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 improvements in operating income, margins, and EPS.

• Operating income was $20.9 million GAAP; excluding items, $16.6 million, up 14% sequentially.

• Returned $5 million to shareholders via repurchasing about 1% of outstanding shares.

• Free cash flow for Q3 was $6.5 million; leverage ratio improved to 1.10, a nine-year low.

• Continued execution of strategic plan focused on technology investments and global expansion.

Financial highlights

• Q3 2025 revenue was $134.5 million, up $4.4 million (3%) sequentially and flat year-over-year.

• Service revenue was $101.1 million, up 5% sequentially and over 2% year-over-year; U.S. service revenue flat sequentially, down 4% year-over-year.

• Product sales were $33.4 million, down slightly sequentially and 6% year-over-year, mainly due to lower U.S. onshore activity.

• EBIT ex items was $16.6 million (12% margin), up $2.1 million sequentially; GAAP EBIT was $20.9 million, including a $5.2 million insurance gain.

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

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 on revenue; most services not subject to tariffs.