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Investing.com -- Shares of MP Materials Corp (NYSE:MP) surged 7% in after-hours trading Thursday after the rare earth producer delivered quarterly results that beat Wall Street expectations and showcased significant progress in its refined product strategy. Investors welcomed evidence that the company’s transition away from lower-margin concentrate sales toward value-added NdPr oxide and metal production is gaining traction.
For the second quarter ended June 30, MP reported revenue of $57.4 million, exceeding analyst forecasts of $46.7 million and up 84% from the year-ago period. The company posted an adjusted loss of $0.13 per share, smaller than the $0.20 loss projected by analysts and representing a 24% improvement on a year-over-year basis.
Production volumes were a key driver of the revenue beat, with record NdPr oxide output hitting 597 metric tons, a 119% increase from last year. Total (EPA:TTEF) rare earth oxide production rose 45% to 13,145 metric tons, the second-highest quarterly output in MP’s history, while NdPr sales volumes more than tripled to 443 metric tons.
“In the second quarter, our Materials segment achieved record NdPr oxide production and delivered the second-highest REO output in MP’s history,” said James Litinsky, MP Materials’ Founder, Chairman & CEO. “At the same time, our Magnetics segment advanced commissioning and began profitably ramping metal production.”
The company’s Magnetics Segment, launched to support downstream capabilities, generated $19.9 million in revenue and $8.1 million in adjusted EBITDA in its first comparable operational period. Notably, rare earth concentrate revenue fell 51% year over year to $11.9 million, underscoring the company’s pivot away from raw material exports, particularly to China.
MP Materials is positioning itself to become a vertically integrated magnetics supplier, supported by recently announced partnerships with Apple (NASDAQ:AAPL) and the U.S. Department of Defense. Management described these agreements as “cornerstone” deals that will enhance long-term profitability and solidify MP’s role in what it calls “the emerging era of physical AI.”
The company’s pivot appears to be paying off with investors, as seen in Thursday’s stock movement. Despite ongoing losses, expanding production of higher-value products and strong strategic endorsements are painting a clearer path to long-term value creation.