Cash conversion efficiency remains inconsistent, with free cash flow margins fluctuating from a peak of 11.4% in 2025Q4 to a low of 2.3% in 2026Q1, reflecting the impact of erratic working capital changes.
| 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 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 5.94B | 6.71B | 5.98B | 3.73B | 10.48B | 5.48B | 798M | 4.43B | 3.92B | 2.76B | 2.02B | 2.17B | 4.41B | 3.29B | 4.68B | 4.49B | 3.21B | 1.59B | 4.26B | 3.63B | 3.59B | 3.45B | 3.31B | 2.19B | 1.68B | 2B | 2.09B | 1.47B | 852.01M | 986.99M | 1.74B |
| Operating CF Margin % | - | 14.25% | 11.61% | 7.34% | 17.61% | 14.6% | 3.58% | 13.03% | 11.22% | 9.49% | 8.61% | 8.6% | 12.71% | 10.52% | 15.75% | 15.4% | 13.57% | 7.47% | 13.5% | 14.25% | 14.47% | 12.23% | 14.75% | 11.42% | 9.84% | 11.62% | 11.57% | 11.47% | 9.46% | 9.25% | 16.72% |
| Operating CF Growth % | -32.43% | 12.16% | 60.18% | -64.38% | 91.42% | 586.22% | -81.98% | 12.93% | 41.95% | 37.12% | -7.01% | -50.81% | 33.81% | -29.66% | 4.25% | 39.98% | 101.57% | -62.68% | 17.57% | 1.09% | 3.92% | 4.22% | 50.96% | 30.88% | -16.37% | -4.07% | 41.73% | 73% | -13.68% | -43.15% | 5.73% |
| Net Income | 3.13B | 3.27B | 4.79B | 4.89B | 7.34B | 2.48B | -1.86B | 2.2B | 2.31B | 490M | 2.17B | 1.12B | 3.79B | 2.83B | 3.77B | 3.37B | 2.21B | 1.58B | 3.88B | 3.19B | 3.04B | 2.6B | 2.05B | 1.68B | 1.21B | 1.24B | 1.42B | 582.03M | 554.02M | 847.03M | 785.94M |
| Depreciation & Amortization | 2.57B | 2.75B | 2.15B | 2.04B | 2B | 2.08B | 3.35B | 1.68B | 1.59B | 2.17B | 1.63B | 1.45B | 1.1B | 865M | 761M | 764M | 747M | 781M | 728M | 780M | 831M | 895M | 908M | 749.71M | 703.49M | 716.33M | 724.36M | 666.96M | 647.06M | 685.06M | 710.98M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -471M | -156M | -142M | -85M | -77M | 91M | -521M | -237M | 806M | 321M | 114M | 367M | 1.12B | 482M | 619M | 71M | 152M | -61M | 387.32M | 15.89M | 253.96M | -116.29M | -89.99M | -68.27M | -151.09M | 38.2M | -203.96M | -96.93M | 76.01M | 34.02M | -101.96M |
| Other Non-Cash Items | 412M | -166M | -181M | -205M | -259M | -148M | -97M | -126M | -93M | -220M | -2.24B | -38M | -696M | 95M | -94M | -197M | -95M | -45M | -302.63M | -155.91M | -96.05M | -232.14M | -32.27M | 0 | -4.72M | -7.96M | -95.98M | 11M | -10.06M | -138.1M | 45.22M |
| Working Capital Changes | 508M | 1.01B | -632M | -2.9B | 1.48B | 978M | -82M | 914M | -699M | 0 | 352M | -734M | -903M | -978M | -372M | 480M | 193M | -663M | -427.7M | -202M | -446M | 305M | 474M | -159.73M | -81.84M | 14.33M | 244.45M | 310.91M | -415.02M | -441.03M | 295.88M |
| Change in Receivables | -1.88B | 1.39B | -1.28B | 237M | -862M | -1.95B | 780M | -170M | 224M | -689M | -442M | -42M | 545M | -74M | 300M | -302M | -289M | -261M | 593.88M | -261.2M | 202.7M | -414M | -310.78M | 0 | 0 | 504.62M | -358.43M | -124.42M | 0 | 40.03M | -124.02M |
| Change in Inventory | 30M | -287M | 335M | -688M | -477M | 45M | 78M | -74M | -338M | -83M | 197M | -172M | -129M | -260M | -106M | -228M | 38M | 42M | -139.07M | 12.91M | -96.69M | -66.85M | -32.4M | 30.92M | 50.36M | -11.14M | -6M | -16.06M | 8.05M | -77.06M | -16.03M |
| Change in Payables | 2.15B | -346M | 616M | 81M | 948M | 2.02B | -1.09B | 1.01B | -764M | 678M | 237M | -1.03B | -549M | 191M | -67M | 846M | 651M | 271M | -697.96M | 0 | -85.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.97B | -1.89B | -1.82B | -1.69B | -618M | -1.01B | -802M | -1.7B | -1.56B | -781M | 1.95B | -2.88B | -4.56B | -7.74B | -5.24B | -3.59B | -3.71B | -2.22B | -960.42M | -619.72M | -964.59M | -991.98M | -1.31B | -1.39B | -1.49B | -1.02B | -311.94M | -594.04M | -406.97M | 327.95M | 1.16B |
| Capital Expenditures | -2.08B | -2B | -1.87B | -1.78B | -1.53B | -1.11B | -868M | -1.64B | -1.49B | -993M | -1.07B | -2.99B | -5.29B | -6.3B | -5.48B | -3.92B | -3.86B | -2.29B | -1.23B | -898.8M | -1.18B | -1.43B | -1.38B | -1.45B | -1.55B | -1.07B | -643.37M | -653.07M | -612.07M | -639.03M | -564.07M |
| CapEx % of Revenue | 4.07% | 4.26% | 3.62% | 3.51% | 2.56% | 2.95% | 3.9% | 4.81% | 4.26% | 3.41% | 4.59% | 11.89% | 15.26% | 20.12% | 18.44% | 13.44% | 16.32% | 10.73% | 3.9% | 3.53% | 4.75% | 5.07% | 6.13% | 7.54% | 9.11% | 6.2% | 3.56% | 5.08% | 6.8% | 5.99% | 5.43% |
| Acquisitions | 90M | 101M | 25M | 86M | 904M | 81M | 82M | 82M | 59M | 232M | 3.02B | 142M | 851M | 160M | 226M | 314M | 144M | 67M | 272M | 279M | 212M | 440M | 102M | 0 | 0 | 0 | 274.45M | 0 | 213M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12M | 3M | 2M | -1.24M | 74.39K | 22.37K | -414K | -31.21M | 56.68M | 61.38M | 46.16M | 0 | 87.96M | 154.8K | 967.98M | 1.37B |
| Cash from Financing | -4.71B | -4.65B | -4.04B | -4.92B | -8.27B | -3.08B | -943M | -2B | -2.57B | -1.18B | -3.77B | 705M | 100M | 4.23B | -162M | 39M | 256M | -836M | -2.54B | -3.96B | -2.12B | -2.08B | -1.17B | -1.12B | -291.16M | -1.13B | -1.53B | -698.06M | -760.06M | -1.13B | -2.61B |
| Debt Issued (Net) | -19M | -18M | -122M | -22M | -1.02B | -131M | -20M | 9M | -27M | -27M | -3.28B | 1.15B | 541M | 4.64B | 321M | 452M | 617M | -4M | -3M | -1.29B | -2M | -3.49M | 1M | 0 | 40.92M | 6.37M | 7.5M | -379.05M | 0 | -91.07M | -475.95M |
| Equity Issued (Net) | -3.24B | -3.23B | -2.68B | -3.8B | -6.39B | -2.25B | -274M | -1.37B | -1.97B | -627M | 0 | 0 | 0 | 0 | -85M | -40M | -5M | -491M | -2.2B | -2.35B | -1.81B | -1.76B | -859M | -796.08M | -12.59M | -811.84M | -1.21B | 0 | -434.06M | -693.92M | -1.77B |
| Dividends Paid | -1.44B | -1.4B | -1.24B | -1.1B | -851M | -706M | -649M | -631M | -572M | -524M | -492M | -449M | -441M | -407M | -398M | -373M | -356M | -341M | -330.26M | -318.8M | -314.54M | -317.48M | -316.77M | -322.04M | -319.48M | -321.55M | -331.43M | -319.01M | -326.01M | -342.96M | -360.97M |
| Share Repurchases | -3.24B | -3.23B | -2.68B | -3.8B | -6.39B | -2.25B | -274M | -1.37B | -1.97B | -627M | 0 | 0 | 0 | 0 | -128M | -59M | -8M | -492M | -2.21B | -2.36B | -1.82B | -1.8B | -872.33M | -798.66M | -12.59M | -811.84M | -1.21B | 0 | -434.06M | -693.92M | -1.77B |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -168.04K | -91.47K | -329.92K | 1.16M | 68.63K | -1.29M | 0 | -1.59M | -1.5M | 0 | 0 | 0 | -137.04K |
| Net Change in Cash | -735M | 163M | 115M | -2.88B | 1.6B | 1.38B | -947M | 730M | -207M | 804M | 188M | -12M | -57M | -210M | -720M | 935M | -246M | -1.46B | 766.15M | -950.44M | 496.27M | 381.44M | 831.53M | -318.18M | -105.45M | -148.04M | 244.45M | 182M | -760.06M | -1.13B | -2.61B |
| Free Cash Flow | 3.85B | 4.7B | 4.11B | 1.95B | 8.96B | 4.37B | -70M | 2.79B | 2.43B | 1.77B | 942M | -827M | -885M | -3B | -798M | 570M | -649M | -694M | 3.03B | 2.73B | 2.41B | 2.02B | 1.94B | 744.56M | 124.33M | 934.42M | 1.45B | 820.89M | 239.94M | 347.96M | 1.17B |
| FCF Margin % | 7.54% | 9.99% | 7.99% | 3.83% | 15.05% | 11.65% | -0.31% | 8.21% | 6.95% | 6.08% | 4.03% | -3.28% | -2.55% | -9.6% | -2.69% | 1.96% | -2.75% | -3.26% | 9.6% | 10.72% | 9.72% | 7.16% | 8.62% | 3.88% | 0.73% | 5.42% | 8.01% | 6.39% | 2.67% | 3.26% | 11.29% |
| FCF Growth % | -17.35% | 14.32% | 111.08% | -78.24% | 105.04% | 6340% | -102.51% | 14.89% | 37.34% | 87.9% | 213.91% | 6.55% | 70.55% | -276.57% | -240% | 187.83% | 6.48% | -122.89% | 11.17% | 13.15% | 19.32% | 4.37% | 159.95% | 498.85% | -86.69% | -35.37% | 76.11% | 242.13% | -31.04% | -70.31% | 9.33% |
| FCF per Share | 7.95 | 9.33 | 7.75 | 3.38 | 13.96 | 6.12 | -0.10 | 3.65 | 3.00 | 2.09 | 1.11 | -0.97 | -1.04 | -3.53 | -0.94 | 0.67 | -0.76 | -0.81 | 3.41 | 2.92 | 2.46 | 1.97 | 1.80 | 0.67 | 0.11 | 0.78 | 1.14 | 0.63 | 0.18 | 0.25 | 0.74 |
| FCF Conversion (FCF/Net Income) | 1.23x | 2.05x | 1.25x | 0.76x | 1.43x | 2.21x | -0.43x | 2.01x | 1.69x | 5.64x | 0.93x | 1.93x | 1.16x | 1.16x | 1.24x | 1.33x | 1.45x | 1.01x | 1.10x | 1.14x | 1.18x | 1.33x | 1.61x | 1.29x | 1.37x | 1.61x | 1.47x | 2.89x | 1.54x | 1.17x | 2.21x |
| Interest Paid | 31M | 28M | 42M | 69M | 60M | 43M | 62M | 0 | 110M | 76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 563M | 0 | 1.77B | 4.15B | 374M | 0 | 42M | 0 | 82M | 231M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Commodity price volatility exposure
As reported in recent financial filings, Imperial Oil's operating cash flow to net income ratio has fluctuated significantly, reaching a high of 3.90 in 2025Q4, which suggests that reported earnings often diverge substantially from the actual cash generated by the company's core industrial operations.
The wide variance between net income and operating cash flow indicates that non-cash charges and working capital swings heavily influence the bottom line. Investors should monitor this disconnect, as it implies that accounting earnings may not always serve as a reliable proxy for the company's underlying cash-generating capacity.
Based on the provided quarterly data, Imperial Oil's free cash flow margins have demonstrated notable instability, ranging from a low of 2.3% in 2026Q1 to a peak of 11.4% in 2025Q4, reflecting the inherent sensitivity of the company's cash generation to volatile energy market conditions.
The inconsistent FCF trajectory suggests that the company's ability to fund dividends and buybacks is highly dependent on short-term commodity price realizations. This volatility warrants further investigation into whether the current capital allocation strategy remains sustainable during periods of compressed refining and production margins.
According to recent financial statements, Imperial Oil maintains a disciplined capital expenditure profile with a CapEx-to-revenue ratio averaging roughly 3.8%, suggesting that the company is prioritizing operational maintenance and efficiency over aggressive capacity expansion in its core oil sands and refining assets.
The relatively stable capital intensity indicates that management is focused on sustaining existing production levels rather than pursuing high-risk growth projects. This approach appears consistent with a strategy of maximizing cash flow from long-life assets while minimizing the burden of large-scale, capital-intensive development cycles.
As evidenced by the quarterly cash flow data, Imperial Oil's working capital changes have been highly erratic, swinging from a $698 million inflow in 2025Q4 to a $427 million outflow in 2026Q1, which highlights the significant impact of inventory and receivable timing on liquidity.
These fluctuations suggest that the company's cash position is frequently impacted by the timing of commodity sales and the management of refinery feedstocks. Investors should monitor these shifts closely, as they may indicate underlying challenges in optimizing the cash conversion cycle within the integrated supply chain.
Based on reported figures, Imperial Oil has aggressively utilized its cash flow to fund share repurchases, with buybacks totaling $1.7 billion in 2025Q4 alone, demonstrating a clear management preference for returning capital to shareholders over reinvesting in significant new production capacity or acquisitions.
The consistent use of buybacks, even during periods of variable cash flow, suggests a high level of confidence in the company's balance sheet strength. However, this strategy may limit the company's flexibility to pivot toward new energy opportunities if the current integrated model faces long-term regulatory or structural headwinds.
Quick answers to the most common questions about buying IMO stock.
Imperial Oil Limited (IMO) generated $6.71B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Imperial Oil Limited (IMO) generated $4.70B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Imperial Oil Limited (IMO) spent $2.00B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Imperial Oil Limited (IMO) returned $1.40B to shareholders via cash dividends and spent $3.23B on share repurchases. This shows the company's commitment to returning capital to its equity investors.