Teck Resources reported a strong third quarter of 2026, with adjusted EBITDA doubling to $2.3 billion despite operational challenges. The company's production increased 11% year-over-year to 116,000 tonnes of copper, driven by higher prices and by-product revenue. However, severe weather events and an ongoing strike at Highland Valley Copper impacted some operations, particularly at Carmen de Andacollo, where production declined 56% due to extreme weather.
The company's financial performance was highlighted by a 97% increase in adjusted EBITDA and an 86% surge in gross profit before depreciation and amortization. A notable pre-tax impairment reversal of $888 million on Trail Operations contributed to a significant year-over-year profit increase. Despite these strong results, Teck's shares fell 4.88% to close at $60.61 on the day of the announcement, with after-hours trading pushing the stock down another 1.37% to $59.78.
Teck demonstrated operational resilience, maintaining cost discipline and lowering its 2026 annual cash unit cost guidance for copper to $1.80-2.00 per pound. The company also made progress on its Quebrada Blanca optimization and Highland Valley Mine Life Extension projects, with the latter advancing to more than 25% completion. Safety performance remained strong, with zero fatalities reported through the third quarter.
The market reaction suggests investors are focusing on near-term operational disruptions and regulatory uncertainties surrounding the pending merger, rather than the quarterly beat. Teck's ability to navigate these challenges while maintaining strong financial performance will be key in the coming quarters.