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]