MP Materials Q4 Earnings: 48% Revenue Surge, Higher Production, Soft Pricing Environment And More

MP Materials Corp. MP shares are trading higher premarket on Friday after the company reported fourth-quarter revenue growth of 48% year-over-year (Y/Y) to $61.0 million, beating the consensus of $51.0 million.

Revenue growth was driven by increased sales in the Materials Segment, on higher NdPr oxide and metal sales due to the transition to midstream production of separated products.

The company achieved a production of 11,478 metric tons of rare earth oxides (REO) in concentrate during the quarter, despite a planned maintenance shutdown, and sold 7,803 metric tons.

MP Materials produced 413 metric tons of NdPr oxide and sold 468 metric tons in the quarter.

Adjusted EBITDA loss stood at $10.7 million versus a profit of $1.3 million owing to higher production costs in the Materials Segment on the initial ramp-up of separated product manufacturing.

Adjusted EPS loss of $0.12 beat the consensus estimate loss of $0.13.

Adjusted EPS were impacted by decline in Adjusted EBITDA, increased interest expenses from the 2030 convertible notes issued in first quarter of 2024, lower interest income, and higher depreciation costs. As of December 31, cash and equivalents stood at $850.87 million.

MP Materials Chairman and CEO James Litinsky said, “Notably, we achieved record upstream and midstream production at Mountain Pass and, in the fourth quarter, commenced commercial production of NdPr metal and trial production of automotive-grade magnets at Independence.”

Investors can gain exposure to the stock via VanEck Rare Earth And Strategic Metals ETF REMX and Sprott Critical Materials ETF SETM.

Price Action: MP shares are up 2.37% at $23.73 premarket at the last check Friday.

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