Core Laboratories reported higher third-quarter revenue and earnings than in the prior quarter, with growth in both operating segments. Results remained below year-earlier levels, however, and geopolitical disruption continued to weigh on some international work. The oilfield services company also declared a $0.01-per-share quarterly dividend and said it repurchased about $1.1 million of its shares during the quarter.
Key details
- Revenue was $132.1 million, up 6% from the second quarter but down 2% from the third quarter of 2025.
- Operating income was $12.1 million under GAAP accounting. Excluding items, operating income was $12.6 million, up 35% sequentially and down 24% year over year.
- Diluted earnings per share were $0.12 on a GAAP basis and $0.16 excluding items. The adjusted figure rose 46% from the prior quarter and fell 27% from a year earlier.
- Free cash flow was $1.7 million. Core Lab repurchased 87,873 common shares for an aggregate $1.1 million.
- The quarterly dividend is $0.01 per share. Shareholders of record on November 9 are scheduled to be paid on November 30, 2026.
- Reservoir Description generated $84.3 million in revenue, up 7% sequentially and down 4% year over year. Adjusted operating income was $8.1 million, with a 10% operating margin. About 80% of this segment’s revenue comes from projects outside the United States.
- Growth came from higher demand for laboratory services in Europe-Africa, Asia-Pacific, Latin America and the Middle East. Middle East demand improved modestly late in the quarter but remained below pre-conflict levels; instability and sanctions in the Middle East and Russia-Ukraine continued to constrain activity.
- Core Lab secured an expanded analytical program with a leading Middle Eastern national oil company after completing an initial reservoir-characterization study. It also began evaluating more than 360 feet of core samples from two appraisal wells in Queensland’s Taroom Trough for Omega Oil and Gas.
- Production Enhancement recorded $47.8 million in revenue, up 4% sequentially and 3% year over year. The company attributed growth to strong U.S. product sales, modestly improved U.S. land completion activity and greater adoption of its proprietary completion technologies; international product sales also strengthened.
- Management said it sees growth opportunities in key international markets, including long-cycle offshore exploration and appraisal work. It pointed to project momentum in Asia-Pacific across conventional and unconventional plays, while noting that geopolitical conflicts still affect parts of its business.
What changes for investors
The dividend announcement sets a $0.01-per-share cash payment for the specified record and payment dates. The share repurchases reduced the number of shares outstanding by the amount bought back, while the reported free cash flow provides a measure of cash generated after capital spending. The quarter showed sequential improvement in revenue and adjusted earnings, but both adjusted operating income and adjusted EPS remained below year-earlier levels.