Teck’s adjusted EBITDA jumps 97% as copper and zinc prices climb (NYSE: TECK)

Posted by Stephan Jacobs on Oct 30th, 2026

What happened

Teck Resources Limited (NYSE: TECK) reported third-quarter adjusted EBITDA of C$2.3 billion, up 97% from a year earlier.

In its unaudited results dated Oct. 28, Teck says the jump came mainly from much higher copper and zinc prices, higher by-product revenues and lower smelter processing charges. Profit attributable to shareholders was C$1.6 billion, or C$3.24 per share, compared with C$281 million, or C$0.58 per share, in the third quarter of 2025. Dollar amounts in this story are Canadian unless marked US$, matching the release.

Adjusted profit, which removes items such as the Trail impairment reversal, was C$923 million, or C$1.88 per share. A year earlier it was C$372 million, or C$0.76 per share.

Key numbers

Metric	Latest	Change	Source
Adjusted EBITDA, Q3	C$2.3 billion	from C$1.17 billion, +97%	SEC 6-K, Teck Q3 2026 news release
Profit attributable to shareholders, Q3	C$1.59 billion	from C$281 million	SEC 6-K, Teck Q3 2026 news release
Cash flow from operations, Q3	C$1.59 billion	from C$647 million, +145.7%	Calculated from SEC 6-K
Average LME copper price, Q3	US$6.40 per pound	from US$4.44 per pound, +44%	SEC 6-K, Teck Q3 2026 news release
Copper net cash unit costs, Q3	US$1.77 per pound	from US$2.09 per pound	SEC 6-K, Teck Q3 2026 news release
Copper gross profit before depreciation and amortization, Q3	C$1.58 billion	from C$740 million	SEC 6-K, Teck Q3 2026 news release

Where the gains came from

Copper did most of the work. The copper segment's gross profit before depreciation and amortization reached C$1.58 billion, up from C$740 million a year earlier. Its margin widened to 65% from 44%.

LME copper averaged US$6.40 per pound, up 44% from US$4.44, and Teck calls the prices a record. By OptimistFi's calculation, the higher realized copper price accounts for C$664 million of the C$868 million rise in copper gross profit, or 76.5%.

Costs also helped. Copper net cash unit costs fell to US$1.77 per pound from US$2.09, which Teck credits to strong cost performance and lower smelter processing charges. Copper production rose 11% to 115,700 tonnes.

Zinc added to the gain. The segment's gross profit before depreciation and amortization rose to C$638 million from C$454 million. Teck ties that rise to higher prices and its optimized feed strategy at Trail Operations. LME zinc averaged US$1.74 per pound, up 36%.

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Why it matters

OptimistFi has argued that Teck works only if scarce copper and zinc exposure turns into through-cycle cash flow, not just accounting profit. This quarter supports that view. Adjusted EBITDA grew by C$1.13 billion from C$1.17 billion a year earlier, and cash followed.

Cash flow from operations was C$1.59 billion, up 145.7% from C$647 million by OptimistFi's calculation. Teck's net cash position rose by C$655 million. Liquidity at Sept. 30 was C$10.9 billion, including C$6.7 billion of cash.

One-time items in reported profit

Reported profit is not a clean run rate. Teck booked an after-tax impairment reversal of C$667 million at Trail Operations. It cited higher long-term commodity price expectations, stronger strategic-metals fundamentals and better profitability from its feed strategy. It also recognized C$130 million of deferred tax assets and recovery tied to that reversal.

Pricing adjustments added C$101 million of after-tax gains, or C$0.21 per share. Part of the lower cost outlook also rests on prices. Teck cut its 2026 copper net cash unit cost guidance to US$1.80 to US$2.00 per pound from US$1.85 to US$2.20, citing strong by-product pricing. It also cut zinc net cash unit cost guidance to US$0.30 to US$0.40 from US$0.65 to US$0.75.

Operating and capital pressure points

Severe weather cut Quebrada Blanca (QB) copper output to 47,200 tonnes from 55,800 tonnes in the second quarter. The mine's 2026 guidance of 200,000 to 235,000 tonnes is unchanged. Extreme weather also shut Carmen de Andacollo for an extended period. Teck now expects 2026 copper production at the low end of its guidance.

At Highland Valley Copper (HVC), a strike by United Steelworkers Local 7619 began on Oct. 24. Operations continue at reduced capacity. Teck still expects HVC output toward the high end of its range, but the impact depends on how long the strike lasts. Teck also reported a fatality at the Antamina mine on Oct. 27.

Spending guidance is mixed. Growth capital guidance of C$1.3 billion to C$1.6 billion is unchanged and includes C$900 million to C$1.2 billion for HVC MLE. Sustaining capital is now expected in the top half of its range because of Rock Bench 6 at QB. Capitalized stripping is expected at the high end of C$455 million to C$560 million on higher diesel costs.

What's next

Teck says the Anglo American merger, announced Sept. 9, 2025, remains on track to close within the originally stated 12 to 18 months. It expects closing about 11 trading days after the last condition is met or waived. The companies expect annual pre-tax synergies of about US$800 million, with about 80% on a run-rate basis by the end of the second year after completion.

The nearest operating tests come in the first quarter of 2027. Teck expects to commission the secondary cyclone station at QB then. It also expects to finish Rock Bench 6 and the permanent tailings pipeline infrastructure. Delays would weaken the case for QB's steady-state output. Red Dog's shipping season is due to finish by early November, with fourth-quarter zinc in concentrate sales guided to 65,000 to 75,000 tonnes.