MP Materials (NYSE:MP) Announces Earnings Results, Beats Expectations By $0.07 EPS

MP Materials (NYSE:MP) released its quarterly earnings data on Thursday. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.02 by $0.07, FiscalAI reports. MP Materials had a negative net margin of 50.55% and a negative return on equity of 7.69%. The business had revenue of $52.69 million during the quarter, compared to analyst estimates of $76.06 million. During the same quarter last year, the business earned ($0.12) earnings per share. MP Materials’s quarterly revenue was down 13.6% compared to the same quarter last year.

Here are the key takeaways from MP Materials’ conference call:

• MP materially ramped production in 2025, doubling NdPr oxide output to 2,599 metric tons and exiting the year at an annualized run rate near 4,000 t, with a target to approach a ~6,000 t annualized run rate by year-end 2026 and mid‑year commissioning of heavy rare earth separation.
• The company secured strategic commercial relationships — including a significant long‑term NdPr offtake with a leading U.S. technology/industrial customer and commercial agreements with four global manufacturers — and received a $32 million Apple progress payment while selecting Northlake, TX for its 10X site with over $200 million in incentives.
• Magnetics progress advanced meaningfully: MP produced its first magnets on commercial‑scale equipment at Independence, began PPAP qualification with a foundational automotive customer with expected initial deliveries in H2 2026, and achieved a technical breakthrough reducing heavy rare earth content by roughly 60% via grain boundary diffusion.
• Financially, the price protection agreement (PPA) materially supported results (PPA income reported as $51 million in the quarter), adjusted EBITDA improved and liquidity remains strong (> $1.8 billion cash), but realized pricing timing varies by contract and PPA collection on stockpiles is discretionary.
• Execution and near‑term cash use risks remain—Q4 experienced planned outages, some unexpected bottlenecks and a production‑to‑sales lag, and management expects $500–$600 million of capex in 2026 (part of a larger > $1.25 billion 10X program), which could create lumpiness in spending and operational cadence.

MP Materials Trading Up 2.3%

NYSE:MP traded up $1.34 during midday trading on Thursday, hitting $60.00. The stock had a trading volume of 6,635,478 shares, compared to its average volume of 8,548,028. The stock has a 50-day moving average of $59.89 and a 200 day moving average of $64.38. The company has a market capitalization of $10.63 billion, a price-to-earnings ratio of -84.51 and a beta of 1.60. MP Materials has a one year low of $18.64 and a one year high of $100.25. The company has a quick ratio of 7.51, a current ratio of 8.05 and a debt-to-equity ratio of 0.47.

MP Materials News Summary

Here are the key news stories impacting MP Materials this week:

• Positive Sentiment: Company selected Northlake, Texas for its large “10X” rare‑earth magnet manufacturing campus, strengthening MP’s U.S. supply‑chain position and signaling significant future capacity and revenue potential. MP Materials Selects Northlake, Texas as the Site of “10X,” a New U.S. Rare‑Earth Magnet Manufacturing Campus
• Positive Sentiment: Operational progress: MP produced first NdFeB magnets on commercial equipment, grew NdPr oxide production 74% YoY and REO concentrate output 5% YoY — evidence the vertical integration buildout is advancing. MP Materials Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: EPS beat: reported $0.09 vs. consensus ~$0.04–$0.08, marking a swing from a loss a year ago — supports near‑term sentiment even though top‑line missed estimates. MP Materials Corp. (MP) Q4 Earnings Beat Estimates
• Neutral Sentiment: Analyst focus shifting from near‑term numbers to execution of the U.S.‑backed buildout — the market is weighing growth optionality vs. current profitability. MP Materials Q4 ahead: Street sees $0.02 EPS as focus shifts to execution of U.S.-backed buildout
• Negative Sentiment: Revenue declined ~14% after the company halted rare‑earth sales to China under a U.S. government agreement — a direct drag on near‑term top line and cash flow. MP Materials Revenue Falls After Halting Rare Earth Sales to China
• Negative Sentiment: Q4 revenue missed estimates ($52.7M reported vs. ~$76.1M expected) and the company still shows negative net margin and ROE — underlines that profitability and cash conversion remain risks while the buildout ramps. MP Materials (MP) stock page

Insiders Place Their Bets

In related news, CEO James H. Litinsky sold 272,600 shares of MP Materials stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $64.17, for a total value of $17,492,742.00. Following the completion of the sale, the chief executive officer directly owned 12,805,965 shares in the company, valued at $821,758,774.05. The trade was a 2.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Ryan Corbett sold 38,146 shares of the company’s stock in a transaction dated Tuesday, December 9th. The stock was sold at an average price of $60.00, for a total transaction of $2,288,760.00. Following the completion of the sale, the chief financial officer directly owned 156,666 shares of the company’s stock, valued at approximately $9,399,960. This trade represents a 19.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 723,146 shares of company stock valued at $45,767,276. 9.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MP Materials

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC acquired a new position in MP Materials during the 4th quarter valued at approximately $28,000. Mcguire Capital Advisors Inc. acquired a new position in shares of MP Materials in the 4th quarter valued at $38,000. Hollencrest Capital Management raised its stake in MP Materials by 859.6% in the 4th quarter. Hollencrest Capital Management now owns 854 shares of the company’s stock worth $43,000 after acquiring an additional 765 shares during the last quarter. EFG International AG acquired a new stake in MP Materials during the 4th quarter worth about $51,000. Finally, Ancora Advisors LLC lifted its position in MP Materials by 408.8% during the 3rd quarter. Ancora Advisors LLC now owns 1,394 shares of the company’s stock worth $93,000 after acquiring an additional 1,120 shares during the period. Hedge funds and other institutional investors own 52.55% of the company’s stock.

Wall Street Analyst Weigh In

MP has been the topic of several analyst reports. Deutsche Bank Aktiengesellschaft raised MP Materials from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $68.00 to $71.00 in a research note on Monday, November 10th. JPMorgan Chase & Co. raised MP Materials from a “neutral” rating to an “overweight” rating and cut their target price for the company from $75.00 to $74.00 in a research report on Friday, November 14th. Weiss Ratings restated a “sell (d-)” rating on shares of MP Materials in a report on Thursday, January 22nd. The Goldman Sachs Group initiated coverage on shares of MP Materials in a research note on Wednesday, November 19th. They set a “buy” rating and a $77.00 price objective for the company. Finally, William Blair assumed coverage on shares of MP Materials in a research report on Tuesday, January 13th. They set an “outperform” rating on the stock. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, MP Materials presently has a consensus rating of “Buy” and an average price target of $78.91.

MP Materials Company Profile

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.