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Should You Buy, Hold or Sell USAR Stock Post Q3 Earnings?
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Key Takeaways
USA Rare Earth posted a Q3 loss of $0.25 per share, wider than the expected $0.06 loss.
USAR's deal to acquire LCM will advance its integrated rare earth mine-to-magnet strategy.
The Stillwater plant remains on track for early 2026 production with solid cash reserves.
USA Rare Earth Inc. (USAR - Free Report) stock has risen 5% since it reported third-quarter 2025 results last week. USAR posted a net loss of 25 cents per share, wider than the Zacks Consensus Estimate of a loss of six cents per share. Despite the loss, the market reacted positively to the company’s efforts in building an integrated mine to magnet manufacturing, given positive updates on its business and recently announced acquisition bid for Less Common Metals Ltd. (“LCM”).
USAR announced today that the LCM deal has received the clearance from the UK Minister of State, the only regulatory apporval required. The company expects to close the acquisition in the fourth quarter of 2025.
Year to date, USAR shares have gained, outperforming the Zacks Mining - Miscellaneous industry’s 25.2% growth, the Zacks Basic Materials sector‘s 20.8% rise and the S&P 500’s gain of 18%.
USA Rare Earth has, however, trailed other names in the rare earths space like MP Materials (MP - Free Report) and Energy Fuels (UUUU - Free Report) , which have advanced 297% and 205.7%, respectively, in the same timeframe.
Before addressing the critical question of how investors should position themselves regarding the stock, let us first review the company’s third-quarter results.
USA Rare Earth’s Losses Widen on Higher Costs
USA Rare Earth is developing a rare earth sintered neo magnet (NdFeB) manufacturing plant in Stillwater, OK, which is expected to start production in early 2026. It also holds certain mining rights to the Round Top Mountain deposit near Sierra Blanca, TX, but has not begun mineral extraction.
The company has not generated any revenues since its inception and continues to incur losses from operations.
Selling, general and administrative expenses climbed to $11.4 million in the third quarter from $0.8 million in the year-ago quarter, driven by an increase in legal and consulting costs, higher headcount and recruiting fees and other costs. Research and development expenses were $4.45 million compared with $1.16 million due to an increase in employee-related expenses related to a rise in headcount, and other costs.
The absence of revenues and higher expenses, somewhat offset by higher interest and dividend income due to higher balances in its money market funds, led to the 25 cents per share loss in the quarter.
USAR’s Strategic Developments Strengthen Long-Term Outlook
USA Rare Earth ended the third quarter with $258 million in cash and no significant debt. The company received a $125 million common equity investment providing capital to execute its growth plans.
In a major strategic move, the company inked a deal to acquire LCM, a UK-based manufacturer of specialized rare earth metals and both cast and strip cast alloys. LCM is the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale.
The acquisition will significantly accelerate USA Rare Earth’s mine-to-magnet strategy, establishing an end-to-end rare earth supply chain.
USA Rare Earth announced today that it has received the approval from the UK Minister of State for the LCM acquisition. With the only regulatory approval required now being cleared, USAR expects to close the acquisition in the ongoing quarter.
Meanwhile, the company maintained that the Stillwater, OK magnet facility remains on track for commercial-scale production in first-quarter 2026. USAR is also progressing toward pilot-scale testing of its swarf recycling flow sheet. This marks an important step in closing the loop between mining, processing and recycling. It also expects to complete the Pre-Feasibility Study for the Round Top development project in the second half of 2026.
The company has signed an agreement with Enduro Pipeline Services for the delivery of neo magnets in early 2026. USAR also entered into a joint development agreement with ePropelled to develop a strategic supply and purchase relationship of sintered neo magnets for use in the latter’s state-of-the-art motors.
How Did USA Rare Earth’s Peers Fare in Q3?
Energy Fuels reported a loss of seven cents per share in third-quarter 2025, in line with the year-ago quarter and beating the Zacks Consensus Estimate of a loss of eight cents. Energy Fuels’ revenues were reported at $17.7 million, surpassing the consensus estimate of $10 million. Energy Fuels had reported revenues of $4 million in the year-ago quarter.
MP Materials' total revenues declined 14.9% year over year to $53.6 million, beating the Zacks Consensus Estimate of $53 million. MP Materials reported a loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 14 cents and the year-ago quarter’s loss of 12 cents.
USAR Headed for Losses in 2025 & 2026, Sees Downward Revisions
The Zacks Consensus Estimate for USA Rare Earth earnings for 2025 is currently pegged at a loss of 65 cents per share, reflecting the lack of revenues. The consensus estimate for earnings for 2026 is a loss of 41 cents per share. The revenue estimate is $31.50 million for 2026 as it is expected to start production.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Over the past 60 days, the estimates for USAR for both years have been revised downward, as shown below.
Image Source: Zacks Investment Research
Our Final Take on USAR Stock
USA Rare Earth’s pending acquisition of LCM and the development of its Stillwater facility position it to become a key player in rebuilding the U.S. rare earth supply chain. While the company’s mine-to-magnet integration strategy is compelling, continued losses, lack of current revenues and estimated downgrades suggest that profitability remains a few years away.
Investors already holding the stock may stay invested, given the strong long-term potential and strategic progress. However, new investors may prefer to wait for a more favorable entry point once financial visibility improves. The stock currently carries a Zacks Rank #3 (Hold).
Image: Shutterstock
Should You Buy, Hold or Sell USAR Stock Post Q3 Earnings?
Key Takeaways
USA Rare Earth Inc. (USAR - Free Report) stock has risen 5% since it reported third-quarter 2025 results last week. USAR posted a net loss of 25 cents per share, wider than the Zacks Consensus Estimate of a loss of six cents per share. Despite the loss, the market reacted positively to the company’s efforts in building an integrated mine to magnet manufacturing, given positive updates on its business and recently announced acquisition bid for Less Common Metals Ltd. (“LCM”).
USAR announced today that the LCM deal has received the clearance from the UK Minister of State, the only regulatory apporval required. The company expects to close the acquisition in the fourth quarter of 2025.
Year to date, USAR shares have gained, outperforming the Zacks Mining - Miscellaneous industry’s 25.2% growth, the Zacks Basic Materials sector‘s 20.8% rise and the S&P 500’s gain of 18%.
USA Rare Earth has, however, trailed other names in the rare earths space like MP Materials (MP - Free Report) and Energy Fuels (UUUU - Free Report) , which have advanced 297% and 205.7%, respectively, in the same timeframe.
USAR's YTD Price Performance vs Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
Before addressing the critical question of how investors should position themselves regarding the stock, let us first review the company’s third-quarter results.
USA Rare Earth’s Losses Widen on Higher Costs
USA Rare Earth is developing a rare earth sintered neo magnet (NdFeB) manufacturing plant in Stillwater, OK, which is expected to start production in early 2026. It also holds certain mining rights to the Round Top Mountain deposit near Sierra Blanca, TX, but has not begun mineral extraction.
The company has not generated any revenues since its inception and continues to incur losses from operations.
Selling, general and administrative expenses climbed to $11.4 million in the third quarter from $0.8 million in the year-ago quarter, driven by an increase in legal and consulting costs, higher headcount and recruiting fees and other costs. Research and development expenses were $4.45 million compared with $1.16 million due to an increase in employee-related expenses related to a rise in headcount, and other costs.
The absence of revenues and higher expenses, somewhat offset by higher interest and dividend income due to higher balances in its money market funds, led to the 25 cents per share loss in the quarter.
USAR’s Strategic Developments Strengthen Long-Term Outlook
USA Rare Earth ended the third quarter with $258 million in cash and no significant debt. The company received a $125 million common equity investment providing capital to execute its growth plans.
In a major strategic move, the company inked a deal to acquire LCM, a UK-based manufacturer of specialized rare earth metals and both cast and strip cast alloys. LCM is the only proven ex-China producer of both light and heavy rare earth permanent magnet metals and alloys at scale.
The acquisition will significantly accelerate USA Rare Earth’s mine-to-magnet strategy, establishing an end-to-end rare earth supply chain.
USA Rare Earth announced today that it has received the approval from the UK Minister of State for the LCM acquisition. With the only regulatory approval required now being cleared, USAR expects to close the acquisition in the ongoing quarter.
Meanwhile, the company maintained that the Stillwater, OK magnet facility remains on track for commercial-scale production in first-quarter 2026. USAR is also progressing toward pilot-scale testing of its swarf recycling flow sheet. This marks an important step in closing the loop between mining, processing and recycling. It also expects to complete the Pre-Feasibility Study for the Round Top development project in the second half of 2026.
The company has signed an agreement with Enduro Pipeline Services for the delivery of neo magnets in early 2026. USAR also entered into a joint development agreement with ePropelled to develop a strategic supply and purchase relationship of sintered neo magnets for use in the latter’s state-of-the-art motors.
How Did USA Rare Earth’s Peers Fare in Q3?
Energy Fuels reported a loss of seven cents per share in third-quarter 2025, in line with the year-ago quarter and beating the Zacks Consensus Estimate of a loss of eight cents. Energy Fuels’ revenues were reported at $17.7 million, surpassing the consensus estimate of $10 million. Energy Fuels had reported revenues of $4 million in the year-ago quarter.
MP Materials' total revenues declined 14.9% year over year to $53.6 million, beating the Zacks Consensus Estimate of $53 million. MP Materials reported a loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 14 cents and the year-ago quarter’s loss of 12 cents.
USAR Headed for Losses in 2025 & 2026, Sees Downward Revisions
The Zacks Consensus Estimate for USA Rare Earth earnings for 2025 is currently pegged at a loss of 65 cents per share, reflecting the lack of revenues. The consensus estimate for earnings for 2026 is a loss of 41 cents per share. The revenue estimate is $31.50 million for 2026 as it is expected to start production.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
Over the past 60 days, the estimates for USAR for both years have been revised downward, as shown below.
Image Source: Zacks Investment Research
Our Final Take on USAR Stock
USA Rare Earth’s pending acquisition of LCM and the development of its Stillwater facility position it to become a key player in rebuilding the U.S. rare earth supply chain. While the company’s mine-to-magnet integration strategy is compelling, continued losses, lack of current revenues and estimated downgrades suggest that profitability remains a few years away.
Investors already holding the stock may stay invested, given the strong long-term potential and strategic progress. However, new investors may prefer to wait for a more favorable entry point once financial visibility improves. The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.