Imperial Oil Tops Revenue and EPS Estimates as Record Net Income Reaches $2.45 Billion

Imperial Oil (NYSE: IMO) reported third-quarter 2026 revenue and other income of $16.21 billion, above the $15.58 billion analysts expected, and diluted earnings of $5.11 per share against the $4.82 consensus estimate, in an 8-K filed Friday.

Revenue rose about 34% from $12.05 billion a year earlier. Net income was $2.45 billion, or $5.11 per share, compared with $539 million, or $1.07 per share, in the third quarter of 2025. The company said that year-earlier result included after-tax identified items of $555 million. Excluding those items, net income was $2.45 billion, up from $1.09 billion.

Downstream and upstream results

The company said downstream earnings were a quarterly record, with net income of $1.56 billion compared with $444 million a year earlier. Refinery throughput averaged 381,000 barrels per day, and capacity utilization was 88%, compared with 98% in the third quarter of 2025. The company attributed the lower utilization to unplanned downtime, a third-party pipeline outage and planned turnaround work.

Upstream net income was $941 million, up from $728 million. Upstream production averaged 418,000 gross oil-equivalent barrels per day, down from 462,000. Kearl produced 282,000 gross barrels per day, including the impact of a third-party pipeline outage that shut production for multiple days. Chief executive John Whelan said the Renewable Diesel facility at the Strathcona refinery delivered high-value, low-carbon fuel to Canadian markets.

Cash returns and outlook

Cash flows from operating activities were $3.23 billion, up from $1.80 billion. The company returned $2.51 billion to shareholders, including $420 million in dividends and $2.09 billion in share repurchases under its normal course issuer bid. Imperial said it anticipates repurchasing all remaining allowable shares before year end. It also declared a fourth-quarter dividend of 87 cents per share.

For 2026, the company is targeting total gross Kearl production of 280,000 barrels per day, or 199,000 barrels per day on Imperial's share, citing third-party events that affected year-to-date output. The company also said debottlenecking work at Strathcona is expected to raise refinery capacity utilization by year end.

Before the filing, the stock closed at $130.87 on Thursday, Oct. 29.