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.
• Consolidated revenue includes $8.1 million in Price Protection Agreement (PPA) income, a new line item with no comparable prior-year amount.
• A $31.6 million sale of SEG+ to a U.S. aerospace and defense customer contributed to revenue growth.
• Net loss narrowed 50% year-over-year to $20.7 million from $41.8 million.
• Adjusted EBITDA improved to $41.1 million from a loss of $12.6 million in the prior year period.
• Adjusted Net Income turned positive at $8.8 million, compared to a loss of $17.8 million in the prior year.
• Diluted loss per share improved to $(0.12) from $(0.24), while Adjusted Diluted EPS improved to $0.04 from $(0.10).
• Cost of sales increased due to higher 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.
• Cash and cash equivalents decreased to $260.3 million from $1.2 billion at the end of 2025.
• Short-term investments increased to $1.1 billion from $664.3 million.
• Total assets were $3.8 billion, down slightly from $3.9 billion at the end of 2025.
• Long-term debt, net of current portion, increased to $936.3 million from $931.3 million.
• Deferred revenue decreased to $120.4 million (combined current and non-current) from $158.2 million.

Guidance and Future Outlook:

• Saleable magnet deliveries and revenue from the GM qualification are scheduled to commence in the fourth quarter.
• The company views the completion of the GM qualification as an inflection point for its business and mission.
• Forward-looking statements indicate expectations regarding the timing of commercial magnet sales and the ability to meet obligations under a long-term agreement with Apple.
• The company anticipates continued ramp-up of magnet production at the Independence Facility.

Business Segments and Product Lines:

• Materials Segment: Revenue surged 322% year-over-year to $133.5 million, with Adjusted EBITDA turning positive at $47.8 million from a loss of $14.5 million.
  • 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% to $101.0 million.
  • Other revenue (including SEG+ and PPA income) totaled $32.6 million.
• Magnetics Segment: Revenue decreased 15% year-over-year to $18.6 million, with Adjusted EBITDA declining 44% to $5.3 million.
  • Revenue decline was partially offset by the start-up of magnetics production at Independence.
  • Magnetic precursor products revenue was $18.6 million.
• Corporate and Other: Adjusted EBITDA loss widened to $11.3 million from $7.5 million, 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, spanning mining, processing, metallization, and magnet manufacturing.
• The company secured a sale of SEG+ to a U.S. aerospace and defense customer.
• The company is advancing its capabilities to supply U.S.-produced rare earth magnets under a long-term agreement with Apple.
• The company completed the GM qualification process for its magnets.

Risks and Challenges:

• Higher cost of sales due to significant growth in NdPr sales volumes.
• A $6.4 million reserve recognized on certain non-core product inventories.
• Increased start-up costs associated with the ramp-up of initial magnet production.
• Higher stock-based compensation expense.
• Unfavorable change in the fair value of the derivative instrument associated with the 2030 Notes.
• Potential risks related to the timing of facility construction (10X Facility), government funding availability, and regulatory scrutiny of government partnerships.
• Risks associated with the long-term agreement with Apple, including the ability to construct, develop, and scale facilities.

Management Commentary and Tone:

• CEO James Litinsky described the quarter as a "strong quarter of growth across production, sales, and earnings."
• Management highlighted the completion of the GM qualification process as a "milestone" resulting from "years of compounding capabilities."
• The tone is confident, characterizing the GM qualification as an "inflection point for our business and mission."

Other Key Points:

• The company utilized an assumed material conversion ratio of 1.25 for NdPr metal sales in 2026, up from 1.20 in the prior period.
• A $8.8 million settlement of a construction-related litigation matter was included in transaction-related costs for the nine-month period.
• The company incurred $14.2 million in start-up costs for the quarter, primarily related to commissioning magnet-making capabilities at the Independence Facility.
• The company hosts a conference call on November 5, 2026, to discuss results.
• The company maintains a Series A cumulative perpetual convertible preferred stock with an aggregate liquidation preference of $435.6 million.