Financial Data and Key Metrics Changes - Core Laboratories Inc. reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year over year [11] - Operating income for the third quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [14] - Net income excluding items for the quarter was $10.2 million, an increase of over 15% sequentially but down almost 14% year over year [15] - Earnings per diluted share excluding items was $0.22, up from $0.19 in the prior quarter and down from $0.25 last year [15] Business Line Data and Key Metrics Changes - In the reservoir description segment, revenue was $88.2 million, up over 2% compared to Q2, with operating income of $11.6 million and operating margins of 13% [31] - The production enhancement segment saw revenue of $46.3 million, up 6% compared to Q2, with operating income of $4.9 million and operating margins of 11% [35] Market Data and Key Metrics Changes - Demand for laboratory services related to crude oil and derived products remained steady, with trading patterns improving following sanctions [7] - International service revenue increased by 5% sequentially, while U.S. service revenue remained flat and decreased almost 4% year over year [11] Company Strategy and Development Direction - Core Laboratories Inc. continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [6] - The company aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] - Core's strategies include introducing new products and services in key geographic markets and maintaining a lean organization [9] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite potential tariff headwinds and market volatility, projecting growth in crude oil demand driven by non-OECD countries [20][21] - The company anticipates that changes in crude oil prices will have a more immediate impact on U.S. onshore drilling and completion activity [23] - Core expects reservoir description revenue to increase sequentially in Q4, while production enhancement revenue may decline slightly [24] Other Important Information - Core repurchased over 462,000 shares of its stock during Q3, representing approximately 1% of outstanding shares and a value of $5 million [8] - The company’s long-term debt was $117 million, with a leverage ratio reduced to 1.1 [17] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the potential for similar tuck-in technology acquisitions, emphasizing the benefits of structuring deals with earnouts to align interests [43][45] Question: Future activity levels in Asia Pacific - Management indicated that clients foresee higher activity levels, particularly in the Middle East and West Africa, with increasing exploration programs in Asia Pacific [47][49]

Financial Data and Key Metrics Changes - Core Laboratories Inc. reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year over year [11] - Operating income for the quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [14] - Net income excluding items was $10.2 million, a sequential increase of over 15% but down almost 14% from the same quarter last year [16] Business Line Data and Key Metrics Changes - Reservoir description revenue was $88.2 million, up over 2% compared to Q2, with operating margins at 13% [31] - Production enhancement revenue reached $46.3 million, a 6% increase from Q2, with operating margins improving to 11% from 9% [35] Market Data and Key Metrics Changes - International service revenue was $101.1 million, up 5% sequentially and over 2% year over year, while U.S. service revenue remained flat sequentially and down almost 4% year over year [11] - Product sales were $33.4 million, down slightly from the previous quarter and down 6% year over year, primarily due to lower completion activity in the U.S. onshore market [12] 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 Laboratories Inc. aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite potential tariff headwinds and market volatility, projecting growth in crude oil demand driven by non-OECD countries [21][23] - The company anticipates a slight sequential decline in U.S. onshore completion activity but expects growth in international and offshore markets to offset this decline [24] Other Important Information - The company repurchased over 462,000 shares during the third quarter, representing approximately 1% of outstanding shares [8] - Capital expenditures for operations are expected to be in the range of $11 million to $13 million for the full year 2025 [19] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the potential for similar tuck-in technology acquisitions, emphasizing the benefits of structuring deals with earnouts to align interests [39][40] Question: Customer activity outlook in Asia Pacific - Management indicated that customers foresee higher activity levels, particularly in the Middle East and West Africa, with increasing exploration programs in Asia Pacific [43][44]

Financial Data and Key Metrics Changes - Core Laboratories reported third quarter 2025 revenue of $134.5 million, an increase of over 3% compared to Q2 2025 and flat year-over-year [12] - Operating income for the quarter was $16.6 million, up from $14.5 million in Q2, yielding an EBIT margin of over 12% [16] - Net income excluding items was $10.2 million, a sequential increase of over 15% but down almost 14% year-over-year [18] - Earnings per diluted share excluding items was $0.22, up from $0.19 in the prior quarter and down from $0.25 last year [19] Business Line Data and Key Metrics Changes - In the Reservoir Description segment, revenue was $88.2 million, up over 2% compared to Q2, with operating margins at 13% [42] - Production Enhancement revenue for Q3 was $46.3 million, a 6% increase from Q2, with operating margins improving to 11% from 9% [47] Market Data and Key Metrics Changes - International service revenue increased by 5% sequentially, while U.S. service revenue remained flat and down almost 4% year-over-year [12][13] - The company noted ongoing geopolitical conflicts and evolving sanctions affecting demand for laboratory services tied to crude oil [8][27] Company Strategy and Development Direction - Core Laboratories continues to focus on technology investments to solve client problems and capitalize on technical and geographic opportunities [7] - The company aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [10] Management Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook despite near-term economic headwinds, with forecasts indicating growth in global crude oil demand [25][35] - The company anticipates steady activity across long-cycle projects, particularly in deepwater regions and emerging markets [28][29] Other Important Information - Core Lab repurchased over 462,000 shares during Q3, representing approximately 1% of outstanding shares [9] - The company expects capital expenditures for operations in 2025 to be in the range of $11 million to $13 million [23] Q&A Session Summary Question: Opportunities for similar-sized transactions globally - Management discussed the structured purchase price of a recent acquisition, emphasizing the potential for similar tuck-in technology acquisitions [53][54] Question: Future activity levels in Asia Pacific - Management indicated expectations of higher activity levels across various regions, particularly in the Middle East and South Atlantic margin, with increasing international investment [60][61]

Core Earnings Performance - Core Laboratories reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.25 per share a year ago, representing an earnings surprise of +15.79% [1] - The company posted revenues of $134.52 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.50%, and showing a slight increase from year-ago revenues of $134.4 million [2] Stock Performance and Outlook - Core Laboratories shares have declined approximately 30.5% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $126.9 million, and for the current fiscal year, it is $0.72 on revenues of $508.15 million [7] Industry Context - The Oil and Gas - Field Services industry, to which Core Laboratories belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Revenue for Q3 2025 was $134.5 million, up over 3% sequentially and flat year-over-year[1]. - Revenue for Q3 2025 was $134,521,000, representing a 3.4% increase from Q2 2025 and a 0.1% increase from Q3 2024[30]. - Total revenue for the nine months ended September 30, 2025, was $388,265,000, a decrease of 1.6% compared to the same period in 2024[32]. - The company projects Q4 2025 revenue to range from $132 million to $136 million[24]. - The company anticipates Q4 2025 Reservoir Description revenue to be between $88 million and $90 million, and Production Enhancement revenue to range from $44 million to $46 million[23]. Operating Income and Earnings - Operating income was $20.9 million, with an operating margin of 12%, and EPS of $0.30; ex-items operating income was $16.6 million, yielding EPS of $0.22, up 16% sequentially[2][4]. - Operating income for Q3 2025 increased by 36.9% to $20,928,000 compared to Q2 2025, and by 5.7% compared to Q3 2024[30]. - Operating income for the nine months ended September 30, 2025, was $40,636,000, down 8.4% from the same period in 2024[32]. - GAAP reported operating income for Q3 2025 was $20,928,000, an increase from $19,803,000 in Q3 2024, representing a growth of 5.7% year-over-year[40]. - Segment operating income for Reservoir was $16,574,000 and for Production Enhancement was $4,379,000 in Q3 2025[47]. Net Income and Earnings Per Share - Net income attributable to Core Laboratories Inc. for Q3 2025 was $14,239,000, a 33.9% increase from Q2 2025 and a 21.2% increase from Q3 2024[30]. - Diluted earnings per share for Q3 2025 was $0.31, up 34.8% from Q2 2025 and 24.0% from Q3 2024[30]. - Net income attributable to Core Laboratories Inc. for Q3 2025 was $14,239,000, up from $11,745,000 in Q3 2024, reflecting a year-over-year increase of 21.3%[42]. - Diluted earnings per share (EPS) for Q3 2025 was $0.30, compared to $0.25 in Q3 2024, indicating a 20% increase year-over-year[44]. Cash Flow and Capital Expenditures - Free cash flow for Q3 2025 was $6.5 million, with cash from operations at $8.5 million and capital expenditures of $2 million[11]. - Free cash flow for Q3 2025 was $6,496,000, with net cash provided by operating activities at $8,502,000 and capital expenditures of $2,006,000[52]. - Cash and cash equivalents at the end of Q3 2025 were $25,629,000, a decrease of 17.8% from Q2 2025 but an increase of 33.8% from Q4 2024[34]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $29,085,000, compared to $35,773,000 for the same period in 2024[36]. Debt and Leverage - Core's leverage ratio improved to 1.10, the lowest level in nine years, with net debt reduced by $3.4 million to $91.4 million[13]. Acquisitions and Investments - The acquisition of Solintec for approximately $2.3 million, with potential additional payments of up to $3.7 million based on performance, enhances Core's capabilities in Brazil[7]. Foreign Exchange and Other Items - The company reported a foreign exchange gain of $354,000 in Q3 2025, contrasting with a loss of $239,000 in Q3 2024[40]. - The insurance recovery on property, plant, and equipment for Q3 2025 was $(5,252,000), compared to $(1,557,000) in Q2 2025[40]. Tax Rate - The effective tax rate for Q3 2025 was 21%, compared to 15% in Q2 2025 and 28% in Q3 2024[30]. Return on Invested Capital - Return on Invested Capital (ROIC) was reported at 9.7%, calculated from a net operating profit after tax (NOPAT) of $39.2 million against average total invested capital of $404.8 million[49]. Non-GAAP Measures - The company utilized non-GAAP measures to provide clearer comparisons with prior periods, emphasizing the importance of these metrics for evaluating operational performance[38].

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Core Insights - Core Laboratories Inc. (CLB) is expected to report third-quarter 2025 results on October 22, with a consensus estimate of 19 cents per share in profit and revenues of $127.5 million [1][7] Q2 Performance Highlights - In the last reported quarter, CLB's adjusted earnings were 19 cents per share, exceeding the consensus estimate by one cent, while operating revenues reached $130.2 million, surpassing the estimate of $128 million [2] - The positive performance was attributed to a rebound in maritime movement and crude oil trading, along with laboratory assay services [2] Earnings Surprise History - CLB has missed the Zacks Consensus Estimate in two of the last four quarters, met expectations in one, and exceeded them in another, resulting in an average negative surprise of 1.4% [3] - The consensus estimate for Q3 2025 earnings has been revised upward by 5.5% recently, but indicates a 24% year-over-year decline, while revenue estimates show a decline of about 5.1% from the previous year [3] Factors Influencing Q3 Performance - A rebound in laboratory services related to crude oil assay is anticipated, as trading patterns adjust post-sanctions [4] - The company aims to execute strategic objectives by launching new products and services in key markets while maintaining operational efficiency [4] - International oil and gas projects are expected to remain stable despite crude oil price volatility, particularly in regions like South Atlantic, North and West Africa, Norway, the Middle East, and parts of Asia Pacific [4] Revenue Challenges - CLB's revenues are projected to decline in Q3, with estimates down from $134.4 million in the previous year [5] - The Reservoir Description segment is expected to see flat revenues due to geopolitical conflicts and volatile commodity prices, while the Production Enhancement segment anticipates a lower U.S. frac spread count [5] Earnings Prediction Model - The earnings prediction model suggests a potential earnings beat for CLB, supported by a positive Earnings ESP of +5.26% and a Zacks Rank of 3 [6][8]

Core Laboratories Overview - Core Laboratories (CLB) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.19, reflecting a decrease of 24% compared to the previous year [3][12] - Revenues are anticipated to be $127.51 million, down 5.1% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for October 22, and the stock may rise if results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - Core Laboratories has a positive Earnings ESP of +5.26%, suggesting analysts have recently become more optimistic about the company's earnings prospects [12] - The company holds a Zacks Rank of 3, indicating a neutral outlook, but the combination of a positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Core Laboratories had an EPS of $0.19, surpassing the expected $0.18, resulting in a surprise of +5.56% [13] - Over the past four quarters, the company has only beaten consensus EPS estimates once [14] Industry Context - Halliburton (HAL), a peer in the oil and gas field services industry, is expected to report an EPS of $0.5, down 31.5% year-over-year, with revenues projected at $5.39 billion, a decrease of 5.3% [18][19] - Halliburton's Earnings ESP is -2.61%, combined with a Zacks Rank of 4, making it challenging to predict an earnings beat [19][20]

Group 1: Stock Performance - Core Laboratories (CLB) shares increased by 6% to $10.95 in the last trading session, following a higher-than-average trading volume, despite a 16.6% loss over the past four weeks [1][2] - The stock's recent surge is attributed to a rebound in global oil prices, driven by optimism surrounding U.S.-China trade talks and increased Chinese crude imports [2] Group 2: Earnings Expectations - Core Laboratories is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 28%, with revenues projected at $127.51 million, down 5.1% from the previous year [3] - The consensus EPS estimate for Core Laboratories has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Group 3: Industry Context - Core Laboratories operates within the Zacks Oil and Gas - Field Services industry, which includes other companies like FMC Technologies [5] - FMC Technologies has a consensus EPS estimate of $0.65, showing a 1.6% increase compared to the previous year, and currently holds a Zacks Rank of 1 (Strong Buy) [6]

Group 1 - Core Laboratories Inc. (NYSE:CLB) experienced a significant share price decline of 14.91% from October 3 to October 10, 2025, making it one of the worst-performing energy stocks during that week [1] - The company is a prominent global provider of proprietary and patented reservoir description and production enhancement services and products for the oil and gas industry [2] - The decline in share price is attributed to escalating trade tensions between the US and China, particularly following China's announcement of stricter controls on rare-earth mineral exports and the US's threats of increased tariffs on Chinese imports [3] Group 2 - The economic slowdown anticipated from the trade tensions has led to a decrease in crude oil prices, with WTI falling to a multi-month low of below $60 per barrel [3] - Core Laboratories recently announced the acquisition of Solintec, an integrated geological services company, which enhances its position in the Brazilian oil and gas market [4] - Since the beginning of 2025, the share price of Core Laboratories has plummeted by over 43% [4]