Core Lab cuts Q1 2026 guidance due to Middle East conflict

Core Laboratories Inc. (NYSE: CLB) revised its first quarter 2026 financial guidance downward due to ongoing geopolitical conflict in the Middle East affecting its operations and client activities.

The Houston-based oil services company now projects first quarter revenue between $119 million and $123 million, with operating income expected to range from $5.7 million to $7.1 million. Earnings per share are forecast at $0.05 to $0.07 for the quarter.

Regional instability has created client-driven project delays, travel constraints, and supply-chain disruptions that are impacting the company's operations across Middle Eastern countries where it maintains a presence. Damage to oil refining infrastructure and storage terminals has forced operators to reduce or halt oil production, according to the company's statement.

The Reservoir Description division has experienced more significant effects due to its role in regional client studies, crude oil testing, and reservoir characterization services that require predictable field access and laboratory operations. Production Enhancement operations have been less affected, though shipments of energetics products to certain regional areas have faced delays or temporary suspensions.

Supply chain disruptions and maritime transportation constraints, particularly through the Strait of Hormuz, have contributed to logistical delays and project execution challenges. The company stated it is working with clients and local teams to manage operations through the changing environment while prioritizing employee safety and security.

Core Lab previously issued its original first quarter 2026 guidance on February 4, 2026. The company operates more than 70 offices across 50 countries, providing reservoir description and production enhancement services to the petroleum industry.

The company plans to host an earnings conference call on April 30, 2026, at 7:30 a.m. CDT following the release of first quarter results after market close on April 29, 2026.

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