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.
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.
Copper Production Rises Across Operations
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.
QB Stabilization Continues, Tailings Work Advances
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 past three quarters. Price said the company completed Rock Bench 5 during the quarter, a milestone that supports freeboard management through the remainder of the year. Teck also completed cyclone station upgrades and increased paddock availability, which improved sand deposition rates.
The company is evaluating whether to accelerate additional tailings work by building Rock Bench 6 this year. Price said proceeding with Rock Bench 6 could allow permanent tailings pipeline infrastructure to be installed later in 2026, earlier than planned, improving operational flexibility and reducing execution risk. If approved, construction would begin in late August or early September and be completed around year-end, with estimated 2026 capital investment of about US$100 million.
In response to analyst questions, Price said the accelerated Rock Bench 6 work is not expected to directly increase throughput rates, but would “de-risk” operational continuity. Dale Webb, senior vice president of operations for Latin America, said QB is not constrained by the tailings management facility and that the focus is on maintaining stability while improving plant performance over the coming quarters.
Highland Valley Extension Reaches Safety Milestone
At Highland Valley, Teck continues to advance its Mine Life Extension project. Price said detailed engineering is approximately 95% complete, procurement is nearing completion and construction activity is ramping up across earthworks, pipelines, brownfield works and supporting infrastructure.
The project has achieved more than 1 million hours worked without a high-potential incident or lost-time injury, which Price said reflects a strong safety culture across the project team. Teck invested CAD 254 million of project capital during the quarter and kept capital expenditure guidance unchanged at CAD 900 million to CAD 1.2 billion for 2026 and CAD 2.1 billion to CAD 2.4 billion over the life of the project.
Price said the Mine Life Extension is expected to extend Highland Valley’s mine life to 2046 and support average annual copper production of approximately 132,000 tons.
Zinc Segment Benefits From Trail Optimization
Teck’s zinc segment also posted stronger results. Prystai said gross profit before depreciation and amortization increased 122% to CAD 353 million, with margins rising to 39% from 28% a year earlier.
The improvement was led by Trail Operations, where gross profit before depreciation and amortization increased to CAD 203 million from CAD 42 million in the prior-year quarter, despite a planned shutdown of the lead circuit. Prystai said the performance reflected higher by-product pricing and Teck’s continued focus on value-driven optimization of feed sources and production, including near-term prioritization of residue processing.
Teck also discussed its July 7 announcement of a strategic investment agreement with the Government of Canada to support strategic metals production at Trail. Prystai said the initiative could expand germanium and antimony production and add new gallium capacity, subject to certain conditions and evaluation under Teck’s capital allocation framework.
At Red Dog, zinc production reflected lower grades and recoveries consistent with the mine plan. Zinc sales were within guidance at 37,000 tons. Teck maintained 2026 zinc guidance, including zinc in concentrate production of 410,000 to 460,000 tons and refined zinc production of 190,000 to 230,000 tons.
Anglo American Merger Remains on Track
Teck said it continues to advance its merger of equals with Anglo American, with remaining focus on Chinese regulatory approval. Price said the process with China’s State Administration for Market Regulation is proceeding “in the normal course,” and that Teck has not received any requests for remedies.
The company still expects the transaction to be completed within 12 to 18 months of the September 2025 announcement. Price said that once Chinese approval is received, closing could occur “very quickly,” in “a matter of a couple of weeks.”
Price said integration planning with Anglo American is intensifying, though the companies continue to operate independently until closing. He said teams are working on business processes, systems, organizational structures, leadership appointments and plans to capture synergies.
Teck ended the quarter with CAD 10.3 billion of liquidity as of June 30, including CAD 6.1 billion of cash. Prystai said the company also continued scheduled semi-annual repayments under the QB project finance facility, leaving Teck with a stronger balance sheet as it moves toward completing the Anglo Teck merger.
About Teck Resources (NYSE:TECK)
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.
