Neo Performance Materials reported record quarterly Adjusted EBITDA of $57.0 million for the second quarter of 2026, a 200% increase over $19.0 million in the same period of 2025.

Consolidated revenue for the three months ended June 30, 2026, rose to $205.7 million from $114.7 million. Operating income reached $41.8 million, up from $8.2 million, while Adjusted EBITDA margin expanded to 27.7%. This performance was driven by strong volume demand across all business segments, disciplined operational execution, and a sustained favourable pricing environment.

Neo's Rare Metals segment generated a record Adjusted EBITDA of $44.4 million, up over 300% from $10.8 million, supported by record hafnium, gallium, and tantalum pricing. Magnequench contributed Adjusted EBITDA of $10.5 million, up 39% year-over-year, bolstered by a 35% increase in bonded magnet shipments. Chemicals & Oxides generated Adjusted EBITDA of $8.5 million, a 56.4% increase.

Neo raised its full-year 2026 Adjusted EBITDA guidance in July to $140 million to $150 million, up from $100 million to $110 million. The company expects results at the high end of this range, approaching double its full-year 2025 Adjusted EBITDA of $76 million. The updated guidance reflects higher contracted volumes of critical materials, including hafnium, for late 2026 and into 2027.

“Neo delivered outstanding second-quarter results, with Adjusted EBITDA of $57 million, up over 200% year-over-year. This represents our second straight record quarter and reflects continued strength in volumes across all of our segments, disciplined operational execution and a sustained favourable pricing environment,”

“On the back of this momentum and a healthy demand outlook, in early July we raised our full-year Adjusted EBITDA guidance to $140 million to $150 million, and we expect results at the high end of this range — this would represent close to double our full year 2025 Adjusted EBITDA of $76 million.”

— Rahim Suleman, President and Chief Executive Officer

To accelerate growth initiatives, Neo completed a bought deal treasury offering in May 2026 for gross proceeds of C$115.1 million ($83.3 million). Proceeds are directed toward capacity expansion in magnetics, including equipment for the proposed Phase 1B expansion of its European permanent magnet facility, planned to increase capacity from 2,000 metric tonnes to 5,000 metric tonnes annually. The facility continues advancing toward full commercial production, with two to three customer programs expected to enter commercial production in 2026.

Additionally, in April 2026, Neo commissioned a small-scale heavy rare earth element solvent extraction production line at its Silmet facility in Estonia, validating the technical performance of the separation process.

The company declared a quarterly dividend of CAD$0.10 per common share, payable on September 28, 2026, to shareholders of record on September 18, 2026.

Read the full announcement: Neo Performance Materials Reports Second Quarter 2026 Results