MP Materials 2025 Q3 Earnings Net Loss Widens 63.7% Amid Strategic Shift

MP Materials reported mixed Q3 2025 results, with revenue declining 14.9% year-over-year but adjusted EPS outperforming estimates. The company announced plans to return to profitability in Q4 2025, driven by Pentagon-backed price protections and scaled magnet production.

Revenue

MP Materials’ total revenue fell to $53.55 million in Q3 2025, a 14.9% drop from $62.93 million a year earlier. Segment performance showed neodymium-praseodymium (NdPr) oxide and metal sales at $30.91 million, while magnetic precursor products contributed $21.91 million. Other revenue, including non-core operations, totaled $730,000. The decline was attributed to the cessation of rare earth concentrate sales to China, offset by growth in downstream magnet production.

Earnings/Net Income

The company’s net loss widened to $41.78 million, or $0.24 per share, representing a 63.7% increase in losses compared to $25.52 million, or $0.16 per share, in 2024 Q3. The EPS loss widened by 50%, underscoring the financial strain of transitioning to domestic processing.

Post-Earnings Price Action Review

A strategy of purchasing MP shares on revenue-raise announcements and holding for 30 days generated a cumulative 18.5% profit ($11.4 per share) over three years. This success reflects market confidence in MP’s rare earth vertical integration and growth potential. However, investors must weigh risks like execution delays and geopolitical uncertainties.

CEO Commentary

James Litinsky highlighted record NdPr output and progress toward U.S. magnet production, emphasizing momentum from Pentagon agreements. Strategic priorities include commissioning a heavy rare earth separation facility by mid-2026 to support 10,000 MT/year of high-performance magnets.

Guidance

MP expects Q4 2025 profitability under the DoW price protection agreement, with full commercial magnet output by year-end. Long-term goals include achieving 10,000 MT/year magnet production capacity by 2026.

Additional News

1. Strategic Shift: MP Materials halted all Chinese sales in Q3 2025, aligning with Pentagon agreements to eliminate reliance on Chinese processing. This move, while causing short-term revenue drops, aims to secure U.S. supply chain independence.

2. Heavy Rare Earth Facility: The company plans to commission a dysprosium-terbium separation plant at Mountain Pass by mid-2026, targeting 200 metric tons annually. This facility will bolster high-performance magnet production for defense and EV sectors.

3. CEO Caution: Litinsky warned investors to avoid speculative rare earth projects, citing structural challenges. He emphasized MP’s decade-long lead in vertical integration and partnerships with Apple and the Pentagon.