MP Materials MP reported an 89% year-over-year surge in second-quarter 2026 revenues to $108.5 million, bringing first-half revenues to $199 million. Compared with the first half of 2025, this represents a 68% increase.Â
The strong performance was attributed to higher revenues in the Materials segment, supported by the continued ramp-up in production and sales of separated rare earth products, as well as higher market prices. Increased revenues from magnetic precursor products reflecting the ramp-up at the Magnetics segment also contributed to growth.
MP Materials also benefited from $17.58 million in income related to a price protection agreement (PPA) with the Department of War (DoW) in the second quarter. For the first half of 2026, PPA-related income totaled $59.8 million.
The robust performance reflects the company’s continued shift toward higher-value neodymium-praseodymium (NdPr) products. MP Materials produced 1,757 metric tons of NdPr in the first half of 2026, up 51% year over year, while NdPr sales jumped 122% to 2,012 metric tons.
The company reported no rare earth oxide (REO) concentrate sales during the period, following its decision to cease sales into the Chinese market in July 2025. Instead, MP Materials is processing the concentrate into separated rare earth products or stockpiling it for future use.
Despite the absence of concentrate sales, the Materials segment generated approximately $168 million in first-half revenues, up 80% year over year, driven by higher NdPr sales volumes and pricing.
The Magnetics segment is also becoming an increasingly important revenue contributor. It generated $37.6 million in revenues during the first half of 2026, supported by increased production of magnetic precursor products at the Independence facility.
Under its long-term supply agreement with General Motors GM, MP Materials has collected all required prepayments totaling $150 million for magnetic precursor products. As of June 30, 2026, the company had sold $104.5 million of these products to General Motors, leaving $45.5 million to be transferred, which is expected within one year.
Once this agreement is fulfilled, MP Materials does not expect additional magnetic precursor product sales to GM. Instead, the company plans to begin selling finished magnets to General Motors.Â
Looking ahead, several initiatives could support MP Material’s future revenue growth. The company is advancing key growth initiatives, such as expanding operations at Independence and breaking ground on the 10X magnetics facility, its second domestic rare earth magnet manufacturing facility. Meanwhile, scaled heavy rare earth separation commissioning activities are set to begin soon at Mountain Pass.
Among industry peers, Lynas Rare Earths LYSDY also delivered strong revenue growth. Fourth-quarter fiscal 2026 revenues, for the quarter ended June 30, 2026, jumped 70% year over year to AUD 288.9 million ($204.9 million), marking the company’s highest quarterly revenues since the fourth quarter of fiscal 2022. Growth was driven by higher NdPr prices and increased sales volumes of total REO products.
Lynas Rare Earth reported NdPr production of 1,857 tons, a decline of 11% year over year. The company also produced 19 tons of dysprosium and terbium during the quarter. Total REO production for the quarter reached 3,481 tons, up 8% from the prior-year period.Â
Following its first production of samarium oxide in March 2026, Lynas has seen strong customer demand, with the customer qualification process now underway. The company expects to fulfill its first customer orders in the first quarter of fiscal 2027.
MP’s Price Performance, Valuation & Estimates
MP Materials’ shares have declined 19.9% in a year against the industry’s 40.7% growth.
Image Source: Zacks Investment Research
MP is trading at a forward 12-month price/sales multiple of 14.98X, a significant premium to the industry’s 1.42X.
Image Source: Zacks Investment Research
The 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 16 cents per share, suggesting a solid improvement from the loss of 24 cents reported in 2025.Â
The consensus estimate for MP’s 2027 revenues suggests year-over-year growth of 72%, with earnings expected to surge 494%.
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).
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