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 $492 million in 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, compared to $1,527 million in Q1 2025; excluding working capital, cash flows were $1,239 million versus $1,760 million last 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, capturing significant value over imports.

• 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

• Total revenues were $12,446 million, slightly down from $12,517 million in Q1 2025.

• Net income per diluted share was $1.94, down from $2.52 in Q1 2025.

• Free cash flow was $306 million, down from $1,150 million in Q1 2025.

• Capital and exploration expenditures increased to $478 million from $398 million in Q1 2025.

• Dividends paid in Q1 totaled $350 million; a Q2 dividend of $0.87 per share was declared.

Outlook and guidance

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

• Corporate strategy and investment plans remain focused on maximizing asset value and progressing high-quality organic growth.

• Plans to renew the normal course issuer bid in June 2026, with ongoing commitment to shareholder returns.

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

• Commitment to returning surplus cash to shareholders as cash generation exceeds capital and dividend needs.