In the fourth quarter ended December 31, 2025, Imperial Oil reported earnings per share of $1.05, falling short of the consensus estimate of $1.36. Net income under U.S. GAAP totaled $492 million, a decline of $733 million year-over-year from $1,225 million. Excluding identified items—primarily a $320 million after-tax charge for accelerating the end of field life at Norman Wells and a $156 million after-tax inventory optimization expense—adjusted net income was $968 million, down $257 million from the prior year’s adjusted figure of $1,225 million. Revenues of $6.02 billion missed expectations by over $2.8 billion, underscoring the impact of lower global crude benchmarks on upstream realizations and refining margins.

Upstream production averaged 444,000 gross barrels per day, compared with 460,000 in Q4 2024. Kearl operations produced 274,000 barrels per day (194,000 barrels Imperial’s share), with wet weather early in the quarter weighing on output. Cold Lake conformity averaged 153,000 barrels per day and achieved first oil from the new Leming SAGD project. Syncrude contributions rose to 87,000 barrels per day, up from 81,000. Downstream throughput averaged 408,000 barrels per day, constrained by a planned turnaround in Sarnia and maintenance in the eastern hub, translating to 94% utilization. Petroleum product sales reached 479,000 barrels per day, up 4.6% from last year, driven by expanding retail distribution.

Imperial’s balance sheet remained conservatively leveraged, with a debt-to-equity ratio of 0.18 and a current ratio of 1.47, providing ample coverage for short-term obligations. Investors are pricing sales at 1.12 times revenue, while the price-to-earnings multiple stands at 12.8. Enterprise value to sales and to operating cash flow ratios are 1.15 and 8.12, respectively, reflecting a moderate market valuation relative to cash generation. Cash flow from operating activities reached $1.918 billion for the quarter, up from $1.789 billion in Q4 2024, and $6.708 billion for the full year, supporting capital programs and shareholder returns.

Imperial returned $2.072 billion to shareholders in the quarter, comprising $361 million in dividends and $1.711 billion in accelerated share repurchases under its NCIB program. On February 10, 2026, the company declared a first-quarter dividend of $0.87 per share, payable April 1, 2026, to holders of record as of March 5, marking a 20% increase from the $0.72 quarterly payout in Q4 2025. This represents the 32nd consecutive year of annual dividend growth, supporting the company’s track record of stable distributions and reinforcing confidence in its integrated business model.