Teck Resources (NYSE:TECK) used its fourth-quarter 2025 earnings call to highlight stronger profitability tied to higher copper prices, progress at its Quebrada Blanca (QB) operation in Chile, and an update on its announced merger of equals with Anglo American.
Strategic update: merger of equals with Anglo American
Chief Executive Officer Jonathan Price described 2025 as “another transformative year,” emphasizing Teck’s September 9 announcement of a merger of equals with Anglo American intended to strengthen its long-term position in copper. Price said the transaction is expected to create a top-five global copper producer with greater scale and resilience, as well as capacity to advance a broader portfolio of copper growth opportunities.
Price added that integration planning is underway for “day one readiness,” while acknowledging the companies cannot operate as a combined team until closing.
Q4 and full-year financial performance
Chief Financial Officer Crystal Prystai reported that adjusted EBITDA increased 81% year-over-year to $1.5 billion in the fourth quarter and rose 48% for the full year to $4.3 billion. She and Price attributed the gains primarily to higher copper prices and increased byproduct revenue. Price said the Q4 result translated to an adjusted EBITDA margin of about 50%, which he described as one of Teck’s strongest quarterly margins in recent years.
Prystai said copper prices rose sharply during Q4, producing positive pricing adjustments of $295 million. She also noted Teck generated cash flow from operations of $1.3 billion in the quarter, contributing to a return to a net cash position by year-end.
Teck also discussed shareholder returns and capital allocation. Management said the company returned $1.3 billion to shareholders during 2025 through share buybacks and dividends. Prystai said Teck has not executed share buybacks since July 25 and will not execute further buybacks through closing of the Anglo American transaction, while continuing quarterly dividends. In Q4, Teck returned $61 million to shareholders tied to the quarterly payment of its regular base annual dividend of $0.50 per share.
On the balance sheet, Prystai said Teck ended 2025 with a net cash position of $150 million and total liquidity of $9.3 billion, including $5.2 billion in cash. She said the company’s cash balance decreased by $2.6 billion over 2025, driven by shareholder returns, cash tax payments related to earnings and transaction-related taxes associated with EVR, and investment in copper growth projects including Highland Valley’s mine life extension.
QB ramp-up and tailings facility progress
Much of the operational discussion centered on QB. Price said Teck made “meaningful progress” on the QB ramp-up and its QB action plan, including tailings management facility (TMF) development intended to support steady-state operations by the end of 2026. QB produced 55,000 tons of copper in Q4, the strongest quarterly output of 2025, which Prystai said was up 16,000 tons from Q3 2025.
Price and Prystai said throughput improved progressively during Q4, with December’s monthly throughput rate the highest of the year and comparable to Q4 2024 levels. Management said recoveries were consistent and within plan, and copper grades aligned with plan at an average of 0.59% for the quarter.
On TMF development, Price said Teck completed installation of alternative cyclone technology in November, which management said materially improved sand quality, alongside paddock design improvements. Teck said these actions improved sand drainage times and paddock development rates. Management indicated periodic plant downtime is expected during 2026 as TMF work continues, and said that expectation is incorporated into 2026 production guidance.
During the Q&A, Teck said progress has continued as planned since a November site visit. Dale (introduced on the call as providing additional detail) said the fourth rock bench has been completed and the fifth bench has started, adding that improved sand deposition rates support confidence in achieving steady-state conditions. Price also said Teck expects QB production will no longer be constrained by TMF development by the end of 2026.
Prystai noted QB sales volumes were affected by weather and sea conditions in December, which delayed shipments into early 2026 and created a short-term working capital build at year-end. She added that normal operation of the ship loader at QB’s port facility resumed after repairs were completed at the end of January, which she said should reduce logistics costs in 2026 as contemplated in unit cost guidance.
Segment highlights and 2026 guidance
In copper, Prystai said Q4 gross profit before depreciation and amortization increased 47% year-over-year to $1.1 billion, reflecting higher commodity prices and lower smelter processing charges. Copper production increased 10% from Q4 2024, driven by higher throughput and grades at Highland Valley, higher grades at Antamina, and higher throughput at Carmen de Andacollo, along with QB’s Q4 improvement.
Teck reaffirmed its 2026–2028 production guidance for Teck-operated sites and provided 2026 outlook details:
- 2026 copper production guidance: 455,000 to 530,000 tons, compared with 454,000 tons produced in 2025, with higher QB production and an expected higher proportion of copper-only ore at Antamina.
- 2026 copper net cash unit cost guidance: $1.85 to $2.20 per pound, compared with $2.03 per pound in 2025. Prystai said the byproduct price assumptions embedded in guidance are below 2025 realized prices and current spot levels.
In zinc, Prystai said Q4 gross profit before depreciation and amortization was $305 million, down 5% year-over-year due to lower Red Dog zinc sales, partially offset by improved profitability at Trail Operations. Trail generated $106 million in gross profit before depreciation and amortization in Q4 and $281 million for the year, supported by the company’s focus on processing residues, reducing concentrate purchases in a low treatment charge environment, and benefiting from precious and specialty metals pricing including gold, silver, and germanium.
Teck said it reduced 2026 annual zinc-in-concentrate production guidance for Antamina by 20,000 tons based on an updated mine plan finalized in Q4 2025. Management expects a decline in zinc-in-concentrate production to 410,000 to 460,000 tons in 2026 from 565,000 tons in 2025, reflecting declining grades at Red Dog as it nears end of mine life and a lower proportion of copper-zinc ore at Antamina. Refined zinc guidance remains 190,000 to 230,000 tons for 2026, with Teck planning to continue operating at lower refined zinc production rates as it prioritizes residue processing at Trail.
Capital spending and project pipeline
Teck said 2026 is expected to be a peak year for capital expenditures, driven by remaining QB TMF development capital and execution of the Highland Valley Copper Mine Life Extension (HVC MLE), which was sanctioned in July 2025. Price said HVC MLE is underway and is expected to extend mine life to 2046, producing an average of 132,000 tons of copper per year over the life of mine.
Prystai guided to 2026 sustaining capital, capitalized stripping, and QB TMF development capital totaling $1.8 billion to $2.1 billion, including $390 million to $460 million for QB TMF development. She said capitalized stripping is expected to increase due to higher stripping at Highland Valley to access higher-grade ore in the Valley Pit, and during Q&A said deferred stripping levels are expected to remain elevated for “a few years” into a 2028 timeframe before normalizing.
For growth capital in 2026, Teck guided to $1.5 billion to $1.9 billion, including $900 million to $1.2 billion for HVC MLE, and $200 million to $250 million for Red Dog Mine Life Extension work to complete an all-season access road, continue drilling, and advance a pre-feasibility study.
In response to an analyst question, Teck also said it is progressing its Zafranal project, with management indicating the first half of the year is focused on completing a feasibility study and evaluating the business case to support a construction decision.
About Teck Resources (NYSE:TECK)
Teck Resources Ltd. is a diversified natural resource company headquartered in Canada that explores for, develops and produces a portfolio of metallic and energy commodities. Its core businesses center on copper, steelmaking (metallurgical) coal and zinc, with related smelting and refining activities. Teck supplies raw materials and intermediate products to global steelmakers, metals markets and industrial customers, and operates integrated mining and processing facilities as well as earlier-stage exploration and development projects.
The company’s operations and projects are located across multiple geographies, with a significant presence in western Canada and North America and additional exploration and development activities in Latin America.
