MP Materials tops Q3 profit estimates, beats on revenue

MP Materials (MP) reported adjusted diluted earnings of 4 cents per share for the third quarter of 2026, against a consensus estimate of a 2-cent loss, and revenue of $147.66 million topped the $120.99 million estimate.

Shares rose 1.3% at 9:36 a.m. ET, from a $33.74 close.

NdPr production reached 1,018 metric tons, up 41% from 721 metric tons a year earlier. NdPr sales were 1,020 metric tons, up 94% from 525 metric tons.

Revenue rose 176% from $53.6 million a year earlier, driven by higher NdPr oxide and metal sales and stronger pricing, and up from $108.5 million in the second quarter.

Here's how the company did:

• Adjusted diluted EPS: 4 cents per share vs. a 2-cent loss expected, against a 10-cent loss a year earlier
• Revenue: $147.66 million vs. $120.99 million expected, against $53.55 million a year earlier
• Adjusted EBITDA: $41.1 million vs. a $12.6 million loss a year earlier
• Net loss: $20.7 million vs. $41.8 million a year earlier

Revenue and price protection agreement income combined totaled $155.8 million, with $8.1 million from price protection, all in Materials.

Adjusted net income was $8.8 million, against a loss of $17.8 million a year earlier. The GAAP diluted loss per share was 12 cents, compared with 24 cents.

CEO James Litinsky said the milestone “marks an inflection point for our business and mission.” The company completed GM magnet qualification, and saleable deliveries and revenue begin in the fourth quarter.

Segment results

The Materials segment reported revenue of $133.5 million, up from $31.6 million a year earlier. Its Segment Adjusted EBITDA was $47.8 million, against a loss of $14.5 million.

A $31.6 million sale of SEG+ to a U.S. aerospace and defense customer added to revenue in the quarter.

The Magnetics segment generated revenue of $18.6 million, down 15% from $21.9 million. Its Segment Adjusted EBITDA was $5.3 million, down 44% from $9.5 million.

Revenue from magnetic precursor products was slightly lower as magnetics production started at Independence, the Fort Worth, Texas facility.

Costs and charges

Cost of sales rose with NdPr sales volumes. The company also recorded a $6.4 million reserve on certain non-core product inventories.

Start-up costs were $14.2 million, against $1.4 million a year earlier, as initial magnet production ramped up.

Selling, general and administrative expenses were $38.0 million, up from $28.4 million, mainly on higher headcount to support the downstream expansion.

Advanced projects and development costs fell to $1.9 million from $19.0 million.

Cash and capital spending

Cash, cash equivalents and short-term investments totaled $1.34 billion at Sept. 30, down from $1.83 billion at Dec. 31, 2025.

Purchases of property, plant and equipment were $420 million in the first nine months of 2026.

Net income swung from a loss of $41.8 million in the third quarter of 2025 to a profit of $9.4 million in the fourth quarter of 2025, then to a loss of $8.0 million in the first quarter of 2026.

Adjusted diluted EPS for the nine months was 7 cents, against a 35-cent loss a year earlier.