Core Laboratories (CLB) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $134.5 million, up over 3% sequentially and flat year-over-year, with service revenue growth offsetting a decline in product sales.

• Net income attributable to shareholders was $14.2 million, up 21% year-over-year, driven by insurance recovery gains and cost efficiencies.

• Operating income was $20.9 million, up 6% year-over-year, including a $5.2–$5.3 million insurance gain.

• Returned $5 million to shareholders via share repurchases, about 1% of outstanding shares.

• Completed the acquisition of Solintec in Brazil, expanding the Reservoir Description segment.

Financial highlights

• Service revenue was $101.1 million, up 5% sequentially and 2% year-over-year; product sales were $33.4 million, down 6% year-over-year.

• Operating margins, excluding items, expanded to over 12% sequentially; incremental margins were 48%.

• EPS ex items was $0.22, up from $0.19 last quarter, down from $0.25 last year; GAAP EPS was $0.30, up 20% year-over-year.

• Free cash flow for Q3 was $6.5 million; for the nine months ended September 30, 2025, $20.8 million, down 23% year-over-year.

• Return on invested capital improved to 9.7%.

Outlook and guidance

• Q4 2025 revenue projected at $132–$136 million, with operating income of $14–$16.1 million and margins around 11%.

• Q4 EPS expected to range from $0.18–$0.22, assuming a 25% tax rate.

• Reservoir Description Q4 revenue projected at $88–$90 million; Production Enhancement at $44–$46 million.

• Market volatility and lower commodity prices expected near term, but multi-year outlook remains constructive.

• Tariffs expected to have limited impact as most services are not subject to tariffs.