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MP's Loss Streak Continued in 2025: Can It Stage a Comeback This Year?
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Key Takeaways
MP Materials reports 10 straight quarters of operating losses driven by higher production costs.
Cost of sales nearly doubled in 2024 and stayed elevated in 2025 amid the ramp-up of rare earth products.
MP expects NdPr output growth and magnet expansion to boost revenues despite ongoing cost pressures.
MP Materials Corp. (MP - Free Report) has reported operating losses and negative operating margins for ten straight quarters, primarily due to elevated production costs tied to its transition toward separated rare earth products. As a result, the company posted a loss per share of 44 cents in 2024, followed by a narrower loss of 24 cents in 2025.
In 2024, the cost of sales nearly doubled to $192.6 million from $92.7 million in 2023, largely driven by the initial ramp-up of separated rare earth production. These products inherently carry higher per-unit costs than rare earth concentrates because of the additional processing involved. Key cost components include chemical reagents, labor, maintenance and other consumables.
In 2025, the cost of sales remained elevated at $192.8 million. This reflected increased sales of NdPr oxide and metal, along with added costs associated with magnetic precursor products, particularly NdPr metal produced at the Independence Facility, which had no comparable expenses in the prior year.
Operating expenses also trended higher. Selling, general and administrative (SG&A) expenses rose 5% in 2024 and surged a further 35% in 2025, driven by workforce expansion to support downstream growth initiatives. The combined increase in cost of sales and SG&A significantly lifted total operating expenses, resulting in operating losses of $169 million in 2024 and $149.4 million in 2025.
As MP continues ramping production of separated products at Mountain Pass and expands magnetic precursor and magnet output at the Independence Facility, the cost of sales may increase further in 2026. Ongoing investments in downstream capabilities are likely to keep SG&A expenses high, maintaining pressure on near-term margins.
That said, increasing production volumes of NdPr, along with growing sales of magnetic precursor products, are expected to support top-line growth in upcoming quarters, potentially offsetting these cost pressures.
Performance Trends of Peers
Peer Energy Fuels (UUUU - Free Report) reported a net loss per share of 38 cents in 2025 and a loss of 28 cents per share in 2024. Energy Fuels reported a 7% decline in cost of sales to $52.2 million in 2025. However, total operating expenses rose 33% year over year to $167 million in 2025, attributed to a 168% surge in exploration, development and processing expenses and a 70% spike in SG&A expenses.
In fiscal 2024, Energy Fuels saw a 208% increase in costs to $55.9 million and total operating expenses had surged 79%. Energy Fuels reported an operating loss of $101 million in 2025 compared with a loss of $47.5 million in 2024.
Lynas Rare Earths Limited (LYSDY - Free Report) recently reported half-year fiscal 2026 results (ended Dec. 31, 2026). Cost of sales for the period was up 32% year over year to AUD 271.7 million ($187 million) due to the 14% increase in NdPr sales volume and a full six months of operating costs from Lynas Kalgoorlie. Lynas reported a net profit after tax of AUD 80.2 million ($55 million), a solid increase from $5.9 million in the prior comparable period, attributed to higher sales volume and prices.
Lynas’ cost of sales in fiscal 2025 moved up 29% year over year to AUD 426.7 million ($281.5 million). Lynas had reported a net profit after tax of AUD 8 million ($4.09 million), 91% lower than the prior fiscal.
MP’s Price Performance, Valuation & Estimates
MP Materials’ shares have gained 86.8% in a year compared with the industry’s 38.2% growth.
Image Source: Zacks Investment Research
MP is trading at a forward 12-month price/sales multiple of 15.43X, a significant premium to the industry’s 1.41X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 35 cents per share, indicating a solid improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.13 per share, indicating a 221% year-over-year improvement.
The estimate for both 2026 has moved down in the past 60 days, while the same for 2027 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
MP's Loss Streak Continued in 2025: Can It Stage a Comeback This Year?
Key Takeaways
MP Materials Corp. (MP - Free Report) has reported operating losses and negative operating margins for ten straight quarters, primarily due to elevated production costs tied to its transition toward separated rare earth products. As a result, the company posted a loss per share of 44 cents in 2024, followed by a narrower loss of 24 cents in 2025.
In 2024, the cost of sales nearly doubled to $192.6 million from $92.7 million in 2023, largely driven by the initial ramp-up of separated rare earth production. These products inherently carry higher per-unit costs than rare earth concentrates because of the additional processing involved. Key cost components include chemical reagents, labor, maintenance and other consumables.
In 2025, the cost of sales remained elevated at $192.8 million. This reflected increased sales of NdPr oxide and metal, along with added costs associated with magnetic precursor products, particularly NdPr metal produced at the Independence Facility, which had no comparable expenses in the prior year.
Operating expenses also trended higher. Selling, general and administrative (SG&A) expenses rose 5% in 2024 and surged a further 35% in 2025, driven by workforce expansion to support downstream growth initiatives. The combined increase in cost of sales and SG&A significantly lifted total operating expenses, resulting in operating losses of $169 million in 2024 and $149.4 million in 2025.
As MP continues ramping production of separated products at Mountain Pass and expands magnetic precursor and magnet output at the Independence Facility, the cost of sales may increase further in 2026. Ongoing investments in downstream capabilities are likely to keep SG&A expenses high, maintaining pressure on near-term margins.
That said, increasing production volumes of NdPr, along with growing sales of magnetic precursor products, are expected to support top-line growth in upcoming quarters, potentially offsetting these cost pressures.
Performance Trends of Peers
Peer Energy Fuels (UUUU - Free Report) reported a net loss per share of 38 cents in 2025 and a loss of 28 cents per share in 2024. Energy Fuels reported a 7% decline in cost of sales to $52.2 million in 2025. However, total operating expenses rose 33% year over year to $167 million in 2025, attributed to a 168% surge in exploration, development and processing expenses and a 70% spike in SG&A expenses.
In fiscal 2024, Energy Fuels saw a 208% increase in costs to $55.9 million and total operating expenses had surged 79%. Energy Fuels reported an operating loss of $101 million in 2025 compared with a loss of $47.5 million in 2024.
Lynas Rare Earths Limited (LYSDY - Free Report) recently reported half-year fiscal 2026 results (ended Dec. 31, 2026). Cost of sales for the period was up 32% year over year to AUD 271.7 million ($187 million) due to the 14% increase in NdPr sales volume and a full six months of operating costs from Lynas Kalgoorlie. Lynas reported a net profit after tax of AUD 80.2 million ($55 million), a solid increase from $5.9 million in the prior comparable period, attributed to higher sales volume and prices.
Lynas’ cost of sales in fiscal 2025 moved up 29% year over year to AUD 426.7 million ($281.5 million). Lynas had reported a net profit after tax of AUD 8 million ($4.09 million), 91% lower than the prior fiscal.
MP’s Price Performance, Valuation & Estimates
MP Materials’ shares have gained 86.8% in a year compared with the industry’s 38.2% growth.
Image Source: Zacks Investment Research
MP is trading at a forward 12-month price/sales multiple of 15.43X, a significant premium to the industry’s 1.41X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 35 cents per share, indicating a solid improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.13 per share, indicating a 221% year-over-year improvement.
The estimate for both 2026 has moved down in the past 60 days, while the same for 2027 has moved up, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.