MP Materials is set to announce its second-quarter earnings for the fiscal year 2025 on August 7, following market hours. Analysts forecast a loss per share of $0.19, a slight decline compared to the actual loss of $0.17 per share in Q2 2024, reflecting an 11% year-over-year downturn. However, revenue expectations are more promising, with an estimated $47.65 million, which would represent a substantial 52% increase from the $31.26 million reported a year earlier.
A significant factor contributing to MP Materials’ optimistic outlook is the recent influx of investment, notably $400 million from the Department of Defense and $500 million from Apple. The Department of Defense deal is particularly noteworthy, as it establishes a price floor for neodymium-praseodymium (NdPr) to be set at $110 per kilogram, nearly double the current rates in the Chinese market. This strategic move is designed to encourage MP Materials to sustain high production levels to fulfill the increasing demand for rare earth elements.
In terms of production, the company reported impressive figures in Q1 2025, boasting a record output of 563 metric tons of NdPr oxide, marking a 36% increase from the previous quarter. Simultaneously, its rare earth oxide (REO) production reached 12,213 metric tons, showing a 10% year-over-year rise. Investors are likely keen for updates on these production metrics, particularly in light of potential maintenance issues that could affect output in Q2 2025.
Additionally, the Magnetics division, which contributes about 10% to total revenue, turned a positive Adjusted EBITDA in Q1 2025, aided by its collaboration with General Motors. Stakeholders will be interested to hear about further advancements in this area as well.
With a solid trajectory towards profitability, bolstered by robust government backing and rising demand for rare earth materials, MP Materials appears poised for a bright future.