Suncor Energy reports first quarter 2026 results
Rhea-AI Summary
Suncor (TSX: SU, NYSE: SU) reported Q1 2026 results on May 5, 2026: adjusted funds from operations of C$4.03 billion and free funds flow of C$2.91 billion. The company returned C$1.54 billion to shareholders, including C$825 million in buybacks and C$0.60/share dividend.
Operational records included upstream production of 875,200 bbls/d, refinery throughput of 497,800 bbls/d, and refined product sales of 680,900 bbls/d. 2026 share repurchases were increased, targeting nearly C$4 billion for the year.
Positive
- Adjusted funds from operations C$4.03B (Q1 2026)
- Free funds flow C$2.91B (Q1 2026)
- Returned C$1.54B to shareholders (C$825M buybacks, dividends)
- Record upstream production of 875,200 bbls/d
- Record refining throughput of 497,800 bbls/d
- Record refined product sales of 680,900 bbls/d
- 2026 planned share repurchases increased >30% to ~C$4B
Negative
- Operating, selling and general expenses rose to C$3.778B (+14.6% YoY)
- Refinery utilization guidance revised to 90%-93% after nameplate increase
Key Figures
Market Reality Check
Peers on Argus
Energy peers show mostly modest gains, with Imperial Oil up 1.81% and Cenovus up 1.84%, while others are flat. SU’s pre-news gain of 1.5% fits a constructive energy tape but is not flagged by the momentum scanner as a coordinated sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Quarterly earnings | Positive | -0.6% | Strong Q4 2025 results with record volumes and high shareholder returns. |
| Nov 04 | Quarterly earnings | Positive | +4.3% | Q3 2025 record output, strong free funds flow, and guidance increases. |
| Aug 05 | Quarterly earnings | Positive | -0.1% | Q2 2025 records in production and refining with solid cash generation. |
| May 06 | Quarterly earnings | Positive | -3.3% | Q1 2025 record volumes, strong free funds flow, and $1.5B returns. |
| Feb 05 | Quarterly earnings | Positive | -0.7% | Q4 2024 strong FFO, record operations, and sizeable shareholder payouts. |
Recent earnings releases have generally been operationally strong but often met with flat or negative next-day moves; only one of the last five earnings reports saw a clearly positive reaction, consistent with the small average move of -0.05% around earnings.
Over the past five earnings cycles, Suncor has consistently reported strong cash generation and record operational metrics. Prior quarters highlighted rising adjusted funds from operations, growing free funds flow, and repeated records in upstream production and refining throughput. Shareholder returns were substantial, often above $1.4B per quarter via buybacks and dividends, while net debt trended down. This Q1 2026 report continues that pattern with higher net earnings, record upstream and downstream volumes, and increased capital returns, reinforcing the multi-quarter trajectory outlined at recent Investor Days.
Historical Comparison
In the past five earnings releases, Suncor’s average next-day move was about -0.05%, with four instances of muted or negative reactions despite strong fundamentals.
Across these earnings cycles, Suncor has shown a steady progression of record upstream production, higher refining throughput, and growing refined product sales, while directing substantial free funds flow toward dividends and buybacks and gradually reducing net debt.
Market Pulse Summary
This announcement details a strong quarter, with Q1 2026 net earnings of Cdn$2.1B, adjusted funds from operations of Cdn$4.03B, and free funds flow of Cdn$2.913B. Operationally, Suncor reached record upstream production of 875,200 bbls/d and record refined product sales of 680,900 bbls/d. Net debt declined to Cdn$6.842B while Cdn$1.537B was returned to shareholders. Investors may watch how management balances future growth, maintenance spending, and capital returns against these elevated baselines.
Key Terms
gaap financial
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AI-generated analysis. Not financial advice.
Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and derived from the company's condensed consolidated financial statements which are based on Canadian generally accepted accounting principles (GAAP), specifically International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Production volumes are presented on a working-interest basis, before royalties, except for production values from the company's Libya operations, which are presented on an economic basis. Certain financial measures referred to in this news release (adjusted funds from operations, adjusted operating earnings, free funds flow, and net debt) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor Energy Inc.'s ownership of Fort Hills and interest in Syncrude.
Calgary, Alberta--(Newsfile Corp. - May 5, 2026) - Suncor Energy (TSX: SU) (NYSE: SU)
First Quarter Highlights
Generated over
$4.0 billion in adjusted funds from operations and$2.9 billion in free funds flow.Returned over
$1.5 billion to shareholders, with$825 million in share repurchases and over$700 million in dividends.Record first quarter upstream production of 875,000 barrels per day (bbls/d), 22,000 bbls/d higher than the prior year quarter.
Record first quarter refining throughput of 498,000 bbls/d, 15,000 bbls/d higher than the prior year quarter.
Record quarterly refined product sales of 681,000 bbls/d, 76,000 bbls/d higher than the prior year quarter.
"As showcased at our recent Investor Day, today's Suncor is a results-oriented, high-performance organization focused on meeting our commitments and generating strong and sustainable shareholder returns," said Rich Kruger, President and Chief Executive Officer. "We delivered record first quarter upstream production and refining throughput in addition to an all-time quarterly record for refined product sales."
"We achieved this performance while maintaining a disciplined capital spending program as well as a strong balance sheet, allowing us to increase our monthly share repurchases for the second time in four months," added Troy Little, Chief Financial Officer.
First Quarter Results
| Financial Highlights | Q1 | Q4 | Q1 | |
| ($ millions, unless otherwise noted) | 2026 | 2025 | 2025 | |
| Net earnings | 2 100 | 1 476 | 1 689 | |
| Per common share(1) (dollars) | 1.77 | 1.23 | 1.36 | |
| Adjusted operating earnings(2) | 2 300 | 1 325 | 1 629 | |
| Per common share(1)(2) (dollars) | 1.93 | 1.10 | 1.31 | |
| Adjusted funds from operations(2) | 4 030 | 3 218 | 3 045 | |
| Per common share(1)(2) (dollars) | 3.39 | 2.68 | 2.46 | |
| Cash flow provided by operating activities | 2 435 | 3 921 | 2 156 | |
| Per common share(1) (dollars) | 2.05 | 3.27 | 1.74 | |
| Capital expenditures(3) | 1 076 | 1 483 | 1 087 | |
| Free funds flow(2) | 2 913 | 1 699 | 1 900 | |
| Dividend per common share(1) (dollars) | 0.60 | 0.60 | 0.57 | |
| Share repurchases per common share(4) (dollars) | 0.69 | 0.65 | 0.61 | |
| Returns to shareholders(5) | 1 537 | 1 494 | 1 455 | |
| Operating, selling and general expenses | 3 778 | 3 518 | 3 297 | |
| Net debt(2) | 6 842 | 6 337 | 7 559 | |
| Operating Highlights | ||||
| Total upstream production (mbbls/d) | 875.2 | 909.0 | 853.2 | |
| Refinery crude oil processed (mbbls/d) | 497.8 | 504.2 | 482.7 | |
| Refinery utilization(6) (%) | 97 | 99 | 94 |
(1) Presented on a basic per share basis.
(2) Non-GAAP financial measures or contains non-GAAP financial measures. See the Non-GAAP Financial Measures section of this news release.
(3) Excludes capitalized interest.
(4) Calculated as the cost of share repurchases, excluding taxes paid on share repurchases, divided by the weighted average number of shares outstanding.
(5) Includes dividends paid on common shares and repurchases of common shares; excludes taxes paid on common share repurchases.
(6) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by
Financial Results
Adjusted Operating Earnings Reconciliation(1)
| Q1 | Q4 | Q1 | ||
| ($ millions) | 2026 | 2025 | 2025 | |
| Net earnings | 2 100 | 1 476 | 1 689 | |
| Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt | 139 | (114) | (14) | |
| Unrealized loss (gain) on risk management activities | 92 | 7 | (60) | |
| Provision reversal related to equity investments | - | (66) | - | |
| Income tax (recovery) expense on adjusted operating earnings adjustments | (31) | 22 | 14 | |
| Adjusted operating earnings(1) | 2 300 | 1 325 | 1 629 |
(1) Non-GAAP financial measure. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the income tax (recovery) expense on adjusted operating earnings adjustments line. See the Non-GAAP Financial Measures section of this news release.
Suncor's adjusted operating earnings increased to
$2.300 billion ($1.93 per common share) in the first quarter of 2026, compared to$1.629 billion ($1.31 per common share) in the prior year quarter, primarily due to increased downstream margins and upstream price realizations, and increased upstream and downstream sales volumes, partially offset by increased operating and transportation expenses associated with the higher sales volumes. Adjusted operating earnings were also impacted by a strengthening of benchmark pricing in the current quarter, resulting in a first-in, first-out (FIFO) inventory valuation gain, partially offset by a deferral of intersegment profit.Net earnings increased to
$2.100 billion ($1.77 per common share) in the first quarter of 2026, compared to$1.689 billion ($1.36 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the first quarter of 2026 and the prior year quarter were impacted by the items shown in the table above.Adjusted funds from operations increased to
$4.030 billion ($3.39 per common share) in the first quarter of 2026, compared to$3.045 billion ($2.46 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings.Cash flow provided by operating activities, which includes changes in non-cash working capital, was
$2.435 billion ($2.05 per common share) in the first quarter of 2026, compared to$2.156 billion ($1.74 per common share) in the prior year quarter.Operating, selling and general (OS&G) expenses were
$3.778 billion in the first quarter of 2026, compared to$3.297 billion in the prior year quarter, with the increase primarily due to increased share-based compensation expense, higher upstream and downstream sales volumes, increased maintenance activities and higher commodity input costs.
Operating Results
| Q1 | Q4 | Q1 | ||
| (mbbls/d, unless otherwise noted) | 2026 | 2025 | 2025 | |
| Upstream | ||||
| Total Oil Sands bitumen production | 933.9 | 992.7 | 937.3 | |
| SCO and diesel production | 550.8 | 586.8 | 567.3 | |
| Inter-asset transfers and consumption | (31.5) | (29.8) | (30.7) | |
| Upgraded production - net SCO and diesel | 519.3 | 557.0 | 536.6 | |
| Bitumen production | 364.7 | 343.5 | 341.7 | |
| Inter-asset transfers | (85.2) | (55.1) | (87.4) | |
| Non-upgraded bitumen production | 279.5 | 288.4 | 254.3 | |
| Total Oil Sands production | 798.8 | 845.4 | 790.9 | |
| Exploration and Production | 76.4 | 63.6 | 62.3 | |
| Total upstream production | 875.2 | 909.0 | 853.2 | |
| Upstream sales | 872.1 | 905.5 | 828.4 | |
| Downstream | ||||
| Refinery utilization(1) (%) | 97 | 99 | 94 | |
| Refinery crude oil processed | 497.8 | 504.2 | 482.7 | |
| Refined product sales | 680.9 | 640.4 | 604.9 |
Total Oil Sands bitumen production of 933,900 bbls/d was comparable to the prior year quarter of 937,300 bbls/d and featured record quarterly production at Fort Hills. Current quarter bitumen production was also impacted by maintenance at Syncrude and the impact of a third-party natural gas input pipeline curtailment in the region.
The company's net synthetic crude oil (SCO) production was 519,300 bbls/d with upgrader utilization of
96% in the first quarter of 2026, compared to 536,600 bbls/d and102% , respectively, in the prior year quarter, as record quarterly SCO production at Oil Sands Base was offset by increased maintenance activities at Syncrude.Non-upgraded bitumen production increased to 279,500 bbls/d in the first quarter of 2026, compared to 254,300 bbls/d in the prior year quarter, primarily due to decreased upgrader availability.
Upstream sales volumes increased to 872,100 bbls/d in the first quarter of 2026, compared to 828,400 bbls/d in the prior year quarter, which was consistent with the increase in upstream production volumes and the impact of a larger build in inventory in the prior year quarter.
Exploration and Production (E&P) production increased to 76,400 bbls/d in the first quarter of 2026, compared to 62,300 bbls/d in the prior year quarter, and featured strong production at all assets.
Refining throughput increased to a first quarter record of 497,800 bbls/d compared to 482,700 bbls/d in the prior year quarter due to incremental capacity additions resulting from debottlenecking activities and sustained strong operating performance through the current quarter. Refinery utilization(1) was
97% in the first quarter of 2026 and reflects the10% increase in refining network nameplate capacity to 511,000 bbls/d effective January 1, 2026.Refined product sales increased to a quarterly record of 680,900 bbls/d, compared to 604,900 bbls/d in the prior year quarter, as Suncor capitalized on global export sales opportunities while continuing to deliver more domestic volumes through retail growth and strategic partnerships. Sales volumes reflected higher refinery production in the quarter, partially driven by higher secondary unit utilization.
(1) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by
Corporate and Strategy Updates
2026 projected share repurchases increased by over
30% . Subsequent to the quarter, Suncor increased its planned monthly share repurchases from$275 million per month to$350 million per month, projecting total 2026 share repurchases of nearly$4 billion for 2026, an increase of over30% relative to 2025 share repurchases.Investor Day was held March 31, outlining Suncor's new three-year commitments. For further details, including the full transcript and presentation visit www.suncor.com.
Investor Day highlights included:
$2 billion increase in free funds flow (at US$65 WTI) by 2028.US
$5 per barrel reduction in corporate WTI breakeven to US$38 per barrel by 2028.100,000 bbls/d of upstream production growth by 2028.
10% increase in refining network nameplate capacity to 511,000 bbls/d.
Corporate Guidance Updates
Suncor has updated its 2026 corporate guidance ranges, previously released on December 11, 2025, reflecting a
For further details and advisories regarding Suncor's 2026 corporate guidance, see www.suncor.com/guidance.
Non-GAAP Financial Measures
Certain financial measures in this news release - namely adjusted funds from operations, adjusted operating earnings, free funds flow, net debt, and related per share or per barrel amounts - are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze business performance, leverage and liquidity, as applicable, and it may be useful to investors on the same basis. These non-GAAP financial measures do not have any standardized meaning and, therefore, are unlikely to be comparable to similar measures presented by other companies. Therefore, these non-GAAP financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods.
Adjusted Operating Earnings
Adjusted operating earnings is a non-GAAP financial measure that adjusts net earnings for significant items that are not indicative of operating performance. Management uses adjusted operating earnings to evaluate operating performance because management believes it provides better comparability between periods. Adjusted operating earnings are reconciled to net earnings in the news release above.
Adjusted Funds From (Used In) Operations
Adjusted funds from (used in) operations is a non-GAAP financial measure that adjusts a GAAP measure - cash flow provided by operating activities - for changes in non-cash working capital, which management uses to analyze operating performance and liquidity. Changes to non-cash working capital can be impacted by, among other factors, commodity price volatility, the timing of offshore feedstock purchases and payments for commodity and income taxes, the timing of cash flows related to accounts receivable and accounts payable, and changes in inventory, which management believes reduces comparability between periods.
| Three months ended March 31 | Oil Sands | Exploration and Production | Refining and Marketing | Corporate and Eliminations | Income Taxes | Total | ||||||
| ($ millions) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| Earnings (loss) before income taxes | 1 516 | 1 675 | 382 | 158 | 1 650 | 672 | (722) | (215) | - | - | 2 826 | 2 290 |
| Adjustments for: | ||||||||||||
| Depreciation, depletion and amortization | 1 235 | 1 199 | 175 | 171 | 276 | 257 | 45 | 36 | - | - | 1 731 | 1 663 |
| Accretion | 130 | 124 | 19 | 16 | 4 | 3 | - | - | - | - | 153 | 143 |
| Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt | - | - | - | - | - | - | 139 | (14) | - | - | 139 | (14) |
| Change in fair value of financial instruments and trading inventory | 141 | (68) | (8) | (6) | 56 | 17 | - | - | - | - | 189 | (57) |
| Gain on disposal of assets | - | - | - | - | (6) | - | (7) | - | - | (13) | - | |
| Share-based compensation | (34) | (86) | (2) | (6) | (14) | (40) | (70) | (171) | - | - | (120) | (303) |
| Settlement of decommissioning and restoration liabilities | (140) | (79) | (5) | (3) | (13) | (12) | - | - | - | - | (158) | (94) |
| Other | 46 | 45 | 1 | - | 28 | 5 | (15) | 15 | - | - | 60 | 65 |
| Current income tax expense | - | - | - | - | - | - | - | - | (777) | (648) | (777) | (648) |
| Adjusted funds from (used in) operations | 2 894 | 2 810 | 562 | 330 | 1 981 | 902 | (630) | (349) | (777) | (648) | 4 030 | 3 045 |
| Change in non-cash working capital | (1 595) | (889) | ||||||||||
| Cash flow provided by operating activities | 2 435 | 2 156 | ||||||||||
Free Funds Flow (Deficit)
Free funds flow (deficit) is a non-GAAP financial measure that is calculated by taking adjusted funds from operations and subtracting capital expenditures, including capitalized interest. Free funds flow reflects cash available for increasing distributions to shareholders and reducing debt. Management uses free funds flow to measure the capacity of the company to increase returns to shareholders and to grow Suncor's business.
| Three months ended March 31 | Oil Sands | Exploration and Production | Refining and Marketing | Corporate and Eliminations | Income Taxes | Total | ||||||
| ($ millions) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
| Adjusted funds from (used in) operations | 2 894 | 2 810 | 562 | 330 | 1 981 | 902 | (630) | (349) | (777) | (648) | 4 030 | 3 045 |
| Capital expenditures including capitalized interest | (746) | (749) | (128) | (209) | (232) | (180) | (11) | (7) | - | - | (1 117) | (1 145) |
| Free funds flow (deficit) | 2 148 | 2 061 | 434 | 121 | 1 749 | 722 | (641) | (356) | (777) | (648) | 2 913 | 1 900 |
Net Debt and Total Debt
Net debt and total debt are non-GAAP financial measures that management uses to analyze the financial condition of the company. Total debt includes short-term debt, current portion of long-term debt and long-term debt (all of which are GAAP measures). Net debt is equal to total debt less cash and cash equivalents (a GAAP measure).
| March 31 | December 31 | ||
| ($ millions, except as noted) | 2026 | 2025 | |
| Short-term debt | - | - | |
| Current portion of long-term debt | 979 | 973 | |
| Long-term debt | 9 134 | 9 014 | |
| Total debt | 10 113 | 9 987 | |
| Less: Cash and cash equivalents | 3 271 | 3 650 | |
| Net debt | 6 842 | 6 337 | |
| Shareholders' equity | 45 776 | 45 124 | |
| Total debt plus shareholders' equity | 55 889 | 55 111 | |
| Total debt to total debt plus shareholders' equity (%) | 18.1 | 18.1 | |
| Net debt to net debt plus shareholders' equity (%) | 13.0 | 12.3 |
Legal Advisory - Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as "forward-looking statements") and other information based on Suncor's current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor's experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; uncertainty related to geopolitical conflict; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals. All statements and information that address expectations or projections about the future, and other statements and information about Suncor's strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results, future financing and capital activities, and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "will", "estimates", "plans", "scheduled", "intends", "believes", "projects", "indicates", "could", "focus", "vision", "goal", "outlook", "proposed", "target", "objective", "continue", "should", "may", "future", "potential", "opportunity", "would", "priority", "strategy" and similar expressions. Forward-looking statements in this news release include references to: Suncor's strategy, focus, goals and priorities and the expected benefits therefrom, Suncor's 2026 Investor Day targets and the expectation that Suncor will achieve its new three-year targets; and Suncor's projection of nearly
Forward-looking statements are based on Suncor's current expectations, estimates, projections and assumptions that were made by the company in light of its information available at the time the statement was made and consider Suncor's experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals.
Forward-looking statements and information are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.
Suncor's Annual Information Form and Annual Report to Shareholders, each dated February 25, 2026, Form 40-F, Suncor's Report to Shareholders for the First Quarter of 2026 dated May 5, 2026, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available by referring to suncor.com/FinancialReports or on SEDAR+ at sedarplus.ca or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To view a full copy of Suncor's first quarter 2026 Report to Shareholders and the financial statements and notes (unaudited), visit Suncor's profile on sedarplus.ca or sec.gov or visit Suncor's website at suncor.com/financialreports.
To listen to the conference call discussing Suncor's first quarter results, visit suncor.com/webcasts. The event will be archived for 90 days.
Suncor Energy - Canada's leading integrated energy company
Suncor's operations span the full energy value chain, including oil sands mining and in situ operations, upgrading, offshore production, petroleum refining in Canada and the U.S., marketing and trading, and nationwide Petro-Canada™ retail and wholesale networks - delivering reliable energy that fuels economic growth and meets the needs of customers across Canada and globally. With an unwavering focus on safety, operational excellence, and profitability, Suncor is committed to delivering industry-leading performance and long-term shareholder value. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.
For more information, visit suncor.com or find us on LinkedIn, Instagram and Facebook.
Media inquiries:
1-833-296-4570
media@suncor.com
Investor inquiries:
invest@suncor.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296064