e Laboratories (US:CLB)2025-10-23 20:05Revenue Performance - Total revenue for Q3 2025 was $134.521 million, a slight increase of 0% compared to $134.397 million in Q3 2024[101] - Service revenue accounted for 75% of total revenue at $101.125 million, up 2% from $98.842 million in the same quarter last year[101] - Product sales decreased by 6% to $33.396 million, down from $35.555 million in Q3 2024[101] - For the nine months ended September 30, 2025, total revenue was $388.3 million, a decrease of 2% compared to $394.6 million in the same period of 2024[108] - For the three months ended September 30, 2025, the company reported a consolidated revenue of $134.5 million, a slight increase of 0% year-over-year and a 3% increase sequentially[134] - Revenue from the Reservoir Description segment was $88.2 million for the three months ended September 30, 2025, down 1% year-over-year but up 2% sequentially[137] - Revenue from the Production Enhancement segment was $46.3 million for the three months ended September 30, 2025, reflecting a 2% increase year-over-year and a 6% increase sequentially[144] Income and Profitability - Operating income rose to $20.928 million, representing a 6% increase from $19.803 million in Q3 2024[101] - Net income attributable to Core Laboratories Inc. increased by 21% to $14.239 million, compared to $11.745 million in Q3 2024[101] - Operating income for the nine months ended September 30, 2025, was $40.6 million, down 8% from $44.4 million in the same period of 2024[108] - Net income for the nine months ended September 30, 2025, was $25.3 million, an increase of 2% compared to $24.7 million in the same period of 2024[108] - Operating income for the three months ended September 30, 2025, was $20.9 million, representing a 6% increase year-over-year and a 37% increase sequentially, with operating margins at 16%[134] Financial Ratios and Leverage - The debt to EBITDA ratio improved to 1.18:1 from 1.58:1 year-over-year, indicating better financial leverage[102] - The current ratio decreased slightly to 2.37:1 from 2.48:1, reflecting a minor decline in liquidity[102] - The current ratio improved to 2.37:1 from 2.27:1 year-over-year[108] - The debt to EBITDA ratio decreased to 1.18:1 from 1.33:1 year-over-year[108] - The leverage ratio for the company was 1.10, and the interest coverage ratio was 7.86 as of September 30, 2025[161] Cash Flow and Capital Management - Cash flows from operating activities decreased by 19% to $29.1 million for the nine months ended September 30, 2025, compared to $35.8 million in 2024[152] - Free cash flow for the nine months ended September 30, 2025, decreased by 23% to $20.8 million from $27.1 million in the same period in 2024[157] - Cash flows from investing activities for the nine months ended September 30, 2025, were $1.5 million, including $10.0 million from insurance recovery related to a fire incident[153] - Cash flows used in financing activities for the nine months ended September 30, 2025, totaled $24.1 million, including an $11.0 million net reduction in long-term debt[154] - The company repurchased 831,478 shares of common stock for $9.8 million during the nine months ended September 30, 2025[155] - As of September 30, 2025, the company had a Credit Facility with an available borrowing capacity of approximately $131.9 million[158] - Total long-term debt as of September 30, 2025, was $117.0 million, down from $128.0 million in 2024[159] - Capital expenditures for operations decreased slightly by 4% to $8.3 million for the nine months ended September 30, 2025[157] - The company is in compliance with all covenants contained in its Credit Facility and Senior Notes as of September 30, 2025[161] Market Outlook and Strategic Focus - The company anticipates continued global demand growth for crude oil and natural gas in 2025 and beyond, despite potential price volatility due to increased OPEC+ production[94] - Geopolitical conflicts and sanctions are causing disruptions in traditional supply chains, impacting demand for laboratory assay services[96] - Core Laboratories is focusing on large-scale core analyses and reservoir fluid characterization studies across major oil-producing regions globally[98] Expenses and Other Financial Metrics - Cost of services for the nine months ended September 30, 2025, was $221.9 million, a decrease of 1% compared to the same period in 2024[118] - General and administrative expense for the nine months ended September 30, 2025, was $34.8 million, an increase of $4.1 million compared to the same period in 2024[125] - Other (income) expense, net, for the nine months ended September 30, 2025, was $(6.2) million, compared to $(6.1) million in the same period of 2024[127] - The company recorded an interest expense of $2.7 million for the three months ended September 30, 2025, a decrease of 15% year-over-year and 2% sequentially[130] - The effective tax rate for the three months ended September 30, 2025, was 20.5%, down from 28.1% in the same period of the prior year[132] - The company maintained a quarterly dividend of $0.01 per share[150] - As of September 30, 2025, the company had $25.6 million in cash, with $22.2 million held by foreign subsidiaries[149]