Core Laboratories (CLB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $130.6 million, up slightly both sequentially and year-over-year, driven by growth in service revenue and stable product sales.

• Net income attributable to shareholders was $9.0 million, down 60% year-over-year but up 180% sequentially; diluted EPS was $0.19.

• Operating income for Q2 2024 was $16.0 million (12% margin), up 87% sequentially but down 15% year-over-year.

• Free cash flow improved to $14.3 million in Q2 and $16.8 million for the first half of 2024; net debt reduced by $15.8 million.

• The company remains focused on innovation, operational efficiency, and strengthening its balance sheet.

Financial highlights

• Q2 2024 revenue was $130.6 million, up from $129.6 million in Q1 and $127.9 million in Q2 2023.

• Net income ex items was $10.4 million, up 16% sequentially; GAAP EPS was $0.19, adjusted EPS $0.22.

• Operating margins improved to 13% from 12% last quarter; operating income ex items was $16.4 million.

• Free cash flow for Q2 was $14.3 million, with $16.8 million generated in the first half of 2024 versus $1.2 million last year.

• General and administrative expenses rose $4.4 million year-over-year in Q2, mainly due to higher IT and implementation costs.

Outlook and guidance

• Q3 2024 revenue projected at $131–$137 million, with operating income of $16.9–$19.1 million and EPS of $0.23–$0.27.

• Reservoir Description Q3 revenue expected at $86.5–$89.5 million; Production Enhancement at $44.5–$47.5 million.

• Operating margins expected to remain around 13%.

• International upstream project activity and crude oil demand growth expected to support long-term growth.

• The company continues to expand its involvement in energy transition projects, including carbon capture and geothermal.