Teck Resources Limited (TSE:TECK.A)
TSX:TECK.A
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Teck Resources
(TSX:TECK.A)
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Rating:70Outperform
Price Target:
C$92.00
▲(13.43% Upside)
Action:ReiteratedDate:04/24/26
The score is driven most by improved earnings power and a solid balance-sheet position, but held back by uneven/weak free-cash-flow conversion. Technicals are supportive with strong price trends and positive momentum, valuation appears reasonable on a ~10.7 P/E, and the latest earnings call reinforced strong near-term performance and maintained guidance despite identifiable execution, commodity, and regulatory risks.
Positive Factors
Improved Profitability & Margins
A large, sustained EBITDA and margin improvement signals stronger earnings power and operational leverage. Higher margins increase internal funding capacity for projects and buffer through cycles, improving durable profitability rather than a temporary uptick tied solely to spot moves.
Negative Factors
Thin and Volatile Free Cash Flow
Persistently thin and cyclically volatile free cash flow constrains discretionary returns and reinvestment flexibility. Recurrent negative FCF years and swings from working-capital and reinvestment needs increase dependence on high commodity prices to fund dividends, M&A, or large capex.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & Margins
A large, sustained EBITDA and margin improvement signals stronger earnings power and operational leverage. Higher margins increase internal funding capacity for projects and buffer through cycles, improving durable profitability rather than a temporary uptick tied solely to spot moves.
Read all positive factors
Teck Resources (TECK.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$37.81B
Dividend Yield0.78%
Average Volume (3M)5.53K
Price to Earnings (P/E)10.7
Beta (1Y)1.80
Revenue Growth5.10%
EPS Growth429.79%
CountryCA
Employees7,200
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)3.78
Shares Outstanding7,600,000
10 Day Avg. Volume5,070
30 Day Avg. Volume5,533
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.29
Price to Sales (P/S)3.02
P/FCF Ratio-31.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$85.00Price Target Upside4.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.72
Revenue Forecast (FY)C$14.07B
Teck Resources Business Overview & Revenue Model
Company Description
Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. It operates through Steelmaking Coal, Copper, Zinc, Energy, and Corporate segments. The company's principal...
How the Company Makes Money
Teck makes money primarily by producing and selling mined commodities to industrial customers under a mix of spot-market sales and longer-term supply arrangements, with revenue largely tied to global commodity prices and sales volumes.
Key revenu...
Teck Resources Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call portrayed a strong quarter with sizable financial and operational improvements — doubled adjusted EBITDA, record copper prices and volumes, robust cash generation and high liquidity — alongside clear, manageable execution risks (TMF permanent infrastructure timing, maintenance-driven utilization impacts, commodity-price and diesel-cost sensitivities, and an ongoing regulatory review for the merger). Management maintained unchanged guidance and highlighted project progress (Highland Valley MLE) and regulatory/integration progress for the merger, suggesting confidence in execution. The positives (large profit and cash flow gains, operational milestones, merger progress) materially outweigh the identified challenges and risks.Positive Updates
Material Increase in Adjusted EBITDA and Margins
Adjusted EBITDA more than doubled to $2.1 billion in Q1 2026, a 125% increase year-over-year, with margins expanding to 53% from 40% in Q1 2025.
Negative Updates
Planned Maintenance and Lower Utilization at QB
Mill availability at QB was lower quarter-on-quarter at 92% and overall asset utilization was 87% due to planned scheduled maintenance in January and a shorter operating month in February, slightly impacting throughput.
Read all updates
Q1-2026 Updates
Positive
Negative
Material Increase in Adjusted EBITDA and Margins
Adjusted EBITDA more than doubled to $2.1 billion in Q1 2026, a 125% increase year-over-year, with margins expanding to 53% from 40% in Q1 2025.
Read all positive updates
Company Guidance
Teck reiterated that its 2026 guidance is unchanged and provided detailed metric targets: consolidated copper production 455,000–530,000 t (vs 454,000 t in 2025) with copper net cash unit costs $1.85–$2.20/lb, zinc in concentrate 410,000–460,000 t and refined zinc 190,000–230,000 t with zinc net cash unit costs $0.65–$0.75/lb; Highland Valley MLE capex guidance $2.1–$2.4B total with $900M–$1.2B in 2026 (Q1 spend $188M) and capitalized stripping $450M–$500M for the copper segment. Q1 operational and project milestones include QB production 56,000 t and record quarterly sales of 70,000 t, mill availability 92%, asset utilization 87%, recoveries 83%, completion of Rock Bench 4 and Rock Bench 5 expected by end‑Q2 to support TMF steady‑state by year‑end (secondary cyclone H2, permanent infrastructure timing under review). Financial guidance context: Q1 adjusted EBITDA $2.1B (margin 53%), Q1 operating cash flow $1.0B, net cash increased $338M to $488M with an additional $276M into April, liquidity $9.8B, Trail gross profit before D&A $258M (vs $80M a year ago), Q2 Red Dog zinc sales guided 30,000–40,000 t, and illustrative full‑year scenarios of $6.6B EBITDA/$5.5B operating cash at $5.50/lb copper or ~$7.1B/$5.9B if copper averages ~$6.00/lb; Q1 copper averaged $5.83/lb, guidance embeds silver $36/oz and WTI $65/bbl (spot ~$80/oz silver, ~$93/bbl WTI) with sensitivities of ~$0.02/£ per $10/oz silver and $0.03/£ per $10 WTI for copper (zinc: ~$0.05/£ per $10/oz silver and $0.01/£ per $10 WTI).Teck Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.41B | 10.76B | 9.06B | 15.01B | 17.32B | 13.48B |
| Gross Profit | 3.76B | 2.35B | 1.61B | 5.14B | 8.57B | 5.08B |
| EBITDA | 4.88B | 3.67B | 1.92B | 5.88B | 8.44B | 6.37B |
| Net Income | 1.85B | 1.40B | 406.00M | 2.41B | 3.32B | 2.87B |
Balance Sheet | ||||||
| Total Assets | 46.64B | 45.44B | 47.04B | 56.19B | 52.36B | 47.37B |
| Cash, Cash Equivalents and Short-Term Investments | 5.43B | 5.01B | 7.59B | 744.00M | 1.88B | 1.43B |
| Total Debt | 9.77B | 9.61B | 9.96B | 11.09B | 10.02B | 9.33B |
| Total Liabilities | 19.43B | 19.43B | 19.94B | 27.90B | 25.85B | 23.59B |
| Stockholders Equity | 26.27B | 25.10B | 26.08B | 26.99B | 25.47B | 23.00B |
Cash Flow | ||||||
| Free Cash Flow | 482.00M | -1.02B | 155.00M | -1.70B | 2.52B | 25.00M |
| Operating Cash Flow | 2.78B | 1.04B | 2.79B | 4.08B | 7.98B | 4.74B |
| Investing Cash Flow | -2.17B | -2.00B | 6.17B | -4.76B | -5.68B | -4.82B |
| Financing Cash Flow | -1.21B | -1.32B | -2.56B | -469.00M | -1.99B | 1.06B |
Teck Resources Technical Analysis
Positive
81.11
Price Trends
74.96
Positive
70.85
Positive
62.29
Positive
Market Momentum
2.35
Negative
64.33
Neutral
85.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TECK.A, the sentiment is Positive. The current price of 81.11 is above the 20-day moving average (MA) of 73.37, above the 50-day MA of 74.96, and above the 200-day MA of 62.29, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 85.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TECK.A.
Teck Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$37.81B | 10.71 | 7.35% | 0.78% | 5.10% | 429.79% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | C$7.46B | -7.75 | -116.13% | ― | 12.75% | -821.09% | |
54 Neutral | C$15.16B | 72.91 | 4.76% | ― | 978.68% | 15.44% | |
52 Neutral | C$5.30B | -35.56 | -56.09% | ― | ― | -80.54% | |
42 Neutral | C$4.87B | -13.58 | -148.51% | ― | ― | -4.65% |
* Basic Materials Sector Average
TSE:TECK.A
Teck Resources
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28.41
58.54%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.