USA Rare Earth Swings to 1Q Loss as Expenses Ramp Up

Dow Jones05-14

USA Rare Earth swung to a loss in its latest quarter as costs for the mining company climbed amid continuing efforts to scale up production.

The Stillwater, Okla., company on Wednesday recorded a loss of $67 million, or 34 cents a share, compared with a profit of $51.8 million, or 58 cents a share, a year earlier.

Adjusted loss per share was 12 cents. Analysts polled by FactSet projected an adjusted loss of 13 cents a share.

USA Rare Earth posted $5.7 million of revenue for the quarter. The company did not report revenue for the same period a year ago, and went public in March 2025. Analysts expected revenue of $4.2 million.

The company's loss was driven by higher operating expenses. Spending on capital expenditures and equipment deposits soared to $38.6 million from $3.1 million a year earlier.

In March, the company commissioned Phase 1A at its Stillwater magnet manufacturing facility, which it expects to allow it to begin fulfilling customer orders for certain magnets in the current quarter.

The company has been working to challenge China's dominance in rare earths, including several acquisitions in recent months as it builds out a vertically integrated rare-earth supply chain to feed its intended magnet production.

In November, it acquired Less Common Metals, a U.K. maker of rare-earth metals required to produce magnets used in the auto and defense industries. Last month, it agreed to acquire Serra Verde Group, the owner of a rare-earth mine and processing plant in Brazil, in a cash-and-stock deal valued at about $2.8 billion.

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