Teck Resources reported its unaudited fourth‑quarter 2025 results, posting an adjusted earnings per share of $1.37, a $0.742 beat over the consensus estimate of $0.628. The company’s revenue reached $3.06 billion, surpassing the $2.88 billion estimate by $180 million. The earnings surprise was largely driven by a 49% adjusted EBITDA margin, up from 30% a year earlier, reflecting higher copper prices and improved operating leverage at the Quebrada Blanca mine.
Copper prices averaged $5.03 per pound in the quarter, a 20% increase from the same period last year. The higher commodity price lifted Teck’s copper revenue by 12% YoY, while zinc and other base‑metal sales remained flat. Operational gains at Quebrada Blanca, where production ramp‑up and tailings‑management facility development accelerated, contributed an additional $120 million to adjusted EBITDA.
The company reaffirmed its 2026‑2028 production guidance, maintaining a 3.5% annual growth target for copper output. Management highlighted that the merger with Anglo American, now approved by shareholders and the Investment Canada Act, will create a top‑five copper producer and unlock synergies that could add $1.5 billion of pre‑tax earnings in the next three years. The merger progress is a key strategic driver for Teck’s long‑term growth.
Despite the earnings beat, analysts noted that revenue growth was modest and that the company’s free‑cash‑flow margin narrowed to 18% from 21% a year earlier, partly due to capital expenditures on the Quebrada Blanca tailings facility and weather‑related shipping delays that reduced early‑2026 copper sales. The market reaction was muted, with the stock falling 4% in pre‑market trading, suggesting that investors weighed the merger uncertainty and cash‑flow pressure against the earnings upside.
Management emphasized disciplined cost control and a focus on high‑margin copper projects. CEO Jonathan Price said, “Teck closed out 2025 with strong momentum, delivering robust Q4 financial performance underpinned by significantly higher copper prices and operating performance in line with plan.” He added that the company remains confident in its execution plan and the merger timeline, positioning Teck to become a global critical‑minerals champion.
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