MP Materials reported Q2 revenue of $108 million, up 89% from a year earlier. The company completed a shift from selling raw concentrate to processing NdPr oxide and metal in-house. Adjusted EBITDA swung to positive $28.5 million. The next catalyst: the 10X magnet factory targeting 2028 commissioning.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
MP Materials (NYSE: MP) reported second-quarter revenue of $108 million as the company completed a strategic shift away from selling raw rare-earth concentrate. The stock tripled in 2025, partly on a Pentagon partnership announced last July. It now trades about 45% below its 52-week high.
Revenue rose 89% from a year earlier. Adjusted EBITDA swung from a $12.5 million loss to positive $28.5 million. The company also recorded $17.6 million in price-protection income from the Department of Defense, which guarantees a floor of $110 per kilogram for neodymium-praseodymium (NdPr). Market prices for that vital rare earth compound fell below the floor, and the government made up the difference.
The mix tells the story. In Q2 2025, MP earned about $25 million from NdPr oxide and metal and $12 million from concentrate. This quarter, concentrate revenue was zero. Oxide and metal revenue hit $95 million.
For most of its life, MP sold concentrate to Chinese processors. Chinese companies used chemicals to free the rare-earth elements from the ore. Starting last April, MP stopped selling concentrate, driven mainly by the trade war between the U.S. and China. The company now processes the ore in-house. The resulting product is worth more per tonne.
Motley Fool analyst Steven Porrello wrote that the improved economics left a strong impression. "MP is now selling a much more refined NdPr product, while subsequently profiting more from the NdPr that it's selling," he said.
At one point last year, MP was up more than 400% from its early 2025 level, before giving back much of those gains last October. Porrello wrote that he does not expect another triple in the next 12 months. He called opening a position at today's price "worthwhile" for investors seeking exposure to American rare-earth mining.
The next catalyst is the company's second magnet factory, called 10X. MP targets commissioning in 2028. Whether it can scale magnet production significantly after that remains the open question for the longer-term investment case.
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