MP Materials reports mixed Q4 results amid soft realized prices

Published 20/02/2025, 23:12
MP Materials reports mixed Q4 results amid soft realized prices

LAS VEGAS - MP Materials Corp. (NYSE:MP) reported fourth quarter 2024 financial results that beat revenue expectations but fell short on earnings per share.

The rare earth materials producer posted revenue of $60.99 million, surpassing analyst estimates of $51.22 million. However, adjusted earnings per share came in at -$0.12, missing the -$0.11 consensus forecast.

The company achieved record production of 11,478 metric tons of rare earth oxides (REO) in concentrate during Q4, despite a planned maintenance shutdown. This represented a 24% increase from 9,257 metric tons produced in Q4 2023. MP Materials sold 7,803 metric tons of REO during the quarter, up 9% year-over-year.

Revenue jumped 48% compared to Q4 2023, driven primarily by higher sales volumes of NdPr oxide and metal as the company transitions to midstream production of separated products. However, realized prices remained soft, with the average realized price per REO metric ton falling 16% year-over-year to $4,717.

"MP had a terrific year of execution across our materials and magnetics divisions," said MP Materials Chairman and CEO James Litinsky. "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."

The company highlighted its progress in vertical integration, including beginning commercial production of NdPr metal and trial production of automotive-grade magnets at its new Independence facility in Texas during Q4. For the full year 2024, MP Materials produced a record 45,455 metric tons of REO in concentrate and 1,294 metric tons of NdPr oxide.

While revenue growth was strong, profitability remained challenged as the company ramps up its downstream operations. Adjusted EBITDA swung to a loss of $10.7 million in Q4 2024 compared to positive $1.3 million in the prior year period.

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