Neo Performance Materials (NEO) investor relations material

Executive summary

• Achieved record Q2 2026 Adjusted EBITDA of $57 million, up over 200% year-over-year, and revenue of $205.7 million, a nearly 80% increase from the prior year, with all business segments contributing to growth through strong demand, operational execution, and favorable pricing.

• Raised full-year 2026 Adjusted EBITDA guidance to $140–$150 million, nearly double the prior year, with expectations to reach or exceed the top end.

• Strategic investments and expansion in European magnet operations and rare earth processing are underway, supported by a CAD 115 million equity/treasury offering.

• Major investments in capacity and technology include commissioning a heavy rare earth separation line and launching new magnet programs in Europe.

• Multi-year agreements and program awards secured with tier 1 motor manufacturers and partners such as Bosch and Honda.

Financial highlights

• Q2 2026 Adjusted EBITDA reached $57 million, a new all-time high, with a margin of 27.7%, and Adjusted Net Income was $23.7 million ($0.55 per share), up from $8.7 million ($0.21 per share) in Q2 2025.

• Q2 2026 revenue was $205.7 million, up from $114.7 million in Q2 2025; YTD 2026 revenue totaled $360.7 million.

• Magnequench revenue was $64.3 million, with Adjusted EBITDA of $10.5 million (up 39–40% YoY), and bonded magnet shipments rose 35%.

• Chemicals & Oxides revenue was $37.4 million, Adjusted EBITDA $8.5 million (up 56% YoY), with emission catalyst volumes up 7%.

• Rare Metals revenue was $106.3 million, Adjusted EBITDA $44.4 million (up 313% YoY), driven by record pricing and volumes in hafnium, gallium, and tantalum.

Outlook and guidance

• Full-year 2026 Adjusted EBITDA guidance raised to $140–$150 million, with management expecting to reach the high end, reflecting higher contracted volumes and strong pricing.

• Growth opportunities include ramping European magnet production, expansion in gallium recycling, and new rare earth-based products.

• Increased contracted volumes secured through 2026 and into 2027, especially for hafnium, gallium, and tantalum.

• Guidance assumes minimal spot sales in H2 2026, with potential upside if spot sales materialize.

• Strategic priorities and capacity expansions position the company for continued growth through 2026 and beyond.