e Laboratories (CLB) - 2025 Q1 - Quarterly Results

Financial Performance - Core Laboratories reported Q1 2025 revenue of $123.6 million, down 4% sequentially and 5% year-over-year[4]. - Operating income for Q1 2025 was $4.4 million; ex-items operating income was $11.8 million, down 25% sequentially and 21% year-over-year[4]. - Revenue for Q1 2025 was $123,585 thousand, a decrease of 4.4% compared to Q4 2024 and 4.7% compared to Q1 2024[28]. - Operating income dropped to $4,417 thousand, down 68.8% from Q4 2024 and 48.5% from Q1 2024[28]. - Net income for Q1 2025 was $69 thousand, representing a 99.1% decline from Q4 2024 and a 98.0% decline from Q1 2024[28]. - The effective tax rate for Q1 2025 was 96%, significantly higher than 35% in Q4 2024[28]. Segment Performance - Reservoir Description segment revenue was $80.9 million, down 7% sequentially and 4% year-over-year, with operating margins of 10%[5]. - Production Enhancement segment revenue was $42.7 million, flat sequentially but down 6% year-over-year, with operating margins of 8%[7]. - Revenue from the Reservoir Description segment was $80,897 thousand, down 6.8% from Q4 2024[28]. - Operating income from the Reservoir Description segment fell to $2,339 thousand, an 85.9% decrease from Q4 2024[28]. - Operating income for the three months ended March 31, 2025, was reported at $7,756 million, with a breakdown of $2,339 million from Reservoir, $1,503 million from Production Enhancement, and $575 million from Corporate and Other[43]. Cash Flow and Debt - Free cash flow for Q1 2025 was $3.9 million, up over 50% year-over-year[4]. - Net cash provided by operating activities was $6,660 thousand, an increase from $5,530 thousand in Q1 2024[32]. - Free cash flow for the three months ended March 31, 2025, was $3,875 million, derived from net cash provided by operating activities of $6,660 million, after capital expenditures of $2,785 million[48]. - The company repaid $15,000 thousand in long-term debt during Q1 2025[32]. - Net debt was reduced by $4.9 million, with a leverage ratio remaining at 1.31, the lowest level in eight years[11]. Future Guidance - Q2 2025 revenue guidance for Reservoir Description is projected between $85 million and $89 million, and for Production Enhancement between $43 million and $45 million[20]. - Core's overall Q2 2025 revenue is projected to range from $128 million to $134 million, with expected EPS of $0.17 to $0.21[21]. Return on Investment - Core's ROIC for Q1 2025 was reported at 8.3%, reflecting the company's focus on maximizing return on invested capital[15]. - The Return on Invested Capital (ROIC) was calculated at 8.3%, based on a Net Operating Profit After Tax (NOPAT) of $33.6 million and an Average Total Invested Capital of $402.2 million[45]. Asset Management - Cash and cash equivalents increased by 15.4% to $22,107 thousand compared to $19,157 thousand at the end of Q4 2024[30]. - Total current assets rose by 1.0% to $228,768 thousand, while total assets increased slightly by 0.2% to $591,519 thousand[30]. - The company plans to continue evaluating capital allocation to return value to shareholders while reducing its leverage ratio[12].