MP Materials Third Quarter 2025 Consolidated Review
To align with the terms of the recent agreements with the United States Department of War (the "DoW"), formerly known as the Department of Defense, and in further support of our domestic supply chain objectives, we ceased all sales of our products to China, which resulted in no revenue recognized from rare earth concentrate during the quarter, driving the 15% decline in consolidated revenue year over year to $53.6 million. The decline in revenue was partially offset by $21.9 million of magnetic precursor products sales with no comparable revenue in the prior year period, coupled with an $11.7 million increase in NdPr oxide and metal sales driven by higher NdPr Production Volume as a result of ramping production of separated products over the last twelve months.
Adjusted EBITDA declined by $1.4 million year over year to $(12.6) million, driven mainly by the decline in rare earth concentrate revenue, partially offset by the sales of magnetic precursor products, which drove a $13.1 million year over year improvement in the Magnetics Segment Adjusted EBITDA. Materials Segment Adjusted EBITDA decreased by $12.0 million year over year mainly due to the net decrease in revenue discussed above.
Adjusted Net Loss improved by $1.8 million year over year to $(17.8) million, driven by a higher income tax benefit along with higher interest income due to increased cash and short-term investment balances. The improvement in Adjusted Net Loss was partially offset by higher depreciation expense resulting from an increase in capital assets placed into service over the last year.
Net loss increased by $16.3 million year over year to $(41.8) million, primarily driven by the net decrease in revenue, along with $17.0 million in higher Advanced projects and development expenses, which included transaction costs associated with the DoW agreements and transaction costs incurred to secure financing.
Diluted loss per common share ("EPS") increased by $0.08 year over year to a diluted loss per common share of $(0.24), in line with the change in Net loss discussed above. Adjusted Diluted EPS increased by $0.02 to $(0.10) in line with the improved Adjusted Net Loss discussed above. |
