MP Materials Reports Fourth Quarter and Full Year 2024 Results

2025-02-20

NYSE - New York Stock Exchange · Copper · Gold · Molybdenum · United States

Commenced commercial production of NdPr metal at Independence

Began trial production of automotive-grade magnets

Achieved record production of 45,455 metric tons of REO in concentrate in 2024

Produced record 1,294 metric tons of NdPr oxide in 2024

Generated fourth quarter revenues of $61.0 million, a 48% increase year over year

MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”), today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Commenced commercial production of NdPr metal at Independence Began trial production of automotive-grade magnets Produced 11,478 metric tons of rare earth oxides (“REO”) in concentrate, a record for a quarter with a planned maintenance shutdown and sold 7,803 metric tons Produced 413 metric tons of NdPr oxide and sold 468 metric tons Increased revenues 48% year over year to $61.0 million Received second $50.0 million customer prepayment for magnetic precursor production at the Independence facility

Full Year 2024 Highlights

Produced record 45,455 metric tons of REO in concentrate Produced record 1,294 metric tons of NdPr oxide Signed NdPr supply agreements with a major global automaker as well as the Department of Defense Received $100.0 million in customer prepayments for magnetic precursor production Awarded $58.5 million 48C tax credit for Independence facility Repurchased 8.6% of outstanding shares for $225.1 million ($14.76/share) Extended vast majority of debt maturities to 2030 while retiring 90.2% of 2026 notes at a discount

“MP had a terrific year of execution across our materials and magnetics divisions,” said MP Materials Chairman and CEO, James Litinsky. “Notably, we achieved record upstream and midstream production at Mountain Pass and, in the fourth quarter, commenced commercial production of NdPr metal and trial production of automotive-grade magnets at Independence. As global supply chains face increasing scrutiny and the world races to secure the building blocks of physical AI, MP stands at the forefront, providing a domestic solution for the essential technologies of the future.”

Fourth Quarter and Full Year 2024 Consolidated Financial Highlights

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | (in thousands except per share data, unaudited) | | 2024 | | | | 2023 | | | | 2024 | | | 2023 | | | Financial Measures: | | | | | | | | | | | | | | | | Revenue | $ | 60,986 | | | $ | 41,205 | | | $ | 203,855 | | | $ | 253,445 | | Net income (loss) | $ | (22,342 | ) | | $ | (16,259 | ) | | $ | (65,424 | ) | | $ | 24,307 | | Adjusted EBITDA (1) | $ | (10,707 | ) | | $ | 1,300 | | | $ | (50,168 | ) | | $ | 102,502 | | Adjusted Net Income (Loss) (1) | $ | (18,942 | ) | | $ | (3,998 | ) | | $ | (74,104 | ) | | $ | 71,378 | | Diluted EPS | $ | (0.14 | ) | | $ | (0.09 | ) | | $ | (0.57 | ) | | $ | 0.14 | | Adjusted Diluted EPS (1) | $ | (0.12 | ) | | $ | (0.02 | ) | | $ | (0.44 | ) | | $ | 0.39 |

| (1) | | See “Use of Non-GAAP Financial Measures” below for the definitions of Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Diluted EPS. See tables below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. |

Fourth Quarter 2024 Consolidated Review

Revenue increased 48% year-over-year to $61.0 million, driven by higher sales in the Materials Segment primarily driven by higher NdPr oxide and metal sales due to the transition to midstream production of separated products.

Adjusted EBITDA declined by $12.0 million year-over-year to $(10.7) million, driven primarily by elevated production costs in the Materials Segment mainly due to the initial ramp of production of separated products.

Adjusted Net Loss increased by $14.9 million year-over-year to $(18.9) million, driven mainly by the lower Adjusted EBITDA discussed above, as well as higher interest expense from the new 2030 convertible notes (“2030 Notes”) issued in the first quarter of 2024, lower interest income, and higher depreciation expense from additional midstream and downstream capital assets placed into service over the last year. These changes were partially offset by a larger tax benefit due to a higher pre-tax loss.

Net loss increased by $6.1 million year-over-year to $(22.3) million, primarily due to the factors driving the change in Adjusted Net Loss discussed above, partially offset by a $6.6 million gain associated with the early extinguishment of a portion of convertible notes due in 2026 (“2026 Notes”) in the current quarter, as well as lower start-up costs and advanced projects and development expenses in the current quarter.

Diluted earnings per share (“EPS”) and Adjusted Diluted EPS decreased by $0.05 and $0.10 year-over-year, respectively, to $(0.14) and $(0.12), respectively, in line with the change in net loss and Adjusted Net Loss discussed above. Diluted EPS and Adjusted Diluted EPS were also impacted by a lower average share count in the current quarter, driven primarily by the repurchase of 15.2 million shares in 2024.

Full Year 2024 Consolidated Review

Revenue decreased 20% to $203.9 million compared to 2023 primarily as a result of lower Realized Price per REO metric ton (“MTs”), as well as lower REO Sales Volume in the Materials Segment as production of separated products ramped.

Adjusted EBITDA declined $152.7 million year-over-year to $(50.2) million, driven primarily by elevated production costs mainly due to the initial ramp of production of separated products, as well as lower realized prices in the Materials Segment in 2024.

Adjusted Net Income (Loss) decreased by $145.5 million year-over-year to $(74.1) million, driven mainly by the change in Adjusted EBITDA discussed above as well as higher depreciation expense from additional midstream and downstream capital assets placed into service in 2023 and 2024, increased interest expense from the new 2030 Notes and lower interest income. These changes were partially offset by a tax benefit due to a pre-tax loss in 2024 compared to tax expense on pre-tax income in 2023.

Net income (loss) decreased by $89.7 million year-over-year to $(65.4) million, driven by the factors impacting the decrease in Adjusted Net Income (Loss) discussed above, partially offset by a $52.9 million pre-tax gain on the early extinguishment of debt, as well as lower start-up costs from the beginning of midstream production, both in 2024.

Diluted EPS and Adjusted Diluted EPS decreased by $0.71 and $0.83, respectively, compared to 2023, to diluted EPS of $(0.57) and Adjusted Diluted EPS $(0.44), in line with the change in net income (loss) and Adjusted Net Income (Loss) discussed above. Diluted EPS was also impacted by the dilutive effect of the 2026 Notes repurchased in March of 2024. Diluted EPS and Adjusted Diluted EPS were also impacted by a lower average share count in 2024, driven primarily by the repurchase of 15.2 million shares in 2024.

Fourth Quarter and Full Year 2024 Segment Financial Highlights

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (in thousands, unaudited) | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | | | Segment Financials: | | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | | Materials Segment | $ | 60,986 | | | $ | 41,205 | | | $ | 203,855 | | | $ | 253,445 | | | Magnetics Segment | | — | | | | — | | | | — | | | | — | | | Total revenue | $ | 60,986 | | | $ | 41,205 | | | $ | 203,855 | | | $ | 253,445 | | | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | | | | | | | | | | | | | | | | | Materials Segment | $ | (1,319 | ) | | $ | 9,176 | | | $ | (14,148 | ) | | $ | 130,392 | | | Magnetics Segment | | (3,061 | ) | | | (2,357 | ) | | | (12,224 | ) | | | (6,522 | ) | | Total Segment Adjusted EBITDA | $ | (4,380 | ) | | $ | 6,819 | | | $ | (26,372 | ) | | $ | 123,870 | | | Corporate and other (2) | | (6,327 | ) | | | (5,519 | ) | | | (23,796 | ) | | | (21,368 | ) | | Adjusted EBITDA (3) | $ | (10,707 | ) | | $ | 1,300 | | | $ | (50,168 | ) | | $ | 102,502 | |

| (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. |

Fourth Quarter and Full Year 2024 Materials Segment Financial and Operational Results

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | (unaudited) | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | Revenue: | (in thousands) | | | | | | | | | | | | | | Rare earth concentrate | $ | 36,808 | | | $ | 40,329 | | $ | 144,363 | | | $ | 252,468 | | NdPr oxide and metal | | 23,725 | | | | 695 | | | 57,762 | | | | 695 | | Other revenue | | 453 | | | | 181 | | | 1,730 | | | | 282 | | Total revenue | $ | 60,986 | | | $ | 41,205 | | $ | 203,855 | | | $ | 253,445 | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | (1,319 | ) | | $ | 9,176 | | $ | (14,148 | ) | | $ | 130,392 | | | | | | | | | | | | | | | | | Key Performance Indicators (2) : | (in whole units or dollars) | | | | | | | | | | | | | | Rare earth concentrate | | | | | | | | | | | | | | | REO Production Volume (MTs) | | 11,478 | | | | 9,257 | | | 45,455 | | | | 41,557 | | REO Sales Volume (MTs) | | 7,803 | | | | 7,174 | | | 32,703 | | | | 36,837 | | Realized Price per REO MT | $ | 4,717 | | | $ | 5,622 | | $ | 4,414 | | | $ | 6,854 | | Separated NdPr products | | | | | | | | | | | | | | | NdPr Production Volume (MTs) | | 413 | | | | 150 | | | 1,294 | | | | 200 | | NdPr Sales Volume (MTs) | | 468 | | | | 10 | | | 1,142 | | | | 10 | | NdPr Realized Price per KG | $ | 51 | | | $ | 70 | | $ | 51 | | | $ | 70 |

| (1) | | See “Segment Information” below for further information. | | (2) | | See “Key Performance Indicators” below for definitions and further information. |

Fourth Quarter 2024 Materials Segment Review

Materials Segment revenue increased 48% to $61.0 million year-over-year, driven by a $23.0 million increase in NdPr oxide and metal sales due to the transition to production of midstream products, primarily NdPr oxide, which began in the fourth quarter of 2023. The increase in revenue was aided by a 9% increase in REO Sales Volume driven in part by higher upstream production volumes, partially offset by a 16% decrease in the Realized Price per REO MT due to a continued soft pricing environment for rare earth products.

Materials Segment Adjusted EBITDA declined $10.5 million to $(1.3) million year-over-year, driven mainly by higher Materials Segment cost of sales (“Segment COS”) due to elevated production costs associated with separated rare earth products production ramp toward normalized capacity. Segment COS was also impacted by a $6.4 million write-down of certain separated product inventories, primarily related to Lanthanum production, which was more than offset by an $8.4 million credit from the Section 45X Tax Credit in the quarter, which benefited from a favorable final rule making by the IRS in October.

Full Year 2024 Materials Segment Review

Materials Segment revenue decreased 20% to $203.9 million year-over-year, driven by a 36% decline in Realized Price per REO MT and an 11% decline in REO MTs sold in the year, partially offset by a $57.1 million increase in NdPr oxide and metal sales in 2024. The decline in realized price reflected the softer pricing environment for rare earth products in the year. The decline in REO MTs sold and the increase in NdPr oxide and metal sales was primarily due to the ramp-up in midstream operations, as a significantly higher portion of REO produced was not sold as concentrate but instead refined and sold as NdPr oxide and metal during 2024.

Materials Segment Adjusted EBITDA declined $144.5 million to $(14.1) million year-over-year, driven mainly by higher Materials Segment COS due to higher production costs associated with the increased sales volumes of NdPr oxide in 2024 from the continued ramp in separated product production. Segment COS was also impacted by a $21.5 million write-down of certain of our separated product inventories and higher property taxes, partially offset by a $12.2 million credit from the Section 45X Tax Credit during the year.

Fourth Quarter and Full Year 2024 Magnetics Segment Financial Results

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (in thousands, unaudited) | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | | | Segment Adjusted EBITDA (1) | $ | (3,061 | ) | | $ | (2,357 | ) | | $ | (12,224 | ) | | $ | (6,522 | ) |

| (1) | | See “Segment Information” below for further information. |

Fourth Quarter and Full Year 2024 Magnetics Segment Review

Magnetics Segment Adjusted EBITDA for the quarter and year declined $0.7 million and $5.7 million, respectively, primarily due to higher segment selling, general and administrative expenses, driven by higher personnel costs associated with increased headcount to support the Independence facility, as well as increases in research and development and property taxes.

| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | | | | December 31, | | | | | | | (U.S. dollars in thousands, except share and per share data, unaudited) | | 2024 | | | 2023 | | | Assets | | | | | | | | Current assets | | | | | | | | Cash and cash equivalents | $ | 282,442 | | | $ | 263,351 | | Short-term investments | | 568,426 | | | | 734,493 | | Total cash, cash equivalents and short-term investments | | 850,868 | | | | 997,844 | | Accounts receivable | | 18,874 | | | | 10,029 | | Inventories | | 107,905 | | | | 95,182 | | Income taxes receivable | | 23,672 | | | | 830 | | Government grant receivable | | 19,799 | | | | 19,302 | | Prepaid expenses and other current assets | | 10,204 | | | | 7,990 | | Total current assets | | 1,031,322 | | | | 1,131,177 | | Non-current assets | | | | | | | | Property, plant and equipment, net | | 1,251,496 | | | | 1,158,054 | | Operating lease right-of-use assets | | 8,680 | | | | 10,065 | | Inventories | | 19,031 | | | | 13,350 | | Intangible assets, net | | 7,370 | | | | 8,881 | | Other non-current assets | | 15,659 | | | | 14,925 | | Total non-current assets | | 1,302,236 | | | | 1,205,275 | | Total assets | $ | 2,333,558 | | | $ | 2,336,452 | | Liabilities and stockholders’ equity | | | | | | | | Current liabilities | | | | | | | | Accounts and construction payable | $ | 23,562 | | | $ | 27,995 | | Accrued liabilities | | 64,727 | | | | 73,939 | | Deferred revenue | | 56,880 | | | | — | | Other current liabilities | | 18,850 | | | | 6,616 | | Total current liabilities | | 164,019 | | | | 108,550 | | Non-current liabilities | | | | | | | | Long-term debt, net | | 908,729 | | | | 681,980 | | Deferred revenue | | 43,120 | | | | — | | Operating lease liabilities | | 5,798 | | | | 6,829 | | Deferred government grant | | 20,087 | | | | 17,433 | | Deferred investment tax credit | | 25,502 | | | | — | | Deferred income taxes | | 85,309 | | | | 130,793 | | Other non-current liabilities | | 26,114 | | | | 25,088 | | Total non-current liabilities | | 1,114,659 | | | | 862,123 | | Total liabilities | | 1,278,678 | | | | 970,673 | | Commitments and contingencies | | | | | | | | Stockholders’ equity: | | | | | | | | Preferred stock ($0.0001 par value, 50,000,000 shares authorized, none issued and outstanding in either year) | | — | | | | — | | Common stock ($0.0001 par value, 450,000,000 shares authorized, 178,445,570 and 178,082,383 shares issued, and 163,195,788 and 178,082,383 shares outstanding, as of December 31, 2024 and December 31, 2023, respectively) | | 18 | | | | 17 | | Additional paid-in capital | | 961,434 | | | | 979,891 | | Retained earnings | | 320,302 | | | | 385,726 | | Accumulated other comprehensive income | | 173 | | | | 145 | | Treasury stock, at cost, 15,249,782 and 0 shares, respectively | | (227,047 | ) | | | — | | Total stockholders’ equity | | 1,054,880 | | | | 1,365,779 | | Total liabilities and stockholders’ equity | $ | 2,333,558 | | | $ | 2,336,452 |

| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | | | | | | | | | CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (U.S. dollars in thousands, except share and per share data, unaudited) | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | | | Revenue | $ | 60,986 | | | $ | 41,205 | | | $ | 203,855 | | | $ | 253,445 | | | Operating costs and expenses: | | | | | | | | | | | | | | | | | Cost of sales (excluding depreciation, depletion and amortization) | | 58,263 | | | | 23,577 | | | | 192,586 | | | | 92,714 | | | Selling, general and administrative | | 19,073 | | | | 21,416 | | | | 83,299 | | | | 79,245 | | | Depreciation, depletion and amortization | | 22,118 | | | | 18,633 | | | | 78,057 | | | | 55,709 | | | Start-up costs | | 1,397 | | | | 5,205 | | | | 5,684 | | | | 21,330 | | | Advanced projects and development | | 1,164 | | | | 5,346 | | | | 9,307 | | | | 14,932 | | | Other operating costs and expenses | | 2,933 | | | | 656 | | | | 4,348 | | | | 7,234 | | | Total operating costs and expenses | | 104,948 | | | | 74,833 | | | | 373,281 | | | | 271,164 | | | Operating loss | | (43,962 | ) | | | (33,628 | ) | | | (169,426 | ) | | | (17,719 | ) | | Interest expense, net | | (6,762 | ) | | | (1,107 | ) | | | (23,010 | ) | | | (5,254 | ) | | Gain on early extinguishment of debt | | 6,646 | | | | — | | | | 52,911 | | | | — | | | Other income, net | | 10,117 | | | | 14,078 | | | | 46,178 | | | | 56,048 | | | Income (loss) before income taxes | | (33,961 | ) | | | (20,657 | ) | | | (93,347 | ) | | | 33,075 | | | Income tax benefit (expense) | | 11,619 | | | | 4,398 | | | | 27,923 | | | | (8,768 | ) | | Net income (loss) | $ | (22,342 | ) | | $ | (16,259 | ) | | $ | (65,424 | ) | | $ | 24,307 | | | | | | | | | | | | | | | | | | | | Earnings (loss) per share: | | | | | | | | | | | | | | | | | Basic | $ | (0.14 | ) | | $ | (0.09 | ) | | $ | (0.39 | ) | | $ | 0.14 | | | Diluted | $ | (0.14 | ) | | $ | (0.09 | ) | | $ | (0.57 | ) | | $ | 0.14 | | | | | | | | | | | | | | | | | | | | Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | Basic | | 163,379,389 | | | | 177,619,628 | | | | 166,840,611 | | | | 177,181,661 | | | Diluted | | 163,379,389 | | | | 177,619,628 | | | | 169,882,640 | | | | 178,152,212 | |

| MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | | | | | | | | For the year ended December 31, | | | | | | | | (U.S. dollars in thousands, unaudited) | | 2024 | | | | 2023 | | | Operating activities: | | | | | | | | | Net income (loss) | $ | (65,424 | ) | | $ | 24,307 | | | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | Depreciation, depletion and amortization | | 78,057 | | | | 55,709 | | | Accretion of discount on short-term investments | | (30,255 | ) | | | (26,316 | ) | | Gain on early extinguishment of debt | | (52,911 | ) | | | — | | | Stock-based compensation expense | | 23,183 | | | | 25,236 | | | Amortization of debt issuance costs | | 3,901 | | | | 3,536 | | | Write-downs of inventories | | 21,527 | | | | 2,285 | | | Deferred income taxes | | (27,775 | ) | | | 8,455 | | | Other | | 4,837 | | | | 1,716 | | | Decrease (increase) in operating assets: | | | | | | | | | Accounts receivable | | (8,845 | ) | | | 22,827 | | | Inventories | | (41,537 | ) | | | (47,099 | ) | | Income taxes receivable | | (22,842 | ) | | | 1,371 | | | Government grant receivable | | (497 | ) | | | (19,302 | ) | | Prepaid expenses, other current and non-current assets | | (1,301 | ) | | | 1,006 | | | Increase (decrease) in operating liabilities: | | | | | | | | | Accounts payable and accrued liabilities | | 1,332 | | | | 11,305 | | | Income taxes payable | | — | | | | (21,163 | ) | | Deferred revenue | | 100,000 | | | | — | | | Deferred government grant | | 4,911 | | | | 19,120 | | | Other current and non-current liabilities | | 26,988 | | | | (294 | ) | | Net cash provided by operating activities | | 13,349 | | | | 62,699 | | | Investing activities: | | | | | | | | | Additions to property, plant and equipment | | (186,418 | ) | | | (261,897 | ) | | Purchases of short-term investments | | (1,567,983 | ) | | | (1,185,477 | ) | | Proceeds from sales of short-term investments | | 166,371 | | | | 507,736 | | | Proceeds from maturities of short-term investments | | 1,597,991 | | | | 1,015,190 | | | Investment in equity method investee | | — | | | | (9,673 | ) | | Proceeds from sale of property, plant and equipment | | — | | | | 18 | | | Proceeds from government awards used for construction | | 96 | | | | 2,800 | | | Net cash provided by investing activities | | 10,057 | | | | 68,697 | | | Financing activities: | | | | | | | | | Proceeds from issuance of long-term debt | | 747,500 | | | | — | | | Payment of debt issuance costs | | (20,648 | ) | | | — | | | Payments to retire long-term debt | | (428,599 | ) | | | — | | | Purchase of capped call options | | (65,332 | ) | | | — | | | Repurchases of common stock | | (225,068 | ) | | | — | | | Principal payments on debt obligations and finance leases | | (2,532 | ) | | | (2,732 | ) | | Tax withholding on stock-based awards | | (10,112 | ) | | | (7,185 | ) | | Net cash used in financing activities | | (4,791 | ) | | | (9,917 | ) | | Net change in cash, cash equivalents and restricted cash | | 18,615 | | | | 121,479 | | | Cash, cash equivalents and restricted cash beginning balance | | 264,988 | | | | 143,509 | | | Cash, cash equivalents and restricted cash ending balance | $ | 283,603 | | | $ | 264,988 | | | | | | | | | | | | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | Cash and cash equivalents | $ | 282,442 | | | $ | 263,351 | | | Restricted cash, current | | 812 | | | | 1,290 | | | Restricted cash, non-current | | 349 | | | | 347 | | | Total cash, cash equivalents and restricted cash | $ | 283,603 | | | $ | 264,988 | |