MP Materials Corp. Q4 FY2025 earnings call

• 2025 was a landmark year for MP Materials with transformational partnerships and growth. • Materials segment saw doubled NDPR oxide output, increased sales volumes, and strong profitability. • Magnetics segment achieved producing magnets on commercial scale, with expansion underway and initial deliveries expected in second half of the year. • Continued advancement of heavy rare earth separation circuit and progress in magnetics technology like grain boundary diffusion. • Ryan discussed consolidated financial results, PPA income, and future capital expenditures. • Michael provided details on operations at Mountain Pass and Independence, including production milestones and expectations for Q1 production.

Materials segment: In 2025, NDPR oxide output doubled to 2,599 metric tons, annualized run rate of nearly 4,000 metric tons. Total oxide sales volumes rose 75% to nearly 2,000 metric tons. Exceeded 50,000 metric tons of REO produced. Achieved strong return to profitability with 40.3 million of adjusted segment EBITDA in the quarter. Magnetics segment: Achieved producing magnets on commercial scale equipment at Independence. Generated 8.4 million of adjusted EBITDA in the quarter, bringing full-year magnetics EBITDA to 26.4 million. Production of precursor magnetics products, specifically NDPR metal, set quarterly records for production and sales volumes while improving yields.

• Expect total capital expenditures in the range of $500 to $600 million in 2026, with vast majority for 10X and other growth initiatives. • Anticipate lag between production and sales to narrow and improve slightly in Q1 due to ongoing ramp of metallization capacity and incremental demand. • Expect improved NDPR unit economics to drive adjusted EBITDA improvement. • Targeted steady state production rate of approximately 1500 metric tons per quarter for NDPR oxide.

Q: Asked about whether the OEM is U.S.-based and timeline for 10X.

A: Ryan mentioned it's one of America's leading technology companies and 10X project is on track with aggressive schedule.

Q: Asked about P&L and economics of selling oxide vs magnets and NDPR prices in China.

A: Ryan said the strategy is to provide raw materials and capture value, and Jim discussed NDPR price expectations.

Q: Asked about CapEx cadence, EBITDA cadence, heavy needs approach.

A: Ryan discussed CapEx lumpiness and EBITDA driven by NDPR pricing, Michael talked about recycling and feedstock sourcing.

Q: Asked about Saudi JV, bandwidth for JVs, and magnet qualification.

A: Michael discussed Saudi JV progress and magnet qualification process.

Q: Asked about offtake agreements and magnet qualification update.

A: Jim and Michael talked about offtake opportunism and magnet qualification progress