One of the important takeaways from MP Materials’ MP first-quarter 2026 results may be the rapid growth of its Magnetics segment. The company reported Magnetics revenues of $21.1 million in the quarter, a more than fourfold increase from the prior-year period’s $5.2 million.
Segment adjusted EBITDA reached $9.6 million compared with $0.49 million in the year-ago quarter, reflecting growing profitability as the production of magnetic precursor products continues to scale.
The Magnetics segment began generating revenues from the sales of magnetic precursor products to General Motors GM in the first quarter of 2025. Deliveries commenced in March 2025, contributing $5.2 million to first-quarter 2025 revenues. The segment commenced the manufacturing of neodymium-iron-boron (NdFeB) permanent magnets in December 2025.
The trend is significant because it demonstrates MP Materials’ transition from being primarily a mining company to becoming an integrated manufacturer of rare-earth-based products. Historically, the company generated revenues largely from the sale of rare earth materials. Today, MP is increasingly moving downstream into the production of magnetic materials.
At the center of its efforts is its Fort Worth, TX facility (Independence), which serves as both the production hub and engineering headquarters for the segment. In April 2022, the company entered into a long-term agreement to supply magnets and precursor products manufactured at the Independence Facility to General Motors as its foundational customer.
In July 2025, the company entered into a landmark long-term supply agreement with Apple AAPL for the development, manufacture and supply of magnets from the Independence Facility, as well as the development and installation of scaled recycling capabilities at Mountain Pass to produce the contained rare earths from post-industrial and post-consumer recycled rare earth feedstocks. The company is also pursuing sales opportunities to other customers for its future magnet products.
Management’s confidence in this business is evident from its ongoing investments. During the first quarter, MP expanded operations at its Independence facility and broke ground on its “10X” magnetics facility. Once completed and scaled, it will produce an estimated 7,000 MTs of magnets per year, taking MP Materials’ overall U.S. rare earth magnet production capacity to an estimated 10,000 MTs per year. In addition, the company is preparing to commission heavy rare earth separation capabilities at Mountain Pass, enabling a more complete domestic supply chain for permanent magnets.
MP’s Price Performance, Valuation & Estimates
MP Materials’ shares have gained 99.5% in a year compared with the industry’s 42.2% growth.
MP is trading at a forward 12-month price/sales multiple of 19.21X, a significant premium to the industry’s 1.60X.
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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.
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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.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
