MP Materials Corp. reported a net income of $9.4 million and adjusted EBITDA of $39.2 million for the fourth quarter of 2025. Revenue fell 13.6 % year‑over‑year to $52.7 million, a decline largely attributed to a strategic pause in rare‑earth concentrate sales to China. The company offset the revenue drop with a $51 million price‑protection agreement (PPA) income from the U.S. Department of Defense, which is based on a $110 kg price floor for NdPr products.
Revenue from neodymium‑praseodymium (NdPr) oxide and metal sales rose, while the overall decline reflects the halt of concentrate sales that had previously accounted for a significant portion of the company’s top line. Full‑year 2025 NdPr oxide production surged 101 % to 2,599 metric tons, and the company produced its first commercial NdFeB magnets at its Independence facility. In the fourth quarter alone, NdPr oxide output was 718 metric tons, underscoring the company’s shift from a commodity concentrate producer to a vertically integrated magnetics business.
Adjusted earnings per share of $0.09 beat consensus estimates that ranged from $0.02 to $0.08, a beat of up to 350 %. The strong EPS performance was driven by disciplined cost management, the $51 million PPA income, and profitable sales of magnetic precursor products that were not present in 2024. Analysts noted that the earnings beat was largely a result of the company’s ability to maintain margins despite a revenue decline.
Underlying operations before the PPA generated losses exceeding $41.6 million, but the $51 million PPA income turned the quarter profitable. This demonstrates the critical role of the government contract in stabilizing earnings while the company scales its downstream magnet production.
MP Materials is accelerating its magnetics expansion, having produced its first commercial NdFeB magnets and planning to break ground on a 10X magnetics facility in Northlake, Texas, in 2026. The company expects to ramp magnet production for General Motors and to achieve a 6,000‑metric‑ton annualized NdPr output by the end of 2026, with a target of 500 tons per month.
Management highlighted the company’s progress: "2025 was a transformational year for MP Materials," said Founder, Chairman and CEO James Litinsky. "Our landmark partnership with the U.S. Department of War, together with our agreement with Apple to deliver scaled recycling and magnetics capabilities, anchors a durable platform to accelerate growth and extend our vertically integrated advantage." CFO Ryan Corbett added, "Revenue increased 10 % year‑over‑year, driven primarily by the ramp‑up of oxide sales within the Materials segment as well as initial precursor product sales in the Magnetics segment, which were not present in 2024." COO Michael Rosenthal noted the company’s production target of 500 tons per month of NdPr oxide, or a 6,000‑metric‑ton annualized run rate, by the end of 2026.
In the prior quarter, MP Materials reported a net loss of $22.3 million, highlighting the turnaround achieved in Q4 2025. The earnings beat, combined with the company’s strategic pivot toward magnetics and the stabilizing effect of the PPA, signals a significant shift in the company’s business model and financial trajectory.
Overall, MP Materials’ Q4 2025 results demonstrate a successful transition to a higher‑margin magnetics business, a strong earnings beat supported by government contracts, and a clear path forward for scaling production and expanding its customer base, despite a revenue miss driven by the cessation of concentrate sales to China.
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