Core Laboratories (CLB) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $121.8 million, down 12% sequentially and nearly flat year-over-year, with operations significantly impacted by geopolitical conflicts in the Middle East, Russia/Ukraine, and severe weather in North America and Europe.

• Net income ex items was $2.7 million, down 72% sequentially and 59% year-over-year; GAAP net loss was $800,000, with GAAP loss per share of $0.02.

• Free cash flow was $500,000 after $3.5 million in CapEx; net debt increased to $94.2 million; leverage ratio at 1.2.

• The company maintained its focus on technology innovation, operational efficiency, and shareholder returns, celebrating its 90th anniversary.

• 51,781 shares repurchased for $0.9 million; quarterly dividend of $0.01 per share announced.

Financial highlights

• Q1 2026 revenue was $121.8 million, down 11.9% sequentially and 1.4% year-over-year.

• Net income ex items was $2.7 million; GAAP net loss was $800,000; EPS ex items was $0.06, GAAP loss per share was $0.02.

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

• Free cash flow was $500,000 after $3.5 million in CapEx; cash from operations was $4.0 million.

• Net debt was $94.2 million as of March 31, 2026.

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.