Al Root
MP Materials reported much better-than-expected fourth-quarter earnings. Shares, however, were down shortly after results were released.
That might turn around.
On Thursday afternoon, the rare-earth miner and processor reported quarterly earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $39.2 million on sales of about $53 million. Wall Street was looking for about $34 million in Ebitda and $60 million in sales.
Investors should focus on Ebitda, not sales. This is the first quarter in which the price protection agreement with the Department of Defense was in effect. It ensures that MP receives the equivalent of $110 per kilogram for key rare-earth products. Payments to the company under that agreement aren't recorded as revenue.
The profitability is impressive. MP stock was down 2.2% in after-hours trading at $58.68.
This is breaking news. Check back for updates. Read a preview of MP's earnings report below.
The rare earth industry is never dull. After endless reports of government deals, shortages, and capacity additions, investors can get back to some fundamental data on Thursday afternoon.
MP Materials, the largest rare earth producer in the Western Hemisphere, will report fourth-quarter numbers after the close on Thursday.
Wall Street is looking for earnings before interest, taxes, depreciation, and amortization, or Ebitda, of about $34 million from sales of about $60 million. A year ago, MP reported an Ebitda loss of $10.7 million from sales of $61 million.
Ebitda is expected to improve significantly with essentially no sales growth because MP is shifting from selling intermediate products to higher-value rare earth materials. In the fourth quarter of 2024, it sold 7,802 metric tons of rare earth oxide and 468 metric tons of Neodymium-Praseodymium, or NdPr, alloy. In the third quarter of 2025, it sold no rare earth oxide and 525 metric tons of NdPr.
NdPr realized pricing in the third quarter was $59 per kilogram, up from $51 in the fourth quarter of 2024.
NdPr prices are now above $110 per kilogram, according to Canaccord analyst George Gianarikas. That price is key. It's the floor price referenced in the Defense Department's blockbuster July agreement with MP that included a price floor, equity, and offtake agreements.
The price rally "indicates that China's long-standing, administratively managed pricing regime, despite strong demand from electrification and robotics, may be starting to ease."
Along with production and pricing, investors will be looking for industry updates from the company, which has emerged as a key domestic supplier of critical minerals. Since the July MP deal, the federal government has continued to invest in critical minerals and sign deals with other countries for mineral access. There have also been threats of Chinese export restrictions, rare earth shortages, and companies announcing plans to enter the newly hot space.
MP has made news too. Early on Thursday, it announced that Northlake, Texas, would be the location for its next magnet-making facility. The site is less than 10 miles from MP's existing magnet facility in Fort Worth.
The Fort Worth facility, called Independence, began metal production in 2024 and magnet production in 2025. The Northlake facility will cost about $1.25 billion and is on track for commissioning in 2028. When completed, MP should produce about 10,000 metric tons of rare-earth magnets annually.
A lot is going on, and that volatility has shown up in the stock. MP shares have ranged from $18.64 to $100.25 over the past 12 months. At just under $60 a share in midday trading, MP stock was up about 150% over the past 12 months.
MP stock was up 2.2% in midday trading at $59.98 while the S&P 500 was down 0.6% and the Dow Jones Industrial Average was up 0.2%.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 26, 2026 16:16 ET (21:16 GMT)
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