Teck lifts adjusted profit to C$923 million in third quarter
Key Facts
Teck Resources said adjusted profit attributable to shareholders rose to C$923 million, or C$1.88 per share, in the third quarter of 2026, compared with C$372 million and C$0.76 per share a year earlier. Net profit attributable to shareholders was C$1.592 billion, or C$3.24 per share. Revenue also increased to C$4.517 billion from C$3.385 billion in the same period of 2025. Chief Executive Jonathan Price said higher production, execution discipline and record copper prices supported financial performance and cash generation. The average copper price was US$6.40 per pound during the quarter, a quarterly record, the company said.
The results reflected both strong prices and improved costs: net cash unit copper costs fell to US$1.77 per pound from US$2.09 a year earlier. Teck attributed the decline to strong cost performance and lower smelter processing charges. Total copper production rose to 115,700 tonnes, up 11% year on year. Highland Valley production also increased to 39,800 tonnes from 34,100 tonnes in the third quarter of 2025. Meanwhile, adjusted EBITDA rose to C$2.220 billion from C$1.194 billion, while gross profit was C$1.688 billion versus C$660 million a year earlier.
At the Quebrada Blanca mine, copper production was 47,200 tonnes, down from 55,800 tonnes in the second quarter but above 39,600 tonnes a year earlier. Teck said heavy snowfall and strong winds in August caused intermittent power outages at the site, disrupting the concentrator, dewatering systems and other equipment. Wet mining conditions also limited access to higher-grade ore and affected productivity through September. The mine’s output therefore declined from the previous quarter despite year-on-year growth in total copper production. The company said the weather impact did not change its annual copper production guidance for 2026.
Operations generated C$1.6 billion in cash flow in the quarter, increasing net cash by C$655 million. Teck had liquidity of C$10.9 billion as of September 30, including C$6.7 billion in cash. The company kept its 2026 copper production range at 455–530 thousand tonnes. It lowered its net cash unit copper cost guidance to US$1.80–2.00 per pound, from the previous range of US$1.85–2.20. It also cut zinc cost guidance to US$0.30–0.40 per pound from US$0.65–0.75, citing year-to-date cost performance and byproduct prices.
Teck expects annual sustaining capital expenditures to come in the upper half of the C$1.3–1.5 billion range, and stripping expenditures at the upper end of the $455–560 million range. It said year-to-date diesel costs had affected stripping expenditures. At Red Dog, the shipping season began on July 12, and the company expects it to be completed by early November. It also expects zinc concentrate sales of between 65,000 and 75,000 tonnes in the fourth quarter of 2026. Teck expects installation of permanent infrastructure for the tailings line at Quebrada Blanca and construction of Rock Bench 6 to be completed in the first quarter of 2027.
On the proposed merger with Anglo American, the companies said they still target completing the transaction within 12–18 months of the announcement date. They estimated annual pre-tax savings of about US$800 million, with about 80% expected to be realized on a run-rate basis by the end of the second year after completion. Separately from the results for the quarter ended September 30, a strike began at Highland Valley operations on October 24. Teck said operations are continuing at reduced capacity and the labor action’s impact on total production will depend on its duration. The company scheduled a call to discuss quarterly results for October 29, 2026, at 11 a.m. Eastern time.