Revenue rebounded 34.7% YoY in 2026Q2 to $17.4B, but gross margin compression to 10.5% in the latest quarter highlights ongoing volatility in refining margins and pricing power.
Cenovus Energy Inc. (CVE) annual income statement — 18-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Sales/Revenue | 53.89B | 49.66B | 57.73B | 55.47B | 71.77B | 48.81B | 13.91B | 20.54B | 21.39B | 17.31B | 11.02B | 11.56B | 20.11B | 18.99B | 17.23B | 16.18B | 13.09B | 11.52B | 20.15B |
| Revenue Growth % | -4.77% | -13.98% | 4.06% | -22.7% | 47.03% | 250.8% | -32.27% | -3.96% | 23.54% | 57.19% | -4.71% | -42.51% | 5.87% | 10.24% | 6.45% | 23.64% | 13.66% | -42.85% | - |
| Cost of Goods Sold | 42.37B | 44.46B | 44.96B | 42.77B | 54.63B | 39.7B | 14.24B | 16.06B | 17.3B | 13.89B | 9.63B | 10.21B | 15.84B | 14.64B | 12.99B | 12.24B | 10.37B | 7.27B | 13.31B |
| COGS % of Revenue | - | 89.54% | 77.89% | 77.1% | 76.12% | 81.34% | 102.37% | 78.19% | 80.9% | 80.22% | 87.45% | 88.34% | 78.79% | 77.09% | 75.41% | 75.64% | 79.2% | 63.09% | 66.02% |
| Gross Profit | 11.52B | 5.19B | 12.77B | 12.7B | 17.13B | 9.11B | -330M | 4.48B | 4.09B | 3.42B | 1.38B | 1.35B | 4.26B | 4.35B | 4.24B | 3.94B | 2.72B | 4.25B | 6.85B |
| Gross Margin % | 21.38% | 10.46% | 22.11% | 22.9% | 23.88% | 18.66% | -2.37% | 21.81% | 19.1% | 19.78% | 12.55% | 11.66% | 21.21% | 22.91% | 24.59% | 24.36% | 20.8% | 36.91% | 33.98% |
| Gross Profit Growth % | - | -59.33% | 0.48% | -25.86% | 88.14% | 2859.7% | -107.36% | 9.67% | 19.33% | 147.76% | 2.52% | -68.39% | -2% | 2.71% | 7.46% | 44.77% | -35.94% | -37.91% | - |
| Operating Expenses | 1.09B | 811.34M | 7.7B | 7.08B | 6.78B | 5.58B | -330M | 331M | 4.09B | 3.42B | 1.38B | 1.35B | 4.26B | 4.35B | 4.24B | 3.94B | 2.72B | 4.25B | 6.85B |
| OpEx % of Revenue | - | 1.63% | 13.35% | 12.77% | 9.45% | 11.44% | -2.37% | 1.61% | 19.1% | 19.78% | 12.55% | 11.66% | 21.21% | 22.91% | 24.59% | 24.36% | 20.8% | 36.91% | 33.98% |
| Selling, General & Admin | 1.09B | 811.34M | 794M | 688M | 865M | 849M | 292M | 331M | 391M | 300M | 318M | 335M | 379M | 365M | 350M | 295M | 246M | 1.02B | 1.38B |
| SG&A % of Revenue | - | 1.63% | 1.38% | 1.24% | 1.21% | 1.74% | 2.1% | 1.61% | 1.83% | 1.73% | 2.89% | 2.9% | 1.88% | 1.92% | 2.03% | 1.82% | 1.88% | 8.82% | 6.82% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25M | 36M | 36M | 27M | 15M | 24M | 15M | 8M | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | 0.12% | 0.21% | 0.33% | 0.23% | 0.07% | 0.13% | 0.09% | 0.05% | - | - | - |
| Other Operating Expenses | 0 | 0 | 6.91B | 6.39B | 5.92B | 4.73B | -622M | 0 | 3.67B | 3.09B | 1.03B | 986M | 3.87B | 3.96B | 3.87B | 3.64B | 2.48B | 3.23B | 5.47B |
| Operating Income | 10.43B | 4.38B | 5.06B | 5.62B | 10.35B | 3.52B | 0 | 4.15B | -1.24B | 242M | -221M | -363M | 1.69B | 2.03B | 2.1B | 2.21B | 1.15B | 1.41B | 4.03B |
| Operating Margin % | 19.35% | 8.82% | 8.77% | 10.13% | 14.42% | 7.22% | - | 20.2% | -5.8% | 1.4% | -2.01% | -3.14% | 8.42% | 10.69% | 12.18% | 13.62% | 8.82% | 12.21% | 20% |
| Operating Income Growth % | - | -13.45% | -9.98% | -45.69% | 193.76% | - | -100% | 434.41% | -612.81% | 209.5% | 39.12% | -121.44% | -16.64% | -3.24% | -4.81% | 91.07% | -17.92% | -65.11% | - |
| EBITDA | 16.34B | 9.81B | 9.93B | 10.27B | 15.03B | 7.85B | 770M | 6.54B | 890M | 2.27B | 1.28B | 1.75B | 3.64B | 3.86B | 3.68B | 3.5B | 2.46B | 2.93B | 5.63B |
| EBITDA Margin % | 30.32% | 19.76% | 17.21% | 18.51% | 20.94% | 16.07% | 5.53% | 31.83% | 4.16% | 13.12% | 11.59% | 15.15% | 18.1% | 20.34% | 21.38% | 21.63% | 18.76% | 25.47% | 27.95% |
| EBITDA Growth % | 85.87% | -1.22% | -3.25% | -31.7% | 91.58% | 918.96% | -88.22% | 634.72% | -60.83% | 77.92% | -27.07% | -51.88% | -5.82% | 4.89% | 5.26% | 42.51% | -16.26% | -47.94% | - |
| D&A (Non-Cash Add-back) | 5.91B | 5.43B | 4.87B | 4.64B | 4.68B | 4.32B | 3.46B | 2.39B | 2.13B | 2.03B | 1.5B | 2.11B | 1.95B | 1.83B | 1.58B | 1.29B | 1.3B | 1.53B | 1.6B |
| EBIT | 8.99B | 4.94B | 4.72B | 5.76B | 9.54B | 2.36B | -2.69B | 1.6B | -3.33B | 2.83B | -433M | 1.24B | 1.62B | 1.59B | 2.21B | 2.63B | 1.77B | 1.41B | 4.03B |
| Net Interest Income | -415.3M | -325.73M | -479M | -506M | -702M | -1.02B | -368.92M | -340.08M | -608M | -583M | -338M | -353M | -412M | -433M | -346M | -323M | -354M | -244M | -265.31M |
| Interest Income | 77.05M | 140.89M | 170M | 217M | 110M | 23M | 7.06M | 9.25M | 19M | 62M | 52M | 0 | 33M | 96M | 109M | 124M | 144M | 0 | 0 |
| Interest Expense | 492.36M | 466.62M | 649M | 723M | 812M | 1.05B | 375.98M | 349.33M | 595M | 619M | 369M | 353M | 427M | 499M | 434M | 426M | 467M | 244M | 265.31M |
| Other Income/Expense | -2.07B | 92.92M | -990M | -582M | -1.62B | -2.21B | -3.23B | -2.75B | -2.69B | 1.97B | -581M | 1.25B | -498M | -937M | -321M | 2M | 150M | -244M | -265.31M |
| Pretax Income | 8.36B | 4.47B | 4.07B | 5.04B | 8.73B | 1.31B | -3.23B | 1.4B | -3.93B | 2.22B | -802M | 890M | 1.2B | 1.09B | 1.78B | 2.21B | 1.3B | 1.16B | 3.76B |
| Pretax Margin % | 15.52% | 9.01% | 7.05% | 9.09% | 12.17% | 2.69% | -23.21% | 6.8% | -18.36% | 12.8% | -7.28% | 7.7% | 5.94% | 5.76% | 10.32% | 13.64% | 9.96% | 10.09% | 18.68% |
| Income Tax | 1.7B | 546.55M | 929M | 931M | 2.28B | 728M | -851M | -797M | -1.01B | -52M | -343M | -24M | 451M | 432M | 783M | 729M | 223M | 344M | 882.33M |
| Effective Tax Rate % | 20.31% | 12.22% | 22.82% | 18.47% | 26.13% | 55.36% | 26.35% | -57.05% | 25.73% | -2.35% | 42.77% | -2.7% | 37.74% | 39.49% | 44.04% | 33.03% | 17.1% | 29.6% | 23.44% |
| Net Income | 6.66B | 3.93B | 3.14B | 4.11B | 6.45B | 587M | -2.38B | 2.19B | -2.67B | 3.37B | -545M | 618M | 744M | 662M | 995M | 1.48B | 1.08B | 818M | 2.88B |
| Net Margin % | 12.37% | 7.91% | 5.44% | 7.41% | 8.99% | 1.2% | -17.1% | 10.68% | -12.48% | 19.44% | -4.95% | 5.35% | 3.7% | 3.49% | 5.78% | 9.13% | 8.26% | 7.1% | 14.3% |
| Net Income Growth % | 149.05% | 24.98% | -23.53% | -36.29% | 998.81% | 124.67% | -208.43% | 182.2% | -179.29% | 717.61% | -188.19% | -16.94% | 12.39% | -33.47% | -32.68% | 36.73% | 32.15% | -71.62% | - |
| Net Income (Continuing) | 6.66B | 3.93B | 3.14B | 4.11B | 6.45B | 587M | -2.38B | 2.19B | -2.92B | 2.27B | -459M | 914M | 744M | 662M | 995M | 1.48B | 1.08B | 818M | 2.88B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 247M | 1.1B | -86M | -296M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 16.01M | 15.99M | 15M | 14M | 13M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.56 | 2.15 | 1.67 | 2.12 | 3.20 | 0.29 | -1.94 | 1.78 | -2.17 | 3.05 | -0.65 | 0.75 | 0.98 | 0.87 | 1.31 | 1.95 | 1.43 | 1.09 | 3.83 |
| EPS Growth % | 152.06% | 28.74% | -21.23% | -33.75% | 1003.45% | 114.95% | -208.99% | 182.03% | -171.15% | 569.23% | -186.67% | -23.47% | 12.64% | -33.59% | -32.82% | 36.36% | 31.19% | -71.54% | - |
| EPS (Basic) | - | 2.17 | 1.68 | 2.12 | 3.29 | 0.29 | -1.94 | 1.79 | -2.17 | 3.05 | -0.65 | 0.75 | 0.98 | 0.88 | 1.32 | 1.96 | 1.44 | 1.09 | 3.85 |
| Diluted Shares Outstanding | 1.87B | 1.82B | 1.86B | 1.93B | 2.01B | 2.05B | 1.23B | 1.23B | 1.23B | 1.1B | 833.3M | 818.7M | 757.6M | 757.5M | 758.5M | 757.7M | 754M | 751.4M | 751.8M |
| Basic Shares Outstanding | 1.86B | 1.81B | 1.85B | 1.9B | 1.95B | 2.02B | 1.23B | 1.23B | 1.23B | 1.1B | 833.3M | 818.7M | 756.9M | 760.92M | 759.54M | 754M | 751.9M | 751M | 750.1M |
| Dividend Payout Ratio | - | 36.21% | 47.93% | 24.09% | 13.97% | 29.98% | - | 11.85% | - | 6.68% | - | 85.44% | 108.2% | 110.57% | 66.83% | 40.8% | 55.6% | 19.44% | - |
Quick answers to the most common questions about buying CVE stock.
For fiscal year 2025, Cenovus Energy Inc. (CVE) reported total revenue of $49.66B. This represents a 146.4% increase compared to $20.15B in 2008.
Cenovus Energy Inc. (CVE) is profitable, generating $3.93B in net income for the fiscal year ending 2025 with a net profit margin of 7.9%.
Cenovus Energy Inc. (CVE) reported an operating income of $4.38B, resulting in an operating profit margin of 8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Cenovus Energy Inc. (CVE) generated $5.19B in gross profit for the year, representing a gross profit margin of 10.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Refinery reliability and margin volatility
Revenue Rebound Masks Underlying Volatility
Cenovus's revenue surged 34.7% YoY in 2026Q2 to $17.4B, but this follows a 12.8% decline in 2026Q1, indicating erratic demand and pricing. According to the latest income statement data, the trajectory remains choppy.
The sharp rebound in 2026Q2 appears driven by stronger commodity prices and possibly higher volumes, yet the prior quarter's contraction suggests sensitivity to WCS-WTI spreads. Investors should monitor whether this growth is sustainable or merely a cyclical uptick, especially given the mixed signals from peer Suncor's -3.5% revenue growth.
Gross Margin Compression Raises Concerns
Gross margin fell to 10.5% in the latest quarter, down from 25.4% in 2026Q2, reflecting a 14% YoY revenue decline. As reported in financial statements, this is a significant deterioration from the 20%+ levels seen earlier.
The margin compression appears tied to weaker realized prices and possibly higher input costs, particularly natural gas for steam generation. While the integrated model provides some offset, the current gross margin is below the peer average, suggesting a structural disadvantage or cyclical trough. Monitoring the WCS-WTI spread and refinery utilization will be key.
Operating Leverage Amplifies Earnings Swings
Operating income swung from $4.2B in 2026Q2 to $690M in 2025Q2, demonstrating high operating leverage. Based on the income statement data, SG&A remained relatively stable, indicating that revenue changes directly impact profitability.
The fixed-cost nature of oil sands operations means that even modest revenue declines can disproportionately hit operating income. The 24.2% operating margin in 2026Q2 versus 5.3% in 2025Q2 highlights this sensitivity. This leverage cuts both ways, offering upside in strong markets but posing risks during downturns.
Earnings Quality Clouded by Non-Operating Items
Net income in 2024Q4 was only $146M despite $841M operating income, suggesting significant non-operating charges. According to the reported figures, EPS of $0.07 was far below the operating income per share, indicating potential write-downs or tax impacts.
The discrepancy between operating and net income in certain quarters warrants investigation into items like asset impairments, inventory valuation adjustments, or unrealized hedging losses. These non-cash or non-recurring items can distort the true earnings power. Investors should adjust for these to assess underlying profitability.
COGS Dominates Cost Structure, SG&A Lean
COGS consistently represents over 75% of revenue, while SG&A remains under 3% of revenue, as per the income statement data. This highlights the capital-intensive nature of oil sands production and the efficiency of overhead management.
The high COGS ratio reflects the significant costs of steam generation, diluent, and transportation. Management's discipline in keeping SG&A low is commendable, but the primary cost lever is operational efficiency in the upstream and refinery utilization. Any improvement in steam-to-oil ratios or refinery reliability could materially improve margins.
2026Q2 Marks a Turning Point
The 2026Q2 quarter stands out with revenue of $17.4B and gross margin of 25.4%, the highest in the period, according to the income statement data. This inflection suggests a favorable pricing environment and possibly improved operations.
This quarter's performance may indicate the benefits of the Trans Mountain Expansion, which likely narrowed the WCS-WTI spread, boosting upstream realizations. However, the sustainability is uncertain given the subsequent quarters' decline. The lasting impact will depend on whether this represents a new baseline or a peak.
Short Thesis: Margin Compression and Refinery Woes
Despite the strong 2026Q2, the latest quarter shows a 14% YoY revenue decline and gross margin of only 10.5%, as per the income statement data. This suggests the company may be losing pricing power or facing operational issues.
Short-sellers could argue that the integrated model is not providing the expected stability, given refinery outages and the volatile margins. The high fixed costs and exposure to commodity prices make earnings unpredictable. If the WCS-WTI spread widens again or refinery issues persist, margins could remain compressed, justifying a lower valuation.