e Laboratories (US:CLB)2025-10-22 20:15Revenue 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].