STILLWATER, Okla., March 30, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (the Company), an emerging global leader in rare earths, today announced its financial and operational results for the fourth quarter and year ended December 31, 2025.
Executive Commentary
"2025 was the year that USA Rare Earth set the foundation to execute our integrated rare earth growth strategy," said Barbara Humpton, CEO of USA Rare Earth. "We acquired the unique and internationally well-known metal and alloy making asset Less Common Metals, and we accelerated our progress toward mining development and magnet manufacturing. We are now rapidly developing a leading, globally integrated rare earth value chain that spans mining, processing, metal-making and magnet manufacturing, for the benefit of the U.S. and our allies. We are also attracting the high-caliber talent required to execute successfully on our vision."
Ms. Humpton continued, "With the definitive documentation for our $1.6 billion Department of Commerce funding expected to be completed in April 2026, the Company will be exceptionally well capitalized to accelerate the execution of our business plan and advance our mission to be a global champion in rare earths. Through disciplined operational focus and strategic capital deployment, we are establishing a platform to deliver the critical minerals and advanced materials essential for technological innovation and national security. As we build the partner of choice for advanced manufacturers, we will prioritize capacity expansion and the scaling of production to reshore the supply of high-quality rare earth elements, oxides, metals, and magnets. By targeting high-impact growth opportunities, we believe we will be well-positioned to deliver sustained, long-term value for our shareholders."
Fourth Quarter Highlights
Financial Highlights
-- Consistent with our January 2026 pre-announcement:
-- The Company ended 2025 with $359.9 million in cash and cash
equivalents and no significant debt.
-- FY 2025 operating expenses were $59.7 million, operating loss was
$59.5 million and capital expenditures were $37.4 million.
-- The Company's cash balance as of the date of this release was
approximately $1.75 billion, which includes $1.5 billion in gross
proceeds from the common stock PIPE (private investment in public equity)
that closed on January 29, 2026.
Business Highlights
-- Closed the acquisition of Less Common Metals Ltd. $(LCM)$ in November 2025, adding a highly strategic asset to the Company's global mine to magnet value chain. -- The LCM acquisition bolstered the Company's near-term revenue through the sale of products to third parties, and brought internal metal making capabilities to support the Company's magnet manufacturing capabilities. -- A proven ex-China producer of both light and heavy rare earth and critical mineral metals and alloys at scale, LCM is a crucial piece of the Company's strategy as it builds a global leader in rare earths. -- Completed design and initial construction of the Company's hydrometallurgical demonstration facility in Colorado, which is expected to begin operating solvent-extraction circuits in 2026 to support commercial plant design and advance the Round Top project. -- Optimized flow sheet for the Round Top project in Sierra Blanca, TX to focus on high-value heavy rare earths and critical minerals. Validated processes through bench- and pilot-scale testing, supporting completion of the Accelerated Mining Plan in 2H 2026. Now targeting commissioning of commercial production at Round Top in late 2028, two years earlier than previously anticipated. -- Established a strategic relationship with Solvay SA, a multinational chemical company, to supply rare earth metals to Permag LLC, a leader in high-precision magnets and magnetic assemblies. -- Signed an agreement to supply high-quality rare earth metals and alloys from LCM to Solvay and Arnold Magnetic Technologies Corp., a subsidiary of Compass Diversified, for production of advanced permanent magnets.
Recent Developments
Subsequent to year-end, the Company announced the following achievements and milestones:
-- Proposed U.S. Government collaboration: In January 2026, the Company
announced a proposed collaboration with the U.S. Government to accelerate
domestic rare earth capabilities, and build what we believe should
represent the largest domestic heavy rare earth, critical mineral, metal
and magnet platform in the United States by 2030. The proposed
collaboration, outlined in a Letter of Intent (LOI) and subject to
milestone achievements and definitive documentation which we anticipate
executing in April 2026, would provide access to $1.6 billion in funding
under the Department of Commerce's CHIPS Program. This capital is
expected to accelerate and derisk the Company's growth objectives, and
support a business that should scale to the 2030 commercial targets
outlined in the January 2026 LOI announcement.
-- Closed a $1.5 billion common stock private capital raise in January 2026:
In conjunction with the U.S. Government LOI, the Company raised $1.5
billion through a common stock PIPE, which closed in January 2026. This
capital raise met one of the milestones outlined in the LOI, and will
accelerate the build out of Company's mine to magnet value chain.
-- Commissioned Phase 1A at our Stillwater magnet manufacturing facility: In
March 2026, the Company announced the commissioning of Phase 1a at its
Stillwater magnet manufacturing facility. This should enable the Company
to begin fulfilling customer orders for sintered neodymium-iron-boron
(NdFeB) permanent magnets in the second quarter of 2026. Phase 1a is
expected to ramp to a run rate capacity of 600 metric tons per year
(MTPA) by the end of Q4 2026. Phase 1b is expected to bring capacity at
the Stillwater Facility to a total of 1,200 MTPA in Q1 2027.
-- Expanded magnet pipeline across a diverse customer base: Our magnet
pipeline continues to mature across a diverse global customer base, with
significant progress made in the defense, industrial, mobility,
healthcare, and energy sectors. This commercial momentum is further
evidenced by a series of successful onsite vendor qualification visits
from leaders in the semiconductor, industrial motor, heavy equipment, and
aerospace sectors. These engagements have successfully transitioned into
the execution phase, supported by a growing backlog of both prototype and
production purchase orders.
-- Commenced expansion of metal & alloy capacity to meet growing demand: In
response to accelerating demand from our internal magnet manufacturing
capabilities and a widening third-party customer base, the Company
expects to expand metal making and alloy capacity at LCM's Cheshire, UK
location to 3,000 MTPA by the end of 2026. LCM has seen a significant
increase in its pipeline for samarium-cobalt (SmCo), NdFeB and specialty
alloys, fueled by third-party magnet manufacturers largely serving the
aerospace, semiconductor, mobility, and consumer electronics sectors.
Additionally, the Company is seeing heightened demand for specialized
light rare earth, heavy rare earth and critical mineral metals,
highlighting the broad product capabilities at LCM.
-- Announced selection of Fluor Corporation and WSP Global Inc. to advance
our Accelerated Mining Plan: Fluor and WSP Global were selected as
engineering, procurement, and construction management (EPCM) partners for
the build-out and commercialization of the Round Top deposit. The
combination of Fluor and WSP brings significant expertise across deposit
geology, mine design and planning, and processing design, engineering,
and construction. Fluor and WSP will also lead the authoring of the Round
Top Preliminary Feasibility Study $(PFS)$ that is expected to be published
by the end of Q3 2026, and the Definitive Feasibility Study $(DFS)$ that is
expected to be published in Q1 2027.
-- Announced plans to build a 3,750 MTPA plant through LCM Europe to produce
metal and alloy in Lacq, France, co-located with Carester SAS's Caremag
oxide and recycling facility. Together, this platform is intended to
establish a comprehensive supply chain for rare earth processing, metal
and alloy production in Europe, and enhance the Company's globally
integrated rare earth value chain, from mine to magnet.
-- Agreed to acquire Texas Mineral Resources Corporation: In March 2026, the
Company announced a definitive agreement to acquire Texas Mineral
Resources Corp. (TMRC). The transaction will establish the Company as the
sole operator and 100% economic beneficiary of the Round Top project upon
closing, subject to customary conditions. This strategic transaction will
streamline the Round Top project ownership structure and is expected to
streamline the Company's operations as its implements its Accelerated
Mining Plan.
-- Signed mutual sales and distribution agreement with Arnold Magnetic
Technologies Corp., a subsidiary of Compass Diversified. Under this
non-exclusive partnership, the Company will offer Arnold's finished
permanent magnets produced from samarium-cobalt (SmCo) and NdFeB, and
Arnold will offer the Company's processed and refined NdFeB feedstock and
finished magnets. The agreement strengthens the domestic supply chain for
mission-critical applications by expanding availability of
U.S.-manufactured rare earth magnets.
-- Expanded the corporate leadership team: In March 2026, the Company
appointed Valerie Ford Jacob as Chief Legal Officer, Gregory Bowman as
Chief Global Policy Officer and Head of External Relations, and J.B. Lowe
as Vice President, Head of Investor Relations. These executives are
expected to deepen engagement with policymakers, investors, and other
stakeholders.
-- Added expertise to the Board: In March 2026, the Company announced the
addition of GlobalFoundries Executive Chairman Dr. Thomas Caulfield to
its Board of Directors. Dr. Caulfield brings decades of experience across
leadership and global operations at leading technology companies, and has
relevant expertise in scaling complex, industrial platforms and strategic
capacity at the intersection of technology, manufacturing and national
priorities.
2026 Outlook
As it builds a global leader in rare earths, in 2026 the Company expects to:
-- Sign the Definitive Funding Agreement and Definitive Funding Award with
the U.S. Government in April 2026. Subject to the achievement of
milestones, these agreements would provide access to $1.6 billion in
funding under the Department of Commerce's CHIPS Program. This capital is
expected to accelerate and derisk the Company's growth objectives, and
support a business that by 2030 we believe should represent the largest
domestic heavy rare earth, critical mineral, metal and magnet platform in
the United States.
-- Commission the hydrometallurgical demonstration facility in Colorado in
Q2 2026. This demonstration facility is expected to run three separate
continuous demonstrations, including the Round Top flowsheet, third-party
MREC (mixed rare earth carbonate) separation, and swarf recycling. These
three demonstrations are expected to be complete by the end of 2026,
providing oxide product for qualification by potential customers. Further,
this demonstration scale data should serve as the basis for commercial
engineering of the Round Top project, the third party MREC separation
facility, and the swarf recycling facility.
-- Complete the Round Top Preliminary Feasibility Study by the end of Q3
2026. This PFS is expected to validate the Round Top Flowsheet, will
provide the basis for initial engineering at Round Top including site
layout and civil work, and provide indications of project economics.
-- Initiate Round Top Definitive Feasibility Study (DFS) in Q4 2026. This
DFS is expected to be published in Q1 2027, and will provide the balance
of commercial engineering and design and definitive project economics.
-- Reach 600 MTPA of run-rate magnet manufacturing capacity at the
Stillwater Facility in Q4 2026. This manufacturing capacity build out is
expected to support the Company's growing pipeline of magnet customers
across the aerospace, defense, semiconductor, industrial motor, heavy
equipment, mobility, healthcare, and energy sectors.
-- Reach 3,000 MTPA of run-rate metal making and alloy capacity at LCM in Q4
2026. This capacity build out is expected to support the Company's
internal metal and alloy needs for magnet manufacturing, as well as a
growing pipeline of third-party rare earth and critical mineral metal and
alloy demand.
Upcoming Events
-- Q1 2026 earnings call: As the Company recently held an investor call
following the concurrent announcement of the LOI with the Department of
Commerce and PIPE in January 2026, it will not hold an earnings call to
discuss its Q4 2025 financial results. The Company will host its next
earnings call following the announcement of its Q1 2026 earnings results,
to be held in the second quarter.
-- Investor day in or before Q3 2026: The Company intends to host an
Investor Day in or before Q3 2026 to give a more comprehensive overview
of its strategic vision, and an update on its long-term operational and
financial outlook. Event details will be forthcoming.
Financial Highlights
Three Months Ended Years Ended
December 31, December 31,
-----------------------
2025 2024 2025 2024
------- ------ -------
(In thousands, except for per share amounts)
Loss from
operations $(26,120) $(5,917) $ (59,503) $(15,585)
Net loss
attributable
to USA Rare
Earth, Inc. (50,205) (6,797) (297,559) (15,735)
Net loss per
share
attributable
to USA Rare
Earth, Inc.
- Diluted (0.40) (0.16) (3.31) (0.40)
Net cash used
in operating
activities (27,898) (3,504) (48,985) (12,991)
Cash 359,925 16,761
Non-GAAP Financial Highlights (1)
Three Months Ended Years Ended
December 31, December 31,
------------------- ----------------------
2025 2024 2025 2024
------ -------
(In thousands, except for per share
amounts)
Adjusted net
loss
attributable
to USA Rare
Earth, Inc. $(26,399) $(8,943) $(80,025) $(23,526)
Adjusted net
loss per
share
attributable
to USA Rare
Earth, Inc.
- Diluted (0.19) (0.15) (0.82) (0.40)
________
(1) Refer to the sections "About Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively.
Forward-looking Statements
Certain matters discussed in this press release are or contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements, which involve risks and uncertainties, include, but are not limited to, statements relating to the proposed U.S. government collaboration and the expected timing of executing definitive documents relating thereto, the capacity and timing of the production of magnets at the Stillwater magnet manufacturing facility, commissioning the Company's hydrometallurgical demonstration facility in Colorado, the Company's magnet sales pipeline and obtaining magnet purchase orders, the amount and timing of the expansion of strip cast capacity at LCM's Cheshire, UK location, the timing of publishing the PFS and DFS for Round Top, the timing of commercial production at Round Top, the construction of a plant to produce metal and alloy in Lacq, France, completion of the TMRC acquisition, and other statements regarding the Company's expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as "anticipate", "believe", "can", "continue", "could", "estimate", "expect", "forecast", "intend", "may", "might", "mission," "plan", "possible", "potential", "predict", "project", "propose," "seek", "should", "strive", "target", "will", "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the Company's expectations. These risks and uncertainties include, but are not limited to, the following:
-- The Company's Stillwater magnet manufacturing facility is under
development and is not yet completed, it has not commenced producing and
selling sintered neodymium-iron-boron permanent magnets ("neo magnets"),
and the Company has no history in commercial operations and the lack of
commercial operations limits the accuracy of any forward-looking
forecasts, prospects or business outlook or plans.
-- The Round Top project is at the exploration stage and the Company has not
commenced construction or commission of the mine nor related facilities,
and the development of the Round Top project into a producing mine is
subject to a variety of risks, any number of which may cause the
development of the Round Top project into a producing mine to not occur,
be delayed, or not result in the commercial extraction of minerals.
-- The Company may experience time delays, unforeseen expenses, increased
capital costs, and other complications while developing its projects, and
these could delay the start of revenue-generating activities and increase
development costs.
-- Until the Company's Round Top project is capable of satisfying its
feedstock needs, if ever, the Company's business is subject to the
availability of rare earth oxide and metal feedstock, in quantities and
prices that allow it to develop and commercially operate its Stillwater
facility.
-- The production of neo magnets is a capital-intensive business that
requires the commitment of substantial resources; if the Company does not
have sufficient capital or other resources necessary to provide for such
production, it could negatively impact the Company's business.
-- The Company will need to produce its products to exacting specifications
in order to provide future customers with a consistently high-quality
product. An inability to meet individual customer specifications would
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