Start here if you're new
what it is
Core Laboratories helps oil producers analyze reservoirs and squeeze more output from existing wells.
how it gets paid
Last year Core Laboratories made $524M in revenue. Reservoir Description services was the main engine at $259.4M, or 50% of sales.
what just happened
Last quarter EPS came in at $0.21, beating the $0.19 estimate by 10.5%.
At a glance
C++ balance sheet — some cracks in the foundation
40/100 earnings predictability — expect surprises
24.4x trailing p/e — priced about right
0.2% dividend yield — cash in your pocket every quarter
16.0% return on capital — nothing to write home about
xvary composite: 40/100 — below average
What they do
Core Laboratories helps oil producers analyze reservoirs and squeeze more output from existing wells.
Core Lab sits in the unglamorous part of oil services where data and lab work matter more than brute force. Reservoir Description makes up 66% of revenue but 89% of operating income, which is pricing power in plain English. You are paying for a company that works in over 50 countries with 70 offices, so customers can keep using the same specialist almost anywhere they drill.
How they make money
$524M
annual revenue
Reservoir Description services
$259.4M
Reservoir Description products
$86.5M
Production Enhancement services
$133.6M
Production Enhancement products
$44.5M
The products that matter
oil and gas reservoir analysis
Reservoir Description
part of a $0.5B business
this matters before customers commit drilling dollars. that makes it useful and vulnerable at the same time. when budgets tighten, early-stage technical work is easy to delay.
core service
improves output from existing wells
Production Enhancement
tied to the same 4.2% growth story
this helps producers get more from wells they already own. here's the catch: even the more practical work still depends on customers deciding to spend. with a 7.7% net margin, utilization is not trivia here.
customer spend sensitive
Key numbers
16.0%
return on capital
Return on capital → profit generated from money invested in the business → so what: Core Lab still turns capital into earnings better than many industrial peers.
11.2%
operating margin
Operating margin → profit after running the business → so what: this is a real business with room for error, but not a cash geyser.
$114M
long-term debt
Long-term debt → money owed over years → so what: debt is only 12% of capital, which keeps leverage manageable.
24.4x
trailing p/e
P/E → how much investors pay for each dollar of profit → so what: you are paying a full price for a cyclical business.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 20 / 100
- long-term debt $114M (12% of capital)
- net profit margin 12.7% — keeps 13 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
You invested $10,000 in CLB 3 years ago → it's now worth $8,120.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Last quarter EPS came in at $0.21, beating the $0.19 estimate by 10.5%.
Quarterly EPS improved from $0.19 in Q4 2023 to $0.22 in Q4 2024, then held at $0.22 in Q4 2025. The beat was modest, but it shows the business is still holding up while crude markets stay messy.
$138.3M
revenue
$0.21
eps
10.5%
surprise
the number that mattered
The 10.5% earnings beat matters because this stock is priced for a recovery, and even small misses would look expensive at 24.4x trailing earnings.
-
core laboratories is doing a good job of standing up to market challenges.
-
oil producers based in the middle east are keeping their output elevated.
-
global inventories of the fuel are in excess of demand needs.
-
this has pressured crude prices.geopolitical stresses, most related to russia, iran, and venezuela, as well as the economic impact of u.s. import tariffs, have added to uncertainty.
-
u.s. oil & gas exploration & production (e&p) companies have ratcheted down operations.notwithstanding this tough environment, core has made progress in firming its revenue-and-earnings performance.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
CLB is not fighting abstract risk here. The company depends on oil and gas producers continuing to fund reservoir work and production optimization. When those budgets tighten, the pressure shows up fast.
high
upstream capex pullback
when exploration and production companies cut budgets, technical work is easy to delay. CLB is tied directly to that decision cycle.
that pressure reaches essentially all $0.5B of revenue.
med
crude price volatility
CLB does not sell oil. its customers do. when crude prices swing, drilling and completion appetite usually swings with them.
a 7.7% net margin business does not have much room to absorb weaker activity.
med
thin margin for execution mistakes
flat revenue and higher EPS worked this quarter because efficiency helped. that only works so long if demand stays muted.
at roughly $0.1B quarterly revenue, small misses matter more than they would at a larger peer.
med
balance sheet flexibility is limited
the C++ grade and $114M of long-term debt do not scream crisis. they also do not give you much reason to treat a downturn casually.
if business conditions weaken, financial flexibility matters more than the 0.2% dividend yield.
100% of its $0.5B revenue depends on oil and gas producers continuing to spend. That's the number behind the story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
quarterly revenue holding near or above $0.1B
flat sales and rising EPS works for a quarter. you do not want that becoming the whole growth story.
trend
institutional flow turning less negative
3q2025 showed 91 buyers versus 96 sellers. you want that gap closing, not widening.
calendar
the next earnings print
with earnings predictability at 40/100, one quarter can move the stock more than the business actually changed.
risk
customer capex commentary
headline crude prices matter. producer budget commentary matters more. that is where CLB feels pressure first.
Analyst rankings
short-term outlook
average
momentum score 3 — the stock is moving with the broader market. in human-speak, analysts do not see a strong near-term edge here.
risk profile
below average
stability score 4 — more volatile than most stocks. this is not where you hide when the tape gets messy.
chart momentum
below average
technical score 4 — analysts see underperformance risk from here unless the business trend improves.
earnings predictability
40 / 100
earnings are harder to model than the average stock. in human-speak: surprises are part of the package.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 91 buyers vs. 96 sellers in 3q2025. total institutional holdings: 51.4M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$6
$27
$19
current price
$17
target midpoint · 9% from current · 3-5yr high: $45 (+140% · 24% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive