Imperial Oil to Report Q4 Earnings: What's in the Offing?

Imperial Oil Limited IMO is set to release fourth-quarter 2025 results on Jan. 30, 2026. The Zacks Consensus Estimate for earnings is pegged at $1.40 per share on revenues of $10.5 billion.

Let us delve into the factors that might have influenced IMO’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of IMO’s Q3 Earnings & Surprise History

In the last reported quarter, the Calgary-based integrated oil company beat the consensus estimate for earnings, but decreased from $1.71 per share in the year-ago quarter due to lower upstream price realizations. IMO reported adjusted earnings per share of $1.57, beating the Zacks Consensus Estimate of $1.44. Total revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 13.3%. This is depicted in the chart below:

Imperial Oil Limited Price and EPS Surprise

Imperial Oil Limited price-eps-surprise | Imperial Oil Limited Quote

Trend in IMO’s Estimate Revision

The Zacks Consensus Estimate for fourth-quarter 2025 earnings has witnessed a downward movement of 1.4% in the past seven days. The estimated figure indicates a 17.2% year-over-year decrease. The Zacks Consensus Estimate for revenues implies a 16% increase from the year-ago period.

Factors to Consider Ahead of IMO’s Q4 Results

Imperial Oil is one of the largest integrated oil companies in Canada, mainly engaged in oil and gas production, petroleum product refining and marketing, and the chemical business. While crude prices have softened of late, the company’s integrated business model is very resilient and has the ability to generate substantial free cash flow over a range of oil price environments.

At the end of its third quarter, Imperial Oil announced a restructuring strategy that was aimed at strengthening long-term cash flow, efficiency and resilience by centralizing corporate and technical functions and leveraging global expertise and technology. By integrating operations more closely with ExxonMobil’s scale and capabilities, the company expects productivity gains, lower unit costs, reduced downtime and stronger project execution. The plan supports higher production and cost discipline while keeping 2025 guidance intact. With targeted annual expense savings of $150 million by 2028 and larger benefits over time, the restructuring positions Imperial Oil to enhance financial flexibility, fund future growth and sustain industry-leading shareholder returns, creating a positive trajectory for the company.

What Does Our Model Predict for IMO?

Our proven Zacks model predicts an earnings beat for IMO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here.

Earnings ESP of IMO: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +1.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IMO’s Zacks Rank: IMO currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With the Favorable Combination

Here are some other firms from the energy space that you may want to consider, as these too have the right combination of elements to post an earnings beat this reporting cycle.

Patterson-UTI Energy, Inc. PTEN currently has an Earnings ESP of +19.15% and a Zacks Rank of 3.

PTEN is scheduled to release earnings on Feb. 4. Notably, Patterson’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the other two, delivering a positive average surprise of 17.5%. Valued at around $2.8 billion, the company’s shares have lost 12.4% in a year.

BP p.l.c. BP presently has an Earnings ESP of +2.47% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 10.

The Zacks Consensus Estimate for BP’s 2025 revenues indicates 5.2% year-over-year growth.Valued at around $95.2 billion, the company’s shares have gained 16.9% in a year.

Plains All American Pipeline, L.P. PAA currently has an Earnings ESP of +15.06% and a Zacks Rank of 3. It is scheduled to release earnings on Feb. 6.

The Zacks Consensus Estimate for Plains All American Pipeline’s 2025 earnings per share indicates 0.7% year-over-year growth. Valued at around $13.5 billion, the company’s shares have lost 4.3% in a year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research