Imperial Oil Restricted IMO is a Canadian built-in oil firm which is anticipated to see stronger earnings progress this 12 months as oil costs rise because of the battle within the Center East. This Zacks Rank #1 (Sturdy Purchase) has busted out to 5-year highs.
Imperial Oil is a Canadian built-in vitality firm headquartered in Calgary. It explores and produces oil and pure gasoline within the Canadian Oil Sands and transports it to its refineries, the place it’s made into a wide range of merchandise reminiscent of gas, asphalt, motor oil, waxes and varied chemical compounds and gases.
It’s Canada’s largest oil refiner.
Imperial Oil Beat Once more within the Fourth Quarter of 2025
On Jan 30, 2026, Imperial Oil reported its fourth quarter 2025 outcomes and beat on the Zacks Consensus Estimate by $0.05. Earnings had been $1.41 versus the Consensus of $1.36.
It has a fantastic earnings shock observe document. This was the fifteenth consecutive earnings beat. It’s final miss was in early 2022.
Built-in oil firms are depending on the value of crude in addition to refining margins.
Within the fourth quarter, the value of crude oil fell relative to the third quarter of 2025 as a consequence of international provide outpacing demand. Stock had constructed throughout the worldwide vitality advanced, miserable pricing.
Moreover, the Canadian WTI/WCS unfold widened as seasonal weakening in heavy crude demand coincided with a rise in WCS provide.
Trade refining margins did enhance within the fourth quarter of 2025, nonetheless, impacted by geopolitical components and provide disruptions.
The Warfare Modified All the pieces
However in Feb 2026, the world’s vitality market abruptly modified upon the breakout of the Center East battle. The Strait of Hormuz was principally shut to transport visitors, together with crude, jet gas and different refined merchandise, and has remained shut into April.
As much as 10 million barrels of oil a day had been faraway from the oil market, which led to a decline within the extra stock worldwide.
Oil costs have soared with each WTI and Brent oil buying and selling above $100 a barrel. Costs for refined merchandise have additionally been hovering, with gasoline, diesel and jet gas leaping increased.
Imperial Oil is going through a very completely different actuality now. It should report first quarter 2026 earnings on Might 1, 2026.
Analysts Attempt to Hold Up with Hovering Oil Costs
The Strait of Hormuz has been principally shut to transport for 5 weeks. It appears just like the Iran Warfare won’t be over shortly. Meaning increased oil costs for longer.
The analysts are lastly beginning to worth within the increased vitality costs.
One earnings estimate was revised increased for 2026 in simply the final week. It has pushed the Zacks Consensus up sharply to $6.48 from $5.20.
That’s now earnings progress of 6.2% as Imperial Oil made $6.10 final 12 months.
Right here’s what the dramatic turnaround in oil costs appears like within the earnings within the 5-year worth and consensus chart.
Picture Supply: Zacks Funding Analysis
Shares of Imperial Oil Bounce to 5-Yr Highs
Shares of Imperial Oil broke out of its previous trending line even earlier than the Iran Warfare, across the begin of 2026.
However the shares acquired one other leg up in late February and March. They’re now at 5-year highs.
Picture Supply: Zacks Funding Analysis
Imperial Oil trades with a ahead price-to-earnings (P/E) ratio of 19.9 however with earnings being revised increased, search for that to drop.
The corporate is shareholder pleasant. It has paid dividends yearly for over a century and has elevated its annual dividend fee for 31 consecutive years.
In Jan 2026, Imperial Oil introduced a 20% improve to the quarterly dividend to $0.87 from $0.72 Canadian. In US {dollars}, that’s $2.55 yearly, which is yielding 2%.
If you’re in search of an built-in vitality play, with each manufacturing and refining, which doesn’t have any operations within the Center East, Imperial Oil needs to be in your brief record.
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Imperial Oil Restricted (IMO) : Free Inventory Evaluation Report
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