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MP Materials' shares slide in overtime on quarterly revenue miss
11/6/2025, 9:50:38 PM
Economic Summary
- MP (MP) reported an adjusted loss of $0.10 per share, better than the $0.18 loss expected, indicating narrower-than-anticipated near-term operating weakness.
- Revenue for the quarter was $53.6 million versus $54.9 million expected, with consolidated revenue down about 15% year-over-year largely because MP ceased all product sales in China tied to its Pentagon deal, resulting in no rare-earth concentrate revenue this quarter.
- Production is ramping and at record levels, and a Pentagon price-protection agreement goes into effect on October 1, which management says will drive a meaningful inflection in cash flow and profitability going forward.
- MP is positioning greater vertical integration — on track to produce magnets at commercial scale by year-end and planning to begin commissioning a heavy rare-earth separation facility in mid-2026 — potentially strengthening its supply-chain position in rare-earth magnets.
Bullish
- Production ramping to record levels
- Pentagon price-protection agreement effective Oct 1
- Expect return to healthy profitability and cash flow inflection
- Commercial-scale magnet production targeted by year-end
- Heavy rare-earth separation facility planned for mid-2026
Bearish
- Revenue missed estimates
- 15% year-over-year revenue decline after China sales halt
- No rare-earth concentrate revenue this quarter
- Shares down in after-hours trading
Bullish tickers
MP
Bearish tickers
MP
MP
Bullish
Production at record levels with a Pentagon price-protection agreement effective Oct 1; management expects a return to strong profitability, commercial-scale magnet production by year-end, and a new heavy rare-earth separation facility in 2026.
Bearish
Revenue missed estimates and consolidated revenue declined 15% YoY after MP ceased product sales in China; no rare-earth concentrate revenue this quarter and shares fell in after-hours.
People mentioned
Jim Litinsky