Teck Resources (TECK) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA rose 3% year-over-year to $722 million, driven by strong zinc segment performance, improved Trail profitability, and lower corporate overhead, despite lower copper and zinc prices and higher costs at QB and Highland Valley Copper.

• Profit from continuing operations before taxes was $125 million, up 525% year-over-year; profit attributable to shareholders was $206 million, with adjusted profit at $187 million ($0.38/share).

• The Highland Valley Copper Mine Life Extension project was sanctioned, extending mine life to 2046 and targeting 132,000 tonnes annual copper output, supporting the strategy to double copper production by decade's end.

• $2.2 billion of the $3.25 billion buyback program completed, with $1.1 billion to $1.0 billion returned to shareholders year-to-date via dividends and buybacks.

• Strong liquidity position with $8.9 billion as of July 23, 2025, including $4.8 billion in cash.

Financial highlights

• Q2 2025 revenue was $2,023 million, up from $1,802 million in Q2 2024.

• Gross profit before depreciation and amortization was $832 million (+9% YoY); gross profit was $471 million (+13% YoY).

• Adjusted EBITDA was $722 million (+3% YoY); adjusted diluted EPS from continuing operations was $0.38 (+217% YoY).

• Cash flow from operations was $88 million, down from $1,326 million in Q2 2024, reflecting working capital build and tax payments.

• Net debt at $4.8 billion as of June 30, 2025; liquidity at $8.9 billion.

Outlook and guidance

• 2025 copper production guidance revised to 470,000–525,000 tonnes; QB guidance lowered to 210,000–230,000 tonnes due to TMF delays.

• 2025 copper net cash unit cost guidance raised to US$1.90–2.05/lb; QB net cash unit cost guidance increased to US$2.25–2.45/lb.

• Zinc and concentrate production guidance unchanged at 525,000–575,000 tonnes; refined zinc at 190,000–230,000 tonnes; net cash unit costs at $0.45–0.55/lb.

• CapEx guidance for 2025 increased to $2.3–$2.4 billion, reflecting HVC MLE sanction and TMF work at QB; sustaining capital $940–$1,010 million; growth capital $1,040–$1,170 million.

• Copper production per share expected to rise 33%–50% by 2026 as QB stabilizes and buybacks continue.