On this page of StockholderLetter.com we present the latest annual shareholder letter from Core Laboratories Inc. /DE/ — ticker symbol CLB. Reading current and past CLB letters to shareholders can bring important insights into the investment thesis.
Celebrating 90 Years of Innovation ANNUAL REPORT 2025
ANNUAL REPORT 2025 2025 ANNUAL REPORT The theme of the Core Lab 2025 Annual Report is Celebrating 90 Years of Innovation. The Report highlights the Company s legacy of distinct capabilities, technology advancements, and proven impact. With the industry s most comprehensive proprietary datasets and a track record of de-risking and optimizing client projects, Core Lab has maintained its reputation as a trusted partner for the world s leading energy companies for nine decades. TABLE OF CONTENTS PAGE Message from Executive Team 1 Financial Strategies 2 Financial Highlights 3 Global Leadership 4 Generational Innovation 5 Bright Future 9 Form 10-K 11
CELEBRATING 90 YEARS OF INNOVATION MESSAGE FROM THE EXECUTIVE TEAM As this report is being finalized, escalating conflict in the Middle East introduced renewed geopolitical uncertainties that are creating commodity price volatility across the globe. This situation is affecting client operations and project timelines across the region, and in some cases impacting our employees and families. Core Lab s foremost priority remains the safety and well-being of its employees. For ninety years, Core Lab has navigated through periods of disruption, adapting to geopolitical shifts, commodity cycles, and structural industry changes. These moments underscore Core s resilience, which has sustained the Company through nearly a century of changing conditions. From left to right: Mark Tattoli, Larry Bruno, Gwen Gresham, Chris Hill In 2026, Core Lab celebrates ninety years of scientific leadership, unmatched client service, and commitment to excellence. Since 1936, Core has delivered solutions that help clients reduce uncertainty, de-risk decisions, and capture opportunities in increasingly complex energy environments. Against a backdrop of persistent change in the industry, Core Lab has made deliberate decisions that strengthened its foundation and positioned the Company for long-term success and sustained value creation. 1 Core geographically optimized its global portfolio, re-anchoring the business in international and technically complex markets. Over the past several years, the Company undertook several strategic initiatives to position Core Lab for long-term success. By aligning with longer-cycle, capital-intensive developments, the Company strengthened the durability of its revenue base and reinforced long-standing partnerships with national and international operators. 2 Core Lab modernized its laboratories, standardized global workflows, and digitized data acquisition and delivery. Today, the Company operates as an integrated science and technology partner, providing advanced analytical insight, industry-leading data management and analytics, and advisory expertise that enables clients to make decisions with confidence. 3 Core institutionalized capital discipline by strengthening its balance sheet, prioritizing free cash flow generation, and adopting a capital-light business model focused on high-return investments. This framework has enabled the Company to return capital to shareholders while continuing to invest in innovation and strategic expansion. Core Lab s employees are the driving force behind the Company s progress. Their expertise and adaptability have guided Core through some of the industry s most challenging cycles. Core Lab remains committed to disciplined growth, technical leadership, and delivering value for its employees, clients, and shareholders. RESERVOIR DESCRIPTION PRODUCTION ENHANCEMENT REVENUE REVENUE $347.7M $178.8M Core Lab 2025 Revenue $526.5 Million 1
ANNUAL REPORT 2025 FINANCIAL STRATEGIES 1 Maximize Free Cash Flow Core Lab follows a strategic approach to capital allocation for maintaining and growing its business. This focus on capital investments and upholding an asset-light business model has the Company well-positioned for the ongoing expansion of exploration and production of oil and gas that will be required to meet rising global demand and the accelerating decline in production from existing oil and gas fields. In 2025, Core Lab generated approximately $26 million of Free Cash Flow ( FCF ). Core s existing global network of laboratories provides exceptional operational leverage and is the foundation of the Company s ability to expand profitability and FCF. Looking ahead, rising international activity and long-term upstream commitments are expected to support demand for our services and products. 2 Maximize Return on Invested Capital Core Lab strives to maximize return on invested capital ( ROIC ) through effective allocation of resources and execution of our three Operational Growth Strategies: 1 Develop New Technologies for Reservoir Optimization 2 Leverage Core s International Laboratory Network 3 Acquire Complementary and Strategically Positioned Technologies The Company has maintained these strategies and its focus on ROIC for decades, and the management team s performance-based stock compensation continues to be tied to both ROIC and Total Shareholder Return. Core Lab s highest return on investment has always come from its internally developed technology. Core continually reviews complementary or strategically positioned technologies. The Company s ROIC was 9.9% as Core Lab exited 2025. Core believes its commitment to maximizing ROIC will result in superior long-term performance of Core Lab s share price compared with the Company s peer group. The Company s focus on ROIC has always served the interests of Core Lab and its shareholders well. 3 Return Excess Capital to Shareholders Since 2002, Core Lab has returned excess capital to shareholders in the form of share repurchases, warrant settlements, dividends, and special dividends, totaling $2.8 billion (Figure 2). In December 2019, the Company set a target leverage ratio of 1.5, and since that time, Core Lab has primarily focused free cash flow towards reducing debt. As of December 31, 2025, the Company reduced its leverage ratio to 1.1, which provided the opportunity to return excess free cash to our shareholders through opportunistic share repurchases. In 2025, in addition to its quarterly dividend, Core Lab repurchased 1.2 million shares of common stock, or approximately 2.5% of the outstanding shares. In total, $17.4 million was returned to shareholders through these two programs. As we move forward, the Company will take a balanced approach in maintaining a strong balance sheet, while also returning excess capital to shareholders via opportunistic share repurchases and the Company s quarterly dividend. $1.9 Billion $844 Million $2.8 Billion Returned to Our Shareholders Since 2002 Share Repurchases, Warrant Settlements Dividends Figure 2 - Cash Returned to Shareholders 2
CELEBRATING 90 YEARS OF INNOVATION FINANCIAL HIGHLIGHTS Consolidated Company Results (in thousands, except per share data) 2025 2023 2024 Total Revenue Total Operating Expenses Gross Profit (loss) Operating Income (loss) Net Income (loss) Earnings (loss) per Diluted Share 526,520 417,587 108,933 56,468 29,669 0.63 523,848 420,522 103,326 58,556 31,400 0.66 509,790 399,957 109,833 54,640 36,675 0.77 Total Assets 1 Long-term Debt Total Shareholders Equity 1 584,010 110,255 265,986 585,130 126,111 246,573 586,395 163,134 224,815 Cash Flows from Operating Activities Capital Expenditures 2 Free Cash Flow 3 Reduction of Net Debt 4 37,031 56,388 24,789 11,209 11,888 10,579 25,822 (18,545) 44,560 (42,037) 14,210 (8,692) 1) Adjustments made to previously reported amounts to correct immaterial errors in the consolidated balance sheet as of December 31, 2024, and December 31, 2023 2) 2024 and 2025 Capital Expenditures adjusted due to breakout between Capital Expenditures (operations) and Capital Expenditures (rebuilding of Aberdeen facility) 3) Free Cash Flow is calculated as Cash Flows from Operating Activities less Capital Expenditures 4) Reduction of Net Debt is calculated as the reduction in Total Debt less the change in cash for the same period Strengthening the Balance Sheet and Capital Allocation Since December 2019, Core Lab announced its plan to focus Free Cash Flow towards reducing debt, with a longer-term goal of maintaining a leverage ratio of 1.5 or lower. Since then, Core s aggregate total net debt reduction was approximately $206 million, or approximately 70%. At year-end 2025, the Company reduced its leverage ratio to 1.1, its lowest level in nine years (Figure 3). In 2024, the Company reinitiated its share repurchase program, and since that time has repurchased almost 1.5 million shares, or 3%, of outstanding shares. Core will continue to maintain a strong balance sheet, while also returning excess capital to shareholders via opportunistic share repurchases and the Company s quarterly dividend. Reduction of Long-term Debt ($ in Millions) $350 3.5 $300 2.1 1.9 2.5 2.3 2.0 1.8 $150 Leverage Ratio $250 $200 3.0 2.8 1.3 1.1 1.5 $100 1.0 $50 0.5 $0 0 2019 2020 2021 2022 2023 Figure 3 - Long-term Debt 3 2024 2025 2025 Operating Results In 2025, Core Lab delivered modest year-over-year revenue growth compared to 2024, underpinned by growth in our service revenue and expansion of international projects. However, this growth was offset by 1) a decrease in U.S. onshore activity and associated product sales, and 2) disruptions due to ongoing geopolitical conflicts and associated sanctions on the maritime transportation of crude oil and derived products. Core Lab s operating income was $56.5 million, a decrease from the prior year, with operating margins of approximately 11%. Looking forward, over the next several years, Core expects international and offshore developments to increase demand for Core Lab s products and services.
 • shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 • stockholder letter icon 5/8/2023 CLB Stockholder Letter
 • stockholder letter icon 3/27/2024 CLB Stockholder Letter
 • stockholder letter icon 4/1/2025 CLB Stockholder Letter
 • stockholder letter icon More "Oil & Gas Equipment & Services" Category Stockholder Letters
 • Benford's Law Stocks icon CLB Benford's Law Stock Score = 72


CLB Shareholder/Stockholder Letter Transcript:

Celebrating 90 Years of Innovation
ANNUAL
REPORT
2025

ANNUAL REPORT 2025
2025 ANNUAL REPORT
The theme of the Core Lab 2025 Annual Report is    Celebrating 90 Years
of Innovation.    The Report highlights the Company   s legacy of distinct
capabilities, technology advancements, and proven impact. With the
industry   s most comprehensive proprietary datasets and a track record
of de-risking and optimizing client projects, Core Lab has maintained its
reputation as a trusted partner for the world   s leading energy companies
for nine decades.
TABLE OF CONTENTS
PAGE
Message from Executive Team
1
Financial Strategies
2
Financial Highlights
3
Global Leadership
4
Generational Innovation
5
Bright Future
9
Form 10-K
11

CELEBRATING 90 YEARS OF INNOVATION
MESSAGE FROM THE EXECUTIVE TEAM
As this report is being finalized, escalating conflict in
the Middle East introduced renewed geopolitical
uncertainties that are creating commodity price volatility
across the globe. This situation is affecting client operations
and project timelines across the region, and in some cases
impacting our employees and families. Core Lab   s foremost
priority remains the safety and well-being of its employees.
For ninety years, Core Lab has navigated through periods of
disruption, adapting to geopolitical shifts, commodity cycles,
and structural industry changes. These moments underscore
Core   s resilience, which has sustained the Company through
nearly a century of changing conditions.
From left to right: Mark Tattoli, Larry Bruno, Gwen Gresham, Chris Hill
In 2026, Core Lab celebrates ninety years of scientific leadership, unmatched client service, and commitment to
excellence. Since 1936, Core has delivered solutions that help clients reduce uncertainty, de-risk decisions, and
capture opportunities in increasingly complex energy environments. Against a backdrop of persistent change in the
industry, Core Lab has made deliberate decisions that strengthened its foundation and positioned the Company for
long-term success and sustained value creation.
1 Core geographically optimized its global portfolio, re-anchoring the business in international and technically
complex markets. Over the past several years, the Company undertook several strategic initiatives to position
Core Lab for long-term success. By aligning with longer-cycle, capital-intensive developments, the Company
strengthened the durability of its revenue base and reinforced long-standing partnerships with national and
international operators.
2 Core Lab modernized its laboratories, standardized global workflows, and digitized data acquisition and
delivery. Today, the Company operates as an integrated science and technology partner, providing advanced
analytical insight, industry-leading data management and analytics, and advisory expertise that enables clients
to make decisions with confidence.
3 Core institutionalized capital discipline by strengthening its balance sheet, prioritizing free cash flow
generation, and adopting a capital-light business model focused on high-return investments. This framework
has enabled the Company to return capital to shareholders while continuing to invest in innovation and
strategic expansion.
Core Lab   s employees are the driving force behind the Company   s progress. Their expertise and adaptability have
guided Core through some of the industry   s most challenging cycles. Core Lab remains committed to disciplined
growth, technical leadership, and delivering value for its employees, clients, and shareholders.
RESERVOIR
DESCRIPTION
PRODUCTION
ENHANCEMENT
REVENUE
REVENUE
$347.7M
$178.8M
Core Lab 2025 Revenue
$526.5 Million
1

ANNUAL REPORT 2025
FINANCIAL STRATEGIES
1
Maximize Free Cash Flow
Core Lab follows a strategic approach to capital allocation for maintaining and growing its business.
This focus on capital investments and upholding an asset-light business model has the Company
well-positioned for the ongoing expansion of exploration and production of oil and gas that will be
required to meet rising global demand and the accelerating decline in production from existing oil and
gas fields. In 2025, Core Lab generated approximately $26 million of Free Cash Flow (   FCF   ). Core   s
existing global network of laboratories provides exceptional operational leverage and is the foundation of
the Company   s ability to expand profitability and FCF. Looking ahead, rising international activity and
long-term upstream commitments are expected to support demand for our services and products.
2
Maximize Return on Invested Capital
Core Lab strives to maximize return on invested capital (   ROIC   ) through effective allocation of resources
and execution of our three Operational Growth Strategies:
1
Develop New Technologies for
Reservoir Optimization
2
Leverage Core   s International
Laboratory Network
3
Acquire Complementary and
Strategically Positioned Technologies
The Company has maintained these strategies and its focus on ROIC for decades, and the management
team   s performance-based stock compensation continues to be tied to both ROIC and Total Shareholder
Return. Core Lab   s highest return on investment has always come from its internally developed
technology. Core continually reviews complementary or strategically positioned technologies. The
Company   s ROIC was 9.9% as Core Lab exited 2025. Core believes its commitment to maximizing ROIC
will result in superior long-term performance of Core Lab   s share price compared with the Company   s peer
group. The Company   s focus on ROIC has always served the interests of Core Lab and its
shareholders well.
3
Return Excess Capital to Shareholders
Since 2002, Core Lab has returned excess capital to shareholders in the form of share repurchases,
warrant settlements, dividends, and special dividends, totaling $2.8 billion (Figure 2). In December 2019,
the Company set a target leverage ratio of 1.5, and since that time, Core Lab has primarily focused free
cash flow towards reducing debt. As of December 31, 2025, the Company reduced its leverage ratio to 1.1,
which provided the opportunity to return excess free cash to our shareholders through opportunistic
share repurchases. In 2025, in addition to its quarterly dividend, Core Lab repurchased 1.2 million shares
of common stock, or approximately 2.5% of the outstanding shares. In total, $17.4 million was returned to
shareholders through these two programs. As we move forward, the Company will take a balanced
approach in maintaining a strong balance sheet, while also returning excess capital to shareholders via
opportunistic share repurchases and the Company   s quarterly dividend.
$1.9
Billion
$844
Million
$2.8 Billion Returned
to Our Shareholders Since 2002
Share Repurchases,
Warrant Settlements
Dividends
Figure 2 - Cash Returned to Shareholders
2

CELEBRATING 90 YEARS OF INNOVATION
FINANCIAL HIGHLIGHTS
Consolidated Company Results
(in thousands, except per share data)
2025
2023
2024
Total Revenue
Total Operating Expenses
Gross Profit (loss)
Operating Income (loss)
Net Income (loss)
Earnings (loss) per Diluted Share




526,520
417,587
108,933
56,468
29,669
0.63




523,848
420,522
103,326
58,556
31,400
0.66




509,790
399,957
109,833
54,640
36,675
0.77
Total Assets 1
Long-term Debt
Total Shareholders    Equity 1


584,010
110,255
265,986


585,130
126,111
246,573


586,395
163,134
224,815
Cash Flows from Operating Activities
Capital Expenditures 2
Free Cash Flow 3
Reduction of Net Debt 4

37,031

56,388

24,789

11,209

11,888

10,579


25,822
(18,545)


44,560
(42,037)


14,210
(8,692)
1) Adjustments made to previously reported amounts to correct immaterial errors in the consolidated balance sheet as of December 31, 2024, and December 31, 2023
2) 2024 and 2025 Capital Expenditures adjusted due to breakout between Capital Expenditures (operations) and Capital Expenditures (rebuilding of Aberdeen facility)
3) Free Cash Flow is calculated as Cash Flows from Operating Activities less Capital Expenditures
4) Reduction of Net Debt is calculated as the reduction in Total Debt less the change in cash for the same period
Strengthening the Balance Sheet and Capital Allocation
Since December 2019, Core Lab announced its plan to focus
Free Cash Flow towards reducing debt, with a longer-term goal
of maintaining a leverage ratio of 1.5 or lower. Since then, Core   s
aggregate total net debt reduction was approximately $206
million, or approximately 70%. At year-end 2025, the Company
reduced its leverage ratio to 1.1, its lowest level in nine years
(Figure 3). In 2024, the Company reinitiated its share
repurchase program, and since that time has repurchased
almost 1.5 million shares, or 3%, of outstanding shares. Core
will continue to maintain a strong balance sheet, while also
returning excess capital to shareholders via opportunistic
share repurchases and the Company   s quarterly dividend.
Reduction of Long-term Debt ($ in Millions)
$350
3.5
$300
2.1
1.9
2.5
2.3
2.0
1.8
$150
Leverage Ratio
$250
$200
3.0
2.8
1.3
1.1
1.5
$100
1.0
$50
0.5
$0
0
2019
2020
2021
2022
2023
Figure 3 - Long-term Debt
3
2024
2025
2025 Operating Results
In 2025, Core Lab delivered modest
year-over-year revenue growth
compared to 2024, underpinned by
growth in our service revenue and
expansion of international projects.
However, this growth was offset by 1)
a decrease in U.S. onshore activity and
associated product sales, and 2)
disruptions due to ongoing geopolitical
conflicts and associated sanctions on
the maritime transportation of crude oil
and derived products. Core Lab   s
operating income was $56.5 million, a
decrease from the prior year, with
operating margins of approximately
11%. Looking forward, over the next
several years, Core expects
international and offshore developments
to increase demand for Core Lab   s
products and services.


shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 

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