Core Laboratories (CLB) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $132.1M, up 6% sequentially and down 2% YoY; adjusted operating income was $12.6M and adjusted EPS was $0.16.

• Sequential growth reflected stronger international laboratory demand and product sales, partly offset by delayed Gulf of America diagnostic projects.

• Geopolitical disruption continued to pressure service activity; Q4 revenue is expected to remain relatively flat sequentially.

Financial highlights

• Service revenue was $96.0M, down 5% YoY; product sales were $36.1M, up 8% YoY.

• GAAP operating income was $12.1M versus $9.2M in Q2 and $20.9M YoY; adjusted operating income was $12.6M, up 35% sequentially and down 24% YoY.

• Net income attributable to shareholders was $5.4M versus $6.0M in Q2 and $14.2M YoY; GAAP diluted EPS was $0.12 and adjusted EPS was $0.16.

• 9M revenue declined 3% to $378.5M; operating income fell 43% to $23.1M and diluted EPS was $0.23 versus $0.52.

• 9M operating cash flow was $16.7M versus $29.1M; free cash flow was $5.4M versus $20.8M.

Outlook and guidance

• Q4 revenue guidance is $128.5M–$134.5M, operating income $10.7M–$15.1M, operating margin ~10%, and EPS $0.12–$0.20; guidance excludes FX gains and losses and assumes a 25% tax rate.

• Reservoir Description Q4 revenue is projected at $81M–$85M and operating income at $5.1M–$8.3M; Production Enhancement revenue is $47.5M–$49.5M and operating income $5.5M–$6.7M.

• Q4 revenue is expected to be relatively flat sequentially amid Middle East disruption; U.S. year-end seasonality may be partly offset by stronger diagnostic and Production Enhancement activity.

• 2026 adjusted G&A is expected at $43M–$45M; full-year CapEx excluding the insured U.K. facility rebuild is forecast at $14M–$16M.

• IEA, EIA and OPEC forecasts point to stronger global oil demand in 2027; client discussions indicate potential for broader global spending and activity growth.