Shares of MP Materials experienced a significant breakout, climbing more than 8% and surpassing key resistance levels following the release of their third-quarter earnings. The catalyst was a quarterly report that revealed substantially narrower losses than anticipated. More importantly, record production volumes of critical rare earth elements and a newly established government agreement signal the long-awaited transition toward sustained profitability.
Strategic Pivot Drives Improved Financials
The company’s latest financial results highlight a strategic shift in its business model. While total revenue declined by 14.9% to $53.6 million, this decrease was intentionally orchestrated. MP Materials strategically halted sales of low-margin rare earth concentrates to China, redirecting its focus toward higher-value products.
This strategic repositioning yielded impressive results on the bottom line. The adjusted loss came in at just $0.10 per share, substantially outperforming analyst expectations, which had projected losses between $0.15 and $0.18 per share. A key driver was the company’s transformed revenue composition. The newly established Magnetics segment contributed $21.9 million—a business line that did not exist in the previous year.
Record Production and Supply Chain Integration
Operational achievements formed another pillar of the positive report. MP Materials achieved record production of neodymium-praseodymium oxide, reaching 721 tons—a 51% increase compared to the previous year. These oxides are essential components for high-performance permanent magnets, positioning the company at the core of the domestic supply chain.
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This production milestone underscores MP Materials’ evolution beyond basic resource extraction toward becoming a fully integrated producer. The development marks a significant milestone for the United States, which is now reestablishing a complete rare earth supply chain on domestic soil for the first time in decades.
Government Agreement Provides Revenue Stability
The company’s strategic positioning received a substantial boost from a price protection agreement with the U.S. Department of Defense, effective October 1, 2025. This arrangement guarantees minimum pricing, providing MP Materials with predictable cash flows and revenue stability—a potential game-changer for investor confidence.
Management has projected a return to profitability as early as the fourth quarter, citing the combination of the Pentagon agreement and scaled production of higher-value materials as the primary catalysts for this anticipated turnaround.
Looking further ahead, the company has outlined clear milestones. A heavy rare earths facility is scheduled to commence production of dysprosium and terbium by mid-2026. Additionally, commercial manufacturing of NdFeB magnets—the world’s most powerful permanent magnets—is set to begin later in 2025, further solidifying the company’s integrated business model.
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