Wedoany.com Report on Feb 28th, MP Materials achieved profitability in the fourth quarter of 2025, during a critical period for U.S. industrial strategy focused on reshaping the rare earth supply chain. The company reported a net profit of $9.4 million, or $0.05 per share, a significant improvement compared to a loss of $22.3 million in the same period last year. Adjusted earnings per share were $0.09, exceeding market expectations.

A key factor in the profitability was the price protection agreement signed with the U.S. government in 2025, which guarantees a minimum price of $110 per kilogram for rare earths. During the quarter, the company recognized $51 million in revenue related to this mechanism, which is designed to stabilize domestic production in response to market volatility. Over the past seven months, rare earth prices have nearly doubled, surpassing the minimum price guaranteed by the agreement.

MP Materials controls the only active rare earth mine in North America and processes the materials in California. Concurrently, it is advancing vertical integration through its magnet factory in Texas. This quarter, the magnet segment generated $19.9 million in revenue and $8.4 million in adjusted profit, solidifying the strategic shift from mining to manufacturing higher-value-added products. The company also announced the construction of a second magnet facility as part of an agreement with the U.S. Department of Defense, with a target annual production of 10,000 metric tons.

In 2025, MP Materials ceased shipping rare earths to China for processing, altering a long-standing historical practice. This move is part of a broader policy effort to secure critical minerals used in defense, electric vehicles, and strategic technologies. Although the company successfully returned to profitability and strengthened its strategic position, its stock price fell 2.9% to $58.25 in after-hours trading, reflecting market sensitivity to the pricing environment and operational transformation.