Imperial Oil (IMO) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $949 million, down from $1,133 million in Q2 2024 and $1,288 million in Q1 2025, mainly due to lower upstream realizations and downstream margin capture.

• Cash flows from operating activities were $1,465 million, compared to $1,629 million in Q2 2024 and $1,527 million in Q1 2025, with $2.4 billion in cash on hand at quarter-end.

• Upstream production reached 427,000 oil-equivalent barrels/day, the highest Q2 in over 30 years, driven by record Kearl output.

• Major project milestones included completion and startup of Canada’s largest renewable diesel facility at Strathcona, doubling the turnaround interval at Kearl, and Lemming SAGD redevelopment at Cold Lake.

• Share repurchases under the NCIB will be accelerated and completed by year-end, maintaining a focus on returning surplus cash to shareholders.

Financial highlights

• Q2 2025 EPS (diluted) was $1.86, down from $2.11 in Q2 2024; six-month EPS was $4.38, up slightly from $4.34 year-over-year.

• Cash flows from operating activities were $1,465 million, down from $1,629 million in Q2 2024; capital expenditures totaled $473 million, up from $462 million in Q2 2024.

• Free cash flow for Q2 2025 was $993 million, down from $1,173 million in Q2 2024.

• Cash and cash equivalents increased to $2,386 million as of June 30, 2025, from $979 million at year-end 2024.

• Dividends paid in Q2 totaled $367 million ($0.72 per share), up from $321 million ($0.60 per share) in Q2 2024.

Outlook and guidance

• No change to full-year CapEx guidance of $1.9–$2.1 billion; spending expected to increase in the second half due to milestone payments.

• Plans to accelerate share repurchases under the NCIB, targeting completion before year-end.

• Upstream production is well positioned for a strong second half, with highest ever heavy oil production in the first half.

• Lemming SAGD project at Cold Lake expects first oil late 2025 and ramp-up in 2026; EBRT pilot at Aspen on track for early 2027 startup.

• Management continues to monitor global trade volatility and potential impacts from tariffs and sanctions.