Imperial Oil (IMO) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $2,190 million (CAD 2.19 billion), up from $949 million in Q2 2025, driven by higher commodity prices and improved margins across all segments.

• Cash flows from operating activities reached $2,704 million, up from $1,465 million in Q2 2025, with a strong cash position of $2,839 million at quarter-end.

• Upstream production averaged 414,000 oebd, slightly down year-over-year due to planned and unplanned maintenance, but full-year guidance remains at the low end of the range.

• Downstream refinery throughput was 331,000 barrels/day (76% utilization), down from 376,000 (87%) in Q2 2025 due to planned turnaround and unplanned downtime; higher volumes are expected in the second half.

• Shareholder returns remain a priority, with $421 million in dividends paid, a Q3 dividend of $0.87 per share declared, and an accelerated share repurchase program under the renewed NCIB targeting up to 5% of outstanding shares by year-end.

Financial highlights

• Q2 2026 revenues totaled $16,062 million, up from $11,232 million in Q2 2025.

• Upstream earnings were $1,299 million, up from $664 million, mainly from higher crude prices.

• Downstream earnings reached $787 million, up from $322 million, reflecting improved margins despite turnaround impacts.

• Chemical segment net income was $65 million, up from $21 million, driven by higher polyethylene margins.

• Capital and exploration expenditures were $531 million, up from $473 million in Q2 2025.

Outlook and guidance

• Full-year upstream production expected at the low end of guidance due to first-half results.

• Downstream throughput guidance for 2026 revised to 370,000–380,000 barrels/day and 85–88% utilization, reflecting unplanned downtime and rail logistics at Strathcona, expected to resolve by year-end.

• Anticipates strong volumes and performance in H2 2026, supporting robust free cash flow.

• Ongoing focus on cost reduction, operational efficiency, and margin improvement.