press release

MP Materials Reports Fourth Quarter and Full Year 2025 Results

2026-02-26

NASDAQ - Nasdaq Stock Market · Corporate Finance

Produced first NdFeB magnets on commercial equipment at Independence

Awarded $200 million incentive package for new 10X magnetics facility to be constructed in Northlake, Texas

Produced record 2,599 metric tons of NdPr oxide in 2025, a 101% increase year-over-year

Sold record 1,994 metric tons 1 of NdPr oxide in 2025, a 75% increase year-over-year

Produced record 50,692 metric tons of REO in concentrate in 2025, a 12% increase year-over-year

Generated fourth quarter Net income of $9.4 million and Adjusted EBITDA of $39.2 million

Signed significant NdPr oxide offtake agreement with new strategic OEM

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, 2025.

Fourth Quarter 2025 Highlights

Produced first NdFeB magnets on commercial equipment at Independence Produced 718 metric tons (MTs) of NdPr oxide and sold 562 MTs 1 , a 74% and 20% increase year-over-year, respectively Produced 12,080 MTs of rare earth oxides (“REO”) in concentrate, a 5% year-over-year increase Generated $0.05 of Diluted EPS, $0.09 of Adjusted Diluted EPS, $9.4 million of Net income and $39.2 million of Adjusted EBITDA

Full Year 2025 and Recent Highlights

Awarded $200 million incentive package, anchored by Texas Semiconductor Innovation Fund (“TSIF”) grant, for new 10X magnetics facility to be constructed in Northlake, Texas Signed significant NdPr oxide offtake agreement with new strategic OEM Produced record 2,599 MTs of NdPr oxide and sold 1,994 MTs 1 , a 101% and 75% increase year-over-year, respectively Produced record 50,692 MTs of REO in concentrate, a 12% increase year-over-year Entered into transformational public-private partnership with the U.S. Department of War to accelerate supply chain independence Signed definitive, long-term agreement to supply Apple with rare earth magnets made from materials recycled at Mountain Pass

“2025 was a transformational year for MP Materials,” said MP Materials Founder, Chairman, and CEO, James Litinsky. “Our landmark partnership with the U.S. Department of War, together with our agreement with Apple to deliver scaled recycling and magnetics capabilities, anchors a durable platform to accelerate growth and extend our vertically integrated advantage.”

Litinsky continued, “Operationally, we executed with discipline across the business — doubling NdPr oxide production at Mountain Pass and producing our first magnets on commercial-scale equipment at Independence. In 2026, we expect to break ground on our 10X magnetics facility in Northlake, ramp magnet production for General Motors and deliver continued growth in NdPr output. We are rapidly scaling every dimension of our platform to establish enduring American leadership in rare earth magnetics.”

| 1 | Includes intercompany sales of NdPr oxide to the Magnetics Segment. |

Fourth Quarter and Full Year 2025 Consolidated Financial Highlights

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (in thousands except per share data, unaudited) | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | Financial Measures: | | | | | | | | | | | | | | | | | Revenue | $ | 52,685 | | | $ | 60,986 | | | $ | 224,441 | | | $ | 203,855 | | | Net income (loss) | $ | 9,426 | | | $ | (22,342 | ) | | $ | (85,874 | ) | | $ | (65,424 | ) | | Adjusted EBITDA (1) | $ | 39,220 | | | $ | (10,707 | ) | | $ | 11,419 | | | $ | (50,168 | ) | | Adjusted Net Income (Loss) (1) | $ | 18,280 | | | $ | (18,942 | ) | | $ | (40,827 | ) | | $ | (74,104 | ) | | Diluted earnings (loss) per common share | $ | 0.05 | | | $ | (0.14 | ) | | $ | (0.50 | ) | | $ | (0.57 | ) | | Adjusted Diluted EPS (1) | $ | 0.09 | | | $ | (0.12 | ) | | $ | (0.24 | ) | | $ | (0.44 | ) |

| (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. |

Fourth Quarter 2025 Consolidated Review

To align with the terms of the agreements with the United States Department of War (the “DoW”) signed in July 2025, 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 14% decline in consolidated revenue year-over-year to $52.7 million. The decline in revenue was partially offset by $19.9 million of magnetic precursor products sales with no comparable revenue in the prior year period, coupled with an $8.3 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 increased by $49.9 million year-over-year to $39.2 million, primarily due to the NdPr price floor protection agreement with the DoW (the “Price Protection Agreement” or “PPA”) for our NdPr products, which commenced on October 1, 2025. Given market prices for NdPr products in the fourth quarter, we recognized price protection agreement income (“PPA Income”) based on the right to receive cash from the DoW for the difference between $110 per kilogram and the Benchmark Quarterly Average Volume Weighted Price for the NdPr products produced at Mountain Pass that were sold or produced and stockpiled during the fourth quarter of 2025. Also contributing to the improvement was an $11.4 million increase in the Magnetics Segment Adjusted EBITDA, due to the recognition of magnetic precursor product sales, with no comparable revenue in the prior year period.

Adjusted Net Income was $18.3 million for the quarter, representing a $37.2 million year-over-year improvement from the prior year Adjusted Net Loss of $(18.9) million, driven primarily by the higher Adjusted EBITDA as discussed above, along with higher interest income due to increased cash and short-term investment balances. The improvement in Adjusted Net Income was partially offset by $11.4 million of amortization related to the price protection agreement upfront asset, with no comparable cost in the prior year period, along with income tax expense in the current period compared to an income tax benefit in the fourth quarter of 2024.

Net income was $9.4 million for the quarter, representing a $31.8 million year-over-year improvement from the prior year Net loss of $(22.3) million, primarily due to the factors driving the improvement in Adjusted Net Income discussed above.

Diluted earnings per share (“EPS”) and Adjusted Diluted EPS increased by $0.19 and $0.21 year-over-year, respectively, to $0.05 and $0.09, respectively, in line with the change in Net income and Adjusted Net Income discussed above. Additionally, the current period Diluted EPS and Adjusted Diluted EPS were impacted by a higher average share count, primarily driven by the dilutive effect of the preferred shares and warrant issued to the DoW as part of the July agreement.

Full Year 2025 Consolidated Review

Revenue increased 10% to $224.4 million compared to 2024 primarily as a result of the ramp-up in production of separated products throughout 2025, resulting in higher NdPr oxide and metal revenue in the current year. Additionally, during the year ended December 31, 2025, we began recognizing revenue from the sales of magnetic precursor products, with no comparable revenue in the prior year. The increase was partially offset by lower rare earth concentrate revenues, driven by the cessation of all sales to China starting in July 2025.

Adjusted EBITDA increased by $61.6 million year-over-year to $11.4 million, driven primarily by the PPA Income as well as the commencement of magnetic precursor product sales, both as discussed above.

Adjusted Net Loss improved by $33.3 million year-over-year to $(40.8) million, driven mainly by the changes in Adjusted EBITDA. The improvement was partially offset by $11.4 million of amortization related to the price protection agreement upfront asset, with no comparable cost in the prior year, as well as the unfavorable impact of tax adjustments when compared to the prior year.

Net loss increased by $20.5 million year-over-year to $(85.9) million, as the improved Adjusted Net Loss was offset in the current year by higher legal costs, as well as higher Advanced projects and development expenses, which included transaction costs associated with the DoW agreements and to secure financing. Also impacting the comparison was a $52.9 million gain on the early extinguishment of debt in 2024.

Adjusted Diluted EPS improved by $0.20 to $(0.24) in line with the change in Adjusted Net Loss discussed above. Diluted EPS improved by $0.07 to $(0.50) as the larger net loss in the current year was offset by the dilutive impact of the 2026 Notes repurchased in March 2024 on the prior year's Diluted EPS calculation.

Fourth Quarter and Full Year 2025 Segment Financial Highlights

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | Segment Financials: | | | | | | | | | | | | | | | | | Revenue | | | | | | | | | | | | | | | | | Materials Segment | $ | 35,577 | | | $ | 60,986 | | | $ | 160,369 | | | $ | 203,855 | | | Magnetics Segment | | 19,897 | | | | — | | | | 66,861 | | | | — | | | Intercompany eliminations (1) | | (2,789 | ) | | | — | | | | (2,789 | ) | | | — | | | Total revenue | $ | 52,685 | | | $ | 60,986 | | | $ | 224,441 | | | $ | 203,855 | | | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (2) | | | | | | | | | | | | | | | | | Materials Segment | $ | 40,260 | | | $ | (1,319 | ) | | $ | 16,818 | | | $ | (14,148 | ) | | Magnetics Segment | | 8,386 | | | | (3,061 | ) | | | 26,449 | | | | (12,224 | ) | | Total Segment Adjusted EBITDA | $ | 48,646 | | | $ | (4,380 | ) | | $ | 43,267 | | | $ | (26,372 | ) | | Corporate and other (3) | | (9,490 | ) | | | (6,327 | ) | | | (31,912 | ) | | | (23,796 | ) | | Intercompany eliminations (1) | | 64 | | | | — | | | | 64 | | | | — | | | Adjusted EBITDA (4) | $ | 39,220 | | | $ | (10,707 | ) | | $ | 11,419 | | | $ | (50,168 | ) |

| (1) | Represents the elimination of intercompany revenues and Segment Adjusted EBITDA associated with NdPr oxide sales made by the Materials Segment to the Magnetics Segment. | | (2) | 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. | | (3) | 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. | | (4) | 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 2025 Materials Segment Financial and Operational Results

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (unaudited) | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | Revenue: | (in thousands) | | | | | | | | | | | | | | | | Rare earth concentrate | $ | — | | | $ | 36,808 | | | $ | 41,992 | | | $ | 144,363 | | | NdPr oxide and metal | | 34,854 | | | | 23,725 | | | | 115,131 | | | | 57,762 | | | Other revenue | | 723 | | | | 453 | | | | 3,246 | | | | 1,730 | | | Total Materials Segment revenue | $ | 35,577 | | | $ | 60,986 | | | $ | 160,369 | | | $ | 203,855 | | | | | | | | | | | | | | | | | | | | Price protection agreement income | $ | 51,016 | | | $ | — | | | $ | 51,016 | | | $ | — | | | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | 40,260 | | | $ | (1,319 | ) | | $ | 16,818 | | | $ | (14,148 | ) | | | | | | | | | | | | | | | | | | | Key Performance Indicators (2) : | (in whole units or dollars) | | | | | | | | | | | | | | | | Rare earth concentrate | | | | | | | | | | | | | | | | | REO Production Volume (MTs) | | 12,080 | | | | 11,478 | | | | 50,692 | | | | 45,455 | | | REO Sales Volume (MTs) | | — | | | | 7,803 | | | | 8,922 | | | | 32,703 | | | Realized Price per REO MT | $ | — | | | $ | 4,717 | | | $ | 4,707 | | | $ | 4,414 | | | Separated NdPr products | | | | | | | | | | | | | | | | | NdPr Production Volume (MTs) | | 718 | | | | 413 | | | | 2,599 | | | | 1,294 | | | NdPr Sales Volume (MTs) | | 562 | | | | 468 | | | | 1,994 | | | | 1,142 | |

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

Fourth Quarter 2025 Materials Segment Review

Materials Segment revenue decreased 42% to $35.6 million year-over-year, primarily driven by the cessation of all REO sales to China in July 2025, which resulted in no revenue recognized from rare earth concentrate during the current quarter. The decrease in revenue was partially offset by an $11.1 million increase in NdPr oxide and metal sales due to a 20% increase in NdPr Sales Volume and higher market prices compared to the fourth quarter of 2024. When considering the impact of PPA income, total realized proceeds for the segment were $86.6 million in the quarter compared with $61.0 million in the prior year period. The increase in NdPr Sales Volume was driven by the continued ramp-up in the production of separated products.

Materials Segment Adjusted EBITDA increased by $41.6 million to $40.3 million year-over-year, driven mainly by the PPA Income for our NdPr products, which commenced on October 1, 2025.

Full Year 2025 Materials Segment Review

Materials Segment revenue decreased 21% to $160.4 million year-over-year, primarily driven by the decrease in rare earth concentrate revenue for the year ended December 31, 2025. This decline was partially offset by a $57.4 million increase in NdPr oxide and metal sales in 2025. The increase in NdPr oxide and metal sales was primarily due to the ramp-up in midstream operations, where a significantly higher portion of REO produced was refined and sold as NdPr oxide and metal during the current year.

Materials Segment Adjusted EBITDA increased by $31.0 million to $16.8 million year-over-year, driven mainly by the impact of the PPA Income, partially offset by the decrease in concentrate revenue discussed above, which was tempered by the corresponding decrease in cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense) (“Segment COS”). In addition, segment COS were impacted by the significantly higher sales volumes of NdPr oxide in the current year, which was mostly offset by a reduction in related per-unit production costs.

Fourth Quarter and Full Year 2025 Magnetics Segment Financial Results

| | For the three months ended December 31, | | For the year ended December 31, | | | | | | | | | | | | | | (in thousands, unaudited) | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | | | | | | | | | | | | | | | | | | Magnetic precursor products revenue | $ | 19,897 | | | $ | — | | | $ | 66,861 | | | $ | — | | | | | | | | | | | | | | | | | | | | Segment Adjusted EBITDA (1) | $ | 8,386 | | | $ | (3,061 | ) | | $ | 26,449 | | | $ | (12,224 | ) |

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

Fourth Quarter and Full Year 2025 Magnetics Segment Review

Revenues in the Magnetics Segment for the three months and year ended December 31, 2025, were $19.9 million and $66.9 million, respectively, as the initial magnetic precursor product deliveries began during the first quarter of 2025. There were no corresponding sales in the prior year. The sales also drove the increases in the Magnetics Segment Adjusted EBITDA.

| | | | | | | | | | MP MATERIALS CORP. AND SUBSIDIARIES | | | | | | | | | CONSOLIDATED BALANCE SHEETS | | | | | | | | | | December 31, | | | | | | | | (U.S. dollars in thousands, except share and per share data, unaudited) | | 2025 | | | | 2024 | | | Assets | | | | | | | | | Current assets | | | | | | | | | Cash and cash equivalents | $ | 1,166,011 | | | $ | 282,442 | | | Short-term investments | | 664,275 | | | | 568,426 | | | Total cash, cash equivalents and short-term investments | | 1,830,286 | | | | 850,868 | | | Trade accounts receivable | | 14,642 | | | | 18,645 | | | Income taxes receivable | | 1,004 | | | | 23,672 | | | Other receivables | | 131,038 | | | | 20,599 | | | Inventories | | 171,560 | | | | 107,905 | | | Prepaid expenses and other current assets | | 17,271 | | | | 9,633 | | | Total current assets | | 2,165,801 | | | | 1,031,322 | | | Non-current assets | | | | | | | | | Property, plant and equipment, net | | 1,369,817 | | | | 1,251,496 | | | Inventories | | 80,539 | | | | 19,031 | | | Price protection agreement upfront asset, net | | 209,668 | | | | — | | | Other non-current assets | | 38,335 | | | | 31,709 | | | Total non-current assets | | 1,698,359 | | | | 1,302,236 | | | Total assets | $ | 3,864,160 | | | $ | 2,333,558 | | | Liabilities, redeemable preferred stock and stockholders’ equity | | | | | | | | | Current liabilities | | | | | | | | | Accounts and construction payable | $ | 36,655 | | | $ | 23,562 | | | Accrued liabilities | | 95,086 | | | | 64,727 | | | Current portion of long-term debt | | 67,411 | | | | — | | | Deferred revenue | | 74,301 | | | | 56,880 | | | Other current liabilities | | 25,596 | | | | 18,850 | | | Total current liabilities | | 299,049 | | | | 164,019 | | | Non-current liabilities | | | | | | | | | Long-term debt, net of current portion | | 931,330 | | | | 908,729 | | | Deferred revenue | | 83,889 | | | | 43,120 | | | Deferred government grant | | 22,101 | | | | 20,087 | | | Deferred investment tax credit | | 26,860 | | | | 25,502 | | | Deferred income taxes | | 51,558 | | | | 85,309 | | | Other non-current liabilities | | 57,005 | | | | 31,912 | | | Total non-current liabilities | | 1,172,743 | | | | 1,114,659 | | | Total liabilities | | 1,471,792 | | | | 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 December 31, 2025, and December 31, 2024, respectively; aggregate liquidation preference of $413,489 and zero as of December 31, 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 December 31, 2025, and December 31, 2024, respectively, zero issued and outstanding in either year) | | — | | | | — | | | Common stock ($0.0001 par value, 450,000,000 shares authorized, 192,607,429 and 178,445,570 shares issued, and 177,357,647 and 163,195,788 shares outstanding, as of December 31, 2025, and December 31, 2024, respectively) | | 19 | | | | 18 | | | Additional paid-in capital | | 1,970,970 | | | | 961,434 | | | Retained earnings | | 234,428 | | | | 320,302 | | | Accumulated other comprehensive income | | 387 | | | | 173 | | | Treasury stock, at cost, 15,249,782 shares for both periods | | (227,047 | ) | | | (227,047 | ) | | Total stockholders’ equity | | 1,978,757 | | | | 1,054,880 | | | Total liabilities, redeemable preferred stock and stockholders’ equity | $ | 3,864,160 | | | $ | 2,333,558 | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | 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) | | 2025 | | | | 2024 | | | | 2025 | | | | 2024 | | | Revenue | $ | 52,685 | | | $ | 60,986 | | | $ | 224,441 | | | $ | 203,855 | | | Price protection agreement income | | 51,016 | | | | — | | | | 51,016 | | | | — | | | Operating costs and expenses: | | | | | | | | | | | | | | | | | Cost of sales (excluding depreciation, depletion and amortization) | | 45,050 | | | | 58,263 | | | | 192,789 | | | | 192,586 | | | Selling, general and administrative | | 32,066 | | | | 19,073 | | | | 112,066 | | | | 83,299 | | | Depreciation, depletion and amortization | | 24,609 | | | | 22,118 | | | | 89,267 | | | | 78,057 | | | Start-up costs | | 1,136 | | | | 1,397 | | | | 4,286 | | | | 5,684 | | | Advanced projects and development | | 2,212 | | | | 1,164 | | | | 24,208 | | | | 9,307 | | | Other operating costs and expenses | | 2,319 | | | | 2,933 | | | | 2,215 | | | | 4,348 | | | Total operating costs and expenses, net | | 107,392 | | | | 104,948 | | | | 424,831 | | | | 373,281 | | | Operating loss | | (3,691 | ) | | | (43,962 | ) | | | (149,374 | ) | | | (169,426 | ) | | Interest expense, net | | (9,886 | ) | | | (6,762 | ) | | | (31,481 | ) | | | (23,010 | ) | | Gain on early extinguishment of debt | | — | | | | 6,646 | | | | — | | | | 52,911 | | | Other income, net | | 24,134 | | | | 10,117 | | | | 63,081 | | | | 46,178 | | | Income (loss) before income taxes | | 10,557 | | | | (33,961 | ) | | | (117,774 | ) | | | (93,347 | ) | | Income tax benefit (expense) | | (1,131 | ) | | | 11,619 | | | | 31,900 | | | | 27,923 | | | Net income (loss) | $ | 9,426 | | | $ | (22,342 | ) | | $ | (85,874 | ) | | $ | (65,424 | ) | | | | | | | | | | | | | | | | | | | Earnings (loss) per common share: | | | | | | | | | | | | | | | | | Basic | $ | 0.05 | | | $ | (0.14 | ) | | $ | (0.50 | ) | | $ | (0.39 | ) | | Diluted | $ | 0.05 | | | $ | (0.14 | ) | | $ | (0.50 | ) | | $ | (0.57 | ) | | | | | | | | | | | | | | | | | | | Weighted-average shares outstanding: | | | | | | | | | | | | | | | | | Basic | | 177,666,982 | | | | 163,379,389 | | | | 170,126,753 | | | | 166,840,611 | | | Diluted | | 199,230,179 | | | | 163,379,389 | | | | 170,126,753 | | | | 169,882,640 | | | | | | | | | | | | | | | | | | |