Suncor Energy Q4 Earnings & Revenues Beat Estimates, Both Down Y/Y

Suncor Energy Inc. SU reported fourth-quarter 2025 adjusted operating earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 77 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of 89 cents due to lower upstream price realizations.

Operating revenues of $8.8 billion beat the Zacks Consensus Estimate by 4%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 1.3% year over year.

Suncor Energy Inc. Price, Consensus and EPS Surprise

Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote

Suncor Energy’s board of directors declared a quarterly dividend of 60 Canadian cents per share for its common shareholders of record as of March 4, 2026. The payout, which remains unchanged from the previous quarter, will be made on March 25.

During the quarter, the Alberta-based integrated energy company distributed a total of C$1.5 billion to its shareholders, including C$775 million in share repurchases and C$719 million in dividends. It generated C$3.2 billion in adjusted funds from operations and C$1.7 billion in free cash flow.

In the quarter under discussion, SU achieved a record upstream production of 909,000 barrels per day (bbls/d). It also achieved record refining throughput, totaling 504,000 bbls/d with refinery utilization at 108%. The company recorded the refined product sales of 640,400 bbls/d, increasing from the prior-year sales of 613,300 bbls/d.

Q4 Segmental Performance of SU

Upstream: The company recorded a total production of 909,000 in this segment, an increase of about 3.9% year over year from 875,000 bbls/d. Moreover, the figure beat the consensus estimate of 894,000 bbls/d.

In the fourth quarter of 2025, total oil sands bitumen production increased to 992,700 bbls/d compared with 951,500 bbls/d in the previous-year quarter. This growth was primarily fueled by strong mining performance and record fourth-quarter production at Fort Hills, which achieved 90% of nameplate capacity in 2025, delivering on the three-year mine improvement plan.

SU’s E&P volume (international, offshore and natural gas) increased 10.6% to 63,600 bbls/d from 57,500 bbls/d in the year-ago quarter, driven by increased production at Hebron and the addition of production at White Rose, which restarted in the first quarter of 2025. The figure marginally missed the consensus estimate of 64,000 bbls/d.

Operating earnings totaled C$1.3 billion, indicating a 15.4% decrease from the year-ago quarter’s C$1.6 billion due to lower upstream price realizations and a foreign exchange loss on working capital items.

Operating costs from Oil Sands operations decreased to C$25.90 per barrel from C$26.55 in the corresponding period of 2024. This decrease was mainly backed by an increase in power sales volumes and a lower proportion of Fort Hills bitumen being directed to upgrading at Oil Sands Base. Total oil sands production rose to 845,400 bbls/d in the fourth quarter of 2025, up from 817,500 bbls/d in the previous year. The figure was in line with the consensus estimate.

Non-upgraded bitumen production rose to 288,400 bbls/d from 273,900 bbls/d in the previous year. The figure beat the consensus estimate of 288,000 bbls/d. Net SCO and diesel production increased to 557,000 bbls/d from 543,600 bbls/d a year earlier. This number was in line with the consensus estimate.

Fort Hills reported an average fourth-quarter volume of 178,200 barrels per day (bpd), higher than the year-ago quarter’s level of 161,700 bpd. However, the figure missed the consensus estimate of 189,000 bpd. The Fort Hills cash operating cost per barrel decreased to C$31.60 from C$34.25 in the prior-year period. This was backed by increased production volumes.

Furthermore, Syncrude’s cash operating costs per barrel decreased to C$31.05 from C$32.80 in the same quarter last year. This decrease was mainly backed by increased production volumes and a lower proportion of Oil Sands Base, sour SCO and Firebag bitumen being directed to upgrading at Syncrude.

The oil sands base upgrader operated at 103% capacity, and Syncrude achieved a record 109%, compared with 102% and 105%, respectively, in the prior-year quarter. This was primarily due to higher upgrader availability in the current period related to decreased planned maintenance activities and continued strong upgrader reliability.

Downstream: Refining and Marketing adjusted operating earnings for the fourth quarter of 2025 were C$893 million, up from C$410 million in the same quarter last year. The increase in adjusted operating earnings was mainly fueled by higher benchmark crack spreads and increased refinery production.

Refined product sales totaled 640,400 bpd, up from the prior-year quarter’s level of 613,300 bpd. This growth was driven by higher refinery production and continued investment in retail growth, as well as leveraging strategic partnerships.

Refinery crude throughput totaled 504,200 bpd compared with 486,200 bpd in the year-ago period. The number was in line with the consensus estimate.

Refinery utilization was 108% compared with 104% a year ago. This increase in refinery crude throughput was driven by continued strong operating performance through the current quarter, which saw all four refineries exceed 100% utilization.

SU’s Financial Position

Total expenses decreased 9.8% to C$10.3 billion from the prior-year quarter. Operating, selling and general expenses increased to C$3.5 billion in the fourth quarter of 2025, compared with C$3.4 billion in the prior-year quarter, due to higher commodity input costs.

Cash flow from operating activities amounted to C$3.9 billion, down from the prior-year quarter’s level of C$5.1 billion. Suncor Energy incurred capital expenditures worth C$1.5 billion in the fourth quarter of 2025.

As of Dec. 31, 2025, the company had cash and cash equivalents of C$3.65 billion and long-term debt of C$9 billion. Its debt-to-capitalization was 16.7%.

2026 Guidance of Suncor Energy

On Dec. 11, 2025, Suncor Energy issued its 2026 corporate guidance, which emphasizes continued operational excellence and disciplined capital allocation following two record-setting years. The company will return 100% of excess funds to shareholders through buybacks, increasing monthly repurchases by 10% to $275 million, implying about $3.3 billion in 2026. Upstream production is expected at 840,000-870,000 bbls/d. Annual refining utilization is forecast at 99%-102%, reflecting sustained downstream improvements despite planned turnarounds and maintenance across major assets. Capital spending is projected at $5.7 billion at the midpoint, with investments focused on high-value projects. The 2026 refinery throughput is expected to be between 460,000 and 475,000 bbls/d and the refined product sales to be between 600,000 and 620,000 bbls/d. Management also highlighted resilient cash flows and reaffirmed its commitment to delivering superior shareholder value.

SU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Energy Earnings So Far

While we have discussed Suncor Energy’s fourth-quarter results in detail, let us take a look at some other key energy reports of this season.

A leading oilfield services company, Baker Hughes Company BKR, reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.

As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.

Another oil and gas equipment and services provider, Halliburton Company HAL, reported a fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.

Houston, TX-based oil and gas equipment and services company’s revenues of $5.7 billion increased 0.8% year over year and beat the Zacks Consensus Estimate by 4.7%.

As of Dec. 31, 2025, HAL had approximately $2.2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.

Another oil field service company, Liberty Energy Inc. LBRT, reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable margin. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 10 cents.

LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $862 million. The top line also increased from the prior-year quarter’s $944 million by 10%, driven by higher activity levels that meaningfully exceeded the industry.

As of Dec. 31, Liberty Energy had approximately $28 million in cash and cash equivalents. The pressure pumper’s long-term debt of $241.5 million represented a debt-to-capitalization of 10.4%.

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