Core Insights - Core Laboratories Inc. (CLB) reported fourth-quarter 2025 adjusted earnings of 21 cents per share, surpassing the Zacks Consensus Estimate of 20 cents, driven by the strong performance of the Production Enhancement segment, although it was a decline from 22 cents in the previous year due to challenges in the Reservoir Description segment and rising costs [1][9] Financial Performance - CLB's fourth-quarter operating revenues reached $138.3 million, exceeding the Zacks Consensus Estimate of $132 million, and reflecting a 7% increase from $129.2 million in the same quarter last year, attributed to higher demand for laboratory analytical and completion diagnostic services internationally [2] - Total costs and expenses for the quarter were reported at $122.4 million, a 6.4% increase from $115.1 million in the prior year, which was above the estimated $117.7 million [7] Segment Performance - Reservoir Description segment revenues increased by 6.3% year-over-year to $92.3 million, surpassing estimates of $88.3 million, but operating income fell from $16.6 million to $12.8 million, missing the estimate of $13.1 million [4] - Production Enhancement segment revenues rose by 8.3% to $46 million from $42.4 million in the prior year, with operating income improving from a loss to a profit of $3 million, exceeding the profit estimate of $1.8 million [5][6] Shareholder Returns and Debt Management - The company repurchased 363,207 shares for $5.7 million and reduced its debt leverage ratio to 1.09, with net debt decreasing by $1.2 million [3] - A quarterly cash dividend of 1 cent per share was declared, consistent with the previous quarter [3] Future Guidance - For Q1 2026, CLB expects revenues between $124 million and $130 million, with earnings per share projected between 11 cents and 15 cents, amid volatile market conditions [10] - The company anticipates a decline in U.S. land completion activity in the first half of 2026 but expects demand for diagnostic services and proprietary technologies to partially offset this decline [12] Market Outlook - Industry groups project global crude oil demand growth of approximately 0.9 million to 1.4 million barrels per day in 2026, with CLB highlighting the need for sustained investment in oil and gas development due to rising natural decline rates in existing fields [16] - The company expects continued demand for oilfield services as efficiency improvements become less impactful, necessitating higher activity levels to maintain production [17] - Market conditions are anticipated to remain volatile due to tariff pressures, OPEC+ production policies, and commodity price fluctuations, with seasonal declines expected in Q1 2026 [18][19]

Core Insights - Core Laboratories reported fourth-quarter revenue of $138.3 million, reflecting a 3% sequential increase and a 7% year-over-year growth, driven by demand for reservoir rock and fluid analysis as well as completion diagnostic services [2][6] - The company expects first-quarter 2026 revenue to be between $124 million and $130 million, with operating income guidance of $9.7 million to $12.2 million, indicating anticipated seasonal softness and weather disruptions [4][18] Financial Performance - Fourth-quarter segment operating income for Reservoir Description was $12.7 million, up from $11.6 million in the third quarter, with an operating margin of 14%, an increase of 60 basis points sequentially [1] - Full-year EBIT excluding items was $58.7 million, down 10% from $65.3 million in 2024, while net income excluding items for the fourth quarter was $9.7 million, with EPS of $0.21 [5][11] - The company generated $8.1 million of operating cash flow in Q4, resulting in free cash flow of $5.1 million after capital expenditures [12] Revenue Breakdown - Service revenue in Q4 was $107.0 million, up 6% sequentially and 11% year-over-year, while product sales fell to $31.3 million, down 6% sequentially and 4% year-over-year [8][9] - For the full year, service revenue rose to $399.4 million, a 3% increase from 2024, while product sales decreased to $127.1 million, down 6% from the previous year [9] Shareholder Returns - The company continued to return cash to shareholders, repurchasing over 363,000 shares for $5.7 million in Q4 and a total of 1.2 million shares for $15.5 million in 2025 [15] - Management remains opportunistic regarding buybacks while maintaining a comfortable leverage ratio, having reduced net debt by 70% since late 2019 [13][16] Market Conditions - Management noted that geopolitical tensions, sanctions, and commodity price volatility have created challenges for certain laboratory services related to crude oil [3][18] - The company is facing tariff-related cost pressures on imported raw materials, particularly affecting the Production Enhancement segment [18] Operational Highlights - Core Laboratories emphasized the strength of its proprietary technologies in offsetting seasonal softness in the U.S. land market, with ongoing international demand for long-cycle projects [3][19] - The company received recognition for its Pulverizer system in a Middle East plug-and-abandonment program, highlighting its innovative capabilities in the industry [20]

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue was $138.3 million, up 3% compared to Q3 2025 and up 7% year-over-year [13] - Full year 2025 revenue was $526.5 million, slightly up year-over-year, driven by growth in service revenue [13] - Operating margins in reservoir description for Q4 2025 were 14%, expanding sequentially by 60 basis points [8] - Net income ex items for Q4 was $9.7 million, down 5% sequentially and down 7% year-over-year [24] - Earnings per diluted share ex items for Q4 was $0.21, compared to $0.22 in the prior quarter [24] Business Line Data and Key Metrics Changes - Reservoir description revenue for Q4 was $92.3 million, up over 5% compared to Q3 [41] - Production enhancement revenue for Q4 was $46 million, up over 8% year-over-year [45] - Operating income for reservoir description was $12.7 million, yielding operating margins of 14% [41] - Operating income for production enhancement was $3 million, yielding operating margins of 7%, down from 11% in Q3 [46] Market Data and Key Metrics Changes - Strong international demand for proprietary technologies helped offset a seasonally soft US land market [6] - Demand for laboratory services tied to crude oil was negatively impacted by geopolitical conflicts and sanctions [8] - U.S. land completion activity is expected to decline in the first half of 2026 compared to the same period in 2025 [32] Company Strategy and Development Direction - Core Laboratories continues to execute its strategic plan focused on technology investments to solve client problems and capitalize on opportunities [6] - The company aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [11] - Core Lab plans to introduce new product and service offerings in key geographic markets while maintaining a strong balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive multiyear outlook despite near-term economic headwinds and commodity price volatility [36] - The IEA forecasts global crude oil demand growth of approximately 900,000-1.4 million barrels per day in 2026 [30] - Geopolitical conflicts and evolving trade dynamics continue to create uncertainty in demand for Core Lab's products and services [32] Other Important Information - The company returned free cash to shareholders through dividends and share repurchases, repurchasing over 363,000 shares in Q4 [9] - Core Lab's operational leverage allows for revenue and profitability growth with minimal capital requirements [28] - The company expects capital expenditures in 2026 to be in the range of $15 million-$18 million, primarily targeted at growth opportunities [28] Q&A Session Summary Question: Comments on Venezuela's market potential - Management noted a long history in Venezuela and the potential to monetize legacy data if operators return [56] Question: Update on Middle East operations - Management confirmed expanded lab capabilities in Saudi Arabia and ongoing engagement with Aramco [59] Question: Future cash flow and debt management - Management indicated a mix of using free cash flow for share buybacks and debt reduction, with a focus on maintaining a comfortable leverage ratio [62]

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue was $138.3 million, up 3% compared to Q3 2025 and up 7% year-over-year [13] - Full year 2025 revenue was $526.5 million, slightly up year-over-year, driven by growth in service revenue but offset by a decline in US onshore completion activity [13][14] - Net income ex items for Q4 was $9.7 million, down 5% sequentially and down 7% year-over-year [24] - Earnings per diluted share ex items was $0.21 for Q4, compared to $0.22 in both the prior quarter and the same quarter last year [24] Business Line Data and Key Metrics Changes - Reservoir Description revenue for Q4 was $92.3 million, up over 5% compared to Q3, with operating income ex items of $12.7 million and operating margins of 14% [41] - Production enhancement revenue for Q4 was $46 million, up over 8% year-over-year, with operating income ex items of $3 million and operating margins of 7% [45][46] Market Data and Key Metrics Changes - Demand for laboratory services tied to crude oil assay was negatively impacted by geopolitical conflicts and sanctions, contributing to commodity price volatility [8] - International markets showed resilient activity levels with ongoing investments in long-cycle projects across key global basins [31] Company Strategy and Development Direction - The company continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [6] - Core Lab aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [11] - The company plans to introduce new product and service offerings in key geographic markets while maintaining a strong balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive multiyear outlook despite near-term economic headwinds and volatile commodity prices, with global crude oil demand projected to grow [36][40] - The company anticipates a decline in US land completion activity in the first half of 2026 but expects improvement in completion activity later in the year [33] - Geopolitical conflicts and evolving trade dynamics continue to create uncertainty in demand for Core Lab's products and services [32] Other Important Information - The company returned free cash to shareholders through dividends and share repurchases, with over 363,000 shares repurchased in Q4 [9] - Capital expenditures for operations in 2025 were $11.2 million, with expectations for 2026 to be in the range of $15 million-$18 million [28] Q&A Session Summary Question: Comments on Venezuela - Management noted a long history in Venezuela and potential to monetize legacy data if operators return, but immediate advantages may favor metal-heavy companies [56][57] Question: Middle East facility capabilities - Management confirmed expanded lab capabilities in Saudi Arabia and ongoing engagement with Aramco, with opportunities in North Africa and unconventional projects [60][61] Question: Future cash flows and debt management - Management indicated a mix of using free cash flow for share buybacks and debt reduction, with a focus on maintaining a comfortable leverage ratio [62][63] Question: Exploration activity in Africa and Brazil - Management sees a trend towards increased international exploration and larger projects, indicating a positive outlook for future demand [74][75] Question: Impact of commodity prices on US activity - Management suggested stability in commodity prices is needed for improved activity levels, with ongoing efforts to enhance recovery techniques [80][81] Question: Tariff impact in 2025 - Management acknowledged tariffs have become more impactful, particularly in the latter part of 2025, with ongoing costs expected to repeat unless tariffs change [83][84]

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue was $138.3 million, up 3% compared to Q3 2025 and up 7% year-over-year [13] - Full year 2025 revenue was $526.5 million, slightly up year-over-year, driven by service revenue growth [13] - Operating margins in reservoir description for Q4 were 14%, expanding sequentially by 60 basis points [7] - Net income ex items for Q4 was $9.7 million, down 5% sequentially and down 7% year-over-year [23] - Earnings per diluted share ex items for Q4 was $0.21, compared to $0.22 in both the prior quarter and the same quarter last year [23] Business Line Data and Key Metrics Changes - Reservoir description revenue for Q4 was $92.3 million, up over 5% compared to Q3 [41] - Production enhancement revenue for Q4 was $46 million, up over 8% year-over-year [44] - Operating income for production enhancement was $3 million, yielding operating margins of 7%, down from 11% in Q3 [45] Market Data and Key Metrics Changes - Demand for laboratory services tied to crude oil was negatively impacted by geopolitical conflicts and sanctions [7] - International markets showed resilient activity levels with ongoing investments in offshore developments [31] - U.S. land completion activity is expected to decline in the first half of 2026 compared to the same period in 2025 [33] Company Strategy and Development Direction - The company focuses on technology investments to solve client problems and capitalize on technical opportunities [6] - Core Lab aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [11] - The company plans to introduce new products and services in key geographic markets while maintaining a strong balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive multiyear outlook despite near-term economic headwinds and commodity price volatility [36] - The IEA forecasts global crude oil demand growth of approximately 900,000-1.4 million barrels per day in 2026 [30] - Geopolitical conflicts and evolving trade dynamics continue to create uncertainty in demand for Core Lab's products and services [32] Other Important Information - The company returned free cash to shareholders through dividends and share repurchases, repurchasing over 363,000 shares in Q4 [9] - Capital expenditures for operations in 2025 were $11.2 million, with expectations for 2026 to be in the range of $15 million-$18 million [28] Q&A Session All Questions and Answers Question: Comments on Venezuela - Management noted a long history in Venezuela and the potential to monetize legacy data if operators return [54][57] Question: Capabilities in the Middle East - Management confirmed expanded lab capabilities in Saudi Arabia and ongoing engagement with Aramco, with opportunities in North Africa [59][60] Question: Future Cash Flows and Debt Management - Management indicated a mix of using free cash flow for share buybacks and debt reduction, with a focus on maintaining a comfortable leverage ratio [62][64]

分组1 - Core Laboratories reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.22 per share a year ago, representing an earnings surprise of +5.00% [1] - The company achieved revenues of $138.26 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.52% and increasing from $129.24 million year-over-year [2] - Core Laboratories has outperformed the S&P 500 with a share price increase of about 22.5% since the beginning of the year, compared to the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $135.66 million, and for the current fiscal year, it is $0.79 on revenues of $531.74 million [7] - The Oil and Gas - Field Services industry, to which Core Laboratories belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Fourth quarter 2025 revenue was $138.3 million, up 3% sequentially and up 7% year-over-year[2]. - Fourth quarter operating income was $15.8 million, with operating margins of over 11%, down 100 basis points sequentially and 80 basis points year-over-year[3]. - Full year 2025 revenue was $526.5 million, slightly up from 2024, with full year EPS, ex-items, of $0.75, down 14%[3]. - The Company reported Q4 2025 revenue of $138,255,000, representing a 2.8% increase from Q3 2025 and a 7.0% increase from Q4 2024[33]. - Operating income for Q4 2025 was $15,832,000, down 24.4% from Q3 2025 but up 11.7% from Q4 2024[33]. - Net income attributable to Core Laboratories Inc. for Q4 2025 was $7,082,000, a decrease of 50.3% compared to Q3 2025 and a decrease of 4.3% compared to Q4 2024[33]. - For the full year 2025, total revenue was $526,520,000, a slight increase of 0.5% from $523,848,000 in 2024[35]. - The Company’s operating income for the year ended December 31, 2025, was $56,468,000, down 3.6% from $58,556,000 in 2024[35]. - Net income for the year ended December 31, 2025, was $32,525,000, an increase from $32,153,000 in 2024, representing a growth of 1.16%[39]. - The company reported a diluted earnings per share of $0.68 for the year ended December 31, 2025, consistent with the previous year[45]. Cash Flow and Debt Management - Free cash flow for the fourth quarter was $5.1 million, with full year free cash flow totaling $26.0 million[3][11]. - Net debt was reduced by $1.2 million in the fourth quarter, improving the leverage ratio to 1.09, the lowest level in nine years[3][15]. - Net cash provided by operating activities decreased to $37,176,000 in 2025 from $56,388,000 in 2024, a decline of 34.0%[39]. - Free cash flow for the year ended December 31, 2025, was $25,967,000, compared to $37,176,000 in operating cash flow after capital expenditures of $11,209,000[54]. - The company repaid $63,000,000 in long-term debt during 2025, compared to $82,000,000 in 2024, indicating a reduction in debt repayment[39]. - Long-term debt, net, decreased to $110,255,000 as of December 31, 2025, down 3.4% from $114,103,000 in Q3 2025[37]. - The cash and cash equivalents at the end of 2025 were $22,847,000, an increase from $19,157,000 at the end of 2024[39]. Segment Performance - Reservoir Description segment revenue for Q4 2025 was $92.3 million, up 5% sequentially and over 6% year-over-year, with operating margins of 14%[5]. - Production Enhancement segment revenue for Q4 2025 was $46.0 million, up over 8% year-over-year, with operating margins, ex-items, of 7%[8]. - The company anticipates first quarter 2026 revenue for Reservoir Description to range from $82 million to $86 million[25]. Future Guidance - First quarter 2026 revenue is projected to range from $124 million to $130 million, with EPS expected to be $0.11 to $0.15[26]. - The Company’s first quarter 2026 guidance includes an effective tax rate of 25% and reflects a higher interest rate due to a term loan of $50,000,000[27]. Tax and Capital Expenditures - The effective tax rate for Q4 2025 was 45%, significantly higher than 21% in Q3 2025 and 35% in Q4 2024[33]. - Capital expenditures for operations in 2025 totaled $11,209,000, slightly down from $11,888,000 in 2024[39]. Return on Investment - The return on invested capital (ROIC) was reported at 9.7%, calculated from a net operating profit after tax (NOPAT) of $38.8 million against an average total invested capital of $398.5 million[51]. Acquisitions - Core Lab completed the acquisition of Brazilian-based Solintec for approximately $2.3 million[13].

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Core Insights - Core Laboratories Inc. (CLB) is expected to report fourth-quarter 2025 results on February 4, with a consensus estimate of earnings at 20 cents per share and revenues at $132 million [1][7]. Q3 Earnings Highlights - In the last reported quarter, CLB's adjusted earnings were 22 cents per share, exceeding the consensus estimate by 3 cents, while operating revenues reached $134.5 million, surpassing the estimate of $128 million due to increased demand for laboratory analytical and completion diagnostic services internationally [2]. Earnings Surprise History - CLB has missed the Zacks Consensus Estimate in two of the last four quarters and beat it in the other two, resulting in an average surprise of 2.58% [3]. - The consensus estimate for fourth-quarter 2025 earnings has remained unchanged over the past 30 days, indicating a year-over-year decline of 9.09%, while revenue estimates show a 2.35% increase compared to the previous year [3]. Factors Influencing Q4 Performance - CLB's revenue is anticipated to improve due to strong performance in both the Reservoir Description and Production Enhancement segments [4]. - However, rising costs are expected to impact the bottom line, with total operating expenses projected at $117.7 million, a 2.3% increase from the previous quarter, and costs of services and product sales expected to reach $108.4 million, up 2% from last quarter [5]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for CLB this quarter, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 (Hold) [6][8].