Core Company Overview - Core Laboratories Inc. reported second quarter 2025 revenue of $130.2 million, reflecting a 5% sequential increase and flat year-over-year performance [8][30] - The company's operating income was $15.3 million, with earnings per diluted share (EPS) of $0.22, while operating income excluding items was $14.5 million, yielding operating margins of 11% [8][30] - Free cash flow for the quarter was $10.4 million, up over 160% sequentially, and the company repurchased 237,632 shares valued at $2.7 million [8][11] Segment Performance - Reservoir Description segment generated revenue of $86.3 million, up 7% sequentially and flat year-over-year, with operating income of $12.2 million [3][30] - Production Enhancement segment reported revenue of $43.9 million, a 3% sequential increase but flat year-over-year, with operating income of $3.1 million [6][30] Strategic Initiatives - Core Lab opened a new Unconventional Core Analysis Laboratory in Dammam, Saudi Arabia, enhancing its service capabilities in the Middle East [4] - The company completed a comprehensive analytical program for a major International Oil Company in the Campos Basin, Brazil, reinforcing its role as a trusted technical partner [5] Financial Health - As of June 30, 2025, Core's net debt was $94.8 million, reduced by $9.1 million during the quarter, with a leverage ratio of 1.27, the lowest in eight years [12][13] - The company renewed its credit agreement, expanding to include a $100 million revolving credit facility and a $50 million delayed draw term loan [13] Market Outlook - Despite geopolitical challenges and softer U.S. land activity, Core maintains a positive long-term outlook for international upstream activity, with forecasts for crude oil demand growth between 0.7 and 1.3 million barrels per day in 2025 [19][20] - The company anticipates that large-scale international oil and gas projects will remain less sensitive to near-term crude oil price volatility [20]