(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 1 Second Quarter 2026 News Release
Neo Performance Materials Reports Second Quarter 2026 Results
Neo Delivers Record Quarterly Adjusted EBITDA of $57 Million, Exceeding Expectations on Strong Demand
and Sustained Favourable Pricing Environment
TORONTO, Canada, August 11, 2026 – Neo Performance Materials Inc. (“Neo” or the “Company”) [TSX:NEO;
OTCQX: NOPMF] today announced its financial results for the second quarter of 2026. Neo’s financial statements
and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2026, are
available at neomaterials.com and on SEDAR+ at sedarplus.ca. All financial amounts in this news release and the
Company’s financial disclosures are in United States dollars, unless otherwise stated.
Consolidated Financial Highlights
Three Months Ended
June 30,
Six Months Ended
June 30,
2026 2025 2026 2025
Consolidated Revenue $ 205,748 $ 114,700 $ 360,710 $ 236,310
Consolidated Operating Income $ 41,769 $ 8,210 $ 68,326 $ 17,799
Consolidated Adjusted EBITDA (1) $ 57,033 $ 18,968 $ 93,264 $ 36,102
Adjusted Net Income (1) $ 23,694 $ 8,655 $ 38,558 $ 15,166
Adjusted earnings per share attributable to common
shareholders:
Basic $ 0.55 $ 0.21 $ 0.91 $ 0.36
Diluted $ 0.51 $ 0.20 $ 0.85 $ 0.35
Net Income $ 17,463 $ 5,688 $ 15,823 $ 4,301
Income per share attributable to common shareholders
Basic $ 0.40 $ 0.14 $ 0.37 $ 0.10
Diluted $ 0.38 $ 0.13 $ 0.35 $ 0.10
“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,” said Rahim
Suleman, President and Chief Executive Officer of Neo.
“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. The updated guidance also reflects
higher contracted volumes of critical materials, including hafnium, for the second half of 2026 and into 2027. This
gives us improved visibility, and it’s supported by a pricing environment that remains strong. As we continue to
advance our strategic priorities, we are well-positioned to build on this progress through the remainder of 2026
and beyond.”
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 2 Second Quarter 2026 News Release
Strategic and Operational Highlights
• Neo Delivers Record Adjusted EBITDA: Neo delivered $57.0 million in Adjusted EBITDA(1) for the three
months ended June 30, 2026, an over 200% increase from the $19.0 million in the second quarter of last year .
This was driven by strong demand across the business, disciplined execution and a sustained favourable
pricing environment. Magnequench generated Adjusted EBITDA of $10.5 million, up 39% year-over-year.
Chemicals & Oxides (“C&O”) generated Adjusted EBITDA of $8.5 million, up 56% from the same quarter last
year. Rare Metals generated another record quarter with Adjusted EBITDA of $44.4 million, an increase of
over 300% from the second quarter of last year .
• Neo Raises Full Year 2026 Adjusted EBITDA Guidance on Continued Momentum: In July 2026, Neo
announced that the Company increased its full-year 2026 Adjusted EBITDA guidance, reflecting strong
operating performance through the first half of the year, as well as sustained higher-than-expected pricing
across its critical materials portfolio. Neo raised its full-year 2026 Adjusted EBITDA of $140 million to $150
million, up from its prior guidance range of $100 million to $110 million, and the Company now expects
results at the high end of this range, which represents nearly double the full-year 2025 Adjusted EBITDA of
$76 million.
• European Permanent Magnet Facility Advances Toward Commercial Production: The state-of-the-art
permanent magnet facility continues to advance through its planned ramp up to full commercial production
later this year . The facility is producing and shipping qualification sample magnets in support of multiple
awarded automotive platforms and remains on track for two to three customer programs to enter
commercial production in 2026. Neo has begun advanced equipment purchases for its Phase 1B expansion,
which is planned to increase the facility's nameplate capacity from approximately 2,000 metric tonnes (“mt”)
to approximately 5,000 mt annually. This is aligned with Neo's broader strategy to establish a scalable, fully
integrated permanent magnet manufacturing platform capable of supporting long-term automotive and
industrial demand.
• Neo Completes C$115 Million Equity Offering to Accelerate Growth: In May 2026, Neo completed a bought
deal treasury offering of common shares for total gross proceeds of C$115.1 million ($83.3 million), including
the full exercise of the underwriters' over-allotment option. The offering positions the Company to accelerate
its growth opportunities with a significant portion of the proceeds directed towards capacity expansion in
magnetics. Specifically, this includes advanced purchasing of long-lead sintered magnet equipment for the
proposed Phase 1B expansion of its European permanent magnet plant, as well as investment in expanding
the bonded magnetics business.
• Neo Successfully Commissions Heavy Rare Earth Separation Production Line in Europe: In April 2026, Neo
successfully commissioned a small-scale heavy rare earth element solvent extraction production line at its
Silmet facility. This milestone validates the technical and operational performance of the heavy rare earth
separation process under continuous operation and represents an important step toward establishing
localized heavy rare earth processing capability in Europe. The commissioning supports Neo’s strategy to
enhance security of supply for critical rare earth inputs used in high-performance permanent magnets and
provides a foundation for potential future commercial-scale expansion.
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 3 Second Quarter 2026 News Release
Consolidated Financial Highlights
• Revenue for Q2 2026 was $205.7 million, compared to $114.7 million for Q2 2025.
• Operating income for Q2 2026 was $41.8 million, compared to $8.2 million for Q2 2025.
• Adjusted EBITDA for Q2 2026 was $57.0 million compared to $19.0 million for Q2 2025. This resulted in
Adjusted EBITDA margin of 27.7% for the quarter, representing an improvement of 1,240 basis points over
2025.
• Adjusted Net Income(1) for Q2 2026 was $23.7 million, or $0.55 earnings per share, compared to Adjusted Net
Income of $8.7 million or $0.21 earnings per share for Q2 2025.
• Operating Cash Flow for the six months ended June 30, 2026, was an outflow of $49.6 million in cash from
operating activities, driven by higher strategic inventory held, higher costs in inventory due to material
pricing, higher receivables due to timing of sales, as well as the settlement of the European patent litigation
in January 2026. As of June 30, 2026, Neo had $96.2 million in cash and $157.2 million in gross debt on its
balance sheet.
• Capital investment for the six months ended June 30, 2026 was $5.2 million (net of government grant
proceeds received), with funds used primarily to advance the European Permanent Magnet facility and heavy
rare earth production line in Europe.
• Shareholder return of capital. For the six months ended June 30, 2026, the Company returned $7.1 million to
shareholders in the form of dividends.
• A quarterly dividend of CAD$0.10 per common share was declared on August 6, 2026, for shareholders of
record on September 18, 2026, with a payment date of September 28, 2026.
Segment Highlights
Magnequench Delivers Volume Growth and Strongest Quarterly Adjusted EBITDA since Q2 2022:
• Financial Performance: Magnequench generated Adjusted EBITDA of $10.5 million in the second quarter,
representing an increase of $2.9 million or 39% year-over-year. Year-to-date Adjusted EBITDA totalled $19.7
million, an increase of 39% compared to the prior year period.
• Record Quarter for Bonded Magnet Volumes: Bonded magnet shipments increased 35% year-over-year,
reflecting continued strong execution, supported by sustained demand in applications including
electrification, industrial automation, and advanced computing infrastructure.
• Bonded Powder Business Remains Strong: Bonded powder volumes fell 13.8% year-over-year but remain
modestly higher year-to-date. The quarter’s variance primarily reflected customer order timing rather than
any change in underlying demand, as customer volumes, margins and overall business fundamentals remain
strong. The business continues to see encouraging demand signals from customers seeking security of supply
and geographic diversification, reinforcing the strategic value of Neo’s global manufacturing footprint.
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 4 Second Quarter 2026 News Release
• Strategic Platform Expansion: During the period, Neo continued advancing its European Permanent Magnet
facility, which is now producing and shipping qualification magnets as the operation moves closer to full
commercial production later this year. Neo remains on track to meet its target of launching two to three
commercial programs in the second half of 2026.
Chemicals & Oxides Delivers Significant Earnings Growth:
• Financial Performance: C&O generated Adjusted EBITDA of $8.5 million in the second quarter representing
an increase of $3.1 million or 56.4%, reflecting improved pricing, strong operational execution, and the
benefits of portfolio optimization. Year-to-date Adjusted EBITDA is $16.2 million, up 32% from the same
period last year .
• Emission Catalyst Strength: Second quarter volumes were up 7.0% year-over-year, reflecting continued solid
commercial execution, supported by improved cost performance at the new emission catalyst manufacturing
facility.
• Improved Pricing and Reduced Volatility in Rare Earth Separation: The European separation business
benefited from improved pricing, while the divestiture of Chinese separation assets in 2025 has significantly
reduced exposure to rare earth price volatility and strengthened earnings predictability.
• Water Treatment Advances New Technology: The Water Treatment business advanced the development of
a new process enhancement technology, with initial units deployed to customers and commercial adoption
expected in the coming quarters.
Rare Metals Delivers Adjusted EBITDA Improvement of Over 300 Percent:
• Financial Performance: Rare Metals generated Adjusted EBITDA of $44.4 million in the second quarter of
2026 representing an increase of $33.7 million or 313% over the same quarter last year, reflecting record
hafnium, gallium and tantalum pricing, as well as resilient volumes amid tight global supply.
• Healthy End-Market Demand: Rare Metals continues to benefit from the increased global focus on critical
materials, many of which are supported by programs and targets aimed at reducing concentration risk for
items considered critical materials on most government critical materials lists.
• Gallium Business Strength: Neo’s gallium business achieved the strongest gross profit in its history,
benefitting from strong pricing and increasing regulatory focus on supply security. Neo remains one of the
few gallium recyclers in North America, reinforcing the segment’s strategic importance and long-term growth
potential. Gallium is used in the manufacturing of semi-conductors and permanent magnets among other
end uses.
• Strategic Supply Initiatives: The segment continues to focus on securing scrap and input materials through
strategic sourcing partnerships and recovery initiatives, ensuring a stable, diversified supply base to support
future growth.
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 5 Second Quarter 2026 News Release
Conference Call
Neo’s second quarter 2026 financial results webcast and conference call details are provided below.
Webcast and Conference Call Details:
Date: Tuesday, August 11, 2026
Time: 10:00 AM ET | 7:00 AM PT
Listen Only Webcast: LINK
Conference call: +1 (416) 945-7677 (local) or 1 (888) 699-1199 (toll-free long distance) or by visiting Dial-in Link.
A replay of the webcast will be available by clicking on this LINK and will be archived on the Company’s website
for a limited period. A teleconference recording may be accessed by calling 1(289) 819-1450 (local) or 1 (888)
660-6345 (toll-free long distance) and entering passcode 14554# until September 11, 2026.
Information Contacts
Investors: Media:
Jim Fitzpatrick Vasileios Tsianos
SVP , Investor Relations & Communications SVP , Corporate Development
(416) 367-8588, ext. 7318 (416) 367-8588 ext. 7335
[email protected] [email protected]
neomaterials.com
Non-IFRS Financial Measures
This news release refers to certain specified financial measures and ratios, including non-IFRS financial measures
and ratios such as “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Adjusted
Earnings per Share”, and “Free Cash Flow”. These specified financial measures are not recognized measures
under International Financial Reporting Standards (“IFRS”) accounting standards as issued by the International
Accounting Standards Board, do not have a standardized meaning prescribed by IFRS, and may not be comparable
to similar measures presented by other companies. Rather, these specified financial measures (“non-IFRS
financial measures”) are provided as additional information to complement IFRS financial measures by providing
further understanding of Neo’s results of operations from management's perspective. Neo’s definitions of non-
IFRS financial measures used in this news release may not be the same as the definitions for such measures used
by other companies in their reporting.
Specified financial measures such as non-IFRS financial measures and ratios have limitations as analytical tools
and should not be considered in isolation nor as a substitute for analysis of Neo’s financial information reported
under IFRS. Neo uses specified financial measures to provide investors with supplemental measures of its base-
line operating performance and to eliminate items that have less bearing on operating performance or operating
conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely
on IFRS financial measures. Neo believes that securities analysts, investors and other interested parties frequently
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 6 Second Quarter 2026 News Release
use specified financial measures such as non-IFRS financial measures and ratios in the evaluation of issuers. Neo’s
management also uses non-IFRS financial measures and ratios to facilitate operating performance comparisons
from period to period. Readers are cautioned that these measures should not be construed as an alternative to
their nearest or directly comparable financial measures determined in accordance with IFRS as an indication of
Neo’s financial performance. For further information on how Neo defines such specified financial measures,
including non-IFRS financial measures and ratios and, where applicable, their reconciliations to the nearest
comparable IFRS measures, please see the “Non-IFRS Financial Measures” section of Neo’s MD&A for the three
and six months ended June 30, 2026, which is hereby incorporated by reference into this news release, and at
neomaterials.com and on SEDAR+ at sedarplus.ca.
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability.
Neo’s advanced industrial materials, rare earth magnetic powders and magnets, specialty chemicals, metals, and
alloys are critical to the performance of many everyday products and emerging technologies across industries.
Neo’s products help to deliver the technologies of tomorrow to consumers today.
As at June 30, 2026, Neo had 1,532 employees and a global platform that includes manufacturing facilities located
in Canada, China, Estonia, Germany, Thailand, and the United Kingdom (“UK”) as well as one dedicated research
and development (“R&D”) centre in Singapore. Neo has three operating segments: Magnequench, Chemicals &
Oxides (“C&O”) and Rare Metals, as well as the Corporate segment.
Cautionary Statements Regarding Forward Looking Statements
This news release contains “forward-looking information” , within the meaning of applicable securities laws in
Canada. Forward-looking information may relate to future events or future performance of Neo. All statements
in this news release, other than statements of historical facts, with respect to Neo’s objectives and goals, as well
as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions
are forward-looking information.
Specific forward-looking information in this news release include, but are not limited to: expectations regarding
certain of Neo’s future results and information, including, among other things; revenue; expenses; growth
prospects; capital expenditures; and operations; risk factors relating to national or internat ional economies,
geopolitical risk and other risks present in the jurisdictions in which Neo, its customers, its suppliers, and/or its
logistics partners operate; statements with respect to current and future market trends that may directly or
indirectly impact sales and revenue of Neo, including but not limited to rare earth and critical materials prices;
expected use of cash balances; continuation of prudent management of working capital; source of funds for
ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for
uncollectible accounts and inventory provisions; analysis regarding sensitivity of the business to changes in
exchange rates and changes in rare earth prices; impact of recently adopted accounting pronouncements; risk
factors relating to intellectual property protection and intellectual property litigation; expectations regarding
demand for products and applications; expectations regarding the growth of superalloy and superconductor
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 7 Second Quarter 2026 News Release
materials; anticipated commercial launch of Neo’s new Permanent Magnet facility in Europe and related
commercial production estimates, commissioning and costs associated with the facility; expectations regarding
tariffs and export restrictions; securing new automotive customer agreements for permanent magnet and
emission catalyst facilities; expectations concerning the continued growth of the Magnequench project and
improvements in operations; Neo’s design of its internal controls over financial reporting and disclosure controls
and procedures; and Neo’s 2026 guidance and the assumptions relating thereto.
Often, but not always, forward-looking information can be identified by the use of words such as “plans” ,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”,
“intends” , “anticipates” or “believes”, or variations of, or the negatives of, such words and phrases, or state that
certain actions, events or results “may” , “could” , “would” , “should” , “might” or “will” be taken, occur or be
achieved. This information involves risks, uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking information.
Additionally, Neo’s 2026 guidance reflects Neo’s expectations as to financial performance in 2026 based on
assumptions which Neo believes to be reasonable as of the date of this news release including but not limited to
continued Magnequench growth, operational improvements, relative stability in rare earth pricing, continued
strong hafnium demand alongside elevated pricing and tight raw material supply conditions, reduction in
operating expenses, expectations regarding tariffs and export controls, and securing new customer agreements
for permanent magnet and emission catalyst facilities. Neo believes the expectations reflected in such forward-
looking information are reasonable, but no assurance can be given that these expectations will prove to be
correct and such forward-looking information included in this discussion and analysis should not be unduly relied
upon. For more information on Neo, investors should review filings available under Neo’s profile at sedarplus.ca.
Information contained in forward-looking statements in this news release is provided as of the date hereof and
Neo disclaims any obligation to update any forward-looking information, whether as a result of new information
or future events or results, except to the extent required by applicable securities laws.
_____________________________________________
(1) Neo reports non-IFRS financial measures such as “Adjusted Net Income” , “Adjusted Earnings per Share” , “Adjusted EBITDA” , “Adjusted
EBITDA Margin” and “EBITDA”. Information on non-IFRS financial measures is included in the “Non-IFRS Financial Measures” section of
this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca.
Neo Performance Materials Inc. 8 Second Quarter 2026 News Release
HIGHLIGHTS OF SECOND QUARTER 2026 CONSOLIDATED PERFORMANCE
($000s, except per share information; unaudited) Three Months Ended
June 30,
Six Months Ended
June 30,
2026 2025 2026 2025
Revenue
Magnequench $ 64,343 $ 50,468 $ 129,075 $ 94,740
C&O 37,424 29,443 70,606 76,944
Rare Metals 106,349 35,948 163,443 68,653
Corporate / Eliminations (2,368) (1,159) (2,414) (4,027)
Consolidated Revenue $ 205,748 $ 114,700 $ 360,710 $ 236,310
Operating Income
Magnequench $ 2,356 $ 1,611 $ 6,037 $ 3,504
C&O 6,641 3,959 12,963 9,687
Rare Metals 43,345 10,127 66,480 18,278
Corporate / Eliminations (10,573) (7,487) (17,154) (13,670)
Consolidated Operating Income $ 41,769 $ 8,210 $ 68,326 $ 17,799
Adjusted EBITDA
Magnequench $ 10,467 $ 7,558 $ 19,708 $ 14,217
C&O 8,506 5,439 16,168 12,282
Rare Metals 44,405 10,756 68,262 19,397
Corporate / Eliminations (6,345) (4,785) (10,874) (9,794)
Consolidated Adjusted EBITDA $ 57,033 $ 18,968 $ 93,264 $ 36,102
Net Income $ 17,463 $ 5,688 $ 15,823 $ 4,301
Income per share attributable to common shareholders
Basic $ 0.40 $ 0.14 $ 0.37 $ 0.10
Diluted $ 0.38 $ 0.13 $ 0.35 $ 0.10
Cash spent on property, plant and equipment and
intangible assets
$ 9,126 $ 8,889 $ 16,559 $ 20,317
Cash taxes paid $ 4,199 $ 2,960 $ 18,775 $ 8,166
Dividends paid to shareholders $ 3,813 $ 3,159 $ 7,074 $ 6,080
Dividend paid to Buss & Buss minority shareholder $ — $ — $ — $ 7,343
As at: June 30, 2026 December
31, 2025
Cash and cash equivalents $ 96,224 $ 38,360
Short-term debt, bank advances & other $ 43,146 $ 12,949
Total debt $ 157,234 $ 101,804