Imperial Oil (IMO) Q4 2025 earnings summary

Executive summary

• Generated over CAD 1.9 billion ($1,918 million) in Q4 cash flow from operations and CAD 6.7 billion ($6,708 million) for the full year 2025.

• Returned CAD 2.1 billion ($2,072 million) to shareholders in Q4 and CAD 4.6 billion ($4,581 million) for the year, including dividends and share buybacks.

• Declared a Q1 2026 dividend of CAD 0.87 per share, a 20%+ increase and the largest in company history.

• Achieved record annual upstream production of 438,000 gross oil-equivalent barrels per day, the highest in over 30 years.

• Quarterly net income was $492 million; adjusted net income (excluding identified items) was $968 million.

Financial highlights

• Q4 net income was $492 million; adjusted net income was $968 million, down year-over-year due to lower upstream realizations.

• Q4 cash flows from operating activities were $1,918 million; normalized cash flow (excluding working capital and one-time items) was $1,585 million.

• Q4 capital expenditures totaled $651 million, up from $423 million year-over-year; full-year CapEx was $2,027 million.

• Q4 EPS was $1.00 (diluted), down from $2.37; adjusted EPS was $1.97.

• Q4 free cash flow was $1,357 million; full-year free cash flow was $4,816 million.

Outlook and guidance

• Confident in 2026 production guidance for Kearl (285,000–295,000 bpd) and path to 300,000+ bpd.

• Cold Lake Mahihkan SA-SAGD project to start in 2029, targeting 30,000 bpd peak.

• Leming SAGD project at Cold Lake ramping up to a peak of 9,000 bpd.

• Norman Wells production cessation accelerated to end of Q3 2026 as asset reaches end of economic life.

• Restructuring plan on track, targeting CAD 150 million in annual savings by 2028.