Lynas Rare Earths (LYC) Q4 2025 earnings summary

Executive summary

• Achieved record NdPr production of 2,080t, exceeding 2,000t in the quarter, and first commercial production of separated heavy rare earths (Dy and Tb) outside China in decades at Mount Weld and Malaysia.

• Sales revenue rose 38% quarter-over-quarter to A$170.2m, with sales receipts of A$152.7m.

• Completed major construction for the Mount Weld expansion on time and on budget, with transition to renewable energy underway, including solar farm and wind turbine installations.

• Signed MOUs for upstream rare earth development in Malaysia and downstream magnet manufacturing with JSLink in Korea.

• Positioned as the only scale producer of both light and heavy rare earths outside China, with strong competitive advantage.

Financial highlights

• Quarterly gross sales revenue: A$170.2m, up from A$123.0m in Q3 FY25 and A$136.6m in Q4 FY24; sales receipts: A$152.7m.

• Sold NdPr and heavy rare earths (dysprosium and terbium oxides) at premium prices, with selective customer engagement due to limited material.

• Maintained positive operating cash flow despite a soft pricing year and increased operating costs from ramp-up and new facilities.

• Average selling price reached A$60.2/kg, highest since July 2022.

• No significant additional capital required for Kalgoorlie; trailing capital payments remain for Mount Weld and Kalgoorlie expansions.

Outlook and guidance

• Focused on matching production to market demand, especially as ex-China magnet manufacturing capacity grows.

• FY25 marks the end of major capital investment phase; future investments will be targeted and returns-focused.

• Market volatility expected to persist due to global trade uncertainties, but direct end customer demand and new magnet maker projects are increasing.

• Stage 2 of Mt Weld expansion project expected to ramp up in Q1 FY26.

• Anticipates continued growth in East and Southeast Asia, with Japan remaining a foundational market.