Core Laboratories Inc. reported full year 2024 revenue of $523.8 million, a 3% increase compared to 2023. Full year operating income, ex-items, grew 7% to $65.3 million, with incremental margins of 29%. The company's full year diluted earnings per share, ex-items, increased 9% year-over-year to $0.87.
For the fourth quarter of 2024, revenue was $129.2 million, with operating income, ex-items, of $15.7 million, yielding operating margins of 12%. Diluted EPS, ex-items, for the quarter was $0.22. The Reservoir Description segment's Q4 revenue was $86.8 million, while Production Enhancement revenue was $42.4 million, both experiencing sequential declines due to reduced U.S. land activity and geopolitical conflicts.
Core Lab generated $43.4 million in free cash flow for the full year 2024, an improvement of over 200% compared to 2023. The company continued to strengthen its balance sheet, reducing net debt by $11.7 million in Q4 and $42.0 million for the full year, bringing the total to $108.8 million. The debt leverage ratio was reduced to 1.31 as of December 31, 2024, marking its lowest level in over eight years.
The company repurchased 264,982 shares for $4.9 million in Q4 2024. Core Lab also completed a laboratory study for a Middle Eastern National Oil Company using proprietary Nuclear Magnetic Resonance technologies to differentiate hydrocarbon phases. In Southeast Asia, STIMGUN™ propellant technology led to a 55% increase in natural gas production, and FlowProfiler™ water tracers were introduced in Canada to enhance well diagnostics.
For the first quarter of 2025, Core Lab projects revenue between $121.0 million and $127.0 million, with diluted EPS expected to range from $0.12 to $0.16. This guidance anticipates seasonal declines and impacts from expanded sanctions and severe weather in some regions. The projected effective tax rate for 2025 is approximately 25%, which is expected to increase income tax expense by about $500,000 in Q1 2025.
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