- REVENUE OF $132.1 MILLION, UP 6% SEQUENTIALLY AND DOWN 2% YEAR-OVER-YEAR

- OPERATING INCOME OF $12.1 MILLION; EX-ITEMS, $12.6 MILLION, UP 35% SEQUENTIALLY AND DOWN 24% YEAR-OVER-YEAR

- GAAP EARNINGS PER SHARE OF $0.12; EPS EX-ITEMS OF $0.16, UP 46% SEQUENTIALLY AND DOWN 27% YEAR-OVER-YEAR

- FREE CASH FLOW OF $1.7 MILLION

- COMPANY REPURCHASED 87,873 SHARES OF COMMON STOCK, FOR $1.1 MILLION AGGREGATE PURCHASE PRICE

- COMPANY ANNOUNCES Q4 2026 QUARTERLY DIVIDEND

HOUSTON, Oct. 28, 2026 /PRNewswire/ -- Core Laboratories Inc. (NYSE: "CLB") ("Core," "Core Lab," or the "Company") reported third quarter 2026 revenue of $132,100,000. Core's operating income was $12,100,000, with earnings per diluted share ("EPS") of $0.12, all in accordance with U.S. generally accepted accounting principles ("GAAP"). Operating income, ex-items, a non-GAAP financial measure, was $12,600,000, yielding operating margins of 10% with sequential incremental margins of 43%, and EPS, ex-items, of $0.16. A full reconciliation of non-GAAP financial measures is included in the attached financial tables.

Core's CEO, Larry Bruno, stated, "Our third quarter results delivered sequential revenue growth across both of our operating segments. International revenue was up in Europe-Africa, Asia-Pacific, Latin America, and the Middle East. There was a gradual improvement in activity in the Middle East, particularly late in the quarter. Improving demand across these international regions drove Reservoir Description revenue higher during the quarter, just above the top end of our guidance range. Production Enhancement's revenue growth was led by strong U.S. product sales, which benefited from modestly improved U.S. land completion activity and increased adoption of our proprietary completion technologies. International product sales also strengthened sequentially.

Looking at the mid to long term, we see our key international regions positioned for growth, including long-cycle offshore exploration and appraisal projects. Face-to-face meetings with clients throughout Asia-Pacific during the third quarter reinforced our view that the region is entering a period of sustained activity growth, with projects advancing across both conventional and unconventional plays. Core Lab's established global network has the Company well-positioned to support these programs. Although geopolitical conflicts in the Middle East and Russia-Ukraine still affect portions of our business, we are encouraged by improving demand and project momentum across our global client base."

Reservoir Description

Reservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately 80% of revenue sourced from projects originating outside the United States. Revenue for Reservoir Description in the third quarter of 2026 was $84,300,000, up 7% sequentially and down 4% year-over-year. Operating income on a GAAP basis was $7,700,000. Operating income, ex-items, was $8,100,000, yielding operating margins of 10% and strong sequential incremental margins of 78%.

Sequential revenue growth was driven by increased international demand for the Company's laboratory services, led by project work in Europe-Africa, Asia-Pacific, Latin America and the Middle East. Demand for assay services in the Middle East showed modest improvement late in the quarter but remained below pre-conflict levels. Ongoing geopolitical instability and associated sanctions in the Middle East and Russia-Ukraine continued to weigh on demand for these services.

During the third quarter of 2026, following the successful completion of an initial reservoir characterization study, a leading national oil company in the Middle East awarded Core Lab an expanded analytical program to evaluate its unconventional reservoirs. The initial study combined Core's proprietary technologies and integrated laboratory workflows to determine reservoir quality and fluid saturations. The expanded program will utilize Core Lab's PRISM⢠workflow, together with the Company's proprietary High Frequency NMR, NANO-k⢠100 Nano Permeametry, and Shale Matrix Permeameter ("SMP-200â¢") technologies. By integrating these laboratory measurements with other petrophysical and geological data, Core Lab is characterizing rock properties and fluid saturations, while also differentiating movable and immovable hydrocarbons. These datasets will assist the operator in evaluating hydrocarbon production potential and support development planning.

Also during the third quarter of 2026, Omega Oil and Gas engaged Core's team to evaluate more than 360 feet of conventional core and sidewall cores from two appraisal wells in Queensland's Taroom Trough in the Bowen Basin. High-quality whole core recovered from multiple hydrocarbon-bearing stratigraphic horizons are undergoing a comprehensive reservoir characterization program at Core Lab's Advanced Technology Center in Perth, Australia. Upon arrival at the laboratory, the cores were scanned using the Company's proprietary, non-invasive Dual Energy Computed Tomography technology. This technology provides early lithologic and petrophysical data to support the operator's initial assessment of potential pay intervals ahead of traditional physical laboratory measurements. The ongoing analytical program will combine these datasets to characterize reservoir quality and calibrate well logs, supporting Omega's appraisal of the resource. Core Lab is pleased to be assisting Omega Oil and Gas and its technical experts in the evaluation of this emerging play.

Production Enhancement

Production Enhancement operations, which are focused on complex completions in unconventional and conventional oil and gas reservoirs in the U.S., as well as projects across the globe, posted third quarter 2026 revenue of $47,800,000, up 4% sequentially and 3% year-over-year. Operating income for the third quarter on a GAAP basis was $4,300,000. Operating income, ex-items, was $4,400,000, yielding operating margins of 9%.

Sequential revenue growth was led by product sales, which rose 14%, with increases in both U.S. land and international markets. In the U.S., sales benefited from increased demand for the Company's completion products and growing adoption of its proprietary completion technologies. International product sales grew across Europe, Asia-Pacific and the Middle East. These gains were partially offset by the timing of diagnostic service activity in the Gulf of America, as several large projects originally scheduled for the third quarter were delayed, impacting both revenue and operating margins.

During the third quarter of 2026, a North American oilfield service company engaged Core Lab to enhance the efficiency and precision of its perforating operations. Core supplied its proprietary AERO FLEXâ¢, AERO POINTâ¢, and AERO SET⢠technologies, together with field implementation support. The integrated AERO⢠platform enabled the client to configure perforating assemblies for varying well requirements, simplifying assembly and redress procedures, and precisely orienting perforating charges within the wellbore. These engineered capabilities reduce preparation time and improve placement accuracy while supporting more consistent execution across multiple completion programs. Following successful field deployment, the client is expanding adoption of the AERO⢠product family throughout its North American operations.

Also during the third quarter, a Brazilian independent oil and gas operator focused on revitalizing mature onshore fields engaged Core Lab to support a waterflood optimization project. To improve sweep efficiency, the operator implemented a polymer treatment followed by a conventional waterflood traced with Core's proprietary SpectraFlood⢠technology. Analysis of produced water samples collected across the field showed delayed tracer breakthrough, indicating the polymer treatment was effective in slowing flood-front movement as intended. Given these results, the operator is expanding its use of Core Lab's flood diagnostic technology throughout its portfolio of more than 50 conventional assets, enhancing revenue opportunities for the Company in South America.

Liquidity, Free Cash Flow, Share Repurchases, and Dividend

Core continues to focus on maximizing free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures. For the third quarter of 2026, cash from operations was $5,000,000, and capital expenditures associated with operations were $3,300,000, yielding FCF of $1,700,000. Certain raw materials used in the manufacturing of perforating systems have increased the cost of carrying inventory. Additionally, activity for both operating segments increased as we exited the third quarter of 2026, resulting in a higher level of accounts receivable at the end of the quarter. These two factors resulted in an increase of working capital as of September 30, 2026.

As previously disclosed, a fire in February 2024 damaged a building at Core Lab's Advanced Technology Center in Aberdeen, Scotland, and the related losses are covered by the Company's property and casualty insurance. Insurance proceeds, along with capital expenditures to replace equipment and restore the building, are reported separately within investing activities in the cash flow statement and are excluded from the calculation of FCF. These capital expenditures were approximately $500,000 in the third quarter of 2026.

In the third quarter of 2026, Core Lab repurchased 87,873 shares at an aggregate purchase price of approximately $1,100,000.

As of September 30, 2026, Core's net debt (defined as long-term debt less cash and cash equivalents) was $93,400,000, a reduction of $200,000. Also during the third quarter of 2026, the Company's leverage ratio (calculated as total net debt divided by trailing twelve months adjusted EBITDA) was under 1.50.