Core Laboratories Shareholders Approve Key Proposals

HOUSTON, Texas – Core Laboratories Inc. (NYSE:CLB), a company currently trading below its InvestingPro Fair Value assessment, announced today the results of its Annual Meeting of Shareholders held on May 21, 2025. The meeting outcomes come at a challenging time for the company, whose stock has declined by approximately 47% over the past six months, despite maintaining strong liquidity with a current ratio of 2.21. The meeting, which took place in Houston, Texas, saw shareholders approve the election of directors, the appointment of an independent auditor, and the compensation of the company's named executive officers.

The first proposal involved the election of one new Class II Director and the re-election of two current Class II Directors. These directors will serve until the company's annual meeting in 2028. Martha Z. Carnes, Katherine Murray, and Rob Martinovich were elected with votes of 37,510,862, 39,747,197, and 38,894,796 respectively. The withheld votes and broker non-votes were also reported.

The second proposal was the ratification of KPMG LLP as Core Laboratories' independent registered public accountant for the fiscal year ending December 31, 2025. This proposal was approved with 41,812,461 votes for, 685,311 against, and 14,051 abstentions.

The third proposal involved an advisory vote on the compensation of the company's named executive officers as disclosed in the SEC's compensation disclosure rules. The compensation was approved with 38,010,404 votes for, 2,292,675 against, and 26,512 abstentions.

The outcomes indicate that Core Laboratories' shareholders are in agreement with the board's recommendations on these key issues. The affirmative votes surpassed the required majority for each proposal, reflecting shareholder confidence in the company's governance and executive compensation practices. According to InvestingPro data, the company has maintained dividend payments for 18 consecutive years, demonstrating long-term financial stability despite recent market challenges. Get access to 7 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The company has ensured that more than 50% of the issued share capital was present or represented at the meeting, allowing the proposals to be passed with the required plurality and majority votes. The exact vote counts for each proposal have been certified and disclosed in accordance with regulatory requirements.

Core Laboratories has been diligent in its commitment to transparency and adherence to corporate governance standards, as evidenced by the successful passing of all items on the agenda during the Annual Meeting. While the company remains profitable with a positive earnings outlook for 2025, detailed financial metrics and in-depth analysis are available through InvestingPro's comprehensive research report, one of 1,400+ expert analyses available to subscribers. The information provided in this article is based on the company's SEC filing and InvestingPro data.

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In other recent news, Core Laboratories reported its Q1 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $0.14, significantly below the anticipated $0.29, and revenue of $123.6 million, missing the forecasted $143.5 million. This marks a revenue decline of 4% quarter-over-quarter and 5% year-over-year. Despite the disappointing earnings, Core Laboratories introduced new products and implemented cost reductions, indicating efforts to improve operational efficiency.

Additionally, Core Laboratories opened a new Unconventional Core Analysis Laboratory in Dammam, Saudi Arabia, in collaboration with the Abdulla Fouad Group. This facility is equipped with advanced technologies aimed at enhancing core and fluid analysis for unconventional reservoirs. The opening of the lab is seen as a strategic move to bolster Core's presence in the Middle East energy sector.

In terms of analyst activity, Citi revised its outlook on Core Laboratories, lowering the stock price target from $16.00 to $13.00 while maintaining a Neutral rating. This adjustment reflects anticipated lower revenues and margins in Core's segments, with a specific forecast for declining revenues in Reservoir Description and Production Enhancement. Looking forward, Core Laboratories projects revenue between $128 million and $134 million for Q2 2025, with an expected EPS range of $0.17 to $0.21, suggesting a potential rebound.

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