MP Materials MP began 2026 on a solid note, reporting first-quarter 2026 revenues of $90.6 million, up 49% from $60.8 million in the prior-year quarter. The company also benefited from a $42.3 million contribution under its price protection agreement (PPA) with the U.S. Department of War (DoW), taking consolidated revenues to $132.9 million for the quarter.
The robust performance was driven by the continued expansion of higher-value neodymium-praseodymium (NdPr) products. MP achieved record NdPr production of 917 metric tons, up 63% year over year, while NdPr sales surged 117% to another record 1,006 metric tons. The company did not generate rare earth oxides (REO) sales during the quarter, reflecting its decision to cease sales into the Chinese market in July 2025.
The company now processes the concentrate into separate rare earth products or stockpiles it for future use. Despite the absence of concentrate sales, the Materials segment generated revenues of $72.2 million in the first quarter, up 30% year over year, driven by stronger NdPr sales volumes and pricing,
The company’s Magnetics segment has also emerged as an important revenue contributor. It generated $21.1 million of revenues in the first quarter, supported by the sale of magnetic precursor products under the long-term supply agreement with General Motors GM. The segment had made its first delivery to General Motors in the first quarter of 2025, which led to $5.2 million in revenues.
As of March 31, 2026, the company had sold $87.9 million of magnetic precursor products to General Motors and expects to complete the remaining $62.1 million commitment within the next year. Following the fulfillment of this agreement, the company anticipates transitioning to sales of finished magnets to General Motors, which are expected to begin in 2026.
Looking ahead, several initiatives could support future revenue growth. The company recently stated that it advanced key growth initiatives, such as expanding operations at Independence and breaking ground on the 10X magnetics facility, its second domestic rare earth magnet manufacturing facility. Meanwhile, scaled heavy rare earth separation commissioning activities are set to begin soon at Mountain Pass.
Among industry peers, Lynas Rare Earths LYSDY also reported impressive growth, with third-quarter fiscal 2026 (ended March 31, 2026) revenues jumping 115% year over year to AUD 265 million ($183 million), the highest quarterly figure since the fourth quarter of fiscal 2022. This was driven by an increase in the NdPr price and sales volume and higher sales volume of total REO products.
Lynas Rare Earth reported NdPr production of 1,996 tons, representing a 32% year-over-year increase. The company also produced eight tons of dysprosium and terbium during the quarter. Total REO production for the quarter reached 3,233 tons, up 69% from the prior-year period. Lynas Rare Earth achieved its first production of samarium oxide in March 2026, ahead of its previously announced April 2026 target.
MP’s Price Performance, Valuation & Estimates
MP Materials’ shares have gained 57% in a year compared with the industry’s 40.1% growth.
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MP is trading at a forward 12-month price/sales multiple of 16.37X, a significant premium to the industry’s 1.49X.
The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 16 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.06 per share, indicating a 562.5% year-over-year improvement.
Image Source: Zacks Investment Research
The estimate for both 2026 and 2027 has, however, moved down in the past 60 days, as shown in the chart below.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).