MP Materials 2025 Q3 Earnings Record NdPr Output Amid 63.7% Wider Net Loss

MP Materials reported Q3 2025 earnings marked by a 14.9% revenue decline and a 63.7% wider net loss year-over-year. The company achieved record neodymium-praseodymium (NdPr) production, offsetting part of the revenue shortfall. Management expects a return to profitability in Q4 2025, driven by strategic shifts and Pentagon-backed pricing guarantees.

Revenue

MP Materials’ total revenue fell to $53.55 million in Q3 2025, down from $62.93 million in Q3 2024. NdPr oxide and metal sales led the revenue stream at $30.91 million, while magnetic precursor products contributed $21.91 million. Additional revenue from other segments totaled $730,000. The decline was attributed to halted rare earth concentrate sales to China, a strategic pivot toward domestic processing and magnet manufacturing.

Earnings/Net Income

The company’s net loss widened to $41.78 million, or $0.24 per share, compared to a $25.52 million, or $0.16 per share, loss in Q3 2024. This 63.7% increase in losses reflects the transition costs of ceasing Chinese sales and ramping up downstream operations. Despite the broader loss, adjusted loss per share of $0.10 beat expectations, signaling improved cost management.

Post-Earnings Price Action Review

The strategy of buying MP Materials upon revenue beats and holding for 30 days shows promising backtest results. The strategy’s annualized return is 17.8%, with a 36.2% peak drawdown, indicating robust long-term performance with moderate volatility. This aligns with a sweet spot of consistently profitable performance, highlighting the strategy’s effectiveness in both growth and downturn markets.

CEO Commentary

MP Materials’ CEO emphasized the strategic importance of halting Chinese sales to secure U.S. supply chains. He highlighted record NdPr production as a critical step toward vertical integration and Pentagon-backed pricing stability. While acknowledging near-term losses, the CEO expressed confidence in long-term profitability through expanded magnet manufacturing and heavy rare earth processing.

Guidance

Management expects a return to profitability in Q4 2025, supported by the Pentagon’s price floor guarantees and increased magnet sales. The company also plans to commission a heavy rare earth processing facility by mid-2026, aiming to produce 200 metric tons of dysprosium and terbium annually.

Additional News

1. DoD Incentives: The U.S. Department of Defense launched production incentives to boost domestic rare earth capacity, aligning with MP’s strategic goals.

2. Record NdPr Production: The company’s Q3 NdPr output surged 51% year-over-year, driving a stock surge and a Canaccord price target raise to $79.

3. CEO Warning on Speculation: CEO Jim Litinsky cautioned against unrealistic rare earth projects, stressing that most initiatives “will not work, regardless of the price.”

MP Materials’ strategic shift to domestic processing, Pentagon partnerships, and record NdPr production underscore its pivotal role in U.S. critical mineral independence. While short-term losses persist, long-term catalysts include government-backed pricing, expanded magnet manufacturing, and heavy rare earth production. Investors should monitor execution risks in scaling operations and geopolitical developments.