MP Materials Corp. (MP Quick QuoteMP - Free Report) reported adjusted earnings of 4 cents per share in the third quarter of 2026, beating the Zacks Consensus Estimate of a loss of 1 cent. MP had reported an adjusted loss of 10 cents per share in the year-ago quarter.

Including one-time items, the company reported a loss per share of 12 cents compared with a loss of 24 cents in the third quarter of 2025.

Revenues surged 176% year over year to $147.66 million and surpassed the consensus estimate of $117 million. Growth was driven by higher NdPr oxide and metal sales and stronger pricing.  Revenues also benefited from a $31.6 million sale of SEG+ to a U.S. aerospace and defense customer in the quarter. This was, however, offset by a slight decline in revenues from magnetic precursor products due to the start-up of magnetics production at Independence.

MP Materials Faces Higher Costs Despite Revenue Growth

Cost of sales increased 76.6% year over year to $85.63 million from $48.48 million, reflecting significantly higher neodymium-praseodymium (NdPr) sales volumes, a $6.4 million reserve on certain non-core product inventories and the SEG+ sale.
Selling, general and administrative expenses climbed 33.8% to around $38 million from $28.41 million, primarily due to increased headcount supporting downstream expansion. Start-up costs rose substantially to $14.15 million from $1.41 million as initial magnet manufacturing activities accelerated. However, advanced projects and development expenses declined sharply to $1.90 million from $19.03 million, which included transaction-related expenses in the prior-year period.

MP's Operating Loss Narrows, Adjusted EBITDA Improves

MP Materials reported an operating loss of $22.06 million in the third quarter of 2026, narrower than the year-ago loss of $67.02 million. The improvement reflected substantially higher revenues and PPA income, partially offset by rising operating expenses.

Consolidated adjusted EBITDA improved to $41.14 million from a loss of $12.57 million a year earlier. 

MP's Materials Segment Gains on Higher Sales & Price

NdPr production increased 41% year over year to 1,018 metric tons from 721 metric tons. The improvement reflected stronger output from the company's separation and finishing operations at Mountain Pass. NdPr sales volume jumped 94% to 1,020 metric tons. Meanwhile, rare earth oxide production declined 3% year over year to 12,887 metric tons from 13,254 metric tons. 

Materials segment revenues soared 322% year over year to $133.54 million from $31.64 million. NdPr oxide and metal revenues surged 227% to $100.96 million, benefiting from higher sales volumes and stronger market pricing. Other revenues increased to $32.58 million from $0.73 million in the year-ago quarter, primarily reflecting a $31.6 million sale of SEG+ to a U.S. aerospace and defense customer. 

MP also recognized $8.11 million of price protection agreement (PPA) income in the quarter, which provides additional support against fluctuations in NdPr pricing.

Materials segment adjusted EBITDA improved to $47.83 million from a loss of $14.52 million in the year-ago quarter, reflecting stronger sales and PPA income. Higher costs associated with increased production and sales activity partially offset these gains.

MP's Magnetics Revenues Decline Y/Y

Magnetics segment revenues declined 15% year over year to $18.62 million from $21.91 million. The decrease reflected slightly lower magnetic precursor product sales as the company advanced the start-up of magnet production at its Independence Facility.

Segment adjusted EBITDA fell 44% to $5.35 million from $9.48 million in the prior-year quarter, reflecting the ongoing transition toward finished magnet manufacturing.

The company completed its magnet qualification process with General Motors Company (GM Quick QuoteGM - Free Report) during the quarter. Management confirmed that saleable magnet deliveries and related revenues would begin in the fourth quarter of 2026, marking an important commercial milestone for its downstream operations.

MP Materials' Liquidity Supports Capital Investment

MP ended the third quarter of 2026 with $1.34 billion in cash, cash equivalents and short-term investments compared with $1.83 billion at the end of 2025. The substantial liquidity position supports its ongoing investments in rare earth processing and magnet manufacturing.

For the first nine months of 2026, net cash used in operating activities totaled $7.76 million, compared with $108.9 million in the corresponding period of 2025. Purchases of property, plant and equipment totaled $420.25 million, up from $109.97 million a year earlier.

The company's investment program continues to support the expansion of its vertically integrated rare earth supply chain, including its Mountain Pass operations, Independence magnet manufacturing facility and planned 10X facility.

MP’s Price Performance & Zacks Rank

MP Materials’ shares have declined 47.4% in a year against the industry’s 19.5% growth.

Image Source: Zacks Investment Research

MP’s Zacks Rank & Key Picks

MP Materials currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include OR Royalties Inc. (OR Quick QuoteOR - Free Report) and GrowGeneration (GRWG Quick QuoteGRWG - Free Report) . 

OR Royalties is slated to report third-quarter results on Nov. 11. The Zacks Consensus Estimate for earnings is pegged at 27 cents per share, indicating 22.7% year-over-year growth. OR Royalties carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

GrowGeneration is slated to report third-quarter results on Nov. 10. The Zacks Consensus Estimate for earnings is pegged at 1 cent per share, indicating an improved performance from the loss of 4 cents reported in the year-ago quarter. GRWG carries a Zacks Rank of 2 at present.