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.

• Revenue increased 72% year-over-year to $3.94 billion, with adjusted profit attributable to shareholders rising to $858 million ($1.75/share).

• Strong operational performance across all segments, with no change to annual guidance and continued progress on merger approvals with Anglo American.

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

• Safety performance improved, with zero fatalities in Q1 2026 and a low high potential incident frequency rate of 0.05.

Financial highlights

• Adjusted EBITDA rose 125% year-over-year to $2.1 billion; margin expanded to 53% from 40%.

• 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%).

• Adjusted profit attributable to shareholders was $858 million ($1.75/share), up from $303 million ($0.60/share) year-over-year.

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

• Cash flow from operations was $1.0 billion, compared to a use of $515 million in Q1 2025.

Outlook and guidance

• Annual copper and zinc production guidance for 2026–2028 remains unchanged: copper 455,000–530,000 tonnes, zinc in concentrate 410,000–460,000 tonnes, refined zinc 190,000–230,000 tonnes.

• 2026 unit cost guidance: copper net cash unit costs $1.85–2.20/lb, 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).

• If copper prices remain near $6/lb, full-year EBITDA could reach $7.1 billion and operating cash flow $5.9 billion.

• Guidance reflects conservative by-product price assumptions and embeds inflationary and supply chain risks, especially from diesel.