Core Laboratories (CLB) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached $138.3 million, up 3% sequentially and 7% year-over-year, driven by strong international demand and new Middle East projects, offsetting a soft US land market.

• Full year 2025 revenue was $526.5 million, up slightly from 2024, with service revenue growth offset by lower US onshore completion activity; operating income was $56.5 million (GAAP) and $58.7 million (ex-items).

• Operational focus remained on technology investment, operational efficiency, and disciplined capital allocation, including share repurchases and dividends.

• Net income attributable to shareholders for Q4 was $7.1 million, with GAAP EPS of $0.15; full year GAAP EPS was $0.68, up 3% year-over-year.

• Free cash flow for Q4 was $5.1 million; full year free cash flow totaled $26.0 million.

Financial highlights

• Q4 2025 revenue: $138.3 million (up 3% sequentially, 7% year-over-year); service revenue $107 million (up 6% sequentially, 11% year-over-year).

• Q4 net income ex items: $9.7 million (down 5% sequentially, down 7% year-over-year); GAAP net income: $7.1 million.

• Q4 EPS ex items: $0.21; GAAP EPS: $0.15. Full year EPS ex items: $0.75 (down 14% year-over-year).

• EBIT ex items for Q4: $15.7 million (margin over 11%); full year EBIT ex items: $58.7 million (down 10% year-over-year).

• Q4 cash from operations was $8.1 million; capital expenditures were $3.0 million.

Outlook and guidance

• Q1 2026 revenue projected at $124–$130 million, operating income $9.7–$12.2 million, operating margin ~9%, and EPS $0.11–$0.15.

• Reservoir Description Q1 2026 revenue expected at $82–$86 million, operating income $6.8–$8.25 million.

• Production Enhancement Q1 2026 revenue forecast at $42–$44 million, operating income $2.8–$3.8 million.

• Guidance reflects higher interest expense due to a new $50 million term loan at a variable SOFR-based rate, replacing $45 million in fixed-rate notes.

• Market volatility, tariffs, and weather disruptions expected to impact Q1 2026 results.