Teck Resources Limited reported a significant increase in net profit for the second quarter of 2026, reaching $854 million compared to $206 million in the same period last year. This growth was driven by record copper prices averaging US$6.05 per pound and a 25% increase in copper production volumes to 135,900 tonnes. The company's Adjusted EBITDA rose 204% to $2.2 billion, supported by strong operational performance across its copper and zinc segments.

Jonathan Price, President and CEO, attributed the results to continued strong copper sales volumes, a favourable commodity price environment, and disciplined execution across operations. He highlighted that the Quebrada Blanca (QB) operation achieved its third consecutive quarter of stable performance, demonstrating progress in strengthening reliability at one of the world’s most important new copper operations.

Financial Performance

The company generated revenue of $3,605 million in Q2 2026, up from $2,023 million in Q2 2025. Adjusted profit attributable to shareholders was $948 million, or $1.93 per share, compared to $187 million, or $0.38 per share, in the prior year. Cash flow from operations totaled $1.7 billion, increasing the net cash position by $756 million to a liquidity of $10.3 billion, which includes $6.1 billion of cash.

Operational Highlights

The copper segment generated gross profit before depreciation and amortization of $1.8 billion, compared to $673 million in the same period last year, primarily due to record copper prices and higher production. Copper net cash unit costs decreased to US$1.64 per pound from US$2.02 per pound. QB produced 55,800 tonnes of copper in the quarter, with quarterly sales of 57,600 tonnes, reflecting higher production and strong logistics performance.

The zinc segment generated gross profit before depreciation and amortization of $353 million, compared to $159 million in the prior year, driven by higher commodity prices and an optimized feed strategy at Trail Operations. Gross profit from the zinc segment was $329 million.

Strategic Developments

Teck, Canada Growth Fund Inc. and Natural Resources Canada announced the signing of a Strategic Investment Agreement on July 7, 2026, to support the possible expansion of production capacity for germanium, gallium, and antimony at Trail Operations.

Regarding the proposed merger of equals with Anglo American plc, the companies announced that the transaction remains subject to customary closing conditions and regulatory approvals. The merger is expected to deliver annual pre-tax synergies of approximately US$800 million.

Guidance

Teck maintained its previously disclosed guidance for 2026. The company expects Red Dog zinc in concentrate sales to be between 220,000 and 270,000 tonnes in the third quarter of 2026. Copper production guidance for the full year remains between 455,000 and 530,000 tonnes, while zinc production guidance is set between 410,000 and 460,000 tonnes.

JPMorgan analyst Bill Peterson has adjusted the valuation outlook for Teck Resources, reducing the price target to $46 while maintaining a Neutral rating on the stock. The revision lowers the previous target of $48, signaling a shift in expectations despite the unchanged stance on the company's performance.

Rating and Price Target

The decision to lower the price target comes as the firm reassesses Teck Resources' position in the market. The Neutral rating suggests that the stock is expected to perform in line with the broader market or sector averages rather than significantly outperform or underperform.

The adjustment provides investors with a revised benchmark for the stock's potential trajectory over the near term.