MP's Materials Segment Hits Record Levels in Q126: Can Momentum Last?

MP Materials' MP first-quarter 2026 results underscore the success of its efforts to expand neodymium-praseodymium (NdPr) production, with the Materials business delivering strong operational execution, revenue growth and improved profitability.

The Materials segment represents the upstream and midstream operations of the company, anchored by Mountain Pass, its fully integrated mining and refining facility producing refined rare earth oxides and related products. The segment now derives most of its revenues from NdPr oxide and metal sales, reflecting MP Materials' strategic shift toward higher-value products. Historically, rare earth concentrate sales accounted for the bulk of segment revenues. However, after halting shipments to Chinese customers in July 2025, the company began processing the concentrate into separated rare earth products or stockpiling it for future use.

NdPr production was a record 1,006 metric tons in the quarter, 117% higher year over year and also marked the first time the company crossed the 1,000-ton threshold. NdPr sales volumes also reached a record 917 metric tons, up 63% from the prior-year quarter.

This robust production and sales growth boosted the Materials segment's financial performance. Total revenues climbed 30% year over year to $72.2 million. This was driven by a 192% increase in NdPr oxide revenues on higher sales volumes and stronger market pricing.

MP Materials also achieved record production of 12,983 MT of rare earth oxides (REO) in concentrate during the quarter, marking a 6% year-over-year increase.  The absence of REO concentrate sales was offset by higher NdPr oxide revenues.

The Materials segment reported adjusted EBITDA of $36.7 million, which marked an 877% surge from the year-ago quarter. This was attributed to higher revenues and Price Protection Agreement (PPA) income of $42.3 million related to the agreement with the Department of War (DoW), despite higher cost of sales in the quarter.

The first-quarter 2026 performance builds on the strong momentum established in 2025. During the year, the segment sold 1,994 metric tons of NdPr, up 75% year over year. The Mountain Pass operations produced a record 2,599 MT of NdPr in 2025, more than double the 1,294 MT produced in 2024. The increase reflects continued process optimization and ongoing production ramp-up efforts.

Australia-based peer Lynas Rare Earths Limited LYSDY reported NdPr production of 1,996 tons in the third quarter of fiscal 2026 (ended March 31, 2026), representing a 32% year-over-year increase. Lynas Rare Earths also produced eight tons of dysprosium and terbium during the quarter.  Lynas Rare Earths' revenues jumped 115% year over year to AUD 265 million ($183 million), the highest quarterly figure since the fourth quarter of fiscal 2022. This was driven by an increase in the NdPr price and sales volume and higher sales volume of total REO products.

Story Continues

MP's Price Performance, Valuation & Estimates

MP Materials' shares have gained 65.1% in a year compared with the industry's 40.7% growth. Peers Lynas Rare Earths and Energy Fuels Inc. UUUU have gained 123.9% and 154%, respectively. Zacks Investment Research

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MP is trading at a forward 12-month price/sales multiple of 15.77X, a significant premium to the industry's 1.49X. Energy Fuels and Lynas Rare Earths are trading at 19.86X and 10.68X, respectively. Zacks Investment Research

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The Zacks Consensus Estimate for MP Materials' 2026 earnings is pegged at 16 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.06 per share, indicating a 562.5% year-over-year improvement.Zacks Investment Research

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The estimate for both 2026 and 2027 has, however, moved down in the past 60 days, as shown in the chart below.Zacks Investment Research

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The company currently carries a Zacks Rank #3 (Hold).

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