MP Materials (MP) Q4 2025 earnings summary

Executive summary

• Achieved record annual NdPr oxide and REO production in 2025, with NdPr output at 2,599 MT (+101% YoY) and REO at 50,692 MT (+12% YoY), alongside first commercial-scale magnet manufacturing and major strategic agreements.

• Announced Northlake, Texas as the site for the 10X magnetics facility, securing over $200 million in incentives and grants, with construction set to begin imminently.

• Entered significant offtake agreements, including a long-term supply deal with Apple for recycled rare earth magnets and a major public-private partnership with the U.S. Department of War.

• Ceased all sales to China in July 2025, impacting revenue mix and shifting focus to U.S. and strategic partners.

• Advanced heavy rare earth separation circuit, with commissioning for Dy/Tb separation on track for mid-year 2026.

Financial highlights

• FY25 consolidated revenue was $224.4 million, up 10% year-over-year, driven by higher NdPr sales and initial magnetic segment sales.

• Adjusted EBITDA improved significantly, reaching $102.5 million for FY25 and $39.2 million in Q4, supported by improved NdPr economics and PPA income.

• Adjusted Diluted EPS for FY25 was $0.39, compared to $(0.44) in FY24; Q4 Adjusted Diluted EPS was $0.09.

• Price protection agreement income totaled $51 million in Q4, supporting a $110/kg price floor.

• Cash, cash equivalents, and short-term investments at year-end totaled $1.83 billion, up from $850.9 million.

Outlook and guidance

• NdPr oxide production is expected to grow over 20% sequentially in Q1 2026, with a target of 6,000 MT annualized run rate by year-end.

• Dy/Tb separation commissioning remains on track for mid-year 2026.

• Initial magnet deliveries and revenue are expected in the second half of 2026, with continued ramp in the magnetics segment.

• Capital expenditures for 2026 are projected at $500 million–$600 million, mainly for the 10X facility and growth initiatives.

• Strong liquidity with over $1.8 billion in cash supports ongoing investments and operations.