Canada's Teck Resources tops Q2 earnings estimates

Overview

• Canada diversified miner's Q2 revenue and adjusted EPS beat analyst expectations

• Adjusted EBITDA for Q2 also exceeded analyst estimates

• Company cites higher copper output, strong prices, and operational improvements as key drivers

Outlook

• Teck maintains 2026 copper production guidance at 455,000–530,000 tonnes

• Company expects 2026 zinc production of 410,000–460,000 tonnes

• Teck sees Q3 2026 Red Dog zinc in concentrate sales of 220,000–270,000 tonnes

Result Drivers

• COPPER OUTPUT PRICES - Significantly higher copper production and record copper prices drove profit and cash flow growth, per CEO Jonathan Price

• COST REDUCTIONS BY-PRODUCTS - Strong cost performance and increased by-product revenue reduced copper net cash unit costs to US$1.64/lb from US$2.02/lb last year

• ZINC SEGMENT GAINS - Higher zinc prices and an optimized feed strategy at Trail Operations boosted zinc segment profit

Company press release: ID:nGNX6cKLsq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy."

• Wall Street's median 12-month price target for Teck Resources Ltd is C$86.25, about 6.9% above its July 22 closing price of C$80.66

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 21 - Grupo Mexico profit beats estimates on higher copper prices

• July 21 - Boliden lags Q2 forecasts as mine disruption, smelter ramp-up delay weigh

• July 20 - Canada's Altius Minerals Q2 royalty revenue attributable more than doubles on higher prices

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)