MP's "Strong" Quarter: Accelerated Production, Long-Term Agreements With Major Tech Companies

MP Materials Corp. reported fourth quarter revenue of $52.7 million and net income of $9.4 million, or $0.05 per diluted share, yesterday reflecting a sharp year-over-year improvement driven largely by price floor protection under its agreement with the U.S. Department of War.

Full year revenue rose 10% to $224.4 million as the company ramped separated product output and began generating magnetic precursor sales. 

MP said in a press release yesterday that operationally, 2025 marked a step-change in upstream and midstream execution. MP produced a record 50,692 metric tons of rare earth oxide concentrate, up 12% year-over-year, while more than doubling NdPr oxide production to a record 2,599 metric tons. NdPr sales volumes rose 75% to 1,994 metric tons, supported by continued ramp-up at Mountain Pass and improved refining throughput.

In the fourth quarter alone, NdPr production increased 74% year-over-year to 718 metric tons. The company also ceased all sales to China in alignment with its U.S. supply chain strategy, shifting revenue mix toward higher-value separated products and magnetic precursor materials, which contributed incremental margin expansion.

Downstream, the company reported that it achieved a major milestone by producing its first NdFeB magnets on commercial equipment at Independence and secured a $200 million incentive package to construct its 10X magnetics facility in Northlake, Texas.

The company signed a significant NdPr oxide offtake agreement with a new strategic OEM (our guess would be Tesla) and entered a long-term supply agreement with Apple to deliver magnets made from recycled materials sourced at Mountain Pass.

Together with its transformational public-private partnership with the U.S. Department of War, these initiatives position MP to scale domestic magnet production, support customers such as General Motors, and accelerate the buildout of a fully integrated U.S. rare earth magnet supply chain in 2026 and beyond.

Analysts at Goldman took note of the great quarter. The firm highlighted total revenue and PPA income of $104 million, including $51 million tied to the price protection agreement, exceeding both Goldman’s $89 million estimate and broader consensus forecasts. Adjusted EBITDA of $39 million and adjusted EPS of $0.09 also topped projections.

While NdPr production of 718 metric tons came in slightly below Goldman’s estimate, rare earth oxide production outperformed, and realized NdPr pricing was in line with expectations. Goldman emphasized that the earnings beat was primarily driven by PPA income, though strengthening NdPr pricing could reduce reliance on such support going forward.

Looking ahead, Goldman underscored management’s confidence in ramping NdPr volumes to a 6,000 metric ton run rate exiting 2026, with first quarter volumes expected to rise roughly 20% sequentially and a heavier acceleration into the fourth quarter of next year. MP remains on track to commission dysprosium and terbium separation capacity in mid-2026, marking another key milestone in expanding its heavy rare earth capabilities and strengthening its vertically integrated platform, Goldman wrote.

Goldman also pointed to continued progress in MP’s downstream magnet strategy and said the balance sheet remains a key strength underpinning execution. The firm reiterated its Buy rating and $71 price target, citing continued confidence in MP’s long-term growth strategy.