Core Laboratories’ revenue rises 6% quarter on quarter to $132.1 million in third quarter
Key Facts
Core Laboratories said on October 28 that revenue was $132.1 million in the third quarter of 2026, up 6% from the previous quarter and down 2% year on year, according to the company’s statement. Diluted earnings per share under GAAP were $0.12, while adjusted earnings excluding items were $0.16. Year on year, adjusted earnings fell 27%, but rose 46% compared with the second quarter. These measures present two different pictures of the results: quarterly improvement in revenue and adjusted earnings, alongside annual declines in revenue and earnings. Zacks estimated adjusted earnings of $0.17 per share, versus the reported $0.16, while separate coverage cited a consensus estimate of $0.16, making the characterization of the result as below expectations dependent on the source of the estimate used.
Diluted earnings per share under GAAP fell to $0.12 from $0.31 in the same quarter of 2025, a decline of 61.3%, according to company data published via Nasdaq. Net income attributable to the company also fell to $5.444 million from $14.239 million a year earlier, a decline of 61.8%. Operating income was $12.1 million under GAAP, versus $12.6 million excluding items. On an adjusted basis, operating income fell 24% year on year but rose 35% from the previous quarter. The annual comparison highlights continued earnings pressure despite the improvement recorded between the second and third quarters.
By business segment, Reservoir Description generated revenue of $84.3 million, up 7% from the previous quarter and down 4% year on year, according to the company’s statement. Production Enhancement recorded revenue of $47.759 million, compared with $46.297 million a year earlier, an annual increase of 3.2%. The company operates in both segments and provides services and products to improve oil reservoir performance. Chief Executive Larry Bruno said revenue in both segments grew compared with the previous quarter, and that a gradual improvement in activity in the Middle East became apparent, particularly near the end of the quarter. He added that geopolitical conflicts in the Middle East and the Russia-Ukraine war continued to affect parts of the company’s business.
In Reservoir Description, the company said demand for analytical services in the Middle East improved slightly late in the quarter but remained below pre-conflict levels. It said regional disruptions had interrupted the transportation and trade of crude oil and refined products during the period. Shipping traffic through the Strait of Hormuz gradually improved near the end of the quarter, but crude supplies remained affected, according to the company. Free cash flow was $1.7 million in the third quarter. The company also repurchased 87,873 common shares for a total of $1.1 million during the same period.
Core Laboratories forecast fourth-quarter revenue to remain relatively stable compared with the third quarter, with Middle East disruptions continuing and some projects delayed following attacks earlier in the quarter, according to its statement. It estimated total revenue of between $128.5 million and $134.5 million, and earnings per share of between $0.12 and $0.20, assuming an effective tax rate of 25%. At the segment level, it forecast Reservoir Description revenue of between $81 million and $85 million. The company estimated Production Enhancement revenue at between $47.5 million and $49.5 million in the fourth quarter. These ranges set out the company’s outlook for the next quarter amid the continuing activity disruptions it cited.
The company declared a quarterly cash dividend of $0.01 per share for shareholders of record on November 9, payable on November 30, 2026. It was scheduled to hold a conference call to discuss its third-quarter results on October 29 at 7:30 a.m. Central Time. In trading, the company’s shares closed at $10.33 on October 27, after closing at $9.4 on October 22, according to EL7 data. This sequence shows a rise in the closing price between the two dates, without indicating the share’s movement after the results announcement. The company thus combines a declared cash dividend with quarterly guidance that includes revenue and earnings ranges.