Business segments

12 Months Ended

Dec. 31, 2025

The company operates its business in Canada, and its three reportable segments are Upstream, Downstream and Chemical. The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment, the structure of the company’s internal organization, and reflect the nature of internal reviews by the company's Management Committee (MC). The MC is considered collectively, and not in their individual capacity, to be the company's Chief Operating Decision Maker (CODM), and includes the company's CEO, CFO, and a senior vice-president, who oversee the Upstream, Downstream and Chemical businesses. The Upstream segment is organized and operates to explore for and ultimately produce crude oil and its equivalent, and natural gas. The Downstream segment is organized and operates to refine crude oil into petroleum products and to distribute and market these products. The Chemical segment is organized and operates to manufacture and market hydrocarbon-based chemicals and chemical products. The above segmentation has been the long-standing practice of the company and is broadly understood across the petroleum and petrochemical industries.

Corporate and other includes assets and liabilities that do not specifically relate to business segments – primarily cash, capitalized interest costs, short-term borrowings, long-term debt and liabilities associated with incentive compensation, pension and other postretirement benefit liabilities. Net earnings effects under Corporate and other activities primarily include debt-related financing, corporate governance costs, non-service pension and postretirement benefit costs, share-based incentive compensation expenses and interest income.

The CODM generally allocates resources through an annual planning process. They also allocate capital based on detailed project economics and long-term strategic objectives across reportable segments. The CODM primarily uses changes in Net Income (loss) to assess segment financial performance.

Segment accounting policies are the same as those described in note 1, "Summary of significant accounting policies". Upstream, Downstream and Chemical expenses include amounts allocated from Corporate and other activities. The allocation is based on proportional segment expenses. Transfers of assets between segments are recorded at book amounts. Intersegment sales are made essentially at prevailing market prices. Assets and liabilities that are not identifiable by segment are allocated.


	Upstream			Downstream (e)			Chemical (e)
millions of Canadian dollars	2025	2024	2023	2025	2024	2023	2025	2024	2023
Revenues and other income
Revenues (a) (b)	291	121	222	45,638	50,114	49,241	989	1,124	1,239
Intersegment sales	15,645	17,868	16,274	6,371	6,771	6,509	388	323	342
Investment and other income (note 8)	14	26	16	81	59	108	—	2	—
Total revenues and other income	15,950	18,015	16,512	52,090	56,944	55,858	1,377	1,449	1,581
Expenses
Exploration (note 15)	7	3	5	—	—	—	—	—	—
Purchases of crude oil and products	6,263	7,367	6,636	45,017	49,856	47,886	923	916	997
Production and manufacturing	5,015	4,644	4,917	1,992	1,741	1,702	241	197	260
Selling and general (note 11)	—	—	—	725	706	693	81	92	89
Federal excise tax and fuel charge	—	—	—	1,710	2,531	2,399	5	4	3
Depreciation and depletion (note 11)	1,906	1,747	1,680	203	181	183	16	15	15
Non-service pension and postretirement benefit	—	—	—	—	—	—	—	—	—
Financing (note 12)	(14)	4	7	—	—	—	—	—	—
Total expenses	13,177	13,765	13,245	49,647	55,015	52,863	1,266	1,224	1,364
Income (loss) before income taxes	2,773	4,250	3,267	2,443	1,929	2,995	111	225	217
Income tax expense (benefit) (note 3)	652	988	755	574	443	694	29	54	53
Net income (loss)	2,121	3,262	2,512	1,869	1,486	2,301	82	171	164
Cash flows from (used in) operating activities	3,606	4,664	3,100	3,372	1,049	608	(28)	211	53
Capital and exploration expenditures (c)	1,480	1,078	1,108	412	572	472	11	30	23
Property, plant and equipment
Cost	49,388	47,920	46,776	8,265	7,887	7,368	1,029	1,015	1,018
Accumulated depreciation and depletion	(23,351)	(21,658)	(19,936)	(4,602)	(4,430)	(4,301)	(758)	(743)	(757)
Net property, plant and equipment (d) (f) (note 11)	26,037	26,262	26,840	3,663	3,457	3,067	271	272	261
Total assets	29,111	28,042	28,718	11,036	11,624	10,114	540	474	475


	Corporate and other			Eliminations			Consolidated
millions of Canadian dollars	2025	2024	2023	2025	2024	2023	2025	2024	2023
Revenues and other income
Revenues (a) (b)	—	—	—	—	—	—	46,918	51,359	50,702
Intersegment sales	—	—	—	(22,404)	(24,962)	(23,125)	—	—	—
Investment and other income (note 8)	65	86	143	—	—	—	160	173	267
Total revenues and other income	65	86	143	(22,404)	(24,962)	(23,125)	47,078	51,532	50,969
Expenses
Exploration (note 15)	—	—	—	—	—	—	7	3	5
Purchases of crude oil and products	—	—	—	(22,396)	(24,955)	(23,120)	29,807	33,184	32,399
Production and manufacturing	21	17	—	—	—	—	7,269	6,599	6,879
Selling and general (note 11)	588	154	80	(8)	(7)	(5)	1,386	945	857
Federal excise tax and fuel charge	—	—	—	—	—	—	1,715	2,535	2,402
Depreciation and depletion (note 11)	454	40	29	—	—	—	2,579	1,983	1,907
Non-service pension and postretirement benefit	41	3	82	—	—	—	41	3	82
Financing (note 12)	26	37	62	—	—	—	12	41	69
Total expenses	1,130	251	253	(22,404)	(24,962)	(23,125)	42,816	45,293	44,600
Income (loss) before income taxes	(1,065)	(165)	(110)	—	—	—	4,262	6,239	6,369
Income tax expense (benefit) (note 3)	(261)	(36)	(22)	—	—	—	994	1,449	1,480
Net income (loss)	(804)	(129)	(88)	—	—	—	3,268	4,790	4,889
Cash flows from (used in) operating activities	(282)	69	(37)	40	(12)	10	6,708	5,981	3,734
Capital and exploration expenditures (c)	124	187	175	—	—	—	2,027	1,867	1,778
Property, plant and equipment
Cost	1,349	1,226	1,038	—	—	—	60,031	58,048	56,200
Accumulated depreciation and depletion	(457)	(410)	(371)	—	—	—	(29,168)	(27,241)	(25,365)
Net property, plant and equipment (d) (f) (note 11)	892	816	667	—	—	—	30,863	30,807	30,835
Total assets	3,658	2,962	2,366	(2,036)	(164)	(474)	42,309	42,938	41,199

Includes export sales to the United States of $9,223 million (2024 - $10,300 million, 2023 - $8,982 million).

(b)Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Accounts receivable - net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.


Revenues
millions of Canadian dollars	2025	2024	2023
Revenue from contracts with customers	38,678	40,901	44,465
Revenue outside the scope of ASC 606	8,240	10,458	6,237
Total	46,918	51,359	50,702

(c)Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.

(d)Includes property, plant and equipment under construction of $3,467 million (2024 - $3,632 million, 2023 - $3,251 million).

(e)In 2025 and 2024, benzene and aromatic solvents are reported under the Downstream segment, whereas in 2023, they were reported under the Chemicals segment. The company has determined that the impact of this change is not material; therefore, the comparative periods have not been recast.

(f)In 2025, in conjunction with the company signing an agreement to sell the Calgary Imperial Campus, the Upstream segment transferred the asset to the Corporate and other segment for $466 million. The effects of this transaction have been eliminated for consolidation purposes. Prior periods have not been recast.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 12: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 14: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 15: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 16: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 17: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/280/tableOfContent

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

+ Details

IMPERIAL OIL LTD 10-K