MP Materials' revenue falls short of expectations, stock price declines despite earnings surpassing expectations

2026-02-27 05:11:00

Investing.com – MP Materials Corp. (NYSE:MP) announced its Q4 earnings, showing that although profits exceeded expectations, revenue fell short, and the stock dropped 3% in after-hours trading on Thursday.

The rare earth materials company reported adjusted earnings per share of $0.09, surpassing the analyst consensus estimate of $0.02 by $0.07. However, revenue was $52.7 million, significantly below the expected $89.9 million, down 14% from $61 million in the same period last year.

The shortfall in revenue was mainly due to the company’s decision to stop selling all products to China starting July 2025, resulting in zero revenue from rare earth concentrate this quarter. This decline was partially offset by $19 million in sales of magnetic precursor products, which had no comparable revenue in the same period last year, as well as an $8.3 million increase in neodymium-praseodymium oxides and metals sales.

The company posted a net profit of $9.4 million this quarter, with an adjusted EBITDA of $39.2 million, a significant improvement from a net loss of $22.3 million and an adjusted EBITDA of negative $10.7 million in the same period last year. This improvement was mainly due to a price protection agreement with the U.S. Department of Defense starting October 1, 2025, which provided $51 million in price protection revenue this quarter.

Founder, Chairman, and CEO James Litinsky stated, “Operationally, we have been strict across the business — doubling the production of neodymium-praseodymium oxides at Mountain Pass and producing the first magnets on commercial-scale equipment at Independence.”

For the full year 2025, MP Materials produced a record 2,599 metric tons of neodymium-praseodymium oxides, up 101% year-over-year, and sold 1,994 metric tons, up 75%. The company also produced its first neodymium-iron-boron magnets on commercial equipment and secured a $200 million incentive plan to build a new magnetic materials plant in Northlake, Texas.

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