MP Materials' Adjusted EBITDA Falls From First-Quarter High
The rare earth producer posted $108.5 million of revenue and $28.5 million of Adjusted EBITDA in the three months ended June 30, 2026.
MP Materials Corp. (MP) generated $108.5 million of revenue in the three months ended June 30, 2026, an 89% increase from a year earlier, after a 49% year-over-year rise to $90.6 million in the first quarter.
The rare earth producer said the second-quarter increase was driven by higher sales of NdPr oxide and metal and stronger market pricing, partially offset by the cessation of concentrate sales that began in July 2025 and slightly lower revenue from magnet precursor products as magnetics production started at Independence. Consolidated revenue and price protection agreement income totaled $126.1 million, including $17.6 million of PPA Income.
Adjusted EBITDA was $28.5 million, down from $36.6 million in the first quarter. The year-over-year EBITDA improvement of $41.0 million reflected revenue gains and PPA Income, offset by higher Materials Segment cost of sales on the growth in NdPr volumes and higher SG&A from added headcount to support downstream expansion. Net loss was $(20.3) million, versus an $(8.0) million net loss in the prior quarter. Adjusted Net Loss was $(2.1) million, versus Adjusted Net Income of $6.7 million in the first quarter. Diluted loss per share was $(0.11); Adjusted Diluted EPS was $(0.01).
The Materials Segment generated $95.6 million of revenue, $17.6 million of PPA Income, and $32.5 million of Adjusted EBITDA. NdPr oxide and metal revenue was $94.4 million. Rare earth concentrate revenue was zero, consistent with the halt in concentrate sales. NdPr production was 840 metric tons, down from a record 917 metric tons in the first quarter. NdPr sales volume was 1,006 metric tons, matching the prior quarter. REO concentrate production was 11,072 metric tons, down from a record 12,983 metric tons.
The Magnetics Segment generated $16.5 million of revenue and $7.5 million of Adjusted EBITDA. Start-up costs were $14.4 million, versus $0.8 million in the first quarter, as the company ramped commissioning of initial magnet production ahead of commercial output. Founder, Chairman and CEO James Litinsky said magnet qualification at Independence advanced through additional deliveries for customer qualification and regulatory testing, and construction of the 10X facility accelerated.
The company signed a long-term offtake agreement with a new American aerospace and defense customer for separated gadolinium, expanding its heavy rare earth business. It also launched Project Swarm to aggregate demand and standardize specifications for the drone industry and executed subscription agreements with multiple U.S. and allied customers.
Cash, cash equivalents and short-term investments were $1.45 billion at June 30, 2026, versus $1.83 billion at December 31, 2025.