In 2025, the rare earth company MP Materials NYSE: MP It was undoubtedly one of the most talked about and best performing stocks in the market. Shares ended the year up almost 224%, boosted by investments from the US government and partnerships with major companies such as Apple. NASDAQ: AAPL.
Although the headlines surrounding the name have slowed slightly in 2026, MP Materials continues to perform admirably.
Shares are up more than 30% for the year, and investors just got an update in the form of MP’s latest earnings report.
The company’s Q1 2026 results show that the ambitious targets it has set out to achieve are proceeding according to plan. Here’s what investors should know.
MP Posts Strong Beats in Sales and EPS
In Q1 2026, MP posted revenue of $90.65 million, an increase of nearly 49% year-on-year (YOY). This is a huge turnaround from just two quarters ago, when revenue fell 15% YOY, and is just one example of how Parliament’s strategy is working.
In Q3 2025, revenue decreased due to weak demand, but due to the company’s agreement with the US government. With this agreement, from July 2025, the MP was no longer allowed to sell rare earth concentrations to China. This created a significant but temporary hole in revenue. Now, the firm’s sales are turning that corner, with Q1 revenue exceeding expectations at $72.82 million.
The company’s deal with the US government also made a financial impact in a very positive way. In addition to strong sales, the company recorded $42.27 million in revenue from a price protection agreement (PPA). This is where the US government pays the difference between the market price of MP’s Neodymium-Praseodymium (NdPr) products and $110 per kilogram. Adding in the company’s PPA revenue, the combined revenue was $132.9 million, more than double its revenue of $60.8 million a year ago.
The combination of these factors allowed MP to post adjusted diluted earnings per share (EPS) of 3 cents. This compares favorably with a loss of 12 cents last year. Importantly, estimates beat a strong loss of 1 cent during the quarter.
MP Sees Record Production, Milestones Stay on Schedule
On the operational side, MP continues to make solid progress. Earth oxide (REO) production reached a Q1 record of 12,983 metric tons, up 6% YOY. REO is part of the stock used to make NdPr, and the company saw NdPr production of 917 metric tons, up 63% YOY.
With improvements in REO and NdPr operations, the company is on track to reach its NdPr production target of 500 metric tons per month by the end of the year. At approximately 1,500 metric tons per quarter, this would be an improvement of more than 60% over the company’s Q1 operating average.
The company also stands out for its key “10X” facility. This is the site announced in its agreement with the US government, and will be MP’s second magnetic production site. With 10X and its first facility, Independence, the company plans to scale its annual magnetic production capacity to 10,000 metric tons.
That target compares to 1,000 metric tons of capacity at Independence, hence the name “10X.” This shows the significant increase that is happening and the huge room for growth of the MP business as it brings more capacity online. The company expects magnet sales from Independence to begin in the second half of 2026.
Heavy parts of the exotic world were also a point of discussion. The heavy rare earths, including elements such as terbium and dysprosium, play a role in some of the most advanced rare earth applications. MP noted that the ramp-up of its unusual land-separation capacity is still well under way, as it is expected to be deployed in Q2.
Additionally, the company is actively working to improve the chemistry of its magnets to require fewer heavy rare earths. This is key, as rare heavy earth is very expensive, and MP’s Mountain Pass mine is not rich in it. By reducing reliance on heavy equipment, the company can keep costs down for customers and be in a better position to offer emerging applications such as robotics, drones, and defense.
While investing in these various priorities, the MP seems to be staying on budget. The company continues to expect its full-year cash flow to be in the $500 million to $600 million range.
MP Works Well as a Supply and Needs Developing Energy
Financially, MP posted strong beats on the top and bottom lines. Functionally, there are no big surprises. For a company that operates in the often mysterious mining industry, that’s what the markets like to see.
MP Materials Corp Price Chart (MP) for Tuesday, May, 12, 2026
Notably, the MP continues to live in surplus, ending the quarter with a balance of $ 1.7 billion when including short-term investments. This gives the company a strong ability to continue pursuing its long-term goals.
From a supply and demand perspective, the company is always in a profitable position. The company notes that the REO will be a “mandatory obstacle” to the production of rare earth magnets in China for at least the next five years. Lynas Rare Earths OTCMKTS: LYSCFanother important player in the exotic world space, he has devoted much of his skill to Japan. This puts the Member of Parliament in a strong position to support other markets, to support his vision.
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