Lynas Rare Earths (LYC) Q2 2026 earnings summary

Executive summary

• CEO Amanda Lacaze announced her retirement effective at the end of June, following a period of strong operational and financial performance.

• Quarterly gross sales revenue reached A$201.9m, up 43% year-over-year, with sales receipts at A$185.0m.

• The business is described as resilient, with a robust balance sheet, successful completion of the Lynas 2025 capital program, and a clear strategy towards 2030.

• Despite power outages at Kalgoorlie, the quarter delivered strong sales and operational results, with maintenance programs completed and production resuming smoothly.

• NdPr production was 1,404t, down 30% sequentially due to power disruptions and maintenance.

Financial highlights

• Sales of NdPr exceeded production, resulting in inventory drawdown, with expectations to replenish inventory in future quarters.

• Average realized prices for rare earths, especially NdPr, were significantly above consensus forecasts, with average selling price across all rare earth products at A$85.60/kg, up from A$49.2/kg year-over-year.

• Closing cash and short-term deposits stood at A$1,030.9m at quarter end, with substantial positive bank deposits maintained.

• Payments for capex, exploration, and development totaled A$45.2m for the quarter.

• Cash costs appeared higher due to lower production volumes and timing differences between cash outflows and production, with a more accurate cost picture expected in the half-year report.

Outlook and guidance

• The company targets an annual NdPr production capacity of 10,500 tons, with ongoing ramp-up efforts and a focus on achieving reliable daily production rates.

• Production losses from the December quarter are expected to be recovered in subsequent quarters, assuming stable power supply at Kalgoorlie.

• First production of Samarium from the expanded HRE circuit in Malaysia is forecast for Q4 FY26, with no delay in the heavy rare earth circuit expansion.

• Positive market sentiment and higher benchmark pricing continued into January 2026.