Teck Resources Ltd Ordinary Shares
TECK · NYSE
Next quarter
Expected to report Feb 18, 2027 — estimated from last year’s reporting date.
Consensus is $0.77 EPS for Dec 2026 across 6 estimates, ranging $0.52 to $1.12.
TECK Sep 2026
- 27.18%
- $1.03
- $1.31
- —
- —
Highlights
- Earnings beat: EPS was 1.31 versus consensus of 1.03, a 27.18% surprise; adjusted EBITDA nearly doubled year over year to CAD 2.3 billion.
- Record copper pricing: The average copper price was a record CAD 6.40 per pound for the quarter, the largest contributor to higher EBITDA.
- Cash generation: Cash flow from operations was CAD 1.6 billion, nearly 2.5 times the CAD 647 million generated in Q3 2025; net cash rose CAD 655 million during the quarter to CAD 1.9 billion.
- Copper output: Copper production rose 11% year over year to 116,000 tons despite severe weather disruptions at several operations; annual production guidance is unchanged.
- Lower cost outlook: 2026 copper net cash unit-cost guidance fell to $1.80-$2.00 per pound from $1.85-$2.20, while zinc guidance dropped to $0.30-$0.40 from $0.65-$0.75.
- Zinc mix: Red Dog zinc production declined 13% to 107,000 tons, while refined zinc production at Trail increased 18% to 62,000 tons.
- Merger progress: The Anglo American merger remains on track for completion within 12-18 months of its September 2025 announcement; approval from China’s SAMR remains outstanding.
- Dividend: Teck declared a dividend of $0.125 per share, payable December 31, 2026.
Analysis
Teck’s Q3 combined a strong earnings beat with record copper pricing, higher production and robust cash generation. EPS of 1.31 exceeded consensus of 1.03 by 27.18%. Adjusted EBITDA doubled year over year to CAD 2.3 billion, with the margin rising to 51% from 35%, while operating cash flow reached CAD 1.6 billion versus CAD 647 million a year earlier. Copper averaged CAD 6.40 per pound, and copper production increased 11% to 116,000 tons. The company also recorded a CAD 888 million pre-tax impairment reversal at Trail, reflecting higher long-term commodity-price expectations and stronger cash-flow assumptions. The supplied materials do not provide consolidated sequential financial comparisons; they do report that QB production was lower than in Q2 because of severe weather and a planned shutdown.
The quarter’s operating resilience came with real disruption: extreme weather affected QB and Carmen de Andacollo, while drought and wildfire conditions affected Highland Valley. Teck kept 2026 production guidance unchanged and lowered copper and zinc unit-cost guidance, largely on strong by-product pricing and cost discipline. Strong cash generation lifted net cash to CAD 1.9 billion and liquidity to CAD 10.9 billion. The Anglo American merger remains on schedule, with China’s antitrust approval still pending.
Earnings and pricing
- Profitability: Adjusted EBITDA reached CAD 2.3 billion, up from roughly half that level in Q3 2025, while adjusted EBITDA margin expanded to 51% from 35%.
- Price contribution: Higher copper and zinc prices added just over CAD 1 billion to adjusted EBITDA year over year; higher co-product and by-product prices added CAD 198 million, and lower smelter processing charges contributed CAD 50 million.
- Offsetting volumes: Lower zinc volumes at Antamina and Red Dog reduced adjusted EBITDA by CAD 126 million, in line with mine plans.
- Trail reversal: Teck recognized a pre-tax impairment reversal of CAD 888 million at Trail, based on stronger long-term commodity-price expectations, strategic-metals fundamentals and its optimized feed strategy.
Production and weather
- Copper: Production rose 11% year over year to 116,000 tons, with growth at QB, Highland Valley and Antamina. QB produced 47,000 tons, below Q2, after weather interruptions and its planned maintenance shutdown.
- QB disruption: Heavy snow, high winds and power outages in August affected the concentrator and critical systems; flooding in September reduced access to higher-grade ore and mine productivity. QB’s annual guidance remains 200,000-235,000 tons.
- Other operations: Carmen de Andacollo was suspended for an extended period and returned to full operations by September’s end; Teck expects its 2026 output at the low end of the 45,000-55,000-ton range.
- Zinc: Red Dog production declined 13% to 107,000 tons as planned lower grades took effect; Trail refined zinc production rose 18% to 62,000 tons. Zinc-in-concentrate and Trail production guidance is unchanged, with both expected at the high end of their ranges.
- Highland Valley strike: A strike began October 24, after quarter-end. The mine is operating at reduced capacity under contingency plans; the production impact depends on the duration, while Teck does not expect a significant effect on mine-life-extension construction timelines.
Cost guidance
- Copper costs: Quarterly net cash unit costs fell 15% year over year to $1.77 per pound. Full-year guidance narrowed to $1.80-$2.00 per pound from $1.85-$2.20, reflecting year-to-date performance and by-product pricing.
- Zinc costs: Quarterly net cash unit costs rose 59% to $0.27 per pound as lower Red Dog volumes lifted costs. Full-year net cash cost guidance was reduced to $0.30-$0.40 per pound from $0.65-$0.75; total cash cost guidance fell to $0.70-$0.80 from $0.80-$0.90.
- Cost drivers: Strong by-product revenues and operating discipline supported the guidance reductions. Teck noted that copper costs are particularly sensitive to WTI and silver prices, while zinc costs are most sensitive to silver.
Cash and returns
- Balance sheet: Net cash increased CAD 655 million in the quarter and CAD 1.7 billion year to date, reaching CAD 1.9 billion at September 30.
- Liquidity: Liquidity was CAD 10.9 billion, including CAD 6.7 billion of cash and an undrawn $3 billion sustainability-linked revolving credit facility.
- Shareholder return: Teck paid CAD 61 million in its regular quarterly dividend and declared a further dividend of $0.125 per share, payable December 31 to shareholders of record on December 15.
Merger and projects
- Anglo American transaction: The merger of equals remains on track, with integration planning advancing and China’s SAMR approval the last outstanding regulatory clearance. Teck continues to expect completion within 12-18 months of the September 2025 announcement.
- QB tailings facility: Q3 was the fourth consecutive quarter without TMF-related concentrator downtime. Rock Bench 6 construction began in the quarter, and the secondary cyclone system, bench construction and permanent pipeline work are targeted for completion in Q1 2027.
- Highland Valley extension: Construction was more than 25% complete, with CAD 230 million invested in Q3 and CAD 672 million year to date. Project capital guidance remains CAD 900 million-CAD 1.2 billion for 2026 and CAD 2.1 billion-CAD 2.4 billion in total; the extension is intended to sustain the mine through 2046.
- Growth options: San Nicolás received its main environmental impact assessment permits in July. Teck is also evaluating Red Dog mine-life extensions, with the existing operation currently expected to run to around 2031.
