Allied Critical Metals Inc. press release

MP Materials Reports Third Quarter 2025 Results

2025-11-06

CSE - Canadian National Stock Exchange · Tungsten · Tin · Copper · Silver · Molybdenum · Zinc · Bismuth · Lead · Rare Earth Elements · Uranium · Thorium · Gold · Canada · Corporate Finance

Record NdPr production of 721 metric tons, a 51% increase year over year

Second best quarterly REO production of 13,254 metric tons

DoW Price Protection Agreement commenced October 1, 2025

Return to profitability expected in Q4 2025 and beyond

MP Targets Mid-2026 for heavy rare earth commissioning with Dy/Tb production focus

Generated consolidated revenue of $53.6 million

Magnetics Segment continued to scale, generating $21.9 million in revenue and $9.5 million in Adjusted EBITDA

MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”), today announced financial and operational results for the three months ended September 30, 2025.

“MP Materials delivered another strong quarter, achieving record NdPr oxide production at Mountain Pass and record NdPr metal output at Independence,” said James Litinsky, Founder, Chairman, and CEO of MP Materials. “This performance underscores the momentum we are building at a pivotal time for our Company and Country. With key portions of our agreements with the Department of War commencing in the current quarter, we now have enhanced cash flow visibility to accelerate scaled magnet production in the United States—beginning with first commercial output from Independence by year-end.”

Heavy Rare Earth Production Update

MP plans to begin commissioning its new heavy rare earth separation facility at Mountain Pass in mid-2026. The facility is designed to process approximately 3,000 MT of feedstock per year and will initially prioritize production of dysprosium (Dy) and terbium (Tb). The Dy/Tb circuit will have a nameplate capacity of 200 MT per year and support MP’s planned production of 10,000 MT of high-performance NdFeB magnets per year.

Since late 2023, MP has been producing and stockpiling heavy rare earth concentrate (SEG+) at Mountain Pass. SEG+ contains medium rare earths samarium (Sm), europium (Eu), and gadolinium (Gd) and heavy rare earths Tb, Dy, Ho, Er, Tm, Yb, Lu, and Y. In addition to processing its own SEG+ feedstock, MP’s heavy rare earth facility will process third-party feedstocks from emerging sources. MP is actively engaging emerging suppliers and plans to integrate several sources over time.

Following initial Dy and Tb production, MP plans to commence production of additional heavy rare earth products, starting with Sm, in line with its agreement with the Department of War.

Third Quarter 2025 Consolidated Financial Highlights

| | For the three months ended September 30, | | 2025 vs. 2024 | | | | | | | | | | | | | (in thousands, except per share data, unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Financial Measures: | | | | | | | | | | | | | | | | Total revenue | $ | 53,553 | | | $ | 62,927 | | | $ | (9,374 | ) | | (15 | )% | | Net loss | $ | (41,780 | ) | | $ | (25,516 | ) | | $ | (16,264 | ) | | (64 | )% | | Adjusted EBITDA (1) | $ | (12,570 | ) | | $ | (11,168 | ) | | $ | (1,402 | ) | | (13 | )% | | Adjusted Net Loss (1) | $ | (17,835 | ) | | $ | (19,634 | ) | | $ | 1,799 | | | 9 | % | | Diluted loss per common share | $ | (0.24 | ) | | $ | (0.16 | ) | | $ | (0.08 | ) | | (50 | )% | | Adjusted Diluted EPS (1) | $ | (0.10 | ) | | $ | (0.12 | ) | | $ | 0.02 | | | 17 | % |

| (1) | | See “Use of Non-GAAP Financial Measures” below for the definitions. See tables below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. |

Third Quarter 2025 Consolidated Review

To align with the terms of the recent agreements with the United States Department of War (the “DoW”), formerly known as the Department of Defense, and in further support of our domestic supply chain objectives, we ceased all sales of our products to China, which resulted in no revenue recognized from rare earth concentrate during the quarter, driving the 15% decline in consolidated revenue year over year to $53.6 million. The decline in revenue was partially offset by $21.9 million of magnetic precursor products sales with no comparable revenue in the prior year period, coupled with an $11.7 million increase in NdPr oxide and metal sales driven by higher NdPr Production Volume as a result of ramping production of separated products over the last twelve months.

Adjusted EBITDA declined by $1.4 million year over year to $(12.6) million, driven mainly by the decline in rare earth concentrate revenue, partially offset by the sales of magnetic precursor products, which drove a $13.1 million year over year improvement in the Magnetics Segment Adjusted EBITDA. Materials Segment Adjusted EBITDA decreased by $12.0 million year over year mainly due to the net decrease in revenue discussed above.

Adjusted Net Loss improved by $1.8 million year over year to $(17.8) million, driven by a higher income tax benefit along with higher interest income due to increased cash and short-term investment balances. The improvement in Adjusted Net Loss was partially offset by higher depreciation expense resulting from an increase in capital assets placed into service over the last year.

Net loss increased by $16.3 million year over year to $(41.8) million, primarily driven by the net decrease in revenue, along with $17.0 million in higher Advanced projects and development expenses, which included transaction costs associated with the DoW agreements and transaction costs incurred to secure financing.

Diluted loss per common share (“EPS”) increased by $0.08 year over year to a diluted loss per common share of $(0.24), in line with the change in Net loss discussed above. Adjusted Diluted EPS increased by $0.02 to $(0.10) in line with the improved Adjusted Net Loss discussed above.

Third Quarter 2025 Segment Financial Highlights

| | For the three months ended September 30, | | 2025 vs. 2024 | | | | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Segment Financials: | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | Materials Segment | $ | 31,641 | | | $ | 62,927 | | | $ | (31,286 | ) | | (50 | )% | | Magnetics Segment | | 21,912 | | | | — | | | | 21,912 | | | N/M | | | Total revenue | $ | 53,553 | | | $ | 62,927 | | | $ | (9,374 | ) | | (15 | )% | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | | | | | | | | | | | | | | | | Materials Segment | $ | (14,522 | ) | | $ | (2,566 | ) | | $ | (11,956 | ) | | (466 | )% | | Magnetics Segment | | 9,481 | | | | (3,632 | ) | | | 13,113 | | | N/M | | | Total Segment Adjusted EBITDA | $ | (5,041 | ) | | $ | (6,198 | ) | | $ | 1,157 | | | 19 | % | | Corporate and other (2) | | (7,529 | ) | | | (4,970 | ) | | | (2,559 | ) | | (51 | )% | | Adjusted EBITDA (3) | $ | (12,570 | ) | | $ | (11,168 | ) | | $ | (1,402 | ) | | (13 | )% |

| N/M = Not meaningful. | | | | (1) | | Segment Adjusted EBITDA is management’s measure of profit or loss required by GAAP in assessing segment performance and deciding how to allocate the Company’s resources. See “Segment Information” below for further information. | | (2) | | Corporate and other is not considered a reportable segment, and is presented solely to reconcile the total of Segment Adjusted EBITDA to Adjusted EBITDA on a consolidated basis. Corporate and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to executive compensation, investor relations, other corporate costs, and unallocated shared service functions such as legal, information technology, human resources, finance and accounting and supply chain. | | (3) | | See “Use of Non-GAAP Financial Measures” below for definition. See table below for a reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure, net income or loss. |

Third Quarter 2025 Materials Segment Financial and Operational Results

| | For the three months ended September 30, | | 2025 vs. 2024 | | | | | | | | | | | | | (unaudited) | | 2025 | | | | 2024 | | | Amount Change | | % Change | | | | | Revenue: | (in thousands) | | | | | | | | | | | | | | | Rare earth concentrate | $ | — | | | $ | 43,053 | | | $ | (43,053 | ) | | N/M | | | NdPr oxide and metal | | 30,911 | | | | 19,179 | | | | 11,732 | | | 61 | % | | Other revenue | | 730 | | | | 695 | | | | 35 | | | 5 | % | | Total Materials Segment revenue | $ | 31,641 | | | $ | 62,927 | | | $ | (31,286 | ) | | (50 | )% | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | (14,522 | ) | | $ | (2,566 | ) | | $ | (11,956 | ) | | (466 | )% | | | | | | | | | | | | | | | | | | Key Performance Indicators (2) : | (in whole units or dollars) | | | | | | | | | | | | | | | Rare earth concentrate | | | | | | | | | | | | | | | | REO Production Volume (MTs) | | 13,254 | | | | 13,742 | | | | (488 | ) | | (4 | )% | | REO Sales Volume (MTs) | | — | | | | 9,729 | | | | (9,729 | ) | | N/M | | | Realized Price per REO MT | $ | — | | | $ | 4,425 | | | $ | (4,425 | ) | | N/M | | | Separated NdPr products | | | | | | | | | | | | | | | | NdPr Production Volume (MTs) | | 721 | | | | 478 | | | | 243 | | | 51 | % | | NdPr Sales Volume (MTs) | | 525 | | | | 404 | | | | 121 | | | 30 | % | | NdPr Realized Price per KG | $ | 59 | | | $ | 47 | | | $ | 12 | | | 26 | % |

| N/M = Not meaningful. | | | | (1) | | See “Segment Information” below for further information. | | (2) | | See “Key Performance Indicators” below for definitions and further information. |

Third Quarter 2025 Materials Segment Review

Materials Segment revenue decreased 50% to $31.6 million year over year, driven by the cessation of all REO sales to third parties in July 2025, which resulted in no revenue recognized from rare earth concentrate during the quarter. The decrease in revenue was partially offset by an $11.7 million increase in NdPr oxide and metal sales due to a 30% increase in NdPr Sales Volumes and a 26% increase in market prices. The increase in NdPr Sales Volumes was driven by the continued transition to production of NdPr oxide. REO Production Volumes decreased 4% year over year to 13,254 metric tons.

Materials Segment Adjusted EBITDA declined by $12.0 million year over year to $(14.5) million, primarily due to the net decrease in revenue discussed above. The Materials Segment cost of sales (“Segment COS”) decreased by $19.6 million, driven by the decrease in sales of rare earth concentrate, partially offset by the transition to sales of separated rare earth products, primarily NdPr oxide, which have higher per-unit production costs. Per-unit production costs of separated products are necessarily higher than those of rare earth concentrate due to the additional processing required. Separated product production costs on a per-unit basis are currently elevated given the temporary underutilization of the refining facilities as we ramp to normalized production levels.

Third Quarter 2025 Magnetics Segment Financial Results

| | For the three months ended September 30, | | 2025 vs. 2024 | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | 2024 | | | Amount Change | | % Change | | | Revenue: | | | | | | | | | | | | | Magnetic precursor products | $ | 21,912 | | $ | — | | | $ | 21,912 | | N/M | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | 9,481 | | $ | (3,632 | ) | | $ | 13,113 | | N/M |

| N/M = Not meaningful. | | | | (1) | | See “Segment Information” below for further information. |

Third Quarter 2025 Magnetics Segment Review

Revenues in the Magnetics segment were $21.9 million for the three months ended September 30, 2025, as the initial magnetic precursor product deliveries began during the first quarter of 2025. There were no corresponding sales in the prior year period. The sales also drove the year-over-year increase in the Magnetics Segment Adjusted EBITDA.

| | | | | | | | | | MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | | | | September 30, 2025 | | December 31, 2024 | | | | | | (U.S dollars in thousands, except share and per share data, unaudited) | | | | | | | | | Assets | | | | | | | | | Current assets | | | | | | | | | Cash and cash equivalents | $ | 1,147,155 | | | $ | 282,442 | | | Short-term investments | | 793,217 | | | | 568,426 | | | Total cash, cash equivalents and short-term investments | | 1,940,372 | | | | 850,868 | | | Accounts receivable | | 14,792 | | | | 18,874 | | | Inventories | | 144,366 | | | | 107,905 | | | Income taxes receivable | | 23,805 | | | | 23,672 | | | Government grant receivable | | 35,856 | | | | 19,799 | | | Prepaid expenses and other current assets | | 15,160 | | | | 10,204 | | | Total current assets | | 2,174,351 | | | | 1,031,322 | | | Non-current assets | | | | | | | | | Property, plant and equipment, net | | 1,306,159 | | | | 1,251,496 | | | Inventories | | 62,779 | | | | 19,031 | | | Price protection agreement upfront asset | | 221,102 | | | | — | | | Other non-current assets | | 33,923 | | | | 31,709 | | | Total non-current assets | | 1,623,963 | | | | 1,302,236 | | | Total assets | $ | 3,798,314 | | | $ | 2,333,558 | | | Liabilities, redeemable preferred stock and stockholders’ equity | | | | | | | | | Current liabilities | | | | | | | | | Accounts and construction payable | $ | 25,382 | | | $ | 23,562 | | | Accrued liabilities | | 77,977 | | | | 64,727 | | | Current portion of long-term debt | | 67,522 | | | | — | | | Deferred revenue | | 82,241 | | | | 56,880 | | | Other current liabilities | | 17,055 | | | | 18,850 | | | Total current liabilities | | 270,177 | | | | 164,019 | | | Non-current liabilities | | | | | | | | | Long-term debt, net of current portion | | 929,745 | | | | 908,729 | | | Deferred revenue | | 62,495 | | | | 43,120 | | | Deferred government grant | | 22,069 | | | | 20,087 | | | Deferred investment tax credit | | 21,382 | | | | 25,502 | | | Deferred income taxes | | 55,863 | | | | 85,309 | | | Other non-current liabilities | | 58,163 | | | | 31,912 | | | Total non-current liabilities | | 1,149,717 | | | | 1,114,659 | | | Total liabilities | | 1,419,894 | | | | 1,278,678 | | | Commitments and contingencies | | | | | | | | | Redeemable preferred stock: | | | | | | | | | Series A cumulative perpetual convertible preferred stock ($0.0001 par value, 400,000 and zero shares authorized, issued and outstanding as of September 30, 2025, and December 31, 2024, respectively; aggregate liquidation preference of $406,378 and zero as of September 30, 2025 and December 31, 2024, respectively) | | 413,611 | | | | — | | | Stockholders’ equity: | | | | | | | | | Preferred stock, undesignated ($0.0001 par value, 49,600,000 and 50,000,000 shares authorized as of September 30, 2025, and December 31, 2024, respectively, zero issued and outstanding in either period) | | — | | | | — | | | Common stock ($0.0001 par value, 450,000,000 shares authorized, 192,461,009 and 178,445,570 shares issued, and 177,211,227 and 163,195,788 shares outstanding, as of September 30, 2025, and December 31, 2024, respectively) | | 19 | | | | 18 | | | Additional paid-in capital | | 1,966,537 | | | | 961,434 | | | Retained earnings | | 225,002 | | | | 320,302 | | | Accumulated other comprehensive income | | 298 | | | | 173 | | | Treasury stock, at cost, 15,249,782 shares for both periods | | (227,047 | ) | | | (227,047 | ) | | Total stockholders’ equity | | 1,964,809 | | | | 1,054,880 | | | Total liabilities, redeemable preferred stock and stockholders’ equity | $ | 3,798,314 | | | $ | 2,333,558 | | | | | | | | | | |

| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | | | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (U.S. dollars in thousands, except share and per share data, unaudited) | For the three months ended September 30, | | For the nine months ended September 30, | | | | | | | | | | | | | | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | | Revenue | $ | 53,553 | | | $ | 62,927 | | | $ | 171,756 | | | $ | 142,869 | | | Operating expenses and income: | | | | | | | | | | | | | | | | | Cost of sales (excluding depreciation, depletion and amortization) | | 48,477 | | | | 57,266 | | | | 147,739 | | | | 134,323 | | | Selling, general and administrative | | 28,405 | | | | 21,525 | | | | 80,000 | | | | 64,226 | | | Depreciation, depletion and amortization | | 22,497 | | | | 19,344 | | | | 64,658 | | | | 55,939 | | | Start-up costs | | 1,413 | | | | 1,627 | | | | 3,150 | | | | 4,287 | | | Advanced projects and development | | 19,026 | | | | 2,051 | | | | 21,996 | | | | 8,143 | | | Other operating costs and expenses (income), net | | 758 | | | | 654 | | | | (104 | ) | | | 1,415 | | | Total operating expenses, net | | 120,576 | | | | 102,467 | | | | 317,439 | | | | 268,333 | | | Operating loss | | (67,023 | ) | | | (39,540 | ) | | | (145,683 | ) | | | (125,464 | ) | | Interest expense, net | | (8,566 | ) | | | (6,646 | ) | | | (21,595 | ) | | | (16,248 | ) | | Gain on early extinguishment of debt | | — | | | | — | | | | — | | | | 46,265 | | | Other income, net | | 17,157 | | | | 11,320 | | | | 38,947 | | | | 36,061 | | | Loss before income taxes | | (58,432 | ) | | | (34,866 | ) | | | (128,331 | ) | | | (59,386 | ) | | Income tax benefit | | 16,652 | | | | 9,350 | | | | 33,031 | | | | 16,304 | | | Net loss | $ | (41,780 | ) | | $ | (25,516 | ) | | $ | (95,300 | ) | | $ | (43,082 | ) | | | | | | | | | | | | | | | | | | | Loss per common share: | | | | | | | | | | | | | | | | | Basic | $ | (0.24 | ) | | $ | (0.16 | ) | | $ | (0.57 | ) | | $ | (0.26 | ) | | Diluted | $ | (0.24 | ) | | $ | (0.16 | ) | | $ | (0.57 | ) | | $ | (0.44 | ) | | | | | | | | | | | | | | | | | | | Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | Basic | | 175,034,287 | | | | 164,149,348 | | | | 167,585,724 | | | | 168,002,773 | | | Diluted | | 175,034,287 | | | | 164,149,348 | | | | 167,585,724 | | | | 172,066,214 | | | | | | | | | | | | | | | | | | |

| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | | | | | | | | For the nine months ended September 30, | | | | | | | | (U.S. dollars in thousands, unaudited) | | 2025 | | | | 2024 | | | Operating activities: | | | | | | | | | Net loss | $ | (95,300 | ) | | $ | (43,082 | ) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | Depreciation, depletion and amortization | | 64,658 | | | | 55,939 | | | Accretion of discount on short-term investments | | (17,598 | ) | | | (23,669 | ) | | Gain on early extinguishment of debt | | — | | | | (46,265 | ) | | Stock-based compensation expense | | 20,591 | | | | 18,623 | | | Amortization of debt discount and debt issuance costs | | 3,572 | | | | 2,864 | | | Lower of cost or net realizable value reserve | | 6,352 | | | | 15,085 | | | Deferred income taxes | | (29,489 | ) | | | (16,240 | ) | | Other | | (4,100 | ) | | | 1,957 | | | Decrease (increase) in operating assets: | | | | | | | | | Accounts receivable | | 4,082 | | | | (4,520 | ) | | Inventories | | (84,068 | ) | | | (42,851 | ) | | Government grant receivable | | (16,057 | ) | | | 11,456 | | | Prepaid expenses, other current and non-current assets | | (7,613 | ) | | | (2,390 | ) | | Increase (decrease) in operating liabilities: | | | | | | | | | Accounts payable and accrued liabilities | | 7,057 | | | | (1,303 | ) | | Deferred revenue | | 44,736 | | | | 50,000 | | | Deferred government grant | | 3,923 | | | | 4,086 | | | Other current and non-current liabilities | | (9,647 | ) | | | 3,182 | | | Net cash used in operating activities | | (108,901 | ) | | | (17,128 | ) | | Investing activities: | | | | | | | | | Additions to property, plant and equipment | | (109,969 | ) | | | (144,768 | ) | | Purchases of short-term investments | | (1,391,257 | ) | | | (1,150,609 | ) | | Proceeds from sales of short-term investments | | 88,658 | | | | 131,776 | | | Proceeds from maturities of short-term investments | | 1,095,557 | | | | 1,195,202 | | | Proceeds from return of investment in equity method investee | | 9,673 | | | | — | | | Proceeds from sale of property, plant and equipment | | 4,063 | | | | — | | | Proceeds from government awards used for construction | | 24,200 | | | | 96 | | | Net cash provided by (used in) investing activities | | (279,075 | ) | | | 31,697 | | | Financing activities: | | | | | | | | | Proceeds from issuance of long-term debt | | 61,540 | | | | 747,500 | | | Proceeds from issuance of common stock | | 747,500 | | | | — | | | Proceeds from issuance of Series A preferred stock | | 299,402 | | | | — | | | Proceeds from issuance of warrant | | 189,058 | | | | — | | | Payments of debt issuance costs | | (3,004 | ) | | | (16,149 | ) | | Payments to retire long-term debt | | — | | | | (428,599 | ) | | Payments of equity issuance costs | | (31,104 | ) | | | — | | | Purchase of capped call options | | — | | | | (65,332 | ) | | Repurchases of common stock | | — | | | | (225,068 | ) | | Principal payments on debt obligations and finance leases | | (5,003 | ) | | | (1,738 | ) | | Tax withholding on stock-based awards | | (5,524 | ) | | | (4,577 | ) | | Net cash provided by financing activities | | 1,252,865 | | | | 6,037 | | | Net change in cash, cash equivalents and restricted cash | | 864,889 | | | | 20,606 | | | Cash, cash equivalents and restricted cash beginning balance | | 283,603 | | | | 264,988 | | | Cash, cash equivalents and restricted cash ending balance | $ | 1,148,492 | | | $ | 285,594 | | | | | | | | | | | | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | Cash and cash equivalents | $ | 1,147,155 | | | $ | 284,434 | | | Restricted cash, current | | 799 | | | | 811 | | | Restricted cash, non-current | | 538 | | | | 349 | | | Total cash, cash equivalents and restricted cash | $ | 1,148,492 | | | $ | 285,594 | | | | | | | | | | |