Teck Resources (NYSE:TECK) Issues Earnings Results

Teck Resources (NYSE:TECK) (TSE:TECK) posted its quarterly earnings data on Thursday. The basic materials company reported $0.98 earnings per share for the quarter, topping analysts’ consensus estimates of $0.59 by $0.39, Zacks reports. The business had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.28 billion. Teck Resources had a return on equity of 4.14% and a net margin of 11.93%.The company’s revenue was up 9.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.45 earnings per share.

Here are the key takeaways from Teck Resources’ conference call:

• Merger with Anglo American: Teck announced a transformational “merger of equals” to create a top‑five global copper producer (about 1.2 Mtpa combined), targeting $800M of annual synergies and further upside, with regulatory approvals still pending in China and South Korea and a 12–18 month close expectation.
• Strong Q4 and full‑year results: Q4 adjusted EBITDA rose 81% to $1.5B with ~50% margin and full‑year adjusted EBITDA was $4.3B; the company returned $1.3B to shareholders and ended 2025 with net cash (~$150M) and $9.3B of liquidity.
• QB operational progress and TMF advances: QB delivered its strongest quarter (55,000 t Cu) and installed new cyclone technology and paddock redesigns that materially improved sand quality and drainage, with management targeting removal of TMF constraints by end‑2026 and steady‑state from 2027.
• Peak 2026 capital and near‑term cash pressure: 2026 is a peak capex year ($2.8–3.4B ex‑stripping; $3.2–4.0B incl. stripping) driven by QB TMF ($390–460M) and HVC MLE ($900–1,200M), deferred stripping will remain elevated into ~2028, and cash fell $2.6B in 2025 (no buybacks until merger close).
• Guidance and assumptions: management reaffirmed 2026–28 production guidance (copper 455–530 kt in 2026) and provided 2026 net cash cost ranges that assume conservative by‑product prices below 2025 and current spot levels; Antamina zinc guidance was lowered by 20 kt for 2026, and zinc unit costs are expected to rise vs. 2025.

Teck Resources Trading Down 0.9%

Teck Resources stock traded down $0.52 during midday trading on Friday, hitting $58.77. 962,711 shares of the stock were exchanged, compared to its average volume of 4,420,894. The stock has a market capitalization of $28.29 billion, a PE ratio of 33.08, a P/E/G ratio of 0.55 and a beta of 0.80. The company has a fifty day simple moving average of $51.73 and a two-hundred day simple moving average of $43.85. The company has a quick ratio of 2.08, a current ratio of 2.78 and a debt-to-equity ratio of 0.15. Teck Resources has a 52 week low of $28.32 and a 52 week high of $60.75.

Teck Resources Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be paid a dividend of $0.125 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $0.50 annualized dividend and a yield of 0.9%. Teck Resources’s dividend payout ratio (DPR) is presently 20.22%.

Key Teck Resources News

Here are the key news stories impacting Teck Resources this week:

• Positive Sentiment: Q4 earnings beat and strong cash generation — Teck reported adjusted Q4 results materially above expectations (adjusted C$1.37/share; US$0.98 EPS reported vs. consensus ~$0.59), driven by higher copper prices and improved margins, which supports near‑term earnings visibility and cash flow. Article Title
• Positive Sentiment: Merger progress with Anglo American — Management reiterated progress on the proposed merger with Anglo American, framing the deal as creating a global critical‑minerals champion; that combination could materially re‑rate Teck if closed on favorable terms. Article Title
• Neutral Sentiment: Dividend declared — Teck announced a quarterly dividend of $0.125/share (annualized yield ~0.8%), a modest yield that may be seen as neutral for income investors but does provide a small support level for the stock.
• Neutral Sentiment: Guidance and production reaffirmed — Management reaffirmed output guidance (including at Quebrada Blanca), which reduces operational surprises but limits new upside from guidance upgrades. Article Title
• Negative Sentiment: Revenue slightly below consensus — Quarterly revenue came in at $2.23B vs. ~$2.28B expected; while EPS beat was driven by commodity prices and margins, the revenue miss may have triggered short‑term profit‑taking. Article Title
• Negative Sentiment: Merger execution risk and timing — Although management reports progress, the Anglo American transaction remains subject to regulatory approvals and closing risk; lingering uncertainty can keep volatility elevated and cap near‑term upside. Article Title

Analyst Upgrades and Downgrades

TECK has been the subject of several recent research reports. Raymond James Financial cut Teck Resources from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 14th. JPMorgan Chase & Co. lifted their price target on shares of Teck Resources from $43.00 to $51.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Citigroup upgraded shares of Teck Resources from a “neutral” rating to a “buy” rating in a report on Monday, February 2nd. Veritas upgraded shares of Teck Resources from a “strong sell” rating to a “strong-buy” rating in a report on Thursday, January 15th. Finally, Scotiabank reiterated a “sector perform” rating on shares of Teck Resources in a research note on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, Teck Resources currently has a consensus rating of “Hold” and an average price target of $53.33.

Hedge Funds Weigh In On Teck Resources

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP increased its position in shares of Teck Resources by 264.5% in the 3rd quarter. Wellington Management Group LLP now owns 5,781,060 shares of the basic materials company’s stock valued at $253,695,000 after buying an additional 4,194,868 shares in the last quarter. Pentwater Capital Management LP grew its stake in Teck Resources by 124.1% in the fourth quarter. Pentwater Capital Management LP now owns 6,500,000 shares of the basic materials company’s stock valued at $311,285,000 after acquiring an additional 3,600,000 shares during the period. AQR Arbitrage LLC increased its holdings in shares of Teck Resources by 813.0% in the fourth quarter. AQR Arbitrage LLC now owns 2,366,021 shares of the basic materials company’s stock worth $113,309,000 after acquiring an additional 2,106,866 shares in the last quarter. Maple Rock Capital Partners Inc. acquired a new stake in shares of Teck Resources during the third quarter worth about $88,601,000. Finally, Lansdowne Partners UK LLP lifted its holdings in shares of Teck Resources by 150.1% during the 4th quarter. Lansdowne Partners UK LLP now owns 1,805,666 shares of the basic materials company’s stock valued at $86,473,000 after purchasing an additional 1,083,612 shares in the last quarter. 78.06% of the stock is owned by institutional investors.

About Teck Resources

Teck Resources Ltd. is a diversified natural resource company headquartered in Canada that explores for, develops and produces a portfolio of metallic and energy commodities. Its core businesses center on copper, steelmaking (metallurgical) coal and zinc, with related smelting and refining activities. Teck supplies raw materials and intermediate products to global steelmakers, metals markets and industrial customers, and operates integrated mining and processing facilities as well as earlier-stage exploration and development projects.

The company’s operations and projects are located across multiple geographies, with a significant presence in western Canada and North America and additional exploration and development activities in Latin America.