Core Laboratories N.V.

Core reported second-quarter revenue of $124.6 million, up over 2% sequentially and down 4% year over year. Ex-items EPS was $0.11, compared with $0.06 in Q1 and $0.19 in Q2 last year; GAAP EPS was $0.13. EBIT ex items was $9.4 million, with an EBIT margin of approximately 8%, and net income ex items was $5.1 million. Reservoir Description revenue was down 4% sequentially and down 9% year over year, with operating margin ex items of 5%; Production Enhancement revenue was up 15% sequentially, with operating margin ex items of 12%. For Q3 2026, Core guided to revenue of $128.5 million to $135.5 million, operating income of $10.5 million to $15 million, operating margins of approximately 10%, and EPS of $0.12 to $0.20. Full-year 2026 G&A ex items are expected to be approximately $43 million to $45 million, and full-year capital expenditures are expected to be $15 million to $18 million excluding U.K. rebuild spending.

Larry Bruno said Core is continuing to execute a strategy centered on technology investment, global reach, and disciplined capital deployment despite geopolitical disruption. He emphasized that the Middle East conflict, Russia/Ukraine sanctions, and logistics disruptions continue to hurt Reservoir Description, but he also pointed to improving client engagement outside those regions and stronger adoption of advanced completion technologies. His tone was resilient and constructive, with repeated focus on long-term offshore, exploration, and energy security themes.

Chris Hill detailed the quarter’s financials and the main cost drivers behind the results. He said service revenue was $94.3 million, flat sequentially and down 2% year over year, while product sales were $30.3 million, up 10% sequentially but down 11% year over year. He also noted cost of services ex items at 80% of service revenue, cost of sales ex items at 85% of revenue, G&A ex items at $11 million, net debt at $93.6 million, and free cash flow of $3.1 million after $4.7 million of CapEx; he expects the effective tax rate to remain about 25% and 2026 CapEx to be $15 million to $18 million excluding U.K. rebuild spending.

Analysts focused on the degree of recovery in oil movement and assay activity outside the Middle East, offshore project momentum, and whether the InPulse product was tied to earlier comments about boosting recoveries on initial completions. Management said global cargo movements are down 16% pre- versus post-conflict, that the oil price volatility slows trading activity, and that there is a separate cost reduction plan for the Russia/Ukraine business. On offshore, Larry said customer conversations have become more intense and he expects a rebound in offshore reservoir characterization late this year and into 2027; he also confirmed InPulse is a perforating technology, while enhanced oil recovery work is a separate lab-based effort.