Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
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Imperial Oil reported its second-quarter 2026 results this morning (Friday, July 31), with the company more than doubling net income year-over-year during a strong quarter for Canadian energy stocks.
The company announced results before the market open Friday, followed by an earnings call at 11:00am ET where chairman, president and CEO John Whelan is set to take analyst questions.
Financial Results
Imperial Oil posted net income of $2,190 million for the second quarter, translating to diluted earnings per share of $4.52 compared to $949 million and $1.86 per share in the same period last year. That represents a $1,241 million increase in net income, or 131% year-over-year growth.
The quarter included a $49 million after-tax gain on asset sales, including $58 million in proceeds from the sale of surplus property in Montreal. However, the earnings growth was overwhelmingly driven by operational performance rather than one-time items.
Cash flow from operating activities reached $2,704 million versus $1,465 million a year ago. Excluding working capital changes, operating cash flow was $2,522 million compared to $1,413 million in Q2 2025.
Operational Performance
Upstream Production: Imperial’s upstream operations produced 414,000 gross oil-equivalent barrels per day during the quarter, down from 427,000 barrels per day in Q2 2025.
Kearl oil sands production averaged 257,000 barrels per day gross (182,000 barrels Imperial’s share) versus 275,000 barrels gross (195,000 Imperial’s share) a year ago. Cold Lake production came in at 149,000 barrels per day, up from 145,000 in the prior year. Syncrude production attributable to Imperial was 73,000 barrels per day compared to 77,000 in Q2 2025.
Downstream Operations: Refinery throughput totaled 331,000 barrels per day at 76% utilization versus 376,000 barrels per day at 87% utilization last year. The company cited planned turnaround activity at the Strathcona refinery plus unplanned downtime for the lower throughput.
Imperial updated its full-year 2026 refinery throughput guidance to 370,000–380,000 barrels per day at 85–88% utilization.
Petroleum product sales reached 446,000 barrels per day compared to 480,000 a year ago.
Despite the lower refinery volumes, Downstream net income more than doubled to $787 million from $322 million year-over-year. Chemical operations contributed $65 million in net income versus $21 million in Q2 2025.
Shareholder Returns and Capital Allocation
The company maintained its quarterly dividend at 87 cents per share. The Q3 dividend will be payable October 1, 2026 to shareholders of record on September 4, 2026. Imperial has paid dividends for over a century and has increased its annual dividend for 31 consecutive years.
Imperial paid $421 million in dividends during the quarter.
Capital and exploration expenditures totaled $531 million compared to $473 million in the prior year.
The company renewed its normal course issuer bid (NCIB), authorizing the repurchase of up to 5% of outstanding shares or 24,179,635 shares maximum. CEO John Whelan said Imperial plans to accelerate NCIB repurchases with a target of completing the program before year end.
Management Commentary and Outlook
“Imperial’s advantaged integrated business model delivered strong financial results across all operating segments, Upstream, Downstream and Chemical, while completing significant planned turnaround activity,” said chairman, president and CEO John Whelan in the company’s release.
The updated full-year refinery throughput guidance of 370,000–380,000 barrels per day at 85–88% utilization implies materially stronger utilization in the second half of 2026 than the 76% posted this quarter.
Sector Context
Imperial’s results come during a strong week for Canadian energy stocks. Cenovus Energy reported record second-quarter net income of $2.87 billion on Wednesday and raised its upstream production guidance, sending shares up 4.5%. Canadian Natural Resources climbed 4.6% the same day.
Crude prices have been elevated in July amid ongoing tensions in the Middle East — a supportive backdrop for Canadian energy producers heading into the second half of the year.
Investors looking to access Canadian energy producers can do so through investing platforms that offer TSX-listed equities.
Market Reaction
Imperial Oil shares will react when the TSX opens at 9:30am ET Friday, followed by the earnings call at 11:00am ET.
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FAQ
How did Imperial Oil’s Q2 2026 compare to last year?
Imperial Oil’s Q2 2026 net income of $2,190 million more than doubled the $949 million earned in Q2 2025. Diluted earnings per share reached $4.52 versus $1.86 a year ago, representing 131% year-over-year growth.
What was Imperial’s upstream production in Q2 2026?
Imperial produced 414,000 gross oil-equivalent barrels per day in Q2 2026, down from 427,000 in the prior year. Kearl averaged 257,000 barrels per day gross (182,000 Imperial’s share), Cold Lake produced 149,000 barrels per day, and Syncrude contributed 73,000 barrels per day (Imperial’s share).
Did Imperial increase its dividend?
Imperial maintained its quarterly dividend at 87 cents per share for Q3 2026, unchanged from Q2. The company has paid dividends for over a century and has increased its annual dividend for 31 consecutive years. The Q3 dividend will be payable October 1, 2026.
How does Imperial’s quarter compare to peers like Cenovus?
Imperial’s earnings more than doubled while Cenovus Energy reported record Q2 net income of $2.87 billion on Wednesday. Both reported sharply higher year-over-year results amid elevated July crude prices. Cenovus shares rose 4.5% on its earnings day, and Canadian Natural Resources climbed 4.6% the same session.
Data as of July 31, 2026. Source: Imperial Oil Q2 2026 news release.
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Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
