Teck Resources Q2 Earnings Call Highlights

Teck reported a strong Q2 2026, with cash flow from operations of CAD 1.7 billion and adjusted EBITDA of CAD 2.2 billion, nearly tripling from a year ago. Management credited record copper pricing, stronger operations, and improved cost performance, while the adjusted EBITDA margin hit a record 61%. Copper was the main driver, with production up nearly 25% year over year and copper segment gross profit before D&A more than doubling to CAD 1.8 billion. Teck kept full-year copper guidance unchanged but said second-half output should be lower at Highland Valley and Antamina due to planned downtime and lower grades. Teck said operations at Quebrada Blanca continued to stabilize, while the Highland Valley Mine Life Extension is advancing with engineering about 95% complete. The company also maintained progress on its Anglo American merger, saying Chinese regulatory approval remains the key remaining step.

Teck Resources NYSE: TECK reported sharply higher second-quarter 2026 earnings and cash flow, driven by stronger copper production, favorable commodity prices and improved cost performance across its copper and zinc businesses, executives said on the company’s earnings call Thursday. President and CEO Jonathan Price said Teck generated cash flow from operations of CAD 1.7 billion and tripled adjusted EBITDA to CAD 2.2 billion compared with the same period last year. The company increased its net cash position by CAD 756 million during the quarter and by CAD 1 billion in the first half of 2026.

“We’ve delivered another quarter of strong operational and financial performance,” Price said, citing “favorable commodity prices, including another record quarterly average copper price,” as well as stronger operations and favorable by-product pricing. Chief Financial Officer Crystal Prystai said adjusted EBITDA margin rose to a record 61% in the quarter. Teck also returned CAD 61 million to shareholders through its regular quarterly base dividend.

Teck’s copper production rose nearly 25% from the second quarter of 2025, with higher production at all copper operations. Prystai said copper segment gross profit before depreciation and amortization more than doubled to CAD 1.8 billion, while margins increased to 65% from 46% a year earlier. The company attributed the improvement to record copper prices, higher throughput across operations and higher grades at Highland Valley and Antamina, in line with the mine plan. Copper net cash unit costs improved 19%, supported by higher production and by-product credits. Teck maintained its full-year guidance, including copper production of 455,000 to 530,000 tons, compared with 454,000 tons in 2025. During the question-and-answer session, Price said the company was not pointing investors toward the upper end of guidance because production is expected to be lower in the second half at Highland Valley and Antamina. At Highland Valley, he said Teck expects mill downtime for tie-ins related to the Mine Life Extension project and lower grades in the second half of 2026.

Price highlighted continued progress at Quebrada Blanca, or QB, which delivered its third consecutive quarter of stable operations. The mine produced 55,800 tons of copper in the quarter, up from 52,700 tons in the year-earlier period, with stable throughput and recoveries and operating metrics tracking in line with full-year guidance. Teck also reported no tailings management facility-related downtime at the concentrator for the pas...