MP Materials Corp (NYSE:MP) has seen its stock price rebound following the announcement of its third-quarter financial results, which presented a mixed picture for investors. Despite an initial downturn in trading, shares recovered as the market absorbed the details of the company's performance, indicating a degree of underlying investor confidence in its future trajectory and strategic initiatives in the rare earth sector.
The company reported a narrower loss per share than anticipated by analysts, achieving a loss of 10 cents per share against an estimated loss of 18 cents. This compares favorably to a loss of 12 cents per share during the same period last year, marking a 16.67% improvement in per-share losses. However, revenue for the quarter fell slightly short of analyst expectations, totaling $53.6 million against a consensus estimate of $54.92 million. This figure represents a 14.90% decrease from the $62.93 million reported in the corresponding quarter of the previous year.
Highlighting its operational strengths, MP Materials achieved a record production of 721 metric tons of Neodymium-Praseodymium (NdPr), representing a substantial 51% increase year-over-year. Furthermore, the company recorded its second-highest output of Rare Earth Oxides (REO) at 13,254 metric tons. The Magnetics Segment showed robust growth, contributing $21.9 million in revenue and $9.5 million in adjusted EBITDA, underscoring the company's progress in expanding its value chain.
Looking ahead, MP Materials anticipates a return to profitability in the fourth quarter of 2025. James Litinsky, the founder, chairman, and CEO, emphasized the company's momentum, particularly citing agreements with the Department of Defense. These partnerships are expected to provide enhanced cash flow visibility, enabling the acceleration of scaled magnet production within the United States, with the first commercial output from Independence projected by year-end. Additionally, the company plans to commission a new heavy rare earth facility at Mountain Pass by mid-2026, which will initially focus on processing dysprosium (Dy) and terbium (Tb), processing approximately 3,000 metric tons of feedstock annually. The facility is also slated to process third-party feedstocks and expand its heavy rare earth production to include samarium (Sm) as per the Department of Defense agreement.
Following these developments, DA Davidson analyst Matt Summerville maintained a 'Buy' rating on MP Materials and reiterated a price target of $82, signaling continued optimism about the company's prospects. This positive analyst sentiment, combined with the strategic operational advancements and improved financial outlook, contributed to the observed rally in MP Materials' stock.