CORE LAB REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Core Laboratories (NYSE: CLB) reported Q1 2026 revenue of $121.8 million, down 12% sequentially and flat year-over-year, GAAP loss per diluted share of $0.02, and EPS ex-items of $0.06. Operating income, ex-items, was $6.6 million. Free cash flow was $0.5 million. The company cited Middle East geopolitical disruptions, Russia‑Ukraine impacts, and severe weather as primary headwinds, and announced a $0.01 quarterly dividend and $0.9 million of share repurchases.
Positive
- Commercial adoption of RF-5TF across Eastern Hemisphere regions
- PackScan diagnostic intervention avoided a potential multi‑million-dollar well failure
- Board approved quarterly cash dividend of $0.01 per share payable June 1, 2026
- Repurchased 51,781 shares for approximately $0.9 million
- Reported ROIC of 9.1% for Q1 2026
Negative
- Revenue declined 12% sequentially to $121.8 million
- Operating income, ex-items, fell 58% sequentially to $6.6 million
- EPS, ex-items, declined 72% sequentially to $0.06
- Free cash flow was only $0.5 million for Q1 2026
- Net debt increased $3.9 million; leverage ratio at 1.20
- Days sales outstanding rose from 69 to 74 days
Key Figures
Market Reality Check
Peers on Argus
Ahead of the Q1 release, CLB was down 3.01% while key peer PUMP appeared in momentum scanners up about 5.22%, and other peers showed mixed, smaller moves. This points to stock-specific pressure rather than a broad oilfield services move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Q4 2025 earnings | Positive | -4.2% | Revenue and EPS growth for Q4 and full year 2025 with strong FCF. |
| Oct 22 | Q3 2025 earnings | Positive | +28.8% | Q3 2025 earnings with solid revenue, EPS and debt reduction plus acquisition. |
| Oct 22 | Q3 2025 earnings | Positive | +28.8% | Repeat Q3 2025 release highlighting strong margins, FCF and buybacks. |
| Jul 23 | Q2 2025 earnings | Positive | +5.9% | Q2 2025 revenue growth, higher margins, FCF and continued deleveraging. |
| Apr 23 | Q1 2025 earnings | Negative | -3.8% | Q1 2025 revenue decline and geopolitical headwinds despite positive FCF. |
Earnings events have often triggered sizeable moves (avg 11.09%), usually aligning with the tone of results, though there has been at least one selloff on otherwise solid numbers.
Over the last year, Core Lab’s earnings releases showed a generally improving 2025 trajectory, with revenue rising from $123.6M in Q1 2025 to $138.3M in Q4 2025 and consistent free cash flow generation, debt reduction, and share repurchases. ROIC and leverage were key management focuses, alongside modest dividends. The current Q1 2026 announcement contrasts with that momentum, highlighting revenue pressure, sharply lower operating income, and a GAAP loss per share, largely tied to Middle East conflict and weather disruptions, marking a setback versus prior quarters’ strengthening performance.
Historical Comparison
Past earnings releases moved CLB shares by an average of 11.09%. This Q1 2026 report, with weaker margins and a GAAP loss, followed a stretch of generally strengthening 2025 results.
Earnings from Q1 through Q4 2025 reflected rising revenue, growing free cash flow, and gradual deleveraging, with ROIC emphasized as a core metric. The latest Q1 2026 earnings break that improving pattern, as conflict-driven disruptions and severe weather weighed on segment results and turned EPS negative despite ongoing capital returns and focus on long-term ROIC.
Market Pulse Summary
This announcement details Q1 2026 results with revenue of $121.8M, a GAAP loss of $0.02 per share, and non-GAAP EPS of $0.06, pressured by Middle East conflict and severe weather. Free cash flow was modest at $0.5M, net debt rose to $94.2M, and ROIC was 9.1%. Historically, CLB’s earnings events have produced average moves of about 11.09%, underscoring how closely investors watch margin trends, leverage, and the company’s ability to meet or refine guidance.
Key Terms
free cash flow financial
eps financial
gaap financial
leverage ratio financial
return on invested capital financial
AI-generated analysis. Not financial advice.
- REVENUE OF
$121.8 12% SEQUENTIALLY AND FLAT YEAR-OVER-YEAR - OPERATING INCOME OF
$1.9 MILLION $6.6 MILLION 58% SEQUENTIALLY AND44% YEAR-OVER-YEAR - GAAP LOSS PER SHARE OF
$0.02 $0.06 72% SEQUENTIALLY AND58% YEAR-OVER-YEAR - FREE CASH FLOW OF
$0.5 MILLION - NET DEBT INCREASED BY
$3.9 MILLION - COMPANY REPURCHASED 51,781 SHARES OF COMMON STOCK, FOR
$0.9 MILLION - COMPANY ANNOUNCES Q2 2026 QUARTERLY DIVIDEND
Core's CEO, Larry Bruno, stated, "First and foremost, our thoughts remain with our employees and their families across our
Reservoir Description
Reservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately
Although client activities in and around the
Production Enhancement
Production Enhancement operations, which are focused on complex completions in unconventional oil and gas reservoirs in the
In the fourth quarter of 2025, Core Lab advanced its Radio Frequency ("RF") safe product portfolio with the commercial release of its proprietary RF-5TF™ detonator. RF‑safe detonators allow operators and service companies to conduct perforating operations with reduced wellsite risk by maintaining immunity to RF energy sources and stray voltage. This technology enables normal rig activities while minimizing the potential for unintended initiation. This next generation, proprietary design eliminates field assembly, thus reducing wellsite handling and wiring complexities. Following successful field trials in the first quarter of 2026, Core Lab's RF-5TF™ has been adopted across parts of the Eastern Hemisphere, including the
Also during the first quarter, Core Lab's proprietary PackScan® density logging technology played a critical role in helping an offshore
Liquidity, Free Cash Flow, Share Repurchases, and Dividend
Core continues to focus on maximizing free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures. For the first quarter of 2026, cash from operations was
As mentioned in the Company's prior earnings releases, in February 2024, fire damaged a building on the campus of Core Lab's Advanced Technology Center in
In the first quarter of 2026, Core Lab repurchased 51,781 shares at an aggregate purchase price of approximately
As of March 31, 2026, Core's net debt (defined as long-term debt less cash and cash equivalents) was
On February 4, 2026, Core's Board of Directors ("Board") announced a quarterly cash dividend of
On April 29, 2026, the Board approved a cash dividend of
Return On Invested Capital
The Board and the Company's Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and FCF, factors that have high correlation to total shareholder return. Core's commitment to an asset-light business model and disciplined capital stewardship promotes capital efficiency and are designed to produce more predictable and superior long-term ROIC.
The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield services companies listed as Core's Comp Group by Bloomberg, as the Company continues to believe superior ROIC will result in higher total shareholder return. Using Bloomberg's formula, Core Lab's ROIC for the first quarter of 2026 was
Industry and Core Lab Outlook and Guidance
The IEA, EIA, and OPEC are projecting global crude oil demand growth in 2026 of approximately 0.6 to 1.4 million barrels per day, supporting constructive long-term market fundamentals despite near-term volatility. The IEA also continues to highlight that accelerating natural decline rates in existing producing fields remain a significant long-term supply risk, reinforcing the need for sustained investment. Recent disruptions, including the closure of the Strait of Hormuz and damage to regional refining infrastructure, have reduced global crude oil supply by approximately
In the near term, geopolitical instability in the
Recent changes in client activity levels across the
Client discussions indicate that international projects outside the
Reservoir Description's second quarter 2026 revenue is projected to range from
The Company's guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange, and assumes an effective tax rate of
Earnings Call Scheduled
The Company has scheduled a conference call to discuss Core's first quarter 2026 earnings announcement. The call will begin at 7:30 a.m. CDT / 8:30 a.m. EDT on Thursday, April 30, 2026. To log on to the listen-only webcast, visit www.corelab.com/investors 15 minutes before the start of the call. For those not available to listen to the live webcast, a replay and transcript will be available on the Company's website shortly after the call. Analysts may contact investor.relations@corelab.com for conference call dial-in information.
Core Laboratories Inc. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements Core Lab makes, includes forward-looking statements regarding the Company's future revenue, profitability, business strategies and developments, demand for the Company's products and services and for products and services of the oil and gas industry generally, made in reliance upon the safe harbor provisions of Federal securities law. The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business and general economic conditions, including inflationary pressures, the impact of tariffs, supply chain disruptions, trade policies and sanctions, international civil unrest or geopolitical tensions, including the continuing armed conflict between
The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.
Visit the Company's website at www.corelab.com.
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | % Variance | |||||||||||||||
March 31, | December 31, | March 31, | vs. Q4-25 | vs. Q1-25 | ||||||||||||
REVENUE | $ | 121,797 | $ | 138,255 | $ | 123,585 | (11.9) % | (1.4) % | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Costs of services and product sales | 102,073 | 109,516 | 99,469 | (6.8) % | 2.6 % | |||||||||||
General and administrative expense | 14,718 | 10,631 | 13,647 | 38.4 % | 7.8 % | |||||||||||
Depreciation and amortization | 3,764 | 3,668 | 3,717 | 2.6 % | 1.3 % | |||||||||||
Other (income) expense, net | (645) | (1,392) | 2,335 | NM | NM | |||||||||||
Total operating expenses | 119,910 | 122,423 | 119,168 | (2.1) % | 0.6 % | |||||||||||
OPERATING INCOME | 1,887 | 15,832 | 4,417 | (88.1) % | (57.3) % | |||||||||||
Interest expense | 2,891 | 2,609 | 2,602 | 10.8 % | 11.1 % | |||||||||||
Income (loss) before income taxes | (1,004) | 13,223 | 1,815 | NM | NM | |||||||||||
Income tax (benefit) expense | (251) | 8,094 | 1,746 | NM | NM | |||||||||||
Net income (loss) | (753) | 5,129 | 69 | NM | NM | |||||||||||
Net income attributable to non- controlling interest | 36 | 181 | 223 | NM | NM | |||||||||||
Net income (loss) attributable to Core Laboratories Inc. | $ | (789) | $ | 4,948 | $ | (154) | NM | NM | ||||||||
Diluted earnings (loss) per share | $ | (0.02) | $ | 0.11 | $ | — | NM | NM | ||||||||
Diluted earnings (loss) per share attributable to Core Laboratories Inc. | $ | (0.02) | $ | 0.11 | $ | — | NM | NM | ||||||||
Weighted average common shares outstanding - assuming dilution | 46,073 | 46,697 | 46,773 | (1.3) % | (1.5) % | |||||||||||
Effective tax rate | 25 | % | 61 | % | 96 | % | NM | NM | ||||||||
SEGMENT INFORMATION: | ||||||||||||||||
Revenue: | ||||||||||||||||
Reservoir Description | $ | 81,931 | $ | 92,282 | $ | 80,897 | (11.2) % | 1.3 % | ||||||||
Production Enhancement | 39,866 | 45,973 | 42,688 | (13.3) % | (6.6) % | |||||||||||
Consolidated | $ | 121,797 | $ | 138,255 | $ | 123,585 | (11.9) % | (1.4) % | ||||||||
Operating income: | ||||||||||||||||
Reservoir Description | $ | 1,146 | $ | 12,823 | $ | 2,339 | (91.1) % | (51.0) % | ||||||||
Production Enhancement | 804 | 3,025 | 1,503 | (73.4) % | (46.5) % | |||||||||||
Corporate and Other | (63) | (16) | 575 | NM | NM | |||||||||||
Consolidated | $ | 1,887 | $ | 15,832 | $ | 4,417 | (88.1) % | (57.3) % | ||||||||
"NM" means not meaningful | ||||||||||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
% Variance | ||||||||||
ASSETS: | March 31, | December 31, | vs. Q4-25 | |||||||
Cash and cash equivalents | $ | 22,819 | $ | 22,702 | 0.5 % | |||||
Accounts receivable, net | 108,277 | 113,528 | (4.6) % | |||||||
Inventories | 57,784 | 54,496 | 6.0 % | |||||||
Other current assets | 25,491 | 23,939 | 6.5 % | |||||||
Total current assets | 214,371 | 214,665 | (0.1) % | |||||||
Property, plant and equipment, net | 99,985 | 99,447 | 0.5 % | |||||||
Right of use assets | 54,708 | 54,346 | 0.7 % | |||||||
Intangibles, goodwill and other long-term assets, net | 218,664 | 215,552 | 1.4 % | |||||||
Total assets | $ | 587,728 | $ | 584,010 | 0.6 % | |||||
LIABILITIES AND EQUITY: | ||||||||||
Accounts payable | $ | 39,982 | $ | 37,275 | 7.3 % | |||||
Short-term operating lease liabilities | 12,097 | 11,456 | 5.6 % | |||||||
Other current liabilities | 52,655 | 57,284 | (8.1) % | |||||||
Total current liabilities | 104,734 | 106,015 | (1.2) % | |||||||
Long-term debt, net | 114,460 | 110,255 | 3.8 % | |||||||
Long-term operating lease liabilities | 41,285 | 42,309 | (2.4) % | |||||||
Other long-term liabilities | 52,105 | 53,223 | (2.1) % | |||||||
Total equity | 275,144 | 272,208 | 1.1 % | |||||||
Total liabilities and equity | $ | 587,728 | $ | 584,010 | 0.6 % | |||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | (753) | $ | 69 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Stock-based compensation | 5,032 | 4,159 | ||||||
Depreciation and amortization | 3,764 | 3,717 | ||||||
Deferred income taxes | (3,719) | (1,817) | ||||||
Accounts receivable | 5,010 | (6,606) | ||||||
Inventories | (3,456) | (272) | ||||||
Accounts payable | 2,847 | 2,971 | ||||||
Other adjustments to net income | (4,760) | 4,439 | ||||||
Net cash provided by operating activities | 3,965 | 6,660 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures - operations | (3,448) | (2,785) | ||||||
Capital expenditures - rebuilding of | (1,443) | (794) | ||||||
Net proceeds from insurance recovery - | — | 3,121 | ||||||
Other investing activities | 1,500 | 1,230 | ||||||
Net cash provided by (used in) investing activities | (3,391) | 772 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Repayment of long-term debt | (62,000) | (15,000) | ||||||
Proceeds from long-term debt | 66,000 | 13,000 | ||||||
Dividends paid | (460) | (469) | ||||||
Repurchase of common stock | (3,997) | (2,022) | ||||||
Other financing activities | — | 9 | ||||||
Net cash used in financing activities | (457) | (4,482) | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 117 | 2,950 | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 22,702 | 19,157 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 22,819 | $ | 22,107 | ||||
Non-GAAP Information
Management believes that the exclusion of certain income and expenses enables it to evaluate more effectively the Company's operations period-over-period and to identify operating trends that could otherwise be masked by the excluded Items. For this reason, management uses certain non-GAAP measures that exclude these Items and believes that this presentation provides a clearer comparison with the results reported in prior periods. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, the financial results prepared in accordance with GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.
Reconciliation of Operating Income, Net Income (Loss) and Diluted Earnings (Loss) Per Share (In thousands, except per share data) (Unaudited) | |||||||||
Operating Income | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | March 31, | |||||||
GAAP reported | $ | 1,887 | $ | 15,832 | $ | 4,417 | |||
Stock compensation (1) | 3,687 | — | 3,505 | ||||||
Inventory and asset write-downs, lease termination, | 650 | — | 3,416 | ||||||
Foreign exchange losses (gains) | 379 | (95) | 480 | ||||||
Excluding specific items | $ | 6,603 | $ | 15,737 | $ | 11,818 | |||
Net Income (Loss) Attributable to Core Laboratories Inc. | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | March 31, | |||||||
GAAP reported | $ | (789) | $ | 4,948 | $ | (154) | |||
Stock compensation (1) | 2,765 | — | 2,629 | ||||||
Inventory and asset write-downs, lease termination, | 487 | — | 2,562 | ||||||
Foreign exchange losses (gains) | 285 | (72) | 360 | ||||||
Effect of higher (lower) tax rate (3) | — | 4,788 | 1,292 | ||||||
Excluding specific items | $ | 2,748 | $ | 9,664 | $ | 6,689 | |||
Diluted Earnings (Loss) Per Share Attributable to Core Laboratories Inc. | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | March 31, | |||||||
GAAP reported | $ | (0.02) | $ | 0.11 | $ | — | |||
Stock compensation (1) | 0.06 | — | 0.05 | ||||||
Inventory and asset write-downs, lease termination, | 0.01 | — | 0.05 | ||||||
Foreign exchange losses (gains) | 0.01 | — | 0.01 | ||||||
Effect of higher (lower) tax rate (3) | — | 0.10 | 0.03 | ||||||
Excluding specific items | $ | 0.06 | $ | 0.21 | $ | 0.14 | |||
(1) The three months ended March 31, 2025 and 2026 includes the acceleration of stock compensation expense associated with employees reaching eligible retirement age. |
(2) The three months ended March 31, 2025 includes severance costs, the write-down of inventory, right of use assets and leasehold improvements, and other exit costs associated with consolidation of certain facilities. The three months ended March 31, 2026 includes the write-down of leasehold improvements and lease exit costs. |
(3) The three months ended March 31, 2025 and December 31, 2025 reflects tax expense at a normalized rate of |
Segment Information | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Operating Income | ||||||||||||
Three Months Ended March 31, 2026 | ||||||||||||
Reservoir | Production | Corporate and | ||||||||||
GAAP reported | $ | 1,146 | $ | 804 | $ | (63) | ||||||
Stock compensation | 2,531 | 1,156 | — | |||||||||
Inventory and asset write-downs, lease termination, other exit costs and severance (2) | 650 | — | — | |||||||||
Foreign exchange losses (gains) | 478 | (140) | 41 | |||||||||
Excluding specific items | $ | 4,805 | $ | 1,820 | $ | (22) | ||||||
Return on Invested Capital
Return on Invested Capital ("ROIC") is presented based on management's belief that this non-GAAP measure is useful information to investors and management when comparing profitability and the efficiency with which capital has been employed over time relative to other companies. The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg. ROIC is not a measure of financial performance under GAAP and should not be considered as an alternative to net income.
ROIC of
Free Cash Flow
Core uses the non-GAAP financial measure of free cash flow to evaluate its cash flows and results of operations. Free cash flow is defined as net cash provided by operating activities (which is the most directly comparable GAAP measure) less cash paid for capital expenditures - operations. Management believes that free cash flow provides useful information to investors regarding the cash available in the period in excess of Core's needs to fund its capital expenditures and operating activities. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative to operating income, net income, or cash flows from operating, investing, or financing activities, each as determined in accordance with GAAP. Free cash does not represent residual cash available for distribution because Core may have other non-discretionary expenditures that are not deducted from the measure. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented may not be comparable to similarly titled measures presented by other companies.
Computation of Free Cash Flow | |||||
(In thousands) | |||||
(Unaudited) | |||||
Three Months Ended | |||||
March 31, 2026 | |||||
Net cash provided by operating activities | $ | 3,965 | |||
Capital expenditures - operations | (3,448) | ||||
Free cash flow | $ | 517 | |||
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SOURCE Core Laboratories Inc