Improved performance at Teck Trail Operations contributed significantly to the company’s strong first quarter results, as higher commodity prices and strong metals sales lifted profits across its base metals business.
Teck reported gross profit before depreciation and amortization of $225 million from its zinc business, an increase of 79 per cent compared to the same period last year, according to results released Wednesday (April 23).
The company said the improvement was driven by stronger zinc prices, higher sales volumes at its Red Dog mine in Alaska, and a sharp rise in profitability at the Trail plant.
Gross profit before depreciation and amortization at Trail rose to $80 million in the first quarter, up from $25 million a year earlier — more than tripling year-over-year.
Trail Operations, one of the world’s largest integrated zinc and lead smelting and refining complexes, remains a key contributor to Teck’s financial performance, particularly when zinc market conditions are favourable.
Across all divisions, Teck posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $927 million in the quarter, more than double the $409 million recorded in the first quarter of 2024.
Revenue rose to $2.29 billion, up from $1.62 billion a year earlier, according to the first quarter report.
Chief executive officer Jonathan Price said Teck’s results reflect its strategy of balancing growth investments with shareholder returns.
“Our strong balance sheet and commercial strategy provide us with resilience and the ability to continue to create value amidst market uncertainty,” Price said in a statement.
Teck ended the quarter with a net cash position of $764 million and total liquidity of $10 billion, including $5.8 billion in cash.
Between January and April 23, the company reported returning $505 million to shareholders through buybacks, completing $1.75 billion of a planned $3.25 billion program.
While Teck said its future growth is increasingly tied to major copper projects such as Quebrada Blanca Phase 2 in Chile, it reported that Trail Operations continue to provide reliable profitability, reinforcing its base metals platform.
Teck’s full first quarter financial results are available on its website.
