Teck Resources Ltd (TSX:TECK.B) shares added more than 3% after the company reported second quarter 2026 results that exceeded Wall Street expectations, supported by higher copper production, stronger commodity prices and improved operational performance.
The mining company reported adjusted earnings per share of C$1.93 for the quarter, above analyst expectations of C$1.15. Revenue came in at C$3.61 billion, ahead of the consensus estimate of C$3.3 billion.
Adjusted profit attributable to shareholders was C$948 million, or C$1.93 per share, compared with C$187 million, or C$0.38 per share, in the same period a year earlier. Adjusted EBITDA reached C$2.2 billion, up C$1.5 billion from the prior-year period, driven by higher copper production, stronger commodity prices and increased by-product revenue.
Teck’s copper business was a key contributor to the quarter, generating gross profit before depreciation and amortization of C$1.8 billion, compared with C$673 million a year earlier. The company attributed the improvement to record copper prices, higher production volumes and increased by-product revenue.
Copper production rose 25% year over year to 135,900 tonnes, with increases across all of Teck’s copper operations. The company noted that its Quebrada Blanca (QB) operation delivered its third consecutive quarter of stable operating performance.
Copper prices averaged US$6.05 per pound during the second quarter, while copper net cash unit costs improved to US$1.64 per pound from US$2.02 per pound in the same period last year.
The company’s zinc segment also reported improved results, with gross profit before depreciation and amortization increasing to C$353 million from C$159 million a year earlier, driven by higher commodity prices and continued focus on cash flow generation at its Trail Operations.
“We delivered another quarter of strong operational and financial performance, generating significant earnings and robust cash flow, supported by continued strong copper sales volumes, a favourable commodity price environment and disciplined execution across our operations,” Teck President and CEO Jonathan Price wrote.
“At QB, we achieved our third consecutive quarter of stable operating performance, demonstrating the progress we have made in strengthening reliability and consistency at one of the world’s most important new copper operations,” he added.
Teck maintained its previously issued 2026 production guidance, including copper production of 455,000 to 530,000 tonnes and zinc production of 410,000 to 460,000 tonnes. The company also expects third-quarter Red Dog zinc in concentrate sales of 220,000 to 270,000 tonnes.
The results come as Teck continues to advance its planned merger with Anglo American, which the company has positioned as a step toward creating a global critical minerals producer.
'Very strong' quarter
Jefferies highlighted Teck’s Q2 results as a potential catalyst for a re-rating of the stock ahead of the planned merger with Anglo American.
The firm wrote that Teck delivered a “very strong” quarter, with EBITDA exceeding consensus expectations by about 25% due to higher copper production, lower costs, operational stability at Quebrada Blanca (QB), benefits from provisional pricing and another strong performance from Trail Operations.
Jefferies reiterated its ‘Buy’ rating on Teck, describing the company as one of its top picks in global mining. The firm raised its 2026 EPS estimate by 16% and increased its EBITDA estimate by 6%, while maintaining that Teck is well positioned ahead of the completion of its planned merger with Anglo American.
“Following another quarter of stable QB execution, we believe the market will increasingly focus on Teck's earnings power rather than its ramp-up risk,” Jefferies wrote.
“The result should be continued re-rating potential if copper prices remain supportive and QB maintains operational consistency.”
Looking ahead to the Anglo American transaction, Jefferies wrote that both companies are entering the proposed merger with strong operating momentum, adding that the combined company could become a major global copper producer over the next 12 months. The firm noted that remaining milestones include Anglo American completing planned divestitures and receiving regulatory approval in China.