plays, and natural decline rates increasingly offset efficiency gains. As efficiency gains become less impactful, activity levels must increase to maintain or expand U.S. land production. These factors support the ongoing demand for oilfield services, and Core Lab is seeing operators prioritize production sustainment, well optimization, and recovery enhancement. International markets continue to exhibit resilient activity levels indicative of multi-year offshore developments and long-cycle investments across key global basins. Core Lab's Reservoir Description and Production Enhancement technologies are well positioned to support these ongoing investment needs.In the near term, tariff pressures and OPEC+ production policy decisions continue to contribute to market volatility and softer commodity prices. Despite these headwinds, longer-term crude oil demand fundamentals remain strong. Core Lab maintains a constructive multi-year outlook and continues to see steady activity across committed long-cycle projects, including deepwater developments in the South Atlantic Margin, North and West Africa, Norway, the Middle East, and select Asia-Pacific markets. Revenue realization on these projects remains partially dependent on the geologic success rates achieved by Core's clients. Short-cycle activities, particularly in the U.S. onshore environment, will remain sensitive to changes in commodity prices.Geopolitical conflicts and associated sanctions, evolving trade and tariff dynamics, and commodity price volatility continue to create uncertainty in demand for Core Lab's products and services. Core also expects seasonal patterns to result in the typical sequential decline in activity during the first quarter of 2026. Severe weather events in North America caused freezing conditions in early 2026 that disrupted both Reservoir Description and Production Enhancement client activities and Core Lab operations. In addition, adverse weather in Europe and the Mediterranean Sea also suspended client crude -assay work and damaged one of the Company's facilities. While client operations have begun to recover, these weather-related disruptions have created additional revenue and margin headwinds for the first quarter.For the first half of 2026, Core Lab anticipates U.S. land completion activity will be down compared to the first half of 2025; however, the Company projects completion activity to improve from current levels. Growth in demand for Core's diagnostic services and technological innovations in proprietary energetic systems may partially offset softer U.S. onshore activity in 2026.To date, tariffs have not had a significant impact to Core Lab's Reservoir Description segment. However, for Production Enhancement operations, certain imported raw materials are subject to tariffs. While tariffs are increasing supply costs and affecting margins, the Company continues to take steps to mitigate their impact.Consequently, Reservoir Description's first quarter 2026 revenue is projected to range from $82,000,000 to $86,000,000, with operating income of $6,800,000 to $8,250,000. Production Enhancement's first quarter revenue is estimated to range from $42,000,000 to $44,000,000, with operating income of $2,800,000 to $3,800,000.Core's first quarter 2026 revenue is projected to range from $124,000,000 to $130,000,000, with operating income of $9,700,000 to $12,200,000, yielding operating margins of approximately 9%. EPS for the first quarter of 2026 is expected to be $0.11 to $0.15.The Company's first quarter 2026 guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange. The first quarter guidance also reflects a higher interest rate related to a term loan drawn upon on January 12, 2026, in the amount of $50,000,000. The term loan was used to repay the 2021 Senior Notes Series A in the amount of $45,000,000. This term loan is subject to a variable SOFR-based interest rate in line with our revolving credit facility, which is approximately 200 basis points higher than the fixed rate debt that was retired. First quarter guidance assumes an effective tax rate of 25%.Earnings Call ScheduledThe Company has scheduled a conference call to discuss Core's fourth quarter and full year 2025 earnings announcement. The call will begin at 7:30 a.m. CST / 8:30 a.m. EST on Thursday, February 5, 2026. To log on to the listen-only webcast, visit www.corelab.com/investors 15 minutes before the start of the call. For those not available to listen to the live webcast, a replay and transcript will be available on the Company's website shortly after the call. Analysts may contact investor.relations@corelab.com for conference call dial-in information.Core Laboratories Inc. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements Core Lab makes, includes forward-looking statements regarding the Company's future revenue, profitability, business strategies and developments, demand for the Company's products and services and for products and services of the oil and gas industry generally, made in reliance upon the safe harbor provisions of Federal securities law. The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business and general economic conditions, including inflationary pressures, the impact of tariffs, trade policies and sanctions, international markets, international political climates, including the Russia-Ukraine and the Middle East geopolitical conflicts, public health crises, and any related actions taken by businesses and governments, and other factors as more fully described in the Company's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. These important factors could cause the Company's actual results to differ materially from those described in these forward-looking statements. Such statements are based on current expectations of the Company's performance and are subject to a variety of factors, some of which are not under the control of the Company. Because the information herein is based solely on data currently available, and because it is subject to change as a result of changes in conditions over which the Company has no control or influence, such forward-looking statements should not be viewed as assurance regarding the Company's future performance.The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.Visit the Company's website at www.corelab.com.CORE LABORATORIES INC. & SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)


Quarter Ended

% Variance

December 31,
2025

September 30,
2025

December 31,
2024

vs. Q3-2025
vs. Q4-2024REVENUE
$138,255

$134,521

$129,237

2.8 %
7.0 %













OPERATING EXPENSES:












Costs of services and product sales

109,516


104,901


106,199

4.4 %
3.1 %General and administrative
expense

10,631


10,688


9,080

(0.5) %
17.1 %Depreciation and amortization

3,668


3,594


3,664

2.1 %
0.1 %Other (income) expense, net

(1,392)


(5,590)


(3,880)

NM
NMTotal operating expenses

122,423


113,593


115,063

7.8 %
6.4 %













OPERATING INCOME

15,832


20,928


14,174

(24.4) %
11.7 %Interest expense

2,609


2,650


2,629

(1.5) %
(0.8) %Income before income taxes

13,223


18,278


11,545

(27.7) %
14.5 %Income tax expense

5,960


3,754


4,076

58.8 %
46.2 %Net income

7,263


14,524


7,469

(50.0) %
(2.8) %Net income attributable to non-
   controlling interest

181


285


66

NM
NMNet income attributable to Core
   Laboratories Inc.
$7,082

$14,239

$7,403

(50.3) %
(4.3) %













Diluted earnings per share
$0.16

$0.31

$0.16

(48.4) %
— %













Diluted earnings per share
attributable to Core Laboratories
Inc.
$0.15

$0.30

$0.15

(50.0) %
— %













Diluted weighted average common
shares outstanding

46,697


47,078


47,773

(0.8) %
(2.3) %













Effective tax rate

45%

21%

35%
NM
NM













SEGMENT INFORMATION:


























Revenue:












Reservoir Description
$92,282

$88,224

$86,793

4.6 %
6.3 %Production Enhancement

45,973


46,297


42,444

(0.7) %
8.3 %Consolidated
$138,255

$134,521

$129,237

2.8 %
7.0 %













Operating income:












Reservoir Description
$12,823

$16,574

$16,643

(22.6) %
(23.0) %Production Enhancement

3,025


4,379


(2,597)

(30.9) %
216.5 %Corporate and Other

(16)


(25)


128

NM
NMConsolidated
$15,832

$20,928

$14,174

(24.4) %
11.7 %













"NM" means not meaningful












 CORE LABORATORIES INC. & SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited)


Year Ended December 31,

% Variance

2025

2024


REVENUE
$526,520

$523,848

0.5 %








OPERATING EXPENSES:







Costs of services and product sales

417,587


420,522

(0.7) %General and administrative expense

45,430


39,770

14.2 %Depreciation and amortization

14,649


14,953

(2.0) %Other (income) expense, net

(7,614)


(9,953)

NMTotal operating expenses

470,052


465,292

1.0 %








OPERATING INCOME

56,468


58,556

(3.6) %Interest expense

10,572


12,369

(14.5) %Income before income taxes

45,896


46,187

(0.6) %Income tax expense

13,371


14,034

(4.7) %Net income

32,525


32,153

1.2 %Net income attributable to non-controlling interest

722


753

NMNet income attributable to Core Laboratories Inc.
$31,803

$31,400

1.3 %








Diluted earnings per share
$0.69

$0.67

3.0 %








Diluted earnings per share attributable to Core Laboratories Inc.
$0.68

$0.66

3.0 %








Diluted weighted average common shares outstanding

47,028


47,685

(1.4) %








Effective tax rate

29%

30%
NM








SEGMENT INFORMATION:
















Revenue:







Reservoir Description
$347,683

$346,146

0.4 %Production Enhancement

178,837


177,702

0.6 %Total
$526,520

$523,848

0.5 %








Operating income:







Reservoir Description
$43,939

$51,466

(14.6) %Production Enhancement

12,055


6,612

82.3 %Corporate and Other

474


478

(0.8) %Total
$56,468

$58,556

(3.6) %








"NM" means not meaningful







 CORE LABORATORIES INC. & SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) 











% VarianceASSETS:
December 31,
2025

September 30,
2025

December 31,
2024

vs. Q3-2024
vs. Q4-2024













Cash and cash equivalents
$22,847

$25,629

$19,157

(10.9) %
19.3 %Accounts receivable, net

113,528


110,258


111,761

3.0 %
1.6 %Inventories

54,496


58,241


59,402

(6.4) %
(8.3) %Other current assets

31,495


32,786


36,286

(3.9) %
(13.2) %Total current assets

222,366


226,914


226,606

(2.0) %
(1.9) %













Property, plant and equipment, net

99,447


98,031


97,063

1.4 %
2.5 %Right of use assets

54,346


53,980


56,488

0.7 %
(3.8) %Intangibles, goodwill and other long-
term assets, net

220,793


212,435


210,249

3.9 %
5.0 %Total assets
$596,952

$591,360

$590,406

0.9 %
1.1 %













LIABILITIES AND EQUITY:


























Accounts payable
$37,275

$36,945

$34,549

0.9 %
7.9 %Short-term operating lease liabilities

11,456


11,474


10,690

(0.2) %
7.2 %Other current liabilities

58,440


47,324


52,347

23.5 %
11.6 %Total current liabilities

107,171


95,743


97,586

11.9 %
9.8 %













Long-term debt, net

110,255


114,103


126,111

(3.4) %
(12.6) %Long-term operating lease liabilities

42,309


41,525


43,343

1.9 %
(2.4) %Other long-term liabilities

57,457


62,601


65,630

(8.2) %
(12.5) %













Total equity

279,760


277,388


257,736

0.9 %
8.5 %Total liabilities and equity
$596,952

$591,360

$590,406

0.9 %
1.1 % CORE LABORATORIES INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)


Year Ended December 31,

2025

2024CASH FLOWS FROM OPERATING ACTIVITIES:




Net income
$32,525

$32,153Adjustments to reconcile net income to net cash provided by operating
activities:




Stock-based compensation

7,137


3,755Depreciation and amortization

14,649


14,953Deferred income taxes

(4,739)


674Insurance recovery on property, plant and equipment

(6,830)


(4,398)Accounts receivable

(4,953)


(3,612)Inventories

2,644


9,367Accounts payable

477


519Other adjustments to net income

(3,734)


2,977Net cash provided by operating activities

37,176


56,388





CASH FLOWS FROM INVESTING ACTIVITIES:




Capital expenditures - operations

(11,209)


(11,888)Capital expenditures - rebuilding of Aberdeen facility

(3,380)


(1,140)Net proceeds from insurance recovery - Aberdeen facility

9,951


2,102Acquisitions, net of cash acquired

(1,237)


—Net proceeds from life insurance policies

778


2,776Other investing activities

2,866


1,756Net cash used in investing activities

(2,231)


(6,394)





CASH FLOWS FROM FINANCING ACTIVITIES:




Repayment of long-term debt

(63,000)


(82,000)Proceeds from long-term debt

48,000


44,000Equity related transaction costs

—


(756)Debt issuance costs

(1,706)


(19)Dividends paid

(1,869)


(1,876)Repurchase of common stock

(12,426)


(5,306)Other financing activities

(254)


—Net cash used in financing activities

(31,255)


(45,957)





NET CHANGE IN CASH AND CASH EQUIVALENTS

3,690


4,037CASH AND CASH EQUIVALENTS, beginning of year

19,157


15,120CASH AND CASH EQUIVALENTS, end of year
$22,847

$19,157Non-GAAP InformationManagement believes that the exclusion of certain income and expenses enables it to evaluate more effectively the Company's operations period-over-period and to identify operating trends that could otherwise be masked by the excluded Items. For this reason, management uses certain non-GAAP measures that exclude these Items and believes that this presentation provides a clearer comparison with the results reported in prior periods. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, the financial results prepared in accordance with GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.Reconciliation of Operating Income, Net Income and Diluted Earnings Per Share Attributable to Core Laboratories Inc.(In thousands, except per share data)(Unaudited)

Operating Income

Quarter Ended

December 31, 2025

September 30, 2025

December 31,
2024GAAP reported
$15,832

$20,928

$14,174Stock compensation (1)

—


—


(771)Inventory and asset write-downs and severance (2)

—


601


4,115Insurance recovery on property, plant and equipment (3)          

—


(5,252)


(2,572)Foreign exchange losses (gains)

(95)


354


761Excluding specific items
$15,737

$16,631

$15,707




Net Income Attributable to Core Laboratories Inc.

Quarter Ended

December 31, 2025

September 30, 2025

December 31, 2024GAAP reported
$7,082

$14,239

$7,403Stock compensation (1)

—


—


(617)Inventory and asset write-downs and severance (2)

—


451


3,292Insurance recovery on property, plant and equipment (3)

—


(3,939)


(2,058)Foreign exchange losses (gains)

(72)


265


610Effect of higher (lower) tax rate (4)

2,654


(815)


1,766Excluding specific items
$9,664

$10,201

$10,396




Diluted Earnings Per Share Attributable to Core Laboratories Inc.

Quarter Ended

Year ended

December 31,
2025

September 30,
2025

December 31,
2024

December 31,
2025GAAP reported
$0.15

$0.30

$0.15

$0.68Stock compensation (1)

—


—


(0.01)


0.05Inventory and asset write-downs, lease
abandonment and severance (2)

—


0.01


0.07


0.08Insurance recovery on property, plant and                  
equipment (3)

—


(0.08)


(0.04)


(0.11)Foreign exchange losses (gains)

—


0.01


0.01


0.01Effect of higher (lower) tax rate (4)

0.06


(0.02)


0.04


0.04Excluding specific items
$0.21

$0.22

$0.22

$0.75











(1) The three months ended December 31, 2024 includes reversals of stock compensation expense previously recognized due to a change in probability of performance conditions for certain executives' share awards. The year ended December 31, 2024 includes reversals of stock compensation expense previously recognized due to a change in probability of performance conditions for certain executives' share awards and the acceleration of stock compensation expense associated with employees reaching eligible retirement age.(2)  Includes the write-down of inventory, leasehold improvements, and/or other assets and exit costs associated with consolidation of certain facilities.(3) Includes recovery of insurance proceeds associated with the fire at the Aberdeen, U.K. facility.(4) The three months ended December 31, 2024 includes the effect to reflect tax expense at a normalized rate of 20%. The three months ended September 30, 2025 and December 31, 2025, and the year ended December 31, 2025 include the effect to reflect tax expense at a normalized rate of 25%. Segment Information(In thousands)(Unaudited)

Operating Income

Quarter Ended December 31, 2025

Reservoir
Description

Production
Enhancement

Corporate and
OtherGAAP reported
$12,823

$3,025

$(16)Foreign exchange losses (gains)

(111)


3


13Excluding specific items
$12,712

$3,028

$(3)Return on Invested CapitalReturn on Invested Capital ("ROIC") is presented based on management's belief that this non-GAAP measure is useful information to investors and management when comparing profitability and the efficiency with which capital has been employed over time relative to other companies. The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg. ROIC is not a measure of financial performance under GAAP and should not be considered as an alternative to net income.ROIC of 9.7% is defined by Bloomberg as Net Operating Profit After Tax ("NOPAT") of $38.8 million divided by Average Total Invested Capital ("Average TIC") of $398.5 million, where NOPAT is defined as GAAP net income before non-controlling interest plus the sum of income tax expense, interest expense, and pension expense, less pension service cost and tax effect on income before interest and tax expense for the last four quarters. Average TIC is defined as the average of beginning and ending periods' GAAP stockholders' equity, plus the sum of net long-term debt, lease liabilities, allowance for credit losses, net of deferred taxes and income taxes payable.Free Cash FlowCore uses the non-GAAP financial measure of free cash flow to evaluate its cash flows and results of operations. Free cash flow is defined as net cash provided by operating activities (which is the most directly comparable GAAP measure) less cash paid for capital expenditures - operations. Management believes that free cash flow provides useful information to investors regarding the cash available in the period in excess of Core's needs to fund its capital expenditures and operating activities. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative to operating income, net income, or cash flows from operating, investing, or financing activities, each as determined in accordance with GAAP. Free cash does not represent residual cash available for distribution because Core may have other non-discretionary expenditures that are not deducted from the measure. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented may not be comparable to similarly titled measures presented by other companies.Computation of Free Cash Flow(In thousands)(Unaudited)

Quarter Ended

Year Ended

December 31, 2025

December 31, 2025Net cash provided by operating activities
$8,091

$37,176Capital expenditures - operations

(2,944)


(11,209)Free cash flow
$5,147

$25,967 





View original content to download multimedia:https://www.prnewswire.com/news-releases/core-lab-reports-fourth-quarter-and-full-year-2025-results-302679533.htmlSOURCE Core Laboratories Inc

Original: CORE LAB REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

JUST IN: $CLB Why Core Laboratories Stock Jumped 7% at the Open Today

Shares of digitally focused energy services provider Core Laboratories (NYSE: CLB) rose 7% out of the gate on Nov. 16. The stock was holding on to most of that gain at 11 a.m. EST, too, as it was still up about 6% or so. Why? The easy answer here is that oil prices were on the rise ...

Got this from CLB - Why Core Laboratories Stock Jumped 7% at the Open Today

CLB 4Q19 CC transcript:

https://finance.yahoo.com/news/edited-transcript-clb-earnings-conference-213613531.html

CLB’s incoming CEO* bought $100K of stock on the open market yesterday:

https://www.sec.gov/Archives/edgar/data/1000229/000120919120006188/xslF345X03/doc4.xml

*Incoming CEO, Lawrence Bruno takes over on 5/20/20; he is currently the COO.

CLB’s CEO is retiring, which is consistent with my musings on buyout vig in #msg-153050277.

From the 4Q19 PR: David Demshur, after more than 25 years as Core Lab’s Chairman and Chief Executive Officer, a tenure rarely achieved in any industry, is announcing his plans to retire effective 31 December 2020. Mr. Demshur will transition from the roles of Chairman and Chief Executive Officer on 20 May 2020, coinciding with Core Lab’s Annual Shareholders’ Meeting. Mr. Demshur will not seek re-nomination to the Company’s Supervisory Board of Directors in 2020. I’m not clear on what Demshur’s role will be between 5/21/20 and 12/31/20.

CLB 4Q19 results/1Q20 guidance:

https://www.sec.gov/Archives/edgar/data/1000229/000156459020002491/clb-ex991_6.htm

4Q19 revenue was $156.8M, -9% YoY and -9% QoQ, slightly above CLB’s revised guidance of $154-156M issued on 12/30/19 (#msg-153049893).

4Q19 GAAP EPS ex-items was $0.38, -21% YoY and -24% QoQ, consistent with CLB’s revised guidance of $0.37-0.38 issued on 12/30.19.

1Q20 guidance is for revenue of $159-164M (+1% to +5% QoQ) and GAAP EPS of $0.39-0.41 (+3% to +8% QoQ).

So, the good news, such as it is, is that 1Q20 should be a little better than 4Q19. The stock is essentially flat in AH trading.

CLB 2Q19 results/3Q19 outlook:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150119013

CLB 4Q18 CC transcript:

https://finance.yahoo.com/news/edited-transcript-clb-earnings-conference-213518760.html

CLB 4Q18 results/1Q19 guidance:

https://www.sec.gov/Archives/edgar/data/1000229/000100022919000018/exhibit99-1_pressreleaseq4.htm Core Lab anticipates a slowing in further project announcements until confidence in the balance of global crude-oil markets is restored. Core believes there will be a positive correction to the temporary oversupply of crude oil by the end of the first quarter 2019, which should encourage additional FID approvals for projects announced in 2018.

…Therefore, Core expects consolidated first quarter 2019 revenue of approximately $164,000,000 to $168,000,000 and operating income of approximately $26,000,000 to $27,000,000, yielding operating margins of 16%. EPS for the first quarter of 2019 is expected to be approximately $0.42 to $0.45. 4Q18 revenue was $173.2M (+2% YoY, -5% QoQ). 4Q18 non-GAAP EPS was $0.48. The first calendar quarter is seasonally slower than the fourth quarter, so the above 1Q19 guidance is broadly consistent with the 4Q18 results.

CC tomorrow at 8:30am ET.

News: $CLB Core Lab Announces Q1 2019 Quarterly Dividend

AMSTERDAM , Jan. 15, 2019 /PRNewswire/ -- The Board of Supervisory Directors of Core Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam Exchange: "CLB NA") has announced a cash dividend of $0.55 per share of common stock payable in the first quarter of 2019. This first quarte...

In case you are interested https://marketwirenews.com/news-releases/core-lab-announces-q1-2019-quarterly-dividend-6861352.html

CLB reports 3Q18 results/4Q18 outlook—note that CLB already downgraded expectations in a webcast on 10/4/18 (#msg-144073152):

https://www.sec.gov/Archives/edgar/data/1000229/000100022918000115/clb-2018q3_exhibit99x1xpre.htm

CC tomorrow at 8:30am ET.

Transcript of prepared answers at investment panel today:

https://www.sec.gov/Archives/edgar/data/1000229/000100022918000110/exhibit991qa.htm

CLB 2Q18 CC transcript:

https://finance.yahoo.com/news/edited-transcript-clb-earnings-conference-170845162.html

Transcript of CLB 1Q18 CC:

https://finance.yahoo.com/news/edited-transcript-clb-earnings-conference-195016822.html

CLB 1Q18 results: #msg-140316681.

CLB reports 4Q17 results—forecasts 38% growth in 1Q18:

https://www.sec.gov/Archives/edgar/data/1000229/000100022918000020/exhibit99-1_pressreleaseq4.htm

CLB reports 3Q17 results: #msg-135632793.

CLB reports 2Q17 results: #msg-133261322.

David Einhorn's Short Thesis on CLB

Great summary of Einhorn's SOHN Conf Presentation

Core Laboratories (CLB)

@ $113.43/share, $5B market cap and $5.2B enterprise value
Oilfield service business that helps energy companies analyze their reservoirs and increase their oil and gas recovery
Two segments: Reservoir Description and Production Enhancement
Reservoir Description: asset-light, lab-based business that analyzes reservoir rocks and fluids (71% of Revenue and 89% of EBIT in 2016)
Considered the technological leader in the field
Major oil companies rely on Core for analysis of their most complex reservoirs, where Core has earned a reputation for being best in class
Revenues and margins have been fairly stable because it specializes in multi-year projects, especially offshore and deepwater
Production Enhancement: provides tools and services related to well completion and production (29% of Revenue and 11% of EBIT in 2016)
Business sells perforating guns and charges primarily to frackers and offer well diagnostic services to E&P companies
Guns and charges are a competitive market in which Core competes against Titan, Schlumbuerger, and others
2/3+ of this segment’s revenue comes from products rather than services which makes this segment a typical commodity price-sensitive OFS
Valuation

On consensus estimates, stock trades at 35x next year’s earnings and nearly 29x 2019 estimates
Trades at a massive premium to its OFS peers – more than twice the multiple of prior peak earnings
Two reasons bulls give to justify CLB’s valuation are Core’s seemingly secular growth and its industry-leading ROIC
Core is a non-capital-intensive business; analytically, the ROIC in a non-capital-intensive business is irrelevant because you can’t reinvest your profits to grow your earnings at the stated ROIC
Core could have twice as much lab equipment without gaining any new customers – it is flawed to value the stock based on its “industry leading ROIC”
As for the secular growth, think this is a misunderstanding that dates back to 2009 and still persists today
Last cycle: when oil price briefly collapsed in 2008, revenue of most OFS companies collapsed along with it; Core’s revenue fell too but only barely and much less than others in the industry; Core managed to maintain sales and even grow margins and subsequently, revenues and margins continued to climb
Core’s stability through the down-cycle followed by growth in the recovery gave the false impression that Core is a secular growth company
Analysts began hyping the company as a secular growth story generally immune to oil price volatility and investors agreed and re-rated Core to a non-cyclical growth stock multiple
Analysts were so convinced that at year-end 2014 after oil prices had already been cut in half, still projected that Core could maintain earnings through the downturn
Analysts and their projections were wrong – a 74% decline in earnings over 2 years should have made analysts and investors reconsider the narrative but they have not; they continue to value the company as a secular grower
Right place, right time?

In reality, Core is a cyclical business whose particular product suite was less affected by the 2009 downturn than other companies in the industry
Like all OFS businesses, Core has two primary revenue drivers: price of oil and end markets where investment dollars are being spent
Reading the annual reports, Core happens to be steeped in the hottest parts of the energy market in any given year
2007: “Core will continue to emphasize execution of its time-proven strategies to produce additional growth internationally and in the natural resource plays of North America, which includes the Canadian oil sands, as well as tight-gas sand and gas-shale reservoirs”
2009: “Over the past seven years, we have focused on international crude oil developments to capitalize on our peak-oil theory… The Company has focused on international development and production-related crude oil projects almost to the exclusion of more cyclical, exploration-related activities”
2011: “Our continued focus on international crude-oil-related developments and unconventional oil from shale reservoirs enabled Core’s earnings per share growth to outpace almost all energy-related entities and industrial companies”
2012: “The Company’s laser focus on international crude oil related developments, especially those located in deepwater, continue to serve our shareholders well… Core Laboratories will continue to laser focus its attention on worldwide deepwater developments, and that will position us very well for success and growth over the next decade”
2013: “The Company’s laser focus on crude-oil developments, especially those in the deepwater and unconventional tight-oil plays that are primarily in shale reservoirs, continue to serve our shareholders well, as over 80% of Core’s revenue is now derived from oil-related projects. This percentage is likely to continue to grow as development of unconventional tight-oil shale reservoirs gain traction, not only in North America, but in the UK, Russia, North Africa, the Middle East, China, and Australia, among other places”
2014-2015: “Our continued focus on worldwide crude oil related and large natural gas liquefaction projects, especially those related to the development of deepwater fields off West and East Africa, the eastern Mediterranean region and increased activity in the Gulf of Mexico”
Reading Core’s annual reports is like opening a time capsule preserving the history of energy market hype

CLB reports 4Q16 results—sees 1H17 market bottom for deepwater and ex-US activity:

#msg-128144789

Guggenheim downgraded CLB today. Fundamentals support stock's rating:

Valuation

CLB presentation at Johnson Rice conference tomorrow: #msg-125284098.

CLB reports 3Q15 results/4Q15 guidance: #msg-117892269.

I agree but it will rebound with grace when the market turns in my opinion.

CLB was a monster stock, growing 8-fold from the 2008 to the 2014 high (including reinvested dividends). It's a fine company, but I doubt that another run like that will ever happen.

Looks a lot better now. I feel this will become on of the really big growth stocks as the rebound in crude begins.

CLB managed to close down only 3.3%. Please see #msg-117337130 and #msg-117346545 for related info.

Core Labs (CLB -8.5%) sinks after filing an investor update with presentation details; while CLB still anticipates the worldwide crude oil markets balancing in early 2016 and a V-shaped recovery in operating activities to follow, the company says it will continue to right size its cost basis for current activity levels.

But CLB says it now sees a weakening environment in Q3 industry activity, but no change to its Q3 EPS guidance, and now projects a significant decrease in Q4 operating activities, especially in North American shale plays due to E&P budget constraints and lower free cash flow levels for E&P companies due to low commodity prices.

CLB says "the slowing activity level is anticipated to be significant, so the company is currently reducing cost levels to maintain operating margins and returns on invested capital going into 2016."

CLB forecasts weak 4Q15: #msg-117335355.

Hey guys, I'm thinking about purchasing a small position here in CLB. Can somebody give me the downlow on this stock?

CLB 2Q15 CC notes: #msg-115635443.

CLB reports 2Q15 results: #msg-115614707.

CLB’s UBS webcast on 3/18/15 was a good listen, IMO:

https://event.webcasts.com/viewer/event.jsp?ei=1059132
http://www.corelab.com/investors/webcast

Two independent directors made open-market purchases of $250-300K each in February at prices of $95-102:

http://www.sec.gov/Archives/edgar/data/1000229/000100022915000030/xslF345X03/wf-form4_142299751492720.xml
http://www.sec.gov/Archives/edgar/data/1000229/000100022915000028/xslF345X03/wf-form4_142291110967610.xml

Sorry for the late reply. Service businesses will get hit hard 1H but it will make for a great entry.

CLB increases dividend 10% to annualized rate of $2.10/sh: #msg-109848687.

Musings on CLB’s sell-off today: #msg-107469836.

CLB reports 3Q14 results: #msg-107449167.

It stops when oil prices stabilize.

I'm wondering when it stops...

Wondering if this is a buying opportunity now? Hmmm...

Third recent insider buy ($75K by independent dirctor):

http://www.sec.gov/Archives/edgar/data/1000229/000100022914000097/xslF345X03/wf-form4_140718272279686.xml

The protracted 2Q14-related sell-off may finally be over.

Small open-market purchase by CLB director: #msg-104864845.

CLB’s CFO bought $1M worth of stock on the open market today: #msg-104746277.

Crunching the 2Q14 and full-year numbers: #msg-104703454.

Morningstar thinks CLB sell-off was overdone: #msg-103619396.

CLB hammered on lowered 2Q14 and full-year guidance: #msg-101873399.