Teck Resources (TSX: TECK.B) reported its Q3 2025 financials, posting quarterly revenue of $3.39 billion, up 18% year over year from last year’s $2.86 billion.
Copper sales were 110.3 thousand tonnes, similar to last year. Driven by higher prices that averaged US$4.44 per pound and lower smelter charges, Highland Valley contribution rose to $189 million from $89 million, Antamina rose to $295 million from $287 million, Quebrada Blanca was steady at $178 million, and Carmen de Andacollo increased to $78 million from $48 million.
Zinc gross profit before D&A was $454 million versus $358 million, with Trail Operations at $54 million versus $26 million and Red Dog at $390 million versus $333 million. Red Dog zinc sales of 272,800 tonnes exceeded the prior guidance range of 200,000 to 250,000 thousand tonnes.
Cost of sales increased 15% to $2.73 billion, but gross profit rose 38% to $660 million, lifting the gross margin to 19.5% from 16.7% a year ago. There was no asset impairment in the quarter versus $1.05 billion last year, a swing that largely explains the flip in operating results. Other operating income turned to a $50 million expense from $49 million income last year. All these led to profit from operations at $514 million compared with a $628 million operating loss in Q3 2024.
Net income came in at $133 million for the quarter versus a loss of $792 million a year ago, which included C$54 million of profit from discontinued operations. Diluted EPS was $0.57 versus a loss of $1.45 last year.
Adjusted profit ended at $372 million, up 18% from $314 million, or $0.76 per share versus $0.61. Adjusted EBITDA was $1.17 billion, up 19% from $986 million last year.
Net cash provided by operating activities was $647 million versus $162 million a year ago, aided by a smaller working capital outflow of $272 million versus the prior $468 million. Investing cash flow was an outflow of $526 million compared with an inflow of $9.06 billion in Q3 2024 when Teck recorded $9.64 billion of net proceeds from the sale of the steelmaking coal business. Continuing financing activities used $228 million compared with $2.77 billion outflow last year, reflecting lower share repurchases. The quarter ended with a $107 million decrease in cash versus a $6.37 billion increase last year.
Cash and cash equivalents then ended at $4.76 billion versus $7.23 billion at the end of the comparable period last year.
After slashing guidance following operational issues, the company guides 2025 production to 415,000 to 465,000 tonnes of copper and 525,000 to 575,000 tonnes of zinc, and refined zinc of 190,000 to 230,000 tonnes. Unit cost guidance is US$2.05 to US$2.30 per pound for copper and US$0.45 to US$0.55 per pound for zinc.
The financials comes on the heels of the announced merger between Teck and Anglo American guided to close in 12 to 18 months subject to approvals. The companies target US$800 million of annual pre-tax synergies with 80% run-rate by the end of year two post-close and a potential underlying EBITDA uplift of US$1.4 billion per year on average from 2030 to 2049.
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