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Sep 30
MP Materials Q3 2025 Earnings Report
MP Materials reported its third quarter 2025 results, highlighting record NdPr production and significant revenue from its Magnetics Segment.
Key Takeaways
MP Materials delivered a mixed third quarter in 2025, with consolidated revenue declining by 15% year-over-year to $53.6 million, primarily due to the cessation of rare earth concentrate sales to China. However, the company achieved record NdPr production and saw substantial growth in its Magnetics Segment, which generated $21.9 million in revenue. Despite a net loss of $41.8 million, the company anticipates a return to profitability in Q4 2025 and beyond, driven by new agreements and scaling magnet production.
Consolidated revenue decreased by 15% year-over-year to $53.6 million, mainly due to the cessation of rare earth concentrate sales to China.
NdPr production volume reached a record 721 metric tons, marking a 51% increase compared to the previous year.
The Magnetics Segment generated $21.9 million in revenue, with no comparable revenue in the prior year, indicating successful scaling of magnetic precursor product sales.
Net loss increased to $41.8 million, primarily due to the decline in revenue and higher advanced projects and development expenses, but a return to profitability is expected in Q4 2025.
MP Materials
MP Materials
MP Materials Revenue by Segment
Revenue by Segment
Materials Segment Revenue
CapyFin.comMagnetics Segment Revenue
CapyFin.com Forward Guidance
MP Materials expects to return to profitability in Q4 2025 and beyond, driven by new agreements with the Department of War and the scaling of magnet production. The company plans to commission its heavy rare earth separation facility by mid-2026, focusing on dysprosium and terbium production to support high-performance NdFeB magnets.
Positive Outlook
- Return to profitability expected in Q4 2025 and beyond.
- DoW Price Protection Agreement commenced October 1, 2025, enhancing cash flow visibility.
- First commercial output from Independence magnet production facility expected by year-end.
- Heavy rare earth commissioning targeting mid-2026 with initial focus on dysprosium (Dy) and terbium (Tb) production.
- New heavy rare earth facility designed to process approximately 3,000 MT of feedstock per year and support 10,000 MT of high-performance NdFeB magnets per year.
Challenges Ahead
- Per-unit production costs of separated products are currently elevated due to temporary underutilization of refining facilities.
- Cessation of all sales of products to China resulted in no revenue from rare earth concentrate during the quarter.
- Advanced projects and development expenses increased by $17.0 million year-over-year, including transaction costs for DoW agreements and financing.
- Higher depreciation expense resulted from an increase in capital assets placed into service over the last year.
- The company faces risks related to the timing and achievement of expected business milestones for its midstream and downstream operations.