Teck Resources (TECK) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA more than doubled to $2.1 billion (+125%) year-over-year, driven by record copper sales, higher commodity prices, and operational discipline.

• Profit before taxes rose 197% to $1.3 billion, and adjusted profit attributable to shareholders increased to $858 million ($1.75/share).

• Cash flow from operations reached $1 billion, increasing net cash by $338 million to $488 million by quarter-end; liquidity stands at $9.8 billion.

• Progressed regulatory approvals for the merger with Anglo American, including shareholder, Canadian, and South Korean approvals, with ongoing discussions in China.

• Maintained strong safety performance with zero fatalities and a low high potential incident frequency rate of 0.05.

Financial highlights

• Revenue rose 72% year-over-year to $3.94 billion, with adjusted EBITDA up 125% to $2.1 billion and adjusted diluted EPS up 192% to $1.75.

• Gross profit before depreciation and amortization reached $2.2 billion (+137%), with copper segment at $1.81 billion (+158%) and zinc at $387 million (+72%).

• Net cash position improved to $488 million, with liquidity at $9.8 billion including $5.7 billion cash.

• Net cash unit costs for copper and zinc declined significantly, benefiting from higher by-product credits and production.

• Dividend declared at $0.125/share, with Q1 dividend payments totaling $61 million.

Outlook and guidance

• Annual guidance for copper and zinc production and costs for 2026-2028 remains unchanged.

• Copper production expected at 455,000–530,000 tonnes in 2026; zinc in concentrate at 410,000–460,000 tonnes, refined zinc at 190,000–230,000 tonnes.

• Net cash unit cost guidance for copper: $1.85–$2.20/lb; for zinc: $0.65–$0.75/lb.

• Capital expenditure guidance for 2026: sustaining $1.15–1.3 billion (copper), $150–200 million (zinc); growth $1.3–1.6 billion (copper), $200–250 million (zinc).

• Guidance incorporates risks from supply chain, commodity price volatility, and geopolitical factors.