MP Materials — Third Quarter 2026 Earnings Summary

Financial Performance

• Consolidated revenue increased 176% year-over-year to $147.7 million, driven by higher NdPr oxide and metal sales volumes and stronger market pricing.
• Price protection agreement (PPA) income generated $8.1 million in the quarter, compared to $0 in the prior year period.
• A $31.6 million sale of SEG+ to a U.S. aerospace and defense customer contributed to revenue growth.
• Adjusted EBITDA improved by $53.7 million year-over-year to $41.1 million, turning from a loss of $12.6 million in the prior year.
• Adjusted Net Income improved by $26.6 million year-over-year to $8.8 million.
• Net loss narrowed by 50% year-over-year to $20.7 million, compared to a loss of $41.8 million in the prior year.
• Diluted loss per common share improved to $(0.12) from $(0.24) in the prior year.
• Adjusted Diluted EPS improved to $0.04 from $(0.10) in the prior year.
• Cost of sales increased due to higher NdPr sales volumes, a $6.4 million reserve on non-core product inventories, and the sale of SEG+.
• SG&A expenses increased due to higher headcount supporting downstream expansion.
• Total assets were $3.79 billion as of September 30, 2026, down from $3.86 billion as of December 31, 2025.
• Cash and cash equivalents were $260.3 million as of September 30, 2026, down from $1.17 billion as of December 31, 2025.
• Short-term investments increased to $1.08 billion as of September 30, 2026, from $664.3 million as of December 31, 2025.
• Long-term debt, net of current portion, was $936.3 million as of September 30, 2026, compared to $931.3 million as of December 31, 2025.
• Deferred revenue decreased to $120.4 million (current and non-current combined) as of September 30, 2026, from $158.2 million as of December 31, 2025.

Guidance and Future Outlook

• Saleable magnet deliveries and revenue are scheduled to commence in the fourth quarter of 2026 following the completion of GM magnet qualification.
• The company highlighted an inflection point for its business and mission driven by the completion of the GM qualification process.
• Forward-looking statements indicate expectations regarding the timing of sales of magnets, the development of the 10X Facility, and the ability to achieve run-rate production of separated rare earth materials and commercial metal and magnets.
• The company notes risks related to the timing and achievement of expected business milestones, including construction of the 10X Facility and the ability to vertically integrate its value chain.

Business Segments and Product Lines

• Materials Segment:
  • Revenue increased 322% year-over-year to $133.5 million.
  • Generated $8.1 million in PPA Income.
  • Adjusted EBITDA improved to $47.8 million from a loss of $14.5 million in the prior year.
  • NdPr production volume reached 1,018 metric tons, a 41% increase year-over-year.
  • NdPr sales volume reached 1,020 metric tons, a 94% increase year-over-year.
  • NdPr oxide and metal revenue increased 227% year-over-year to $101.0 million.
  • REO production volume decreased 3% year-over-year to 12,887 metric tons.
• Magnetics Segment:
  • Revenue decreased 15% year-over-year to $18.6 million, partially offset by the start-up of magnetics production at Independence.
  • Adjusted EBITDA decreased 44% year-over-year to $5.3 million.
  • The segment manufactures magnetic precursor products and commenced manufacturing neodymium-iron-boron permanent magnets in December 2025.
• Corporate and Other:
  • Adjusted EBITDA loss increased to $11.3 million from $7.5 million in the prior year, driven by higher start-up costs and stock-based compensation.

Market and Competitive Landscape

• MP Materials is identified as America's only fully integrated rare earth producer with capabilities spanning mining, processing, metallization, and magnet manufacturing.
• The company secured a sale of SEG+ to a U.S. aerospace and defense customer.
• The company holds a long-term agreement with Apple, with forward-looking statements noting risks related to the ability to meet obligations under this agreement.
• The company faces risks related to fluctuations in pricing and volume of magnet products and demand in the market for rare earth products.

Risks and Challenges

• Higher cost of sales due to significant growth in NdPr sales volumes.
• A $6.4 million reserve recorded on certain non-core product inventories.
• Higher start-up costs associated with the ramp-up of initial magnet production at the Independence Facility.
• Higher stock-based compensation expense.
• An unfavorable change in the fair value of the derivative instrument associated with the 2030 Notes issued in December 2024.
• Risks related to the availability of government appropriations, funding, and support for Transactions with the U.S. Department of War (DoW).
• Risks regarding the ability to effectively use proceeds and benefits of Transactions and the potential for the Transactions to be deemed unauthorized or voidable.
• Limitations on the ability to transact with non-U.S. customers and changes in trade policies.

Management Commentary and Tone

• James Litinsky, Founder, Chairman, and CEO, stated the company delivered a "strong quarter of growth across production, sales, and earnings."
• Management emphasized that completing the GM qualification process marks an "inflection point for our business and mission."
• The CEO attributed the milestone to "years of compounding capabilities across the MP platform."
• Management noted that the improvement in financial results was driven by revenue changes and PPA income, partially offset by higher costs and start-up activities.

Other Key Points

• The company completed the GM magnet qualification process, enabling saleable deliveries in Q4 2026.
• The Materials Segment recognized intercompany sales to the Magnetics Segment, which were eliminated in consolidated revenue but included in segment reporting.
• The company utilized an assumed material conversion ratio of 1.25 for NdPr metal sales to NdPr oxide-equivalent starting in Q1 2026.
• A $8.8 million settlement related to a construction-related litigation matter was included in transaction-related costs for the nine months ended September 30, 2026.
• The company incurred $34.5 million in start-up costs for the nine months ended September 30, 2026, compared to $3.2 million in the prior year period.
• The company paid $67.5 million to retire long-term debt during the nine months ended September 30, 2026.
• The company purchased $420.3 million in property, plant, and equipment during the nine months ended September 30, 2026.
• The company holds Series A cumulative perpetual convertible preferred stock with an aggregate liquidation preference of $435.6 million as of September 30, 2026.