Track market-moving stories before they get noisy

MP Materials Corp. (MP) Jefferies Global Industrials Conference 2026 September 9, 2026 10:50 AM EDT

Company Participants

Ryan Corbett - Chief Financial Officer

Conference Call Participants

Laurence Alexander - Jefferies LLC, Research Division

Presentation

Laurence Alexander
Jefferies LLC, Research Division

So good morning. It's Laurence Alexander with the Jefferies Chemicals team. It's my pleasure to introduce Ryan Corbett with MP Materials. We're going to do a fairly loose and goosey fireside chat. If anybody has any questions, please feel free to chime in. But for those who are less familiar with MP, if you wouldn't mind just starting off with a very quick overview.

Ryan Corbett
Chief Financial Officer

Sure, absolutely. Thanks for having us again. Appreciate it. So for those of you that are less familiar, MP Materials is the Western world's largest producer of rare earth materials. We're the only scaled producer of NdPr oxide in the Western Hemisphere and are the only scaled business with a fully vertically integrated platform with demonstrated capabilities from mining through to magnet manufacturing.

We have been on a journey of building the business in stages. We're at the point where we are nearly complete on the optimization and growth of production of NdPr oxide at our Mountain Pass asset, which is Mountain Pass is really the cornerstone of the rare earth industry. It's where much of it was born, and it is such a tremendous asset for us to build this platform on top of. We've taken our successes in the upstream and midstream side of the business and have integrated downstream into rare earth permanent magnets, which if I was at this conference 3 years ago, I might start explaining to everybody what magnets are. I think today, now most people know what they are and know how incredibly important they are, which is a major sea change, I think, for

MP Materials (NYSE:MP) is up 4% to trade at $55,80 this morning, after a Reuters report indicated China has been reportedly declining rare earth shipments  to the U.S. The move has domestic rare earth suppliers  MP and USA Rare Earth (USAR) higher, with the latter also up 5.3%.

LAS VEGAS--(BUSINESS WIRE)---- $MP #rareearth--MP Materials Corp. (NYSE: MP) today announced that Ryan Corbett, Chief Financial Officer, will participate in Jefferies Industrials Conference on Wednesday, September 9, 2026, at 10:50 a.m. Eastern Time.A live webcast and replay will be available at https://investors.mpmaterials.com/.About MP MaterialsMP Materials (NYSE: MP) is America's only fully integrated rare earth producer with capabilities spanning the entire supply chain—from mining and processing to advanced.

Key Takeaways MP Materials returned to positive operating cash flow in Q2 after five straight quarters of declines.Capital spending surged to about $230 million, pushing Q2 free cash flow to a $223.5 million outflow.Rising production costs and SG&A are pressuring cash flow as downstream expansion continues. MP Materials Corp. (MP - Free Report) returned to positive operating cash flow in the second quarter of 2026 after five consecutive quarters of declines. Operating cash flow was $6.8 million against an outflow of $3.6 million in the year-ago quarter. 

However, free cash flow was a negative $223.5 million in the second quarter compared with a negative $20.5 million in the year-ago quarter. This was due to a sharp increase in capital expenditures, which rose to around $230 million in the second quarter from $16.8 million in the year-ago quarter. The second quarter was particularly capital-intensive, following $77.4 million of spending in the first quarter of 2026.

Capital expenditures are related primarily to machinery, equipment and assets under construction to support both the company’s Independence Facility and 10X Facility, as well as various projects at Mountain Pass, including the heavy rare earth elements (HREE) facility and the chlor-alkali facilities.

Backed by the improvement in the second quarter, MP Materials generated $4.9 million of operating cash flow in the first six-month period of 2026, an improvement from the outflow of $66.9 million in the year-ago period. This was supported by higher product sales, $93.3 million received from the Department of War (DoW) under the Price Protection Agreement (PPA) and $19 million related to the 45X credit claimed on the company’s 2024 federal tax return. These benefits were partly offset by the absence of a $50 million deferred-revenue inflow recorded in the prior-year period related to a prepayment for magnetic precursor products.

Free cash flow remained negative at $302.8 million in the first half of 2026 compared with a negative $114 million a year earlier. Capital expenditures surged to approximately $307.7 million from $47.3 million in the year-ago period. 

MP Materials had last reported both positive operating and free cash flow in 2022, at $343.5 million and $22 million, respectively, benefiting from elevated rare earth prices and strong demand. Cash generation weakened sharply thereafter. Operating cash flow fell 82% to $62.7 million in 2023 and another 79% to $13.3 million in 2024, reflecting lower rare earth prices, inventory accumulation and investments to support downstream expansion. In 2025, the company reported $155.8 million in operating cash outflows and negative free cash flow of $304 million. 

MP Materials is seeing higher production costs as producing separated products is more costly than producing rare earth concentrates. Selling, general and administrative expenses have also increased as it expanded its workforce to support the downstream expansion. These factors have driven up operating expenses, keeping profits and cash flows under pressure.

Looking ahead, MP’s ongoing ramp-up of separated rare earth production at Mountain Pass, along with the expansion of magnetic precursor and magnet output at the Independence Facility, is expected to keep costs elevated in 2026. Ongoing investment in downstream capabilities is also likely to keep SG&A expenses elevated, maintaining pressure on near-term profitability and cash flows. 

On the positive side, neodymium-praseodymium (NdPr) production volumes are increasing as process optimization and ramp-up efforts progress. Higher sales volumes and support from the DoW PPA could help partially offset margin pressure and gradually stabilize MP Materials’ cash flow profile.

MP’s Price Performance, Valuation & EstimatesMP Materials’ shares have declined 20.6% in a year against the industry’s 51.6% growth. Other names in the space, like Energy Fuels Inc. (UUUU - Free Report) and USA Rare Earth Inc. (USAR - Free Report) , have gained 36.1% and 15.6%, respectively.

Image Source: Zacks Investment Research

MP is trading at a forward 12-month price/sales multiple of 15.43X, a significant premium to the industry’s 1.41X. Energy Fuels and USA Rare Earth are trading at 19.19X and 9.44X, respectively.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 12 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is 91 cents per share, indicating a 658.3% 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.

MP Materials (MP -4.91%) and Enterprise Products Partners (EPD -0.08%) operate as indispensable, hard-to-replicate infrastructure assets at the very top of vital industrial supply chains, but the similarity ends there.

Neither stock is actually boring, though mining and energy stocks are often stuck with that label. MP Materials is the leading rare-earth mining company in the U.S. It also processes rare earths, mainly for permanent magnets. It was founded in 2017 and went public via a merger with a special-purpose acquisition company (SPAC) in 2020.

Midstream energy pipeline operator Enterprise Products Partners was founded in 1968 and went public in 1998. Its revenue comes from the toll-like fees that it charges users of its pipelines.

When you compare each company's growth, the choice comes down to MP Materials' high-beta top-line acceleration versus Enterprise Products Partners' steady, utility-like income expansion.

Image source: Getty Images.

MP Materials is seeing huge top-line growth Shares of MP Materials, though well off their 52-week high of $100.25, are up more than 15% so far this year. The company isn't profitable yet, but thanks to huge revenue growth, it could get there soon.

Premium Feature

Moneyball Superscore

68/100

Today's Change

(

-4.91

%) $

-2.90

Current Price

$

56.13

The U.S. Department of Defense (DoD) provided the company with early research and development funding and serves as a primary capital partner and commercial backstop for MP Materials, de-risking its expansion from a mining company into an integrated domestic rare-earth processor. That includes a $150 million loan and a $400 million equity investment from the DoD to MP Materials in 2025.

In the second quarter, the company reported revenue of $108.5 million, up 89% year over year. It also reported an earnings per share (EPS) loss of $0.11, a 42% improvement over the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $28.5 million, compared to an adjusted EBITDA loss of $12.5 million in Q2 2025.

The key to the turnaround is the U.S. government's public partnership with MP Materials on rare metals and the company's pivot from selling unrefined rare-earth concentrate to China and moving to fully refined Neodymium-Praseodymium (NdPr) oxides, metals, and magnet manufacturing.

Enterprise Products Partners is boring -- in a good way Enterprise Products Partners' shares are up a little more than 21% so far this year. The company's revenue comes from charging fees for transporting, processing, and storing energy products, including natural gas, natural gas liquids, and crude oil, through its 50,000 miles of pipelines, liquid storage facilities, and marine export terminals.

Today's Change

(

-0.08

%) $

-0.03

Current Price

$

39.02

In Q2, Enterprise reported revenue of $18.3 billion, up 60.7% year over year. EPS was $0.84, up 27.3% over Q2 2025.

The company is a favorite of income-oriented investors because of its high-yielding dividend. Its yield, at its current share price, is around 5.66%, slightly more than five times that of the S&P 500 average. Because of that high yield, investors look at the company's distributable cash flow (DCF) to judge the safety of its dividend. In the quarter, it reported a record DCF of $2.3 billion, up 21% year over year, and providing 1.9x coverage of the dividend.

The company has raised its quarterly dividend for 28 consecutive years, including a 2.8% raise this year to $0.56 per share.

The choice depends on your situation Both stocks offer strong cases for investment. MP Materials is seeing strong revenue growth and, thanks to a significant lift from the DoD, it's getting closer to profitability. Like any mining stock, particularly in rare-earth mining, it poses risks due to the high costs of mining and processing.

For my money, Enterprise Products Partners is a better investment. Its revenue streams are more stable and diverse, and its rate of revenue growth, though lower than MP Materials', is hardly lacking.

On top of that, its dividend is well covered and has steady growth, providing an extra layer of security for investors.

MP Materials (MP -4.50%) was America's favorite rare earth mining stock last year -- or, at least, one of the Trump administration's favorite rare earth miners.

Indeed, MP stock tripled in 2025, with much of those gains occurring after the Pentagon's public-private partnership with MP was announced last July. At one point last year, MP was up more than 400%, before giving back much of those gains last October. Fast forward to today, and MP Materials is trading about 45% lower than its 52-week high.

But don't let that red number fool you: Despite the stock's sell-off, which was really just a valuation correction, MP is growing stronger and healthier. The stock might not repeat last year's performance. Yet if its recent earnings tell us anything, it's that MP deserves a second look. Here's what you should know.

Today's Change

(

-4.50

%) $

-2.70

Current Price

$

57.35

MP is getting more value from Mountain Pass The big takeaway from MP's second quarter was revenue growth. MP managed to pull in about $108 million last quarter, a roughly 89% positive change year-over-year, while adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) swung from a $12.5 loss to positive $28.5 million.

The company also reported $17.6 million in Pentagon-related price-protection income. Remember how the Department of Defense agreed last year to a price floor of $110 per kilogram for MP's neodymium-praseodymium (NdPr)? Well, market prices for this vital rare earth compound apparently fell below that level, and the government made up the difference in a roughly $18 million payment.

Doubling quarterly revenue was impressive, but it's not the reason this quarter left a strong impression on me. That's owed to the fact that MP is now selling a much more refined NdPr product, while subsequently profiting more from the NdPr that it's selling. That might sound confusing, so let me put it into perspective.

Image source: MP Materials.

For much of its life, MP sold rare-earth concentrate to Chinese companies, which would then use chemicals to free the rare-earth elements from the ore. Rare-earth concentrate has valuable rare earth elements, but since they need to be freed, the concentrate is worth less than selling those rare-earth elements outright.

Starting last April, however, MP began to cease selling concentrate, due mainly to the trade war between the U.S. and China. The benefit of that is that MP is now processing the concentrate in-house. This requires more work, but the resulting product is worth more money.

Just consider this: In Q2 2025, MP earned about $25 million in NdPr oxide and metal revenue, with about $12 million from concentrate revenue. This last quarter, it had zero revenue from concentrate sales, and $95 million from oxide and metal revenue. Big jump right? And in the right direction, too.

MP Material's economics are improving, and its raking in more revenue. For me, the next test is whether its second magnet factory (10X) is on track for commissioning in 2028, as well as prove later that it can scale magnets production significantly. I would not buy MP with the expectation that it will triple in 12 months like it did in 2025, but opening a position at today's price could be worthwhile if you want exposure to American rare-earth mining.

Rare-earth elements are central to advanced technologies, including those used in defense. For decades, China has tightened its grip on the mining and processing of these crucial materials, raising concerns among U.S. policymakers.

Research from The Motley Fool shows that China accounts for roughly 70% of rare-earth extraction and 90% of rare-earth processing. In response, there is a renewed focus on boosting domestic mining and processing of rare-earth elements.

Two rare-earth companies generating buzz are MP Materials (MP +9.10%) and The Metals Company (TMC +20.66%). Both companies could be key players in helping the U.S. secure rare-earth elements, but one in particular stands out as the smarter investment choice that could pay off sooner rather than later.

Image source: Getty Images.

MP Materials has this key advantage over The Metals Company When you compare MP Materials and The Metals Company (TMC), the differences are stark. MP Materials operates the Mountain Pass rare-earth mine and processing facility, the only active rare-earth mining and processing site of scale in North America. In contrast, TMC is a development company exploring the collection and processing of polymetallic nodules on the seafloor, a practice known as deep-sea mining.

MP Materials already has mining and processing capabilities and is expanding its downstream processing capabilities, where it manufactures powerful magnets used in many modern technologies.

Today's Change

(

9.10

%) $

5.01

Current Price

$

60.05

Another distinct advantage for MP Materials is its massive agreement with the Department of Defense. As part of the deal, the DoD entered into a price protection agreement that guarantees a minimum price of $110 per kilogram for MP's neodymium-praseodymium (NdPr) product. In Q2 2026 alone, this agreement generated $17.6 million in price protection income for MP Materials.

In addition to its partnership with the DoD, MP also has long-term agreements with General Motors and Apple for its permanent magnets.

The Metals Company faces a couple of key risks In comparison, TMC is looking to mine the deep ocean floor for resource-rich polymetallic nodules. These nodules are rich in nickel, copper, cobalt, and manganese, and the company is targeting the Clarion Clipperton Zone in the Pacific.

This region is rich in resources. According to a pre-feasibility study and initial assessment by TMC, the combined estimated resource Net Present Value (NPV) could be $23.6 billion, with undiscounted lifetime revenue of up to $369 billion.

Today's Change

(

20.66

%) $

0.82

Current Price

$

4.79

That said, TMC faces several legal hurdles. For example, the company is benefiting from a presidential executive order by President Donald Trump designed to expedite deep-sea mining permitting. However, the International Seabed Authority (ISA) has not yet finalized exploitation regulations, and there is debate over whether the U.S. even has the authority to issue mining permits in these waters.

This rare-earth stock is a better buy right now Rare-earth mining and processing have become a crucial component of national security, helping the U.S. shore up its supply chains.

The Metals Company is looking to carve out its place in the deep-sea mining space, but legal hurdles and other technical hurdles, like the feasibility of deep-sea mining at scale, remain and make it a risky stock for investors buying today.

On the other hand, as the U.S. builds up its mining and processing capabilities, MP Materials is already well positioned to help the country meet its needs immediately and will grow into an even larger player once its 10X facility comes online in 2028.

Having previously outlined why I think Freeport-McMoRan is a better stock to buy on a risk/reward basis than MP Materials (MP +5.53%), it might seem strange to argue that the latter is also an attractive stock to buy. At least it is for a certain type of investor, particularly those who believe that trade tensions with China are structural and enduring.

Today's Change

(

5.53

%) $

3.08

Current Price

$

58.74

The case for MP Materials stock
First, there are the numbers, then the belief in those numbers, and finally, the underlying tenets that drive that belief. In this case, the numbers are the Wall Street analyst consensus valuations based on the current price and the analyst consensus for earnings and cash flow from Visible Alpha, as well as the current price of $55.66.

As you can see, it will be a few years before the stock moves into value territory, let alone starts generating cash.

MP Materials

2026

2027

2028

2029

2030

Price-to-earnings

N/A

69.2x

46.5x

34.7x

23.6x

Price-to-free cash flow

N/A

N/A

N/A

37.7x

21.3x

Enterprise value (EV) to earnings before interest, taxes, depreciation, and amortization (EBITDA)

72.4x

25.6x

19.8x

15.7x

12.1x

Data source: Visible Alpha

In addition, as discussed in the Freeport-McMoRan/MP Materials piece, there are substantive risks in the operational pathway to hit these numbers, such as successfully constructing a rare-magnet manufacturing facility (10X), reliance on the Mountain Pass, environmental and regulatory concerns, and technological and operational challenges in ramping up rare-earth magnet production.

Image source: Getty Images.

What you have to believe to buy the stock
Ultimately, investors have to believe that all of these things will progress smoothly, and most importantly, that the trade tensions with China (the dominant player in rare-earth materials and magnets) will be such as to continue to encourage U.S. government support for MP Materials, as well as premium pricing on domestically produced and non-China-sourced rare-earth magnets.

If you are looking to buy a stock to manifest that belief and are comfortable with MP Materials' operations risk, the stock is highly attractive.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool has a disclosure policy.

Shares of MP Materials Corp. (NYSE:MP) are trading higher Friday afternoon as investors react to new federal trade and defense initiatives expected to strengthen domestic supply chains.

MP Materials stock is surging to new heights today. Why are MP shares rallying? Trump Administration Actions Boost Demand Outlook for Rare EarthsThe Trump administration announced tariffs on foreign-made drones and critical components, alongside expanded agreements with major defense prime contractors Boeing and RTX to scale up interceptor missile production.

These regulatory and procurement policy shifts have reinforced the long-term demand outlook for rare earth elements and critical minerals. MP Materials operates Mountain Pass, the sole active rare earth mining and processing site in the United States.

Elements produced by the company are essential components in high-performance permanent magnets, military ordnance, guidance systems and unmanned aerial vehicles.

Defense Initiatives Support Strategic Domestic Supply Chain FocusThe combination of trade protections on foreign aerospace hardware and heightened Pentagon missile production underscores the strategic necessity of onshore critical mineral processing.

Increased defense consumption potentially enhances long-term revenue visibility for domestic producers as prime contractors seek supply security for magnetic alloys and raw materials.

MP Shares Climb Friday AfternoonMP Price Action: MP Materials shares were up 6.27% at $59.15 at the time of publication on Friday, according to Benzinga Pro data.

Read Next

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

MP Materials (MP +2.87%) recently announced it had signed a supply agreement with a new, unnamed customer. That news, along with its second-quarter earnings report, has proven to be quite the catalyst for the rare-earth stock, which has rallied more than 10% since the announcement.

While MP Materials has publicly named many other noteworthy new customers (e.g., Apple and the Department of Defense), it's keeping this one secret for now. All it revealed is that it's a significant long-term offtake agreement with a U.S. aerospace and defense customer for separated gadolinium, one of the 17 rare-earth metals. The customer's name isn't what's significant here. Let's break down why the deal itself matters for MP Materials stock.

Image source: Getty Images.

Layering in another growth driver MP Materials currently makes most of its revenue from NdPr oxide and metal (a fused blend of neodymium and praseodymium, two rare-earth elements). It's an important material for electric vehicles, robotics, and electronics. During the second quarter, MP Materials generated $94.4 million in revenue from NdPr oxide and metal sales, accounting for 87% of its total revenue.

With that context, let's turn to the deal. The company noted that the contract with the unnamed U.S. aerospace and defense customer is "significant" and "at attractive economics." This suggests it should be a meaningful future contributor to revenue. It's also for separated gadolinium, which will expand its HREE (heavy rare-earth elements) product portfolio, providing additional diversification. The deal also expands its customer base. That's a lot of benefits in one contract.

Today's Change

(

2.87

%) $

1.55

Current Price

$

55.66

It builds on its previously disclosed large-scale deals with Apple and the DoD. In July 2025, Apple signed a $500 million partnership with MP Materials for the production of recycled rare-earth magnets in the U.S., helping the tech titan source 100% of the recycled rare-earth magnets for its products domestically. It also signed a transformative public-private partnership with the DoD last July to accelerate U.S. independence for rare-earth magnets by constructing its new 10X facility in Texas.

These and other deals are enabling MP Materials to build a large-scale, diversified rare-earth business. They position the company for continued growth in the coming years as it commences its Apple supply agreement (2027), completes 10X (2028), and starts other customer agreements. "As we expand our commercial relationships, scale domestic manufacturing capacity, and deepen our vertical integration, we are strengthening MP's competitive position and building a differentiated industrial platform that we believe will drive long-term shareholder value," commented founder and CEO James Litinsky in the second-quarter earnings press release.

While the promise is growing more apparent, risks remain and bear watching The unnamed U.S. aerospace and defense customer deal is just one of the many storylines running through MP Materials these days. The company's revenue jumped 89% in the second quarter, driven by strong NdPr sales. Despite that, it's still losing money (nearly $2.1 million in the quarter, though that's down 90% year over year). Meanwhile, the mining stock has been volatile, falling over 25% in the past year despite the recent rally (and 45% from its 52-week high).

That volatility will likely continue as investors weigh the company's future potential against its risks. Its long-term potential is becoming more evident with each new deal. However, just as important to monitor is its ability to execute its strategy by converting these signed agreements into revenue.

Key Takeaways MP Materials' Q2 revenues surged 89% as NdPr production and sales continued to gain momentum.MP's costs rose as it ramped magnet production, while start-up expenses climbed sharply year over year.MP trades at a premium valuation as 2026 and 2027 earnings estimates have moved lower. MP Materials (MP - Free Report) reported second-quarter 2026 results on Aug. 6, with revenues surging 89% year over year to $108.5 million and beating the Zacks Consensus Estimate. NdPr production and sales also continued to show strong momentum. MP reported an adjusted loss of one cent per share, which missed the Zacks Consensus Estimate of earnings of two cents, but showed significant improvement from the loss of 13 cents in the year-ago quarter.

MP shares have gained 15% since the earnings release. However, despite this climb, the stock’s performance over the past year has remained lackluster with a decline of 26.8%. It has trailed the Zacks Mining - Miscellaneous industry’s growth of 42.4%, the Zacks Basic Materials sector’s 29% gain and the S&P 500’s rise of 22.5%. 

The stock has also lagged other players in the rare earths space like Lynas Rare Earths Limited (LYSDY - Free Report) and Energy Fuels (UUUU - Free Report) , which advanced 55.4% and 29.8%, respectively, in the same timeframe.

MP’s Price Performance Against Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research

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

MP’s Q2 Results Show Strong Revenue MomentumMP Materials produced 840 metric tons of NdPr, up 41% year over year, while NdPr sales volumes surged 127% to 1,006 metric tons. However, MP reported no rare earth concentrate sales reflecting its decision to halt these sales to China in July 2025.

The Materials segment generated revenues of $95.6 million, up 155% year over year, driven by stronger NdPr sales volumes and pricing, partially offset by the absence of concentrate sales.

The Magnetics segment generated revenues of $16.5 million in the second quarter, down 17% year over year. While the segment benefited from an increase in the production of magnetic precursor products at the Independence Facility, revenues were down due to the start-up of magnet production and related pricing mechanisms.  

Total revenues rose 89% year over year to $108.5 million. MP also recorded $17.58 million in income tied to a price protection agreement (PPA) with the Department of War (DoW).

Higher Costs to Keep Pressure on MP’s EarningsCost of sales climbed 43% in the second quarter due to higher sales volumes of NdPr oxide and metals. Selling, general and administrative expenses rose 28%, due to higher personnel costs to support its downstream expansion. Start-up costs surged to around $14 million from $0.76 million in the year-ago quarter due to the ramp-up of start-up activities for magnet production and chlor-alkali facilities, and costs associated with initial production of magnets at Independence. 

Despite higher costs, adjusted EBITDA improved sharply to $28.5 million from a loss of $12.5 million in the year-ago quarter, supported by higher revenues and PPA income.

The company’s adjusted loss narrowed to one cent per share from 13 cents. Higher adjusted EBITDA and interest income benefited earnings, partly offset by amortization related to the PPA upfront asset and higher interest expense mainly due to the July 2025 DoW loan to support the buildout of samarium oxide production.

Costs are likely to remain elevated as producing separated rare earth products and magnetic materials involves significantly higher costs than concentrate production, due to additional processing requirements, chemical inputs, labor and maintenance. Costs associated with magnetic precursor products and start-up costs are also likely to increase further in the coming quarters.

MP Sees Downward Revision Activity in Earnings EstimatesThe Zacks Consensus Estimate for MP Materials’ 2026 revenues indicates a 102% increase year over year. The consensus estimate for 2026 earnings is currently pegged at 18 cents per share, suggesting a solid improvement from the loss of 24 cents reported in 2025. 

The consensus estimate for MP’s 2027 revenues suggests year-over-year growth of 72% with earnings expected to surge 445%.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for earnings for both 2026 and 2027 has moved down over the past 60 days.

Image Source: Zacks Investment Research

MP Materials Stock Trades at a PremiumMP Materials stock is trading at a forward 12-month price/sales multiple of 14.91X, a significant premium to the industry’s 1.42X. MP’s Value Score of F suggests that the stock is not so cheap and a stretched valuation at this moment. Energy Fuels trades at an even steeper multiple of 19.26X, while Lynas Rare Earths appears comparatively cheaper at 10.49X.

Image Source: Zacks Investment Research

Strategic Expansion & Partnership Strengthen MP’s Long-Term ProspectsMP Materials continues to benefit from strong demand for domestic rare earth materials and magnets. NdPr sales exceeded 1,000 metric tons for the second consecutive quarter, and the company expects production to exceed 1,000 metric tons in the third quarter.

The company remains on track to begin producing terbium and dysprosium later this year and expects first samarium production in 2028. MP recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer. The deal is expected to be worth a sizable nine-figure amount.

During the second quarter, MP Materials delivered magnets to General Motors for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp. 

The company delivered magnets to General Motors for vehicle qualification testing in the second quarter and expects commercial shipments to begin in the fourth quarter, followed by a production ramp.

MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with a number of participants. The company’s partnership with Apple on magnet recycling, magnet production and joint development also continues to advance. 

Meanwhile, construction of the 10X facility remains on track. The second U.S. rare earth magnet facility is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually. Combined with the 3,000-metric-ton capacity of the Independence facility, MP’s U.S. magnet capacity is expected to reach 10,000 metric tons annually.

Should You Buy MP Stock Right Now?MP Materials offers an attractive long-term growth story, supported by its strategic U.S. position, rising NdPr demand, expanding magnet production and partnerships with major industrial and technology companies.

However, the stock’s premium valuation, weak recent performance, rising operating and start-up costs, and downward estimate revisions temper the near-term outlook. Existing shareholders may consider holding the stock, while new investors may want to wait for a more attractive entry point. MP Materials currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of MP Materials (NYSE:MP) are extending a powerful rebound, trading up 6.76% to $54.56 in the Monday session after opening at $51.11. The move caps a torrid stretch in which MP has rallied 23.54% over the past week, snapping back sharply from an August 7 close that still leaves the stock down 28.08% over the past year.

Earnings Beat and Gadolinium Deal Fuel the Rebound The catalyst traces back to MP Materials’ Q2 FY26 report on August 6, when the only fully integrated U.S. rare earth producer posted revenue of $108.49 million, up 89% year over year and beating the $95.95 million consensus by 13.08%. The engine was NdPr oxide and metal sales, which surged 277% to $94.43 million on separated product volumes of 1,006 metric tons. Adjusted EBITDA swung to $28.49 million from a $12.54 million loss a year ago.

Adjusted EPS came in at -$0.01, missing expectations for a roughly breakeven result and snapping a five-quarter EPS beat streak, weighed down by $14.43 million in start-up costs at the Independence magnet facility. Investors looked past the miss. The bigger story: a sizable nine-figure, multi-year gadolinium offtake with a U.S. aerospace and defense customer at locked-in pricing, plus accelerating construction at the 10X facility and the launch of Project Swarm to aggregate rare earth magnet demand from U.S. drone makers.

CEO James Litinsky framed the quarter with unusual conviction, telling investors, “When I look at all of the conversations we’re having and the potential demand that we see, I don’t lose any sleep about filling out the demand for this facility…I actually think that we’ll have the ability to be somewhat of a kingmaker in a couple of verticals.”

Rare Earth and Critical Minerals Peers Ride the Wave The rally is broad-based. Rare earth and critical mineral names have moved together over the past week as investors position around U.S. supply chain policy and defense-linked offtakes. The table below prioritizes today’s session move alongside the one-week context and current market cap.

Ticker / Company Today 1-Week Market Cap MP (MP Materials) +6.76% +23.54% $9.76B USAR (USA Rare Earth) -0.31% +29.30% $4.80B UUUU (Energy Fuels) +0.04% +23.60% $3.53B NB (NioCorp Developments) +2.15% +25.97% $797M LAC (Lithium Americas) +0.77% +12.54% $1.19B The pattern is clear. Every U.S.-listed peer in the group has rallied double digits over the past week, with USAR up 29.30% and UUUU up 23.60%. That tells you MP’s move is riding a broader wave of investor conviction in the domestic critical minerals theme, but MP is the one carrying the fundamental catalyst: real revenue growth, government backing via a Department of War loan for samarium oxide production, and locked-in aerospace pricing. The stock trades at 21.86 times sales against an analyst target of $77.47, with 13 Buy and 5 Strong Buy ratings and no Sell calls on the sheet.

Helping out the sector was a roundtable at the white house on American mining last Friday. In addition, there’s been plenty of ‘bullish’ news in the broader AI space that’s creating incremental demand for rare earth companies. Researcher Semi Analysis released a report last Friday that SpaceX is targeting $300 to $500 billion in capital expenditures by the end of 2027, and this total could be in line with spending from Alphabet and Amazon. That level of investment would point to data center spending growing more than 50% again in 2027.

What to Watch Next The next real catalysts are operational milestones. MP guided Q3 NdPr production above 1,000 metric tons with realized pricing in the high $90s per kilogram, and expects first commercial magnet shipments to General Motors in Q4 2026. Keep an eye on the $58.22 200-day moving average as the next technical checkpoint.

Contact [email protected] for any questions or corrections.

-

LAS VEGAS--(BUSINESS WIRE)--MP Materials Corp. (NYSE: MP) today announced that Ryan Corbett, Chief Financial Officer, will participate in Canaccord Genuity’s 46th Annual Growth Conference on Wednesday, August 12, 2026, at 8:30 a.m. Eastern Time.

To register for the event, visit https://investors.mpmaterials.com/. Registered participants will receive an email with a direct link to the live event. A replay will also be available on the same site listed above.

About MP Materials

MP Materials (NYSE: MP) is America’s only fully integrated rare earth producer with capabilities spanning the entire supply chain—from mining and processing to advanced metallization and magnet manufacturing. We extract and refine materials from one of the world’s richest rare earth deposits in California and manufacture the world’s strongest and most efficient permanent magnets. Our products enable innovation across critical sectors of the modern economy, including transportation, energy, robotics, defense, and aerospace.

More information is available at https://mpmaterials.com/.

Join the MP Materials community on Twitter, YouTube, and LinkedIn.

More News From MP Materials

Back to Newsroom

Key Takeaways MP Materials expects Q3 NdPr output above 1,000 tons after Q2 production rose 41% to 840 tons. Commercial magnet shipments to GM are still expected to begin in Q4, starting with modest volumes.A gadolinium oxide deal is expected to be a sizable nine-figure agreement over multiple years. MP Materials Corp. (MP - Free Report) used its second-quarter 2026 earnings call to emphasize higher NdPr output, commercial magnet shipments beginning in Q4 and expansion into heavy rare earth products.

Revenues of $108.50 million beat the Zacks Consensus Estimate of $99.20 million by 9.40%. Adjusted loss per share was $0.01 compared with the consensus estimate of $0.02, producing a -150.00% surprise.

MP Sets Q3 NdPr Production Above 1,000 TonsCOO Michael Rosenthal said Q3 NdPr production should exceed 1,000 metric tons as reliability and throughput improve. Q2 production rose 41% year over year to 840 tons.

Chairman and CEO James Litinsky said customer demand continues to outpace production growth. Q2 NdPr sales reached 1,006 tons, up 127% year over year.

CFO Ryan Corbett said Q3 Materials sales volumes should be roughly flat sequentially because of shipment timing and metallization lead times. He expects NdPr oxide pricing in the high $90s per kilogram and PPA income of roughly $10 per kilogram, with overall PPA income slightly lower sequentially.

MP Materials Prepares for Q4 Magnet ShipmentsChairman and CEO James Litinsky said MP delivered magnets to GM for in-vehicle qualification testing and still expects commercial shipments to begin in Q4. The ramp should start with modest volumes.

CFO Ryan Corbett said about $46 million of prepaid magnetic precursor revenues remain to be recognized over the next three to four quarters. MP then plans to dedicate metal production capacity to finished magnets.

A Morgan Stanley analyst asked about GM qualification. CFO Ryan Corbett said the process covers capacity staging, batch traceability, quality-system integration and vehicle-level testing, and reiterated expectations for regular Q4 production deliveries.

MP Expands Heavy Rare Earth PortfolioChairman and CEO James Litinsky highlighted a long-term gadolinium oxide agreement with a U.S. aerospace and defense customer that is expected to represent a sizable nine-figure deal over multiple years.

Responding to a BofA Securities analyst, CFO Ryan Corbett said the contract has locked-in economics and attractive stand-alone returns. Additional volumes could generate significant incremental returns because most capital is being deployed upfront.

COO Michael Rosenthal said MP remains on track to produce terbium and dysprosium later this year and plans first samarium production in 2028. CFO Ryan Corbett also identified yttrium as another product opportunity during the Goldman Sachs Q&A.

MP Materials Keeps 10X Contracting FlexibleChairman and CEO James Litinsky said demand for secure magnet manufacturing remains strong across automotive, industrial, aerospace, defense and physical AI applications. Project Swarm is intended to aggregate drone demand and standardize magnet specifications.

A TD Cowen analyst asked why new magnetics contracts had not accelerated. Chairman and CEO James Litinsky responded that Independence is fully sold out between GM and Apple, while 10X is 100% contracted with the Department of War.

CFO Ryan Corbett said customer engagement is extremely high, but management is not rushing additional deals. The Department of War agreement gives MP room to select industrial partners and pursue terms designed to maximize long-term value.

MP Sees Costs Improving as Throughput ScalesCFO Ryan Corbett said the Q2 maintenance outage and staffing ahead of heavy rare earth production weighed on costs. He expects fixed-cost absorption, process efficiencies, lower maintenance intensity and chlor-alkali benefits to build progressively through 2027.

COO Michael Rosenthal said MP plans to change a flotation reagent later this year. The higher-cost reagent is expected to improve reclaimed-water quality and supply-chain resilience.

CFO Ryan Corbett said MP expects minimal immediate impact from current export restrictions on its reagent supply chain. Full-year capital spending remains targeted at $500 million to $600 million, while cash and short-term investments totaled $1.45 billion.

MP Materials Stays Focused on ScalingChairman and CEO James Litinsky framed MP’s strategy around building operating capabilities across materials and magnetics rather than adding assets alone. He emphasized patient investment and contracted cash flows.

COO Michael Rosenthal said 10X development remains on track while MP advances recycling, chlor-alkali recommissioning and additional rare earth separation capabilities.

MP Rank and Style Scores Signal CautionMP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score is F, Growth Score is D, Momentum Score is D and VGM Score is F, below the A and B grades Zacks identifies as more favorable.

The combination indicates a neutral Zacks Rank with weak Style Scores rather than a top-ranked setup. The Zacks Rank can change as analysts revise earnings estimates following the just-reported results.

MP Materials Corp. (MP) Q2 2026 Earnings Call August 6, 2026 5:00 PM EDT

Company Participants

Martin Sheehan - Senior Vice President of Investor Relations
James Litinsky - Co-Founder, Chairman, President & CEO
Ryan Corbett - Chief Financial Officer
Michael Rosenthal - Co-Founder & COO

Conference Call Participants

Lawson Winder - BofA Securities, Research Division
George Gianarikas - Canaccord Genuity Corp., Research Division
Brian Lee - Goldman Sachs Group, Inc., Research Division
Max Yerrill - BMO Capital Markets Equity Research
Richard Garchitorena - Barclays Bank PLC, Research Division
Corinne Blanchard - Deutsche Bank AG, Research Division
Carlos de Alba - Morgan Stanley, Research Division
William Peterson - JPMorgan Chase & Co, Research Division
Derick Ma - TD Cowen, Research Division
Matt Summerville - D.A. Davidson & Co., Research Division
Ben Kallo - Robert W. Baird & Co. Incorporated, Research Division

Presentation

Operator

Hello, and welcome to the MP Materials Q2 2026 Earnings Call. [Operator Instructions] Also as a reminder, this conference is being recorded. If you have any objections, please disconnect at this time. With that, I would like to turn the call over to Martin Sheehan, Head of Investor Relations. Mr. Sheehan, you may begin.

Martin Sheehan
Senior Vice President of Investor Relations

Thank you, operator, and good afternoon, everyone. Welcome to the MP Materials Second Quarter 2026 Earnings Conference Call. With me today from MP Materials are Jim Litinsky, Founder, Chairman and Chief Executive Officer; Michael Rosenthal, Founder and Chief Operating Officer; and Ryan Corbett, Chief Financial Officer.

As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation, earnings release, and in our SEC filings. In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP

Rare-earth metals are a hot topic on Wall Street and geopolitically. China currently produces the vast majority of rare-earth metals, which are vital components in modern technology. The country has proven it will use access to the materials as a geopolitical bargaining chip. Which is why companies like TMC The Metals Company (TMC +2.49%) and MP Materials (MP -0.88%) are of keen interest to investors.

Before you buy into the big story about The Metals Company, however, consider this vitally important fact about rare-earth metals producer MP Materials.

Image source: Getty Images.

The Metals Company: A bold plan that is still years away from realization Rare-earth metals go into everything from cellphones to missile defense systems. The latter products make these materials of importance to ensuring a country's sovereignty. And it helps explain why the governments of the United States and Japan are helping to smooth the way for The Metals Company to develop its business. The problem is that the deep-sea mining operation the company hopes to create isn't actually a thing just yet. It is more of an aspirational goal.

Today's Change

(

2.49

%) $

0.10

Current Price

$

4.12

The Metals Company is moving toward that goal, but it is likely years away from actually operating a mine, let alone a profitable one. The story behind the stock is exciting, but it is still just a money-losing start-up with a bold idea and little else. In fact, it doesn't even report income on its income statement; the quarterly report starts with expenses. Only the most aggressive of growth investors should even consider buying this stock.

MP Materials is up and running Contrast that with MP Materials, which has an operating mine and processing assets. The company's income statement starts with revenue, which has been increasing as operations ramp up. In the first quarter of 2026, revenue rose 49% year over year. In the second quarter, revenue increased 89% compared to the same quarter of 2025.

The bottom line, meanwhile, is positive on an adjusted basis through the first half of 2026. It would be better if GAAP earnings were positive, but MP Materials isn't just a good idea anymore; it is a growing business that has proven it can turn a profit (at least an adjusted one). Notably, the company added a new aerospace and defense customer during the second quarter.

Today's Change

(

-0.88

%) $

-0.42

Current Price

$

47.49

That said, MP Materials isn't exactly a risk-free stock to own. It is still a very young business, while the rare-earth market is still developing. And it is still building out its capabilities. However, its focus on operating in a politically and financially stable region to provide customers with an alternative to China is clearly something the market desires. And being able to sell rare-earth metals right now gives it a leg up on The Metals Company, which basically hopes it can sell rare-earth metals at some point in the future.

Take calculated risks instead of making bets For investors willing to invest in a developing industry, MP Materials is simply much further along the development curve than The Metals Company. In the end, that will make it a smarter option for most investors seeking out rare-earth exposure today.

Posted by Defense World Staff on Aug 5th, 2026

Amundi raised its position in shares of MP Materials Corp. (NYSE:MP – Free Report) by 260.2% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 385,001 shares of the company’s stock after buying an additional 278,126 shares during the quarter. Amundi owned 0.22% of MP Materials worth $18,580,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Norges Bank acquired a new stake in shares of MP Materials during the 4th quarter valued at $82,531,000. BNP Paribas Financial Markets boosted its position in MP Materials by 76.3% during the second quarter. BNP Paribas Financial Markets now owns 2,921,542 shares of the company’s stock valued at $97,200,000 after purchasing an additional 1,264,243 shares during the last quarter. Van ECK Associates Corp grew its stake in MP Materials by 71.6% in the fourth quarter. Van ECK Associates Corp now owns 2,834,914 shares of the company’s stock valued at $143,220,000 after purchasing an additional 1,183,307 shares in the last quarter. Hancock Prospecting Pty Ltd increased its position in MP Materials by 7.2% in the 3rd quarter. Hancock Prospecting Pty Ltd now owns 14,861,212 shares of the company’s stock worth $996,741,000 after purchasing an additional 1,000,000 shares during the last quarter. Finally, State Street Corp increased its position in MP Materials by 13.2% in the 4th quarter. State Street Corp now owns 6,597,885 shares of the company’s stock worth $333,325,000 after purchasing an additional 769,517 shares during the last quarter. 52.55% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other MP Materials news, CFO Ryan Corbett sold 20,000 shares of the business’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $75.00, for a total value of $1,500,000.00. Following the transaction, the chief financial officer owned 109,017 shares of the company’s stock, valued at approximately $8,176,275. The trade was a 15.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Stuart Rosenthal purchased 17,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was acquired at an average cost of $56.62 per share, with a total value of $962,540.00. Following the completion of the acquisition, the chief operating officer directly owned 1,333,673 shares of the company’s stock, valued at $75,512,565.26. The trade was a 1.29% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have sold 905,167 shares of company stock valued at $60,161,837. 8.20% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades Several equities research analysts recently commented on the company. Morgan Stanley boosted their price target on MP Materials from $70.00 to $71.50 and gave the company an “overweight” rating in a research note on Wednesday, July 8th. Canaccord Genuity Group set a $82.00 target price on shares of MP Materials in a research note on Friday, May 8th. Barclays dropped their price target on shares of MP Materials from $69.00 to $65.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Needham & Company LLC reduced their price objective on shares of MP Materials from $81.00 to $73.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Finally, Wall Street Zen cut shares of MP Materials from a “hold” rating to a “sell” rating in a report on Saturday, July 25th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $78.21.

View Our Latest Report on MP Materials

MP Materials Trading Up 8.2% Shares of MP Materials stock opened at $47.45 on Wednesday. MP Materials Corp. has a 52-week low of $37.81 and a 52-week high of $100.25. The firm has a market capitalization of $8.45 billion, a PE ratio of -112.97 and a beta of 1.88. The company has a debt-to-equity ratio of 0.47, a current ratio of 7.18 and a quick ratio of 6.58. The company’s fifty day moving average price is $53.77 and its two-hundred day moving average price is $57.86.

MP Materials (NYSE:MP – Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.03 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.04. MP Materials had a negative return on equity of 2.27% and a negative net margin of 28.00%.The business had revenue of $90.65 million during the quarter, compared to the consensus estimate of $74.82 million. During the same quarter last year, the company earned ($0.12) EPS. MP Materials’s revenue was up 49.1% on a year-over-year basis. On average, analysts expect that MP Materials Corp. will post 0.04 EPS for the current year.

About MP Materials (Free Report)

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.

Read More Five stocks we like better than MP Materials System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter Want to see what other hedge funds are holding MP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for MP Materials Corp. (NYSE:MP – Free Report).

Receive News & Ratings for MP Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MP Materials and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEStoke Therapeutics Q2 Earnings Call Highlights

NEXT HEADLINE »Amundi Boosts Stock Position in Axalta Coating Systems Ltd. $AXTA

Choosing between Archer Aviation (ACHR +5.80%) and MP Materials (MP +9.34%) in 2026 requires balancing the high-growth potential of urban air mobility against the foundational role of rare earth materials in modern technology.

Archer Aviation aims to revolutionize short-distance travel with its electric vertical takeoff and landing aircraft, while MP Materials focuses on securing the domestic supply chain for magnets used in electric vehicles and defense systems. Both companies occupy critical niches but offer vastly different risk profiles for everyday investors.

The case for Archer AviationArcher Aviation develops electric aircraft designed for urban air-taxi services, positioning itself as a leader among industrial stocks focused on future transport. The company leverages a conditional purchase agreement with United Airlines for its Midnight aircraft and collaborates with the U.S. Air Force through the AFWERX program. It also maintains a strategic partnership with Stellantis to scale manufacturing and a joint development agreement with Anduril Industries for autonomous platforms.

In FY 2025, revenue reached nearly $300,000, which reflects a transition into the early stages of commercialization compared to zero revenue in the previous fiscal year. However, the company reported a net loss of close to $618.2 million for the period. This substantial loss is largely due to the high costs associated with aircraft development, testing, and the ongoing regulatory certification process required to fly commercial routes.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.1x, which compares total debt from short term and long term sources to shareholder equity. The current ratio is close to 19.9x, indicating that the company has significant liquid assets available to cover its short term liabilities. Free cash flow for the year was a negative $511.7 million, representing the cash consumed by operations and capital investments during this pre-revenue growth phase.

The case for MP MaterialsMP Materials serves as a vital link in the domestic supply chain, operating as the only integrated rare earth miner and magnet producer in the United States. Its strategic partnerships are substantial, including a foundational agreement with General Motors for electric vehicle magnets and a long-term supply contract with Apple. Additionally, the U.S. Department of War supports the company through a ten-year magnet offtake agreement and a direct equity stake to ensure domestic supply.

In FY 2025, revenue reached approximately $275.5 million, marking a growth rate of roughly 35.1% over the prior year. Despite this growth, the company reported a net loss of nearly $85.9 million and a negative net margin of approximately 31.2%. This performance reflects the capital-intensive nature of scaling midstream separation and downstream magnet manufacturing facilities in California and Texas.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.4x. The current ratio is nearly 7.2x, suggesting the company maintains a strong ability to meet its short term debts with its current assets. Free cash flow was a negative $328.1 million, which is the cash remaining after the business pays for its operational activities and its significant capital expenditures on new processing infrastructure.

Risk profile comparisonArcher Aviation faces significant regulatory hurdles as it seeks type certification from the FAA, and any delays could materially postpone its commercial launch. The company carries a history of net losses and will likely require more capital to fund its manufacturing ramp-up and vertiport infrastructure. Additionally, it is currently engaged in trade secret litigation with Joby Aviation, which could divert management resources and impact its competitive position in the electric aviation market.

MP Materials is heavily dependent on its relationship with the U.S. Department of War, and any changes to those agreements could harm its financial position. The company also operates in a sector dominated by Chinese producers, making it vulnerable to geopolitical shifts and volatile trade policies. Furthermore, it faces execution risks in scaling its new facilities and is involved in intellectual property litigation against USA Rare Earth regarding proprietary technology.

Valuation comparisonWhile MP Materials trades at a lower P/S ratio, Archer Aviation appears less expensive when looking at its Forward P/E relative to future earnings estimates.

MetricArcher AviationMP MaterialsForward P/EN/A145.2xP/S ratio1,895x21.0xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

I'd go with MP Materials, even though Archer Aviation is working toward something fascinating that could reshape urban transportation. Archer’s electric air taxi concept is ambitious, and its progress toward FAA certification is ahead of the rest of the eVTOL industry. But it is burning through enormous amounts of cash each quarter with almost no revenue to show for it yet, and commercial viability is still years away.

MP Materials is a completely different kind of story. What catches my attention is that it operates the only rare earth mine of scale in North America, and it is in the middle of a transition from raw materials producer to fully integrated magnet manufacturer. That shift is already showing up in the numbers, with revenue growing sharply and its magnetics business picking up major customers including General Motors and Apple. The Pentagon has also made a substantial investment in the company, recognizing that domestic rare earth production is a national security priority.

Archer might fly someday, but MP Materials is already building something the country needs right now, and it has the Pentagon's backing to prove it.

Issued on behalf of Western Star Resources Inc. (CSE: WSR) (OTC: WSRIF) (FRA: 42K)

American News Group News Commentary

, /PRNewswire/ -- The United States has not mined tungsten domestically at any meaningful scale in roughly a decade, and China controls something like 80% of global supply and has moved to restrict exports of the metal. That is the backdrop against which a Nevada-focused junior just reported rock-chip assays running to more than 4% tungsten trioxide, roughly double the grades recorded historically in the same district. For a metal that goes into armor-piercing munitions and aerospace components, high-grade rock in a friendly jurisdiction is exactly what Washington has been asking the market to find.

Western Star Resources Inc. (CSE: WSR) (OTC: WSRIF) (FRA: 42K) announced certified laboratory assay results from its inaugural sampling programs at the Rowland Tungsten Property and the adjoining White Star Tungsten Project, both in Elko County, Nevada. The headline number is a peak rock-chip assay of 4.02% WO3 at Rowland Main, alongside 3.00% WO3 at the White Star Batholith Mine, with several additional samples above 2%. Management framed the results as confirming the high-grade nature of the system across the district as the company builds toward drill target generation.

Key Takeaways
 

Double the historical grades. Western Star reported a peak rock-chip assay of 4.02% WO3 from the Rowland Main workings and 3.00% WO3 from the White Star Batholith Mine, results the CEO described as exceeding twice the reported historical grades in the district. High grade across multiple zones. Sampling confirmed high-grade tungsten across all three previously identified zones of historical workings at Rowland (Northern Zone A, Northern Zone B, and Rowland Main), with five Rowland Main samples above 1.0% WO3 and coincident silver, copper, molybdenum and manganese credits. A first at White Star. At White Star, the highest-grade sample (3.00% WO3) came from an area not previously known to be mineralised, with a strongly anomalous 711 ppm molybdenum credit, consistent with recorded historical production grades from the Batholith Mine. Building toward drilling. Results will be integrated with a completed UAV magnetic geophysical survey and pending soil geochemistry to support drill target generation across the consolidated Jarbidge-Charleston tungsten footprint. A sector on watch. Guardian Metal Resources (NYSE American: GMTL), Fireweed Metals (OTCQX: FWEDF), United States Antimony (NYSE: UAMY), and MP Materials (NYSE: MP) are referenced as market and sector context. They differ substantially from Western Star in size and stage and are not peers or financial comparables. What Came Back From the Rock

The results are early-stage by nature, rock-chip, float and channel samples rather than drill core, but the grades are what make them notable. Details are set out in the company's news release. At the Rowland Tungsten Property, eighteen samples across the Rowland Main workings, where the skarn system is exposed, ranged from 0.01% up to 4.02% WO3, with five samples in excess of 1.0%. The peak sample, RO-16-01, returned 4.02% WO3, supported by 2.69%, 2.56%, 2.11% and 1.25% in nearby samples. Sampling also confirmed mineralisation across the two northern zones, including up to 1.22% WO3 in Northern Zone B near the historical processing infrastructure.

At the adjoining White Star Tungsten Project, initial sampling was preliminary and focused on roadside outcrops showing historical workings or visual skarn indicators. Two samples were collected, and the standout, WS-16-02, returned 3.00% WO3 with 711 ppm molybdenum. The company noted that this highest-grade sample came from an area not previously known to be mineralised, which is the kind of result that expands the perceived footprint of a system rather than just confirming what was already known.

Running through both properties is a set of coincident credits that matter for a tungsten skarn. The samples carried elevated silver, copper, molybdenum, manganese and tin, the pathfinder chemistry expected from a scheelite-bearing tungsten skarn system, and manganese, itself a critical metal, was consistently high across Rowland Main. None of that is a resource, but it is the geochemical signature a company wants to see before it commits drilling dollars.

"Receiving results of this tenor, that exceed twice the reported historical grades mark an exciting development at the Rowland and White Star Properties, and demonstrate the high-grade nature of the system in the district," said Blake Morgan, CEO and President of Western Star. "With the geophysics complete across both properties and the assays now in hand, we are building the integrated Jarbidge-Charleston dataset we need to move confidently into drill target generation."

Why Tungsten, and Why Now

The strategic context is what turns a set of high-grade rock-chip assays into a story worth watching. Tungsten is one of the hardest and densest metals available, with an extremely high melting point, and it is essential to armor-piercing ammunition, aerospace components, cutting tools and advanced electronics. It is also a metal the United States does not currently produce at scale. Domestic tungsten mining effectively ceased in 2015, leaving the country dependent on imports for a material the Pentagon designates as strategic.

That dependence has become a policy problem. China dominates roughly 80% of global tungsten concentrate supply and imposed export restrictions on the metal, part of a broader tightening of critical-mineral exports that has pushed Washington to rebuild domestic supply chains. Federal support has followed, with defense-linked funding flowing to tungsten projects and a wave of critical-minerals companies pursuing U.S. listings on a defense-supply thesis rather than the traditional supply-demand pitch.

Western Star is aiming squarely at that gap. The company describes itself as an emerging junior focused on revitalizing North America's tungsten supply, advancing past-producing tungsten assets in historically important districts, and positioning itself to participate in the growing need for secure domestic critical-mineral supply. Nevada, where both properties sit, is consistently rated among the most attractive mining jurisdictions in the world, which matters for a project whose entire premise is domestic, friendly-jurisdiction supply. The grades reported here do not by themselves build a mine, but they strengthen the case that the district is worth the drilling the company is now working toward.

The Field Racing to Rebuild U.S. Supply

Western Star is an early-stage explorer, but the theme it is chasing, domestic tungsten and critical-minerals supply for defense, is drawing capital across the size spectrum. The four companies below define that landscape. They are far larger and further along than Western Star, are referenced solely as market and sector context, and are not peers, competitors, or financial comparables of Western Star Resources Inc. Their results are not indicative of Western Star's prospects. All figures are approximate and subject to change.

Guardian Metal Resources (NYSE American: GMTL)

Guardian Metal Resources is the closest strategic mirror to Western Star, a Nevada-focused tungsten developer advancing two projects, Pilot Mountain, described as one of the largest undeveloped tungsten deposits in the U.S., and Tempiute, a former major producer. Guardian received a US$6.2 million investment from the U.S. Department of War under the Defense Production Act to support its Pilot Mountain pre-feasibility study, listed on NYSE American in 2026, and in July announced a partnership to move Tempiute legacy ore into a U.S. defense-focused processing pilot. It carries a Buy analyst rating. Guardian is the proof of concept for Western Star's own thesis: a Nevada tungsten story that has attracted direct federal defense funding and a U.S. market listing.

Fireweed Metals (OTCQX: FWEDF)

Fireweed Metals holds the Mactung project on the Yukon and Northwest Territories border, widely regarded as one of the largest undeveloped high-grade tungsten deposits in the world. The company has advanced feasibility-stage work with support from both U.S. Department of Defense and Canadian government funding for studies and infrastructure, making Mactung a focal point of North American critical-minerals strategy. Fireweed sits further along the development curve than Western Star, at the large defined-deposit stage rather than early exploration, and it illustrates the scale of what a successful tungsten discovery can become, and the government backing that follows credible North American tungsten ounces.

United States Antimony (NYSE: UAMY)

United States Antimony is best known as a domestic antimony producer with a major Defense Logistics Agency supply contract, but it is a relevant reference for Western Star because of its tungsten exposure. The company has advanced reporting on its Fostung tungsten project, described as one of North America's largest untapped tungsten deposits, alongside its antimony operations. UAMY has been a strong performer in the critical-minerals defense theme, trending higher through 2026 on production restarts, government contracts and its position in the domestic supply chain. It is included here as a broader defense-critical-minerals reference and a reminder that tungsten increasingly appears alongside antimony and other strategic metals in the same domestic-security conversation.

MP Materials (NYSE: MP)

MP Materials is the bellwether for the entire U.S. critical-minerals-for-defense trade. The largest rare-earth producer in the Western Hemisphere, it has become the template for how Washington is willing to back domestic strategic-metal supply, drawing direct government involvement and investment aimed at reducing dependence on China. MP is not a tungsten company, and it is far larger than Western Star, but it belongs in this context because it defines the macro backdrop: when the U.S. government treats a critical mineral as a national-security priority, capital and policy follow. That is the same wave Western Star's Nevada tungsten is positioned to ride, at a vastly earlier and smaller stage.

What to Watch

For Western Star, the near-term path is legible. The company has said it will integrate these assays with its completed UAV magnetic survey and pending soil geochemistry to generate drill targets across the Jarbidge-Charleston footprint, with further soil sampling continuing and more assay results to come. The real inflection is drilling: rock-chip and channel samples establish grade at surface, but only drilling can test whether that grade continues at depth and across meaningful widths. Watch for the transition from target generation to a first drill program, and for the additional assay and soil results the company has flagged.

The broader setup remains favorable and is largely outside the company's control. The domestic-tungsten thesis is being actively funded by the U.S. government, China's export posture continues to tighten Western supply, and defense demand for the metal is structural rather than cyclical. A high-grade Nevada tungsten system in a top-rated jurisdiction is exactly the kind of asset that environment is built to reward, if the drilling confirms what the surface sampling suggests.

None of that is assured. Western Star is an early-stage explorer, rock-chip results are not a resource, and there is a long, capital-intensive road between promising surface geochemistry and a producing mine, one that many juniors never complete. But the company has put high-grade numbers on the board in the right metal, in the right jurisdiction, at the right moment in the policy cycle, and it is now doing the methodical work that has to come before a drill bit turns.

Track the Signals Before the Crowd

The best positioning happens before the crowd catches on. Eagle Eye is a real-time investor signal-intelligence platform that surfaces sentiment shifts, news flow, and trending tickers as they form, so you see attention building instead of chasing it. Watch it live at eagle-eye.dev.

Article Source:

[1] Western Star Resources Inc., "High-grade Tungsten Results Nevada Tungsten Portfolio: Rock-Chip Assays up to 4.02% WO₃ at the Rowland Property and 3.00% WO₃ at the White Star Project," July 28, 2026.

American News Group | [email protected] 

DISCLAIMER

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. This article is being distributed for Market Equities Limited, a company incorporated under the laws of Ireland ("MEL"), which wholly owns and operates American News Group. MEL has been paid a fee directly by Western Star Resources Inc. for Western Star Resources Inc. advertising and digital media services. MEL also expects to receive further compensation as part of an ongoing digital media effort to increase visibility for the company. No further notice will be given, but let this disclaimer serve as notice that all material, including this article, has been approved by Western Star Resources Inc. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision.

Market Equities and its owners, operators, directors, and affiliates do not currently own any shares of Western Star Resources Inc., but reserve the right to buy, sell, or hold shares of Western Star Resources Inc. at any time without further notice, commencing immediately and ongoing, in the open market, through private placements, and/or through other investment vehicles. There may also be third parties who hold shares of Western Star Resources Inc. and may liquidate their shares, which could have a negative effect on the price of the stock.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this publication is not trustworthy unless verified by their own independent research. Because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may lose some or all of your investment.

Qualified Person and Cautionary Note on Exploration Results. The scientific and technical information in the underlying release has been reviewed and approved by Jasper Mowatt, MIMMM (Membership No. 0486653) and MAusIMM (Membership No. 3178851), a Qualified Person as defined by National Instrument 43-101. Mr. Mowatt is a consultant to Western Star Resources Inc. and is therefore not independent of the Company. The results described are from rock-chip, float and channel surface samples, which are selective by nature and are not necessarily representative of the mineralisation across the properties. Surface sampling results, including the peak assays of 4.02% WO3 and 3.00% WO3, do not constitute a mineral resource or mineral reserve, are not indicative of grades or widths that may be established by drilling, and there is no assurance that mineralisation identified at surface continues at depth or over economic widths. References to historical workings, historical production grades, and historical geological data have not been independently verified by the Company and should not be relied upon. No drilling has been completed, no mineral resource has been estimated, and no feasibility or economic study has been conducted; there is no assurance that the properties host an economically viable deposit. Statements regarding geophysical surveys, soil geochemistry, drill target generation, and future work programs are forward-looking and subject to exploration, permitting, technical, financing, and commodity-price risks. Readers should refer to Western Star's continuous disclosure record for a full discussion of risk factors.

Cautionary Note Regarding Referenced Companies and Market Data. References to Guardian Metal Resources, Fireweed Metals, United States Antimony, and MP Materials are provided solely as market and sector context. Those companies are not peers, competitors, or financial comparables of Western Star Resources Inc., and differ substantially in size, stage, capitalization, revenue, and business model. Their projects, funding, contracts, government support, and share performance describe those companies only, are not indicative of Western Star Resources Inc.'s prospects or results, and must not be relied upon in evaluating the profiled company. No partnership, affiliation, endorsement, or competitive relationship is implied. Commodity prices, market forecasts, supply-chain and policy developments, and industry data cited describe the sector generally, are third-party estimates subject to change, and do not represent any revenue opportunity, addressable market, or forecast attributable to Western Star Resources Inc.

Eagle Eye Disclosure. Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article, and this reference constitutes promotion of an affiliated product. Eagle Eye is not a broker-dealer, and nothing in the platform or in this article is financial, investment, tax, or legal advice. Data provided in the platform is for informational purposes only and may be delayed. Always do your own research before making any investment decision.

SOURCE American News Group

LAS VEGAS--(BUSINESS WIRE)---- $MP #rareearth--MP Materials Corp. (NYSE: MP) will release its financial results for the second quarter ended June 30, 2026, after the U.S. markets close on Thursday, August 6, 2026. MP Materials' management will host a conference call and webcast that afternoon at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Prior to the conference call and webcast, MP Materials will issue a press release and post a slide presentation at https://investors.mpmaterials.com/. Conference Call Detai.

Key Takeaways MP's first-quarter 2026 revenues rose 49% to $90.6 million as Materials and Magnetics grew.A $110/kg price floor through 2035 and long-term 10X magnet commitments improve revenue visibility.Rising costs, customer concentration and capital-intensive project ramps keep MP's outlook balanced. MP Materials Corp. (MP - Free Report) is no longer just a Mountain Pass mining story. The company is building a broader rare earth platform that links upstream production with downstream magnets.

That shift gives investors more to consider. Demand visibility is improving, but the same strategy also raises the burden on execution, working capital and margins.

How MP Materials Is Rebuilding the Supply ChainMP controls rare earth production from mining and separation to metal, alloy and magnet manufacturing. Mountain Pass in California anchors the Materials segment, while the Fort Worth, TX, Independence facility supports downstream metal, alloy and magnetic precursor production.

The two assets matter more together as MP moves away from lower-value concentrate sales. The company ceased concentrate sales to Chinese customers in July 2025 and began neodymium-iron-boron permanent magnet manufacturing at Independence in December 2025.

Why MP Stock Has Better Demand VisibilityMP’s story is now shaped by commercial and policy support, not only rare earth pricing. Agreements with the Department of War support the expansion of Independence, the construction of the 10X facility in Northlake, TX, and heavy rare earth refining capability at Mountain Pass.
The framework also includes a $110-per-kilogram price floor for eligible neodymium-praseodymium products through 2035. That protection, combined with long-term magnet purchase commitments tied to 10X, gives MP more visible offtake and partial earnings support.

USA Rare Earth (USAR - Free Report) is another name tied to U.S. rare earth processing and magnet ambitions. Its presence keeps investor attention on the broader domestic supply chain buildout rather than on MP alone.

Where MP Materials is Showing Real Operating ProgressThe first quarter of 2026 showed progress in the transition. Revenues rose 49% year over year to $90.6 million, helped by stronger Materials and Magnetics contributions.

Materials revenues rose 30% to $72.2 million as MP produced a record 917 metric tons of neodymium-praseodymium and sold 1,006 metric tons. Magnetics revenues reached $21 million as higher magnetic precursor output supported the segment.

General Motors (GM - Free Report) remained central to that downstream ramp. MP had sold $87.9 million of magnetic precursor products to General Motors as of March 31, 2026 and expects to complete the remaining $62.1 million commitment within the next year.

The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 22 cents per share, indicating an improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.04 per share, indicating a 372% year-over-year improvement.

Image Source: Zacks Investment Research

What Could Still Disrupt MP Materials GrowthMP’s transition is technically demanding. Mountain Pass is moving toward heavy rare earth production, Independence is ramping magnet manufacturing and qualification, and 10X still requires construction and commissioning.

Customer concentration also remains a risk. In the first quarter of 2026, two Materials customers accounted for 40% and 24% of total revenues, while General Motors represented 23% through Magnetics.

Costs add another constraint. Cost of sales climbed 52% in the quarter due to higher volumes of neodymium-praseodymium oxide, metal and magnetic precursor products, while start-up costs rose sharply as magnet and chlor-alkali activities ramped.

Shares of MP have declined 18.9% in the past three months compared with the industry’s 9.6% fall.

Image Source: Zacks Investment Research

Albemarle Corporation (ALB - Free Report) , though focused on lithium rather than rare earth magnets, offers a useful comparison for investors watching critical minerals. Commodity exposure, processing costs and capital discipline often shape how markets value producers tied to electrification supply chains.

How MP Signals a Balanced Stock SetupThe bottom line is that MP has a clearer domestic rare earth growth path, but not a simple one. Scale, policy support and downstream integration improve the setup, while qualification risk, customer concentration and elevated investment needs keep the outlook balanced.

MP currently carries a Zacks Rank #3 (Hold). That rank fits a company with visible catalysts but a near-term profile that still depends on execution across several capital-intensive projects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores show the same split. MP has a Value Score of F, Growth Score of D, Momentum Score of A and VGM Score of D. The strong Momentum Score points to better sentiment and timing characteristics, but the weak Value, Growth and VGM readings suggest investors should weigh the stock’s improving narrative against an uneven operating and valuation profile.

MP Marerials' operating gains and strong liquidity support its rare earth buildout, but a premium valuation and unfinished project ramps favor patience.

Key Takeaways MP trades at 15.20X forward sales, above the industry's 1.49X, while shares fell 14.7% in six months.First-quarter revenues rose 49% to $90.6M, but higher costs kept MP in its 11th operating-loss quarter.MP is expanding Independence and building 10X to lift annual NdFeB magnet capacity to about 10,000 tons. MP Materials (MP - Free Report) is trading at a forward 12-month price/sales multiple of 15.20X, well above the industry average of 1.49X. The stock also carries a Value Score of F, suggesting it is expensive at current levels.

Image Source: Zacks Investment Research

Among rare earth peers, USA Rare Earth, Inc. (USAR - Free Report) trades at a steeper 39.51X, while Lynas Rare Earths Limited (LYSDY - Free Report) appears relatively more reasonably valued at 10.22X.

MP Materials Stock Trails Industry PerformanceMP Materials shares have declined 14.7% over the past six months, significantly lagging the industry’s 8.5% growth. The Zacks Basic Materials sector gained 3.8% while the S&P 500 rose 8%. Over this period, Lynas Rare Earths and USA Rare Earth have gained 19.6% and 11.4%, respectively.

MP's 6-Month Performance Against Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research

MP Materials continues to trade at a substantial premium even as its shares have lagged the industry. Examining its latest financial results, operational execution, growth catalysts and key challenges can help assess whether that premium remains justified.

MP Delivered Revenue Growth in Q1, Costs Remain ElevatedMP Materials generated first-quarter 2026 total revenues of $90.6 million, up 49% year over year. The company also recognized $42.3 million in income related to a price protection agreement (PPA) with the Department of War (DoW).

Revenues from the Materials segment increased 30% year over year to $72.2 million, on stronger NdPr pricing and sales. The Magnetics segment contributed $21 million in revenues, reflecting increased production of magnetic precursor products. In the year-ago quarter, the segment generated $5.2 million in revenues from its first metal deliveries.

Cost of sales climbed 52% due to higher sales volumes while selling, general and administrative expenses rose 39.2% due to increased personnel costs. Start-up costs surged 503%, reflecting the ramp-up of start-up activities related to magnet production and chlor-alkali facilities. Advanced projects and development expenses spiked 302% due to higher costs incurred for legal, consulting and advisory services to support growth initiatives.

Due to the surge in costs, MP Materials reported an operating loss of $24 million in the quarter compared with the year-ago operating loss of $34.8 million. This was the 11th consecutive quarter of operating loss for the company, reflecting ongoing margin pressure as it continues transitioning toward higher-value separated rare earth products. The company posted adjusted earnings of three cents per share against the year-ago quarter’s loss of 12 cents. 

Producing separated rare earth products and magnetic materials involves significantly higher costs than concentrate production, due to additional processing requirements, chemical inputs, labor and maintenance. Cost of sales is, thus, expected to trend higher, reflecting increased sales of NdPr oxide and metal, along with added costs associated with magnetic precursor products. Start-up costs are also likely to increase further in the coming quarters.

MP Materials Scales Production Across OperationsMP Materials reported record production of 917 metric tons of NdPr during the first quarter, up 63% year over year, driven by continued expansion of separated rare earth production. The company also achieved a record 12,983 metric tons of rare earth oxide (REO) concentrate production, representing a 6% increase from the prior-year period, supported by improved recoveries and operational efficiencies. At the same time, production of magnetic precursor products continues to ramp up at the Independence facility.

MP’s Earnings Estimates Trend Lower Reflecting CautionThe Zacks Consensus Estimate for MP Materials’ 2026 earnings stands at 16 cents per share, reflecting a turnaround from the projected loss of 24 cents in 2025. The 2027 estimate is currently pegged at $1.06 per share, implying growth of 562.5%.

Image Source: Zacks Investment Research

Earnings estimates for both 2026 and 2027 have been revised downward over the past 90 days.

Image Source: Zacks Investment Research

MP Materials Advances Capacity ExpansionThe company is expanding operations at its Independence facility and has begun construction of the 10X magnetics facility. Commissioning activities for scaled heavy rare earth separation are also expected to begin soon at Mountain Pass. 10X will significantly expand MP’s fully integrated U.S. rare-earth magnetics manufacturing platform, which already encompasses mining and refining, metallization and alloying, sintering, finished magnet production and closed loop recycling. Once operational, the new campus is expected to contribute to the company’s total production capacity of approximately 10,000 metric tons of NdFeB rare-earth magnets per year, advancing the nation’s ability to produce these strategic components domestically.

Our Final Take on MP StockMP Materials remains well-positioned to benefit from the growing demand for domestically produced rare earth materials and magnets, supported by its integrated business model, expanding production capabilities and significant long-term capacity investments. These strengths make the company an attractive long-term holding for existing shareholders.

However, prospective investors may prefer to wait for a more attractive entry point given the stock’s premium valuation, rising operating and start-up costs, and recent downward revisions to earnings estimates. MP currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways MP Materials' Materials segment saw revenue growth and improved profitability in first-quarter 2026.NdPr production hit a record 1,006 metric tons, up 117%, crossing the 1,000-ton mark for the first time.Adjusted EBITDA surged 877% to $36.7 million, helped by higher revenues and PPA income. MP Materials’ (MP - Free Report) first-quarter 2026 results underscore the success of its efforts to expand neodymium-praseodymium (NdPr) production, with the Materials business delivering strong operational execution, revenue growth and improved profitability.

The Materials segment represents the upstream and midstream operations of the company, anchored by Mountain Pass, its fully integrated mining and refining facility producing refined rare earth oxides and related products. The segment now derives most of its revenues from NdPr oxide and metal sales, reflecting MP Materials’ strategic shift toward higher-value products. Historically, rare earth concentrate sales accounted for the bulk of segment revenues. However, after halting shipments to Chinese customers in July 2025, the company began processing the concentrate into separated rare earth products or stockpiling it for future use.

NdPr production was a record 1,006 metric tons in the quarter, 117% higher year over year and also marked the first time the company crossed the 1,000-ton threshold. NdPr sales volumes also reached a record 917 metric tons, up 63% from the prior-year quarter. 

This robust production and sales growth boosted the Materials segment’s financial performance. Total revenues climbed 30% year over year to $72.2 million. This was driven by a 192% increase in NdPr oxide revenues on higher sales volumes and stronger market pricing. 

MP Materials also achieved record production of 12,983 MT of rare earth oxides (REO) in concentrate during the quarter, marking a 6% year-over-year increase.  The absence of REO concentrate sales was offset by higher NdPr oxide revenues.

The Materials segment reported adjusted EBITDA of $36.7 million, which marked an 877% surge from the year-ago quarter. This was attributed to higher revenues and Price Protection Agreement (PPA) income of $42.3 million related to the agreement with the Department of War (DoW), despite higher cost of sales in the quarter.

The first-quarter 2026 performance builds on the strong momentum established in 2025. During the year, the segment sold 1,994 metric tons of NdPr, up 75% year over year. The Mountain Pass operations produced a record 2,599 MT of NdPr in 2025, more than double the 1,294 MT produced in 2024. The increase reflects continued process optimization and ongoing production ramp-up efforts. 

Australia-based peer Lynas Rare Earths Limited (LYSDY - Free Report) reported NdPr production of 1,996 tons in the third quarter of fiscal 2026 (ended March 31, 2026), representing a 32% year-over-year increase. Lynas Rare Earths also produced eight tons of dysprosium and terbium during the quarter.  Lynas Rare Earths’ revenues jumped 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. 

MP’s Price Performance, Valuation & EstimatesMP Materials’ shares have gained 65.1% in a year compared with the industry’s 40.7% growth. Peers Lynas Rare Earths and Energy Fuels Inc. (UUUU - Free Report) have gained 123.9% and 154%, respectively. 

Image Source: Zacks Investment Research

MP is trading at a forward 12-month price/sales multiple of 15.77X, a significant premium to the industry’s 1.49X. Energy Fuels and Lynas Rare Earths are trading at 19.86X and 10.68X, respectively. 

Image Source: Zacks Investment Research

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.

MP Materials (MP 3.09%) provides essential elements for electric vehicles and defense technology, while Sherwin-Williams (SHW +1.47%)dominates the architectural and industrial coatings market. It’s a choice between the high-growth potential of critical mineral security and the steady cash flows of a global paint leader.  

This comparison explores whether a speculative play on domestic supply chains or a proven dividend payer is the better buy for your portfolio.

The case for MP MaterialsMP Materials focuses on the full lifecycle of rare-earth elements, from mining at its California site to processing and magnet manufacturing in Texas. The company already has a list of high-profile customers waiting to buy its magnets, including General Motors (GM 0.55%), Apple (AAPL +3.37%), and the U.S. Department of Defense (rebranded as the Department of War).

In FY 2025, revenue grew 35% to $275.5 million, but MP Materials still reported a net loss of nearly $85.9 million as it continues to invest in scaling its complex separation and magnet manufacturing facilities to align with domestic supply chain goals.

As of its December 2025 balance sheet, the debt-to-equity ratio, which measures total debt relative to shareholder equity, is approximately 0.4x. The current ratio, a measure of how easily a company can pay its short-term debts with its short-term assets, stands at a robust 7.2x. Free cash flow, which is the cash remaining after a company pays for its capital expenditures, was negative $328.1 million in 2025.

The case for Sherwin-WilliamsSherwin-Williams operates a massive network of nearly 4,900 company-owned stores, selling paints and coatings to professional contractors and DIY customers. Its business is highly diversified across its Paint Stores, Consumer Brands, and Performance Coatings segments. No single customer accounts for more than 10% of total sales, providing a stable foundation for its global distribution logistics and freight partnerships.

In FY 2025, revenue grew around 2% to $23.6 billion. The company remains highly profitable, ending the year with a net income of $2.6 billion. While sales growth has been modest, a net margin of nearly 10.9% indicates the company is effective at turning its multi-billion dollar revenue into actual profit.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 3.2x. This ratio indicates that total liabilities are significantly higher than shareholder equity. The current ratio stands at approximately 0.9x, while free cash flow reached nearly $2.7 billion. This substantial cash generation allows the company to fund dividends and integrate acquisitions even while carrying a higher debt load.

Risk profile comparisonFurthermore, the global rare earth market is dominated by Chinese competitors who benefit from state-sponsored advantages and the ability to disrupt supply chains. MP Materials also faces risks related to its reliance on the U.S. Department of War agreements and its ability to meet production targets at its 10X Facility. The company recently filed a lawsuit against USA Rare Earth (USAR 0.92%) over proprietary technology, accusing it of poaching employees and obtaining sensitive technology information.

Sherwin-Williams is currently navigating a class-action lawsuit in California regarding alleged labor law violations, which could result in financial liabilities. The company must also manage the integration of large acquisitions like Suvinil in Brazil and handle volatility in raw material costs driven by energy prices. Because its sales are tied to the housing and construction sectors, elevated interest rates and inflation could continue to dampen demand for its products.

Valuation comparisonSherwin-Williams offers a valuation much closer to the broader market average, while MP Materials trades at a significant premium based on future earnings estimates.

MetricMP MaterialsSherwin-WilliamsSector BenchmarkForward P/E260.9x27.4x26.3xP/S ratio39.2x3.4xn/aSector benchmark uses the SPDR XLB sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Sherwin-Williams is a 160-year-old company with a massive footprint in the paints and coatings industry. It owns more than 5,000 stores and branches, and its namesake brand is among the most popular in the industry.

It’s a slow-growth business by nature, but Sherwin-Williams has grown its sales at an annualized rate of 5% and adjusted earnings per share at an annualized rate of 6.9% over the past five years. Because Sherwin-Williams enjoys strong pricing power and can often pass higher costs on to consumers, it generates strong margins and has raised its dividend for 47 consecutive years.

MP Materials, on the other hand, is a young company founded in 2017. It has, however, positioned itself as a national security asset thanks to its rare-earth operations. Rare earths are critical elements for various industries, including semiconductors, electronics, electric vehicles, renewable energy technology, defense systems, lasers, and medical devices. Under the leadership of President Donald Trump, the U.S. government is making major moves to boost the rare-earth industry and reduce reliance on China.

MP Materials’ Mountain Pass is the largest rare-earth mine in the U.S. The U.S. government owns a 15% stake in the company and has committed to buying all the rare-earth magnets produced at the 10X facility for 10 years at a set floor price. MP Materials also has other collaborations with the government and contracts with some big companies like Apple. The company is setting itself up as a rare-earth ore-to-magnet giant and growing production and revenues.

If I were to buy one stock today, I’d invest in MP Materials simply because of the significance of rare earths and the industry’s growth potential under the Trump administration. MP Materials stock has already run a lot, but it still has the potential to deliver explosive returns that a mature, established player like Sherwin-Williams rarely can.