Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 23, 2026 · Beat 7 of last 7 quarters
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Teck's record copper prices and strong production growth, particularly at QB, underscore the robust demand for copper as a key input for AI infrastructure (power, data centers, and electrification). The company's focus on operational stability and cost discipline, along with the pending Anglo American merger, positions it to supply critical minerals essential for the AI buildout. The acceleration of TMF infrastructure at QB could further de-risk copper supply growth, supporting the long-term availability of this critical material.
Teck delivered another strong quarter with adjusted EBITDA tripling to $2.2B on record copper prices and higher production across all copper operations. QB produced 55.8kt of copper, its third consecutive quarter of stable operations, and the company completed Rock Bench 5 at the TMF, with no TMF-related downtime for three quarters. Copper net cash unit costs fell 19% to $1.64/lb and zinc net cash unit costs fell 29% to $0.35/lb, both benefiting from higher byproduct credits. The company increased net cash by $756M to $1.2B and continued to advance the Highland Valley mine life extension project (detailed engineering 95% complete).
Management reaffirmed all 2026 guidance, including copper production of 455-530kt and zinc-in-concentrate of 410-460kt. They expect to complete the Anglo American merger within the original 12-18 month window from the September 2025 announcement, with closing expected within weeks of receiving Chinese regulatory approval. At QB, they are evaluating accelerating Rock Bench 6 construction (~$100M capex) to enable earlier installation of permanent TMF infrastructure, which would derisk operations and support continued stability. Management also highlighted potential expansion of germanium/antimony/gallium capacity at Trail under a strategic investment agreement with the Canadian government. The tone was confident, emphasizing operational stability, cost discipline, and merger readiness.
“We have delivered another quarter of strong operational and financial performance. We generated significantly higher earnings and robust flow in the second quarter of 2026 supported by favorable commodity prices including another record quarterly average copper price.”
on Quarterly performance
“As a result, our adjusted EBITDA margin increased to a record 61%.”
on Margin expansion
“We continue to anticipate completing the transaction within 12 to 18 months of the September 2025 announcement.”
on Merger timeline
What specifically with advancing Rock Bench 6 and advancing some of the infrastructure, if that could positively impact throughput rates in terms of versus plan for 2027 and 2028?
Jonathan Price said no expected impact on throughput rates directly; the acceleration is essentially a derisking that allows them to further underwrite ongoing operational continuity.
In terms of the regulatory approval specifically from China, can you give us an update on where things are at, whether there are any requests for potential offtakes or asset sales?
Jonathan Price said the process with SAMR is unfolding in the normal course, responding to information requests, with no requests for remedies. They still expect completion within the original 12-18 months, and closing would occur within a couple of weeks of approval.
On the assumption that you do get the SAMR approvals in short order and you close fairly quickly, can you give us an update on where you are at in terms of the integration planning?
Jonathan Price said an enormous amount of integration planning is underway, covering business processes, systems, organizational structures, and leadership appointments, while building out synergy capture plans at higher fidelity. They continue to operate as independent companies until closing.