CORE LAB REPORTS SECOND QUARTER 2025 RESULTS
Core Laboratories (NYSE:CLB) reported Q2 2025 results with revenue of $130.2 million, up 5% sequentially but flat year-over-year. Operating income was $15.3 million, with operating margins ex-items of 11%. The company posted GAAP EPS of $0.22 (ex-items $0.19).
The Reservoir Description segment generated revenue of $86.3 million, up 7% sequentially, while Production Enhancement posted revenue of $43.9 million, up 3% sequentially. Core Lab opened a new Unconventional Core Analysis Laboratory in Dammam, Saudi Arabia, strengthening its Middle East presence.
The company generated free cash flow of $10.4 million, reduced net debt by $9.1 million, and improved its debt leverage ratio to 1.27. Core Lab repurchased 237,632 shares worth $2.7 million and declared a quarterly dividend of $0.01 per share.
Core Laboratories (NYSE:CLB) ha comunicato i risultati del secondo trimestre 2025 con ricavi pari a 130,2 milioni di dollari, in crescita del 5% rispetto al trimestre precedente ma stabili su base annua. L'utile operativo è stato di 15,3 milioni di dollari, con margini operativi al netto degli elementi straordinari dell'11%. L'azienda ha riportato un utile per azione GAAP di 0,22 dollari (0,19 dollari al netto degli elementi straordinari).
Il segmento Reservoir Description ha generato ricavi per 86,3 milioni di dollari, in aumento del 7% rispetto al trimestre precedente, mentre Production Enhancement ha registrato ricavi per 43,9 milioni di dollari, in crescita del 3% sequenziale. Core Lab ha inaugurato un nuovo laboratorio di analisi di carote non convenzionali a Dammam, in Arabia Saudita, rafforzando la sua presenza in Medio Oriente.
L'azienda ha generato un flusso di cassa libero di 10,4 milioni di dollari, ridotto il debito netto di 9,1 milioni di dollari e migliorato il rapporto di leva finanziaria a 1,27. Core Lab ha riacquistato 237.632 azioni per un valore di 2,7 milioni di dollari e ha dichiarato un dividendo trimestrale di 0,01 dollari per azione.
Core Laboratories (NYSE:CLB) informó resultados del segundo trimestre de 2025 con ingresos de 130,2 millones de dólares, un aumento del 5% secuencial pero estables en comparación con el año anterior. El ingreso operativo fue de 15,3 millones de dólares, con márgenes operativos excluyendo ítems del 11%. La compañía reportó un BPA GAAP de 0,22 dólares (0,19 dólares excluyendo ítems).
El segmento de Descripción de Reservorios generó ingresos de 86,3 millones de dólares, un aumento del 7% secuencial, mientras que Producción Mejorada registró ingresos de 43,9 millones de dólares, un incremento del 3% secuencial. Core Lab inauguró un nuevo Laboratorio de Análisis de Núcleos No Convencionales en Dammam, Arabia Saudita, fortaleciendo su presencia en Medio Oriente.
La compañía generó flujo de caja libre de 10,4 millones de dólares, redujo la deuda neta en 9,1 millones de dólares y mejoró su ratio de apalancamiento a 1,27. Core Lab recompró 237.632 acciones por un valor de 2,7 millones de dólares y declaró un dividendo trimestral de 0,01 dólares por acción.
Core Laboratories (NYSE:CLB)는 2025년 2분기 실적을 발표하며 매출액이 1억 3,020만 달러로 전분기 대비 5% 증가했으나 전년 동기 대비는 변동이 없었습니다. 영업이익은 1,530만 달러였으며, 비일회성 항목 제외 영업이익률은 11%였습니다. 회사는 GAAP 기준 주당순이익(EPS) 0.22달러(비일회성 항목 제외 0.19달러)를 기록했습니다.
저장소 설명(Reservoir Description) 부문은 매출액 8,630만 달러로 전분기 대비 7% 증가했으며, 생산 향상(Production Enhancement) 부문은 4,390만 달러 매출을 기록해 전분기 대비 3% 상승했습니다. Core Lab은 사우디아라비아 담맘에 새로운 비전통적 코어 분석 실험실을 개설하여 중동 지역 내 입지를 강화했습니다.
회사는 1,040만 달러의 자유 현금 흐름을 창출했으며, 순부채를 910만 달러 줄이고 부채 레버리지 비율을 1.27로 개선했습니다. Core Lab은 237,632주를 270만 달러에 재매입했으며, 주당 0.01달러의 분기 배당금을 선언했습니다.
Core Laboratories (NYSE:CLB) a publié ses résultats du deuxième trimestre 2025 avec un chiffre d'affaires de 130,2 millions de dollars, en hausse de 5 % par rapport au trimestre précédent mais stable d'une année sur l'autre. Le résultat opérationnel s'est élevé à 15,3 millions de dollars, avec une marge opérationnelle hors éléments exceptionnels de 11 %. La société a enregistré un BPA GAAP de 0,22 $ (0,19 $ hors éléments exceptionnels).
Le segment Description des Réservoirs a généré un chiffre d'affaires de 86,3 millions de dollars, en hausse de 7 % par rapport au trimestre précédent, tandis que l'Amélioration de la Production a affiché un chiffre d'affaires de 43,9 millions de dollars, en progression de 3 % séquentielle. Core Lab a ouvert un nouveau laboratoire d'analyse de carottes non conventionnelles à Dammam, en Arabie Saoudite, renforçant ainsi sa présence au Moyen-Orient.
La société a généré un flux de trésorerie disponible de 10,4 millions de dollars, réduit sa dette nette de 9,1 millions de dollars et amélioré son ratio d'endettement à 1,27. Core Lab a racheté 237 632 actions pour une valeur de 2,7 millions de dollars et a déclaré un dividende trimestriel de 0,01 $ par action.
Core Laboratories (NYSE:CLB) meldete die Ergebnisse für das zweite Quartal 2025 mit einem Umsatz von 130,2 Millionen US-Dollar, was einem Anstieg von 5 % gegenüber dem Vorquartal entspricht, jedoch gegenüber dem Vorjahr unverändert blieb. Das operative Ergebnis betrug 15,3 Millionen US-Dollar, mit operativen Margen ohne Einmaleffekte von 11 %. Das Unternehmen meldete einen GAAP-Gewinn je Aktie von 0,22 US-Dollar (ohne Einmaleffekte 0,19 US-Dollar).
Der Bereich Reservoir Description erzielte einen Umsatz von 86,3 Millionen US-Dollar, ein Plus von 7 % gegenüber dem Vorquartal, während Production Enhancement einen Umsatz von 43,9 Millionen US-Dollar verzeichnete, was einem Anstieg von 3 % gegenüber dem Vorquartal entspricht. Core Lab eröffnete ein neues Labor für unkonventionelle Kernanalysen in Dammam, Saudi-Arabien, und stärkte damit seine Präsenz im Nahen Osten.
Das Unternehmen generierte einen freien Cashflow von 10,4 Millionen US-Dollar, verringerte die Nettoverschuldung um 9,1 Millionen US-Dollar und verbesserte seine Verschuldungsquote auf 1,27. Core Lab kaufte 237.632 Aktien im Wert von 2,7 Millionen US-Dollar zurück und erklärte eine Quartalsdividende von 0,01 US-Dollar je Aktie.
- Revenue increased 5% sequentially to $130.2 million
- Operating margins ex-items expanded 160 basis points sequentially to 11%
- Free cash flow increased over 160% sequentially to $10.4 million
- Net debt reduced by $9.1 million with improved leverage ratio of 1.27
- Reservoir Description revenue up 7% sequentially with 57% incremental margins
- New laboratory facility opened in Saudi Arabia expanding Middle East presence
- Credit agreement expanded to include $100M revolving facility and $50M term loan
- Operating income ex-items down 11% year-over-year
- EPS ex-items of $0.19 down 14% year-over-year
- Geopolitical conflicts and trade uncertainties affecting crude oil services demand
- Softer U.S. land activity expected to continue
- Frac spread count trending lower with soft market projected for remainder of year
Insights
Core Lab posted solid sequential growth in Q2 2025 with improved margins despite market headwinds and flat year-over-year revenue.
Core Labs delivered a sequentially improving quarter with some mixed signals beneath the surface. Revenue reached
The margin story shows operational leverage improving. Operating margins ex-items expanded 160 basis points to
Core's segment performance reveals geographic divergence. Reservoir Description (
From a cash perspective, Core generated
The outlook signals caution. Management noted that geopolitical issues, tariff concerns, and softer U.S. land activity present near-term challenges. Third quarter guidance projects essentially flat sequential performance with revenue of
Core's financial position improved with a newly expanded
- REVENUE OF
$130.2 MILLION 5% SEQUENTIALLY AND FLAT YEAR-OVER-YEAR - OPERATING INCOME OF
$15.3 MILLION $14.5 MILLION 23% SEQUENTIALLY AND DOWN11% YEAR-OVER-YEAR - OPERATING MARGINS, EX-ITEMS, OF
11% , EXPANDED 160 BASIS POINTS SEQUENTIALLY, WITH INCREMENTAL MARGINS, EX-ITEMS, OF41% - GAAP EPS OF
$0.22 $0.19 33% SEQUENTIALLY, AND DOWN14% YEAR-OVER-YEAR - COMPANY REPURCHASED 237,632 SHARES OF COMMON STOCK, A VALUE OF
$2.7 MILLION - FREE CASH FLOW OF
$10.4 MILLION 160% SEQUENTIALLY - NET DEBT REDUCED BY
$9.1 MILLION - COMPANY ANNOUNCES Q2 2025 QUARTERLY DIVIDEND
Core's CEO, Larry Bruno stated, "Core Lab delivered sequential revenue growth in the second quarter, leading to solid improvements in operating income, operating margins, free cash flow, and earnings per share. Demand for the Company's services and products strengthened across our international network. While geopolitical issues and softer
Reservoir Description
Reservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately
Aligned with Core's strategy to expand its global presence and enhance services in key markets, in the second quarter of 2025, Core Lab opened its new Unconventional Core Analysis Laboratory in
Also in the second quarter of 2025, Core Lab successfully completed a comprehensive analytical program for a major International Oil Company following their first exploration well in the frontier Campos Basin, offshore
Production Enhancement
Production Enhancement operations, which are focused on complex completions in unconventional oil and gas reservoirs in the
In the second quarter of 2025, Core Lab successfully completed a complex deepwater Plug and Abandonment ("P&A") operation for a client in the North Sea. The Company's engineers were engaged by the client to address significant technical barriers in a well that had 400 meters of stuck casing, along with settled barite particles that had accumulated in the wellbore. Scenarios such as this often require costly and time-consuming pipe-cutting and pulling operations. Core Lab's proprietary Plug and Abandonment Circulation System ("PAC™") provided an alternative, energetics-based, solution that enabled precise annular access without damaging the outermost casing string. Unlike conventional charges, Core's PAC™ system uses a proprietary energetic design that controls the charge jet, customizing its density, velocity, and lifespan to the downhole application. These attributes are configured to limit penetration depth and preserve well integrity. Using the PAC™ system for this operation, as opposed to milling, reduced the client's rig time by more than ten days, resulting in an estimated
Also in the second quarter of 2025, an operator in
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 second quarter of 2025, cash from operations was
In the second quarter of 2025, Core Lab used a portion of its FCF to repurchase 237,632 shares at an aggregate purchase price of
As of June 30, 2025, Core's net debt (defined as long-term debt less cash and cash equivalents) was
On July 22, 2025, the Company renewed and extended its credit agreement with its corporate bank group. The credit agreement was expanded to include a
The Company will remain focused on executing its strategic business initiatives. Core Lab will continue to evaluate allocation of capital and other uses of free cash to return value to shareholders, while also reducing debt.
On April 23, 2025, Core's Board of Directors ("Board") announced a quarterly cash dividend of
On July 23, 2025, 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 service 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, the Company's ROIC for the second quarter of 2025 improved to
Industry and Core Lab Outlook and Guidance
Recent and pending tariffs announced by the
Despite current market volatility, Core maintains its constructive long-term outlook for international upstream activity. The IEA, EIA, and OPEC+ continue to forecast growth in crude oil demand to be between 0.7 and 1.3 million barrels per day in 2025. This demand is primarily driven by non-OECD countries in
Large-scale international oil and gas projects are expected to be less sensitive to near-term volatility of crude oil prices, and Core Lab continues to see steady activity across committed long-cycle projects in the South Atlantic Margin, North and
Activity levels tied to smaller-scale, short-cycle crude oil development projects are expected to remain more sensitive to crude oil price volatility. As a result, changes in crude oil prices are anticipated to have a more immediate impact on drilling and completion activity in the
Core projects Reservoir Description's third quarter revenue to be flat sequentially. Geopolitical conflicts, evolving trade and tariff dynamics, and volatile commodity prices continue to create uncertainty in the demand for laboratory services tied to the maritime transportation and trade of crude oil and derived products.
Turning to Production Enhancement, the
Core Lab believes that the tariff measures under consideration will not apply to the vast majority of service revenue and product sales provided by the Company. Core's services account for over
Reservoir Description's third quarter revenue is projected to range from
Core's third quarter 2025 revenue is projected to range from
The Company's third quarter 2025 guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange. Third quarter guidance assumes an effective tax rate of
Earnings Call Scheduled
The Company has scheduled a conference call to discuss Core's second quarter 2025 earnings announcement. The call will begin at 7:30 a.m. CDT / 8:30 a.m. EDT on Thursday, July 24, 2025. To register for the listen-only webcast, log on to www.corelab.com 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 on tariffs and sanctions, international markets, international political climates, including the
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 | |||||||||||||||
June 30, | March 31, | June 30, | vs. Q1-25 | vs. Q2-24 | ||||||||||||
REVENUE | $ | 130,159 | $ | 123,585 | $ | 130,577 | 5.3 % | (0.3) % | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Costs of services and product sales | 103,701 | 99,469 | 102,930 | 4.3 % | 0.7 % | |||||||||||
General and administrative expense | 10,464 | 13,647 | 10,259 | (23.3) % | 2.0 % | |||||||||||
Depreciation and amortization | 3,670 | 3,717 | 3,770 | (1.3) % | (2.7) % | |||||||||||
Other (income) expense, net | (2,967) | 2,335 | (2,390) | NM | NM | |||||||||||
Total operating expenses | 114,868 | 119,168 | 114,569 | (3.6) % | 0.3 % | |||||||||||
OPERATING INCOME | 15,291 | 4,417 | 16,008 | 246.2 % | (4.5) % | |||||||||||
Interest expense | 2,711 | 2,602 | 3,209 | 4.2 % | (15.5) % | |||||||||||
Income before income taxes | 12,580 | 1,815 | 12,799 | 593.1 % | (1.7) % | |||||||||||
Income tax expense | 1,911 | 1,746 | 3,609 | 9.5 % | (47.0) % | |||||||||||
Net income | 10,669 | 69 | 9,190 | NM | 16.1 % | |||||||||||
Net income attributable to non- | 33 | 223 | 158 | NM | NM | |||||||||||
Net income (loss) attributable to Core | $ | 10,636 | $ | (154) | $ | 9,032 | NM | 17.8 % | ||||||||
Diluted earnings per share | $ | 0.23 | $ | — | $ | 0.19 | NM | 21.1 % | ||||||||
Diluted earnings (loss) per share | $ | 0.22 | $ | — | $ | 0.19 | NM | 15.8 % | ||||||||
Weighted average common shares | 47,364 | 46,773 | 47,743 | 1.3 % | (0.8) % | |||||||||||
Effective tax rate | 15 | % | 96 | % | 28 | % | NM | NM | ||||||||
SEGMENT INFORMATION: | ||||||||||||||||
Revenue: | ||||||||||||||||
Reservoir Description | $ | 86,280 | $ | 80,897 | $ | 86,277 | 6.7 % | — % | ||||||||
Production Enhancement | 43,879 | 42,688 | 44,300 | 2.8 % | (1.0) % | |||||||||||
Consolidated | $ | 130,159 | $ | 123,585 | $ | 130,577 | 5.3 % | (0.3) % | ||||||||
Operating income: | ||||||||||||||||
Reservoir Description | $ | 12,203 | $ | 2,339 | $ | 11,443 | 421.7 % | 6.6 % | ||||||||
Production Enhancement | 3,148 | 1,503 | 4,401 | 109.4 % | (28.5) % | |||||||||||
Corporate and Other | (60) | 575 | 164 | NM | NM | |||||||||||
Consolidated | $ | 15,291 | $ | 4,417 | $ | 16,008 | 246.2 % | (4.5) % | ||||||||
"NM" means not meaningful | ||||||||||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(In thousands, except per share data) | ||||||||||
(Unaudited) | ||||||||||
Six Months Ended June 30, | % Variance | |||||||||
2025 | 2024 | |||||||||
REVENUE | $ | 253,744 | $ | 260,214 | (2.5) % | |||||
OPERATING EXPENSES: | ||||||||||
Costs of services and product sales | 203,170 | 207,518 | (2.1) % | |||||||
General and administrative expense | 24,111 | 22,048 | 9.4 % | |||||||
Depreciation and amortization | 7,387 | 7,613 | (3.0) % | |||||||
Other (income) expense, net | (632) | (1,544) | NM | |||||||
Total operating expenses | 234,036 | 235,635 | (0.7) % | |||||||
OPERATING INCOME | 19,708 | 24,579 | (19.8) % | |||||||
Interest expense | 5,313 | 6,632 | (19.9) % | |||||||
Income before income taxes | 14,395 | 17,947 | (19.8) % | |||||||
Income tax expense | 3,657 | 5,267 | (30.6) % | |||||||
Net income | 10,738 | 12,680 | (15.3) % | |||||||
Net income attributable to non-controlling interest | 256 | 428 | NM | |||||||
Net income attributable to Core Laboratories Inc. | $ | 10,482 | $ | 12,252 | (14.4) % | |||||
Diluted earnings per share | $ | 0.23 | $ | 0.26 | (11.5) % | |||||
Diluted earnings per share attributable to Core Laboratories Inc. | $ | 0.22 | $ | 0.26 | (15.4) % | |||||
Diluted weighted average common shares outstanding | 47,509 | 47,662 | (0.3) % | |||||||
Effective tax rate | 25 | % | 29 | % | NM | |||||
SEGMENT INFORMATION: | ||||||||||
Revenue: | ||||||||||
Reservoir Description | $ | 167,177 | $ | 170,513 | (2.0) % | |||||
Production Enhancement | 86,567 | 89,701 | (3.5) % | |||||||
Total | $ | 253,744 | $ | 260,214 | (2.5) % | |||||
Operating income: | ||||||||||
Reservoir Description | $ | 14,542 | $ | 18,336 | (20.7) % | |||||
Production Enhancement | 4,651 | 5,977 | (22.2) % | |||||||
Corporate and Other | 515 | 266 | NM | |||||||
Total | $ | 19,708 | $ | 24,579 | (19.8) % | |||||
"NM" means not meaningful | ||||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
% Variance | ||||||||||||||||
ASSETS: | June 30, | March 31, | December 31, | vs. Q1-25 | vs. Q4-24 | |||||||||||
Cash and cash equivalents | $ | 31,188 | $ | 22,107 | $ | 19,157 | 41.1 % | 62.8 % | ||||||||
Accounts receivable, net | 113,909 | 117,031 | 111,761 | (2.7) % | 1.9 % | |||||||||||
Inventories | 59,773 | 59,031 | 59,402 | 1.3 % | 0.6 % | |||||||||||
Other current assets | 32,807 | 30,599 | 36,286 | 7.2 % | (9.6) % | |||||||||||
Total current assets | 237,677 | 228,768 | 226,606 | 3.9 % | 4.9 % | |||||||||||
Property, plant and equipment, net | 97,927 | 97,943 | 97,063 | — % | 0.9 % | |||||||||||
Right of use assets | 55,116 | 57,490 | 56,488 | (4.1) % | (2.4) % | |||||||||||
Intangibles, goodwill and other long- | 211,391 | 207,318 | 210,249 | 2.0 % | 0.5 % | |||||||||||
Total assets | $ | 602,111 | $ | 591,519 | $ | 590,406 | 1.8 % | 2.0 % | ||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||
Accounts payable | $ | 41,699 | $ | 38,497 | $ | 34,549 | 8.3 % | 20.7 % | ||||||||
Short-term operating lease liabilities | 11,508 | 11,654 | 10,690 | (1.3) % | 7.7 % | |||||||||||
Other current liabilities | 51,565 | 53,576 | 52,347 | (3.8) % | (1.5) % | |||||||||||
Total current liabilities | 104,772 | 103,727 | 97,586 | 1.0 % | 7.4 % | |||||||||||
Long-term debt, net | 124,613 | 124,367 | 126,111 | 0.2 % | (1.2) % | |||||||||||
Long-term operating lease liabilities | 42,420 | 43,981 | 43,343 | (3.5) % | (2.1) % | |||||||||||
Other long-term liabilities | 63,003 | 60,088 | 65,630 | 4.9 % | (4.0) % | |||||||||||
Total equity | 267,303 | 259,356 | 257,736 | 3.1 % | 3.7 % | |||||||||||
Total liabilities and equity | $ | 602,111 | $ | 591,519 | $ | 590,406 | 1.8 % | 2.0 % | ||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 10,738 | $ | 12,680 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation | 4,697 | 4,688 | ||||||
Depreciation and amortization | 7,387 | 7,613 | ||||||
Deferred income taxes | (3,167) | (777) | ||||||
Accounts receivable | (3,717) | (7,019) | ||||||
Inventories | (1,991) | 1,305 | ||||||
Accounts payable | 6,647 | 3,116 | ||||||
Other adjustments to net income | (11) | 1,070 | ||||||
Net cash provided by operating activities | 20,583 | 22,676 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures - operations | (6,259) | (5,918) | ||||||
Capital expenditures - rebuilding of | (1,648) | — | ||||||
Net proceeds from insurance recovery - | 4,678 | — | ||||||
Net proceeds on life insurance policies | 778 | 2,776 | ||||||
Other investing activities | 1,579 | 798 | ||||||
Net cash used in investing activities | (872) | (2,344) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Repayment of long-term debt | (27,000) | (38,000) | ||||||
Proceeds from long-term debt | 25,000 | 22,000 | ||||||
Dividends paid | (938) | (938) | ||||||
Repurchase of common stock | (4,761) | (206) | ||||||
Equity related transaction costs and other financing activities | 19 | (613) | ||||||
Net cash used in financing activities | (7,680) | (17,757) | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 12,031 | 2,575 | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 19,157 | 15,120 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 31,188 | $ | 17,695 | ||||
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 Attributable to Core Laboratories Inc. | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Operating Income | ||||||||||||
Three Months Ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
GAAP reported | $ | 15,291 | $ | 4,417 | $ | 16,008 | ||||||
Stock compensation (1) | — | 3,505 | — | |||||||||
Severance, inventory and asset write-downs (2) | 799 | 3,416 | — | |||||||||
Insurance recovery on property, plant and equipment (3) | (1,557) | — | — | |||||||||
Foreign exchange losses (gains) | 7 | 480 | 388 | |||||||||
Excluding specific items | $ | 14,540 | $ | 11,818 | $ | 16,396 | ||||||
Net Income (Loss) Attributable to Core Laboratories Inc. | ||||||||||||
Three Months Ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
GAAP reported | $ | 10,636 | $ | (154) | $ | 9,032 | ||||||
Stock compensation (1) | — | 2,629 | — | |||||||||
Severance, inventory and asset write-downs (2) | 599 | 2,562 | — | |||||||||
Insurance recovery on property, plant and equipment (3) | (1,168) | — | — | |||||||||
Foreign exchange losses (gains) | 5 | 360 | 310 | |||||||||
Effect of higher (lower) tax rate (4) | (1,234) | 1,292 | 1,050 | |||||||||
Excluding specific items | $ | 8,838 | $ | 6,689 | $ | 10,392 | ||||||
Diluted Earnings (Loss) Per Share Attributable to Core Laboratories Inc. | ||||||||||||
Three Months Ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
GAAP reported | $ | 0.22 | $ | — | $ | 0.19 | ||||||
Stock compensation (1) | — | 0.05 | — | |||||||||
Severance, inventory and asset write-downs (2) | 0.01 | 0.05 | — | |||||||||
Insurance recovery on property, plant and equipment (3) | (0.02) | — | — | |||||||||
Foreign exchange losses (gains) | — | 0.01 | 0.01 | |||||||||
Effect of higher (lower) tax rate (4) | (0.02) | 0.03 | 0.02 | |||||||||
Excluding specific items | $ | 0.19 | $ | 0.14 | $ | 0.22 | ||||||
(1) Three months ended March 31, 2025 includes the acceleration of stock compensation expense associated with employees reaching eligible retirement age. | ||||||||||||
(2) Three months ended March 31, 2025 includes severance costs, the write-down of inventory, leasehold improvements, and other exit costs associated with consolidation of certain facilities. Three months ended June 30, 2025 includes write-down of inventory. | ||||||||||||
(3) Three months ended June 30, 2025 includes an insurance recovery associated with the fire at the | ||||||||||||
(4) Three months ended June 30, 2024 reflects tax expense at a normalized rate of | ||||||||||||
Segment Information | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Operating Income | ||||||||||||
Three Months Ended June 30, 2025 | ||||||||||||
Reservoir | Production | Corporate and | ||||||||||
GAAP reported | $ | 12,203 | $ | 3,148 | $ | (60) | ||||||
Severance, inventory and asset write-downs | — | 799 | — | |||||||||
Insurance recovery on property, plant and equipment | (1,557) | — | — | |||||||||
Foreign exchange losses (gains) | 189 | (182) | — | |||||||||
Excluding specific items | $ | 10,835 | $ | 3,765 | $ | (60) | ||||||
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 | Six Months Ended | ||||||||
June 30, 2025 | June 30, 2025 | ||||||||
Net cash provided by operating activities | $ | 13,923 | $ | 20,583 | |||||
Capital expenditures - operations | (3,474) | (6,259) | |||||||
Free cash flow | $ | 10,449 | $ | 14,324 | |||||
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SOURCE Core Laboratories Inc
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