Core Laboratories (CLB) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $121.8 million, down 12% sequentially and 1% year-over-year, reflecting lower international activity and ongoing geopolitical disruptions in the Middle East and Russia/Ukraine.

• Net loss attributable to shareholders was $0.8 million, compared to net income of $4.9 million in Q4 2025 and a net loss of $0.2 million in Q1 2025.

• Operating income declined to $1.9 million from $15.7 million last quarter and $4.4 million a year ago.

• Operations were significantly impacted by geopolitical instability, severe weather in North America and Europe, and disruptions to hydrocarbon transportation and trading routes.

• The company celebrated its 90th anniversary, emphasizing resilience and a commitment to long-term value creation.

Financial highlights

• Service revenue was $94.3 million (down 1% YoY, down 12% sequentially); product sales were $27.5 million (down 3% YoY, down 12% sequentially).

• Net income ex items was $2.7 million, down 72% sequentially and 59% year-over-year; GAAP net loss was $800,000.

• EBIT ex items was $6.6 million (5% margin), down from $15.7 million last quarter; GAAP EBIT was $1.9 million.

• EPS ex items was $0.06, compared to $0.21 last quarter and $0.14 a year ago; GAAP loss per share was $0.02.

• Free cash flow was $0.5 million after $3.5 million in CapEx; $1.4 million in CapEx for UK facility rebuild excluded from FCF.

Outlook and guidance

• Q2 2026 revenue projected at $123–$131 million, with operating income of $6.4–$10.2 million and EPS of $0.06–$0.12.

• Reservoir Description Q2 revenue expected at $77.5–$82.5 million; Production Enhancement at $45.5–$48.5 million.

• Modest sequential operational improvement expected, but Middle East volatility creates uncertainty in recovery timing.

• Multi-year cycle of international offshore exploration and development anticipated to support future demand.

• U.S. onshore activity is expected to be more sensitive to oil price changes, while large-scale international projects are seen as more resilient.