Core Laboratories Reports $123.6 Million Revenue in Q1 2025, Net Income Loss of $154,000

Core Laboratories Inc. reported a total revenue of $123.6 million for the first quarter of 2025, a decrease of 5% compared to $129.6 million in the same period of 2024. The decline was primarily driven by a 14% drop in product sales, which fell to $28.5 million from $33.1 million year-over-year. Service revenue, which accounted for the majority of the total, decreased slightly by 1% to $95.1 million. The company's net income attributable to Core Laboratories Inc. was a loss of $154,000, a significant decline from a profit of $3.2 million in the prior year, reflecting a 98% decrease in profitability.

In terms of operational performance, the company experienced a notable increase in general and administrative expenses, which rose by 16% to $13.6 million, attributed to higher consulting and licensing fees. Additionally, the cost of services remained stable at $73.0 million, while the cost of product sales decreased to $26.5 million. The overall operating income for the quarter was $4.4 million, down 48% from $8.6 million in the previous year, indicating a challenging operational environment exacerbated by geopolitical tensions and market volatility.

Core Laboratories did not engage in any significant acquisitions during the quarter but continued to focus on its two primary segments: Reservoir Description and Production Enhancement. The company operates over 70 offices in more than 50 countries and employs approximately 3,400 people. Despite the challenges, there was a noted increase in demand for well completion diagnostic services, particularly in the U.S. market, which partially offset declines in other areas.

The company’s balance sheet showed total assets of $591.5 million as of March 31, 2025, with current assets slightly increasing from the previous quarter. Long-term debt decreased to $124.4 million from $126.1 million, and the company maintained a current ratio of 2.21:1. Core Laboratories also reported a free cash flow of $3.9 million, a 56% increase from the prior year, indicating improved cash generation capabilities despite the overall decline in net income.

Looking ahead, Core Laboratories anticipates continued global demand for crude oil and natural gas, although recent geopolitical developments and trade negotiations may introduce volatility. The company remains focused on enhancing its service offerings and adapting to market conditions, with expectations that client activities will stabilize as oil and gas prices normalize. The management emphasized the importance of capital management and return on invested capital as key metrics for future growth.