Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $130.2 million, up 5% from Q1 2025 and flat year-over-year [13] - Operating income increased to $14.5 million, up from $11.8 million in Q1 2025, yielding an EBIT margin of over 11% [18] - Net income, excluding items, was $8.8 million, an increase from $6.7 million in the prior quarter but a decrease from $10.4 million in the same quarter last year [19] - Earnings per diluted share, excluding items, was $0.19, up from $0.14 in Q1 2025 and down from $0.22 last year [20] Business Line Data and Key Metrics Changes - Reservoir Description revenue was $86.3 million, up 7% compared to Q1 2025, with operating margins at 13%, up from 10% in Q1 [7][39] - Production Enhancement revenue was $43.9 million, up 3% compared to Q1 2025, with operating margins at 9%, up from 8% in Q1 [9][42] Market Data and Key Metrics Changes - International product sales increased by 25% sequentially, driven by bulk shipments and increased laboratory instrumentation sales [14] - Demand for product sales decreased in the U.S. onshore market but was offset by higher international sales [15] Company Strategy and Development Direction - The company focuses on technology investments to solve client problems and capitalize on technical and geographic opportunities [7] - Core Laboratories aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [11] - The company plans to introduce new products and services in key geographic markets while maintaining a lean organization [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive long-term outlook for international upstream activity despite near-term volatility in crude oil prices [28] - The company anticipates that changes in crude oil prices will have a more immediate impact on U.S. onshore activity levels [30] - Core Laboratories expects third-quarter revenue to range from $127.5 million to $134.5 million, with operating income projected between $13.6 million and $16.2 million [32] Other Important Information - The company repurchased over 237,000 shares during Q2 2025, valued at $2.7 million [9] - Core's net debt was reduced by more than $9 million, with a leverage ratio of 1.27, the lowest in eight years [9][22] Q&A Session Summary Question: Additional details on the new proppant design partnered with a West Texas operator - The engagement focused on testing different designs of proppant particle size and sorting, confirming better results with the new design [48] Question: Insights on new product or service offerings, particularly in The Middle East - The company is focused on formation damage testing and has opened an unconventional laboratory in Dammam, Saudi Arabia, to support growing opportunities in unconventional resource development [52][53]