Core Laboratories (CLB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $124.6 million, up 2% sequentially but down 4% year-over-year, with net income of $5.8 million, a 46% decrease from Q2 2025.

• Operating income reached $9.2 million (GAAP), $9.4 million adjusted, up 42% sequentially but down 36–40% year-over-year.

• Results were impacted by significant geopolitical disruptions in the Middle East and Russia/Ukraine, causing project delays, supply chain issues, and lower international activity.

• U.S. onshore activity showed resilience, partially offsetting international declines.

• Maintained commitment to shareholder returns through dividends and share repurchases, marking the seventh consecutive quarter of buybacks.

Financial highlights

• Q2 2026 revenue was $124.6 million (+2% sequentially, -4% year-over-year); service revenue $94.3 million, product sales $30.3 million.

• Operating income was $9.2 million (GAAP), $9.4 million (adjusted); net income $5.8 million; EPS ex items $0.11, GAAP EPS $0.13.

• Free cash flow for Q2 was $3.1 million; cash from operations $7.8 million.

• Net debt at June 30, 2026, was $93.6 million; leverage ratio 1.30.

• Cash and cash equivalents at June 30, 2026, were $22.7 million.

Outlook and guidance

• Q3 2026 revenue projected at $128.5–$135.5 million; operating income $10.5–$15 million; EPS $0.12–$0.20.

• Sequential revenue growth expected, driven by improvements in Africa, Brazil, Asia-Pacific, and parts of Europe, with only marginal improvement anticipated in the Middle East.

• U.S. onshore drilling and completion activity is expected to marginally improve.

• Long-term fundamentals remain strong, with global demand growth projected to rebound in 2027.

• Guidance excludes FX gains/losses and assumes a 25% tax rate.