Imperial Oil (IMO) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $940 million (CAD 940 million), down from $1,288 million in Q1 2025, but up from Q4 2025, driven by higher prices and absence of identified items, partially offset by lower volumes and higher incentive compensation.

• Cash flows from operating activities were $756 million (CAD 756 million), with cash flows excluding working capital at $1,239 million, both down year-over-year.

• Upstream production averaged 419,000 gross oil equivalent barrels per day, the second-highest Q1 result in company history.

• Downstream operations benefited from the renewable diesel facility at Strathcona and improved industry refining margins, despite lower throughput due to unplanned downtime.

• Capital allocation priorities remain focused on sustaining and growing the business, with a 31-year record of annual dividend growth and plans to renew the NCIB in June 2026.

Financial highlights

• Net income of $940 million, down $348 million year-over-year, primarily due to higher incentive compensation and lower upstream prices.

• Operating cash flow was $756 million, down from $1,527 million year-over-year, reflecting lower earnings and unfavorable working capital.

• Capital and exploration expenditures increased to $478 million from $398 million in Q1 2025, focused on sustaining capital at Kearl, Cold Lake, and Syncrude.

• Dividends paid in Q1 totaled $350 million ($0.72 per share), with a Q2 dividend of $0.87 per share declared.

• No share repurchases occurred in Q1 2026 as the prior buyback program was completed in December 2025.

Outlook and guidance

• Management expects continued volatility in crude prices due to geopolitical events and supply uncertainty.

• Corporate strategy remains focused on maximizing asset value, progressing high-quality organic growth, and returning surplus cash to shareholders.

• Intends to renew normal course issuer bid in June 2026.

• No material impact anticipated from recent trade-related measures between the US and Canada.

• Restructuring and business transformation are expected to deliver long-term efficiency and effectiveness benefits.