Teck Resources Reports Strong Q1 Profit and Revenue Growth

Teck Resources Ltd. shows significant improvement, with Q1 net profit at C$370M against prior loss. Strong EPS growth signals bullish outlook, despite minor declines post-market.

Date: 24-04-2025

AI Rating: 8

Strong Earnings Performance
Teck Resources Ltd. reported a profit of C$370 million in the first quarter, a notable increase compared to a loss of C$125 million in the same period last year. This turnaround indicates a healthy recovery and optimal management practices that resulted in positive earnings growth amid challenging market conditions.

The earnings per share (EPS) of C$0.73 represents a substantial leap from a loss of C$0.24 in the previous year, exceeding analysts’ expectations of C$0.34 per share. This performance illustrates robust demand for Teck's offerings and a competitive market position.

Revenue and Profit Margins
Teck's revenue increased significantly to C$2.29 billion from C$1.62 billion a year earlier. Such revenue growth highlights the company's effective product strategy and enhanced operational efficiency. With adjusted EBITDA rising to C$927 million from C$409 million year-over-year, the company showcases strong profit margins.

Moreover, the adjusted profit from continuing operations of C$303 million, compared to a previous year loss, reinforces the company’s stabilization and potential for future growth.

Outlook
Teck has maintained its production outlook and guidance, which stands at anticipated copper and zinc productions within specified ranges, supporting the confidence in their business model. However, the anticipated ranges on cash unit costs provide a cautionary note amid fluctuating commodity prices in the market.

Investors should note the recent stock performance, with shares closing at $34.88, though it experienced slight declines in after-hours trading. This fluctuation may impact short-term trading strategies, but the overall positive results indicate potential for long-term gains.

Stocks: TECK