MP Slides 10% Following Q1 Earnings Miss: How to Play the Stock?

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MP Materials MP reported first-quarter 2025 results on May 8, with revenues rising 25% year over year to $60.8 million. The company achieved record (neodymium and praseodymium) NdPr production and logged the second-highest quarterly output of rare earth oxides (REO). Despite this, shares fell 10% as MP Materials reported a loss of 12 cents per share. It was wider than the Zacks Consensus Estimate of a loss of 10 cents and the year-ago quarter’s loss of 4 cents on higher production costs.

Despite the current dip, MP Materials shares have moved up 35.5% year to date,  outperforming the Zacks Mining - Miscellaneous industry’s growth of 6.6%. In comparison, the Zacks Basic Materials sector has gained 5.6%, while the S&P 500 has dipped 1.3%.

MP’s YTD Price Performance Against Industry, Sector & S&P 500

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MP Materials has outperformed other names in the rare earths space like Idaho Strategic Resources IDR, Lynas LYSDY, which have advanced 27.5% and 21.8%, respectively. Energy Fuels UUUU, meanwhile, has declined 9.1% in the same timeframe.

MP’s YTD Price Performance vs. IDR, LYSDY & UUUU

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Zacks Investment Research


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Before addressing the critical question of how investors should position themselves regarding the stock, let us first review the company’s first-quarter results.

Breaking Down MP’s Q1 Results

MP Materials reported record NdPr production of 563 metric tons in the first quarter, a 330% surge from the year-ago quarter. Sales volumes for NdPr were up 246% year over year to 464 metric tons, attributed to the shift to production of midstream products, mainly NdPr oxide. The Materials Segment’s revenues increased 14% to $55.6 million in the quarter as higher sales volumes were offset by a 16% decline in realized pricing.

REO production increased 10% year over year to 12,213 metric tons on higher recoveries from the continued implementation of Upstream 60K optimizations. Due to company’s ramp-up in midstream operations, a major part of the REO production was used to produce separated rare earth products rather than being sold as rare earth concentrate. Sales volumes thus plunged 33%, resulting in a $10 million decline in rare earth concentrate revenues.

The Magnetics segment made its first metal deliveries in March, generating revenues of $5.2 million for the quarter. MP Material’s total revenues of $60.8 million missed the Zacks Consensus Estimate of $64 million.

Cost of sales surged 37% due to higher production costs. Selling, general and administrative expenses were up 14% on higher employee headcount to support downstream expansion. Adjusted EBITDA was a loss of $2.7 million compared with a loss of $1.2 million in the year-ago quarter.