MP Materials Corp.

Q2 consolidated revenue and PPA income were $126.1 million, more than doubling last year, driven mainly by a 127% increase in NdPr sales volumes. Consolidated adjusted EBITDA was $28.5 million, up $41 million year over year, and adjusted diluted EPS improved by $0.12 to a loss of $0.01 per share. In Materials, the segment generated $113.2 million of revenue plus PPA income and $32.5 million of adjusted EBITDA, a $45 million year-over-year improvement. NdPr production was 840 metric tons, up 41% year over year, and NdPr sales were above 1,000 metric tons for the second consecutive quarter, up 127% year over year. For Q3, management said NdPr oxide realized pricing should be in the high $90s per kilogram, PPA income roughly $10 per kilogram, overall PPA income should decline slightly sequentially, and Materials sales volumes should be flattish. On the Magnetics side, management expects initial commercial magnet deliveries in the fourth quarter, starting with modest volumes. CapEx was $230.3 million in the quarter, year-to-date spend was $308 million, full-year CapEx is still expected to be $500 million to $600 million, and the quarter ended with $1.45 billion of cash and short-term investments.

Jim Litinsky framed the quarter as evidence that MP is building a vertically integrated domestic critical materials platform one capability at a time. He emphasized disciplined expansion into heavies, the strategic importance of secure magnet supply for automotive, industrial, defense, and physical AI applications, and the new Project Swarm initiative to coordinate future drone magnet demand. His tone was confident and expansive, with repeated references to long-term industrial positioning, supply scarcity, and the idea that MP is becoming a key supplier in a changing market.

Ryan Corbett highlighted the financial upside from volume growth, noting $126.1 million of revenue and PPA income, $28.5 million of adjusted EBITDA, and a $0.12 improvement in adjusted diluted EPS to a loss of $0.01 per share. He said Materials sales pricing in Q3 should be in the high $90s per kilogram with about $10 per kilogram of PPA income, and he flagged flattish sequential Materials volumes because of shipment timing and metallization lead times. He also detailed capital deployment: $230.3 million of CapEx in Q2, roughly 60% tied to Magnetics, about $80 million for the 10X site, and full-year CapEx guidance of $500 million to $600 million. On liquidity, he said the company ended with $1.45 billion of cash and short-term investments, which he said fully funds the long-term capital plan.

Analysts focused on the new gadolinium contract, the pace of broader heavy rare earth offtakes, talent constraints, recycling, and whether supply scarcity is accelerating customer commitments. Management said the gadolinium deal locks in economics, is a sizable 9-figure multi-year contract, and may be the first of several heavies opportunities, with samarium, yttrium, terbium, and dysprosium also in view. On 10X and customer contracting, management said demand is strong but they are not rushing announcements and will prioritize long-term value and the right economics. They also said talent is challenging but manageable, recycling is being scaled in line with market conditions, and the China export restrictions should have minimal immediate impact because supply chains have been preparing for resilience.