Teck Resources beat Wall Street expectations for the third quarter of 2026, but its shares fell. The company reported adjusted earnings of $1.88 a share on revenue of $4.52 billion, above forecasts of $1.49 a share and $4.26 billion, according to the source.
Adjusted EBITDA doubled from a year earlier to CAD 2.3 billion, and the adjusted EBITDA margin rose to 51% from 35%. Cash flow from operations increased 147% to CAD 1.6 billion. Teck attributed the results to strong commodity pricing, disciplined execution and higher byproduct revenue.
The company also posted a pre-tax impairment reversal of CAD 888 million at its Trail operation. Teck said the reversal reflects stronger long-term commodity expectations and improved cash generation from its optimized feed strategy. Net cash rose CAD 655 million in the quarter to CAD 1.9 billion.
Copper production rose 11% year over year to 116,000 tons, Teck said. Severe weather affected several sites, including Quebrada Blanca in Chile and Carmen de Andacollo. A strike began at Highland Valley Copper on Oct. 24.
Teck lowered its 2026 cost guidance for copper and zinc while keeping annual production guidance unchanged. The company cut copper net cash unit cost guidance to $1.80 to $2.00 a pound from $1.85 to $2.20.
Shares fell 4.88% to close at $60.61, according to the source, and slipped another 1.37% after hours to $59.78. The source suggests investors focused on operational risks, the Highland Valley strike and the company's longer-term production outlook. No trading volume data was provided.
Chief Executive Jonathan Price said, "We've delivered another quarter of significant earnings growth and robust cash generation, underlying the strength of our business."