Neo Performance Materials Reports Fourth Quarter 2025 Results
_____________________________________________
(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 Fourth Quarter 2025 News Release
Neo Performance Materials Reports Fourth Quarter 2025 Results
Neo Exceeds 2025 Guidance and Advances Strategic Growth Initiatives
TORONTO, Canada, March 19, 2026 – Neo Performance Materials Inc. (“ Neo” or the “ Company”) ( TSX:NEO)
(OTCQX: NOPMF) today announced its financial results for the fourth quarter and full year 2025. Neo’s financial
statements and management's discussion and analysis (“ MD&A”) for the year ended December 31, 2025, 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.
“2025 was a year of meaningful execution and strategic progress for Neo. We delivered full-year Adjusted
EBITDA of $75.6 million, exceeding our previously issued guidance, while advancing key initiatives that
strengthen our long-term growth platform,” said Rahim Suleman, President and Chief Executive Officer of Neo.
“Across our businesses we saw strong demand from structural growth drivers including electrification,
automation, AI infrastructure, and aerospace. During the year we also achieved several important strategic
milestones, most notably the continued execution of our European platform, including the grand opening of our
European Permanent Magnet facility, more program awards, ongoing progress toward commercializing magnet
production and advancing our heavy rare earth separation capability in Europe. In addition, we delivered
double‑digit growth in our Emission Catalyst platform and completed the divestiture of our legacy China
separation assets, further simplifying the portfolio and sharpening our focus on higher ‑value, strategically
differentiated businesses.”
“As global supply chains increasingly prioritize security and localization for critical materials, Neo’s integrated
platform positions us well to serve our customers across magnets, specialty materials, and rare metals. With
strong operational momentum and a simplified portfolio focused on higher -value businesses, we are entering
2026 well positioned to continue delivering disciplined growth and long-term value for shareholders.”
Strategic and Operational Highlights
• Full year Adjusted EBITDA (1) of $75.6 million increased 17% over prior year and exceeded 2025 guidance
reflecting strong execution and meaningful earnings growth in Magnequench and Chemicals & Oxides, with
performance partially offset by expected moderation in Rare Metals following record prior year levels.
• Magnequench (“MQ”) generated Adjusted EBITDA of $6.0 million for the quarter and $28.4 million for the
year, supported by strong volume growth and continued operational discipline.
• Chemicals & Oxides (“C&O”) delivered significant earnings improvement, with Adjusted EBITDA of
$7.1 million for the quarter and $23.4 million for the year reflecting portfolio optimization and operational
efficiencies.
• Rare Metals (“RM”) delivered solid results with $12.3 million in quarterly Adjusted EBITDA and
$43.2 million for the year, despite normalization of hafnium pricing following record levels in 2024.
• Neo’s European Permanent Magnet facility reaches key milestones. Following its grand opening in
September 2025, Neo’s European Permanent Magnet facility advanced through qualification and early
operational milestones, including production of its one ‑millionth magnet and support of multiple customer
qualification programs ahead of the expected commercial ramp ‑up in 2026. During the year, Neo entered
into a multi -year memorandum of understanding with Bosch, reserving annual production capacity from
the European facility and reinforcing customer demand visibility. The facility also received high ‑profile
recognition when a Made ‑in‑Europe Neo permanent magnet was showcased at the 2025 G7 Summit,
underscoring the strategic importance of localized and secure supply chains for critical materials.
_____________________________________________
(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 Fourth Quarter 2025 News Release
• Neo continued advancing its heavy rare earth separation demonstration line at its Silmet facility in Estonia,
which is expected to produce dysprosium and terbium beginning in 2026 to support magnet manufacturing
and other critical applications.
• Neo reached a settlement during the year related to legacy intellectual property litigation in its Emission
Catalyst business, resolving a long ‑standing matter and reducing ongoing legal cost exposure and
uncertainty.
• Neo successfully completed the sale of its Chinese rare earth separation assets in March 2025, simplifying
the portfolio, reducing exposure to price volatility, and reallocating capital toward higher‑value downstream
growth initiatives.
Outlook
Neo enters 2026 with strong operational momentum and continued progress across its strategic growth
initiatives.
The Company expects continued demand across key end markets supported by structural trends including
electrification, automation, artificial intelligence infrastructure and aerospace applications. Governments and
customers are increasingly focused on developing secure and localized supply chains for critical materials.
Neo’s European Permanent Magnet facility continues to advance through qualification milestones, with
commercial production expected to ramp during 2026. The Company expects to progress multiple customer
magnet programs toward start of production, scale volumes as the year advances, and announce additional
magnet awards in Europe. Neo is also advancing planning activities for a potential Phase 1b expansion, which
would increase annual capacity from approximately 2,000 metric tonnes to 5,000 metric tonnes. In parallel, the
Company is advancing its heavy rare earth separation capability at Silmet to further strengthen its integrated
critical materials platform.
Based on current market conditions and operational performance, Neo has established 2026 Adjusted EBITDA
guidance of $75 million to $80 million.
_____________________________________________
(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 Fourth Quarter 2025 News Release
Consolidated Financial Highlights
• Revenue for Q 4 2025 was $120.3 million, compared to $134.9 million for Q 4 2024. For the year ended
December 31, 2025, revenue was $478.8 million compared to $475.8 million in 2024.
• Operating income for Q4 2025 was $5.6 million, compared to $12.4 million for Q4 2024. For the year ended
December 31, 2025, operating income was $31.8 million, compared to $35.3 million in 2024.
• Adjusted EBITDA for Q4 2025 was $20.4 million compared to $20.7 million for Q4 2024. For the year ended
December 31, 2025, Adjusted EBITDA was $75.6 million compared to $64.4 million in 2024. This resulted in
Adjusted EBITDA margin of 16.9% for the quarter and 15.8% for the full year, representing an improvement
of 160 basis points for the quarter and 230 basis points over 2024.
• Adjusted Net Income(1) for Q4 2025 was $0.6 million, or $0.01 earnings per share, compared to Adjusted Net
Loss of $4.9 million or $0.12 loss per share for Q 4 2024. For the year ended December 31, 2025 , Adjusted
Net Income was $20.5 million, or $0.49 earnings per share, compared to Adjusted Net Income of
$1.9 million, or $0.05 earnings per share in 2024.
• Operating Cash Flow for the year ended December 31, 2025 , was an outflow of $54.0 million in cash from
operating activities, driven by higher strategic inventory held due to geopolitical risks, higher receivables
due to timing of sales, as well as the settlement of a European patent claim for $12.5 million in March of
2025. A s of December 31, 2025 , Neo had $38.4 million in cash and $101.8 million in gross debt on its
balance sheet.
• Capital investment for the year ended December 31, 2025 was $23.3 million, with funds used primarily to
advance the European Permanent Magnet facility and heavy rare earth demonstration pilot line in Europe.
• Shareholder return of capital for the year ended December 31, 2025 consisted of $12.1 million in dividends
to shareholders and $4.0 million of common shares repurchased for cancellation under the normal course
issuer bid (“NCIB”).
• A quarterly dividend of CAD$0.10 per common share was declared on March 12, 2026, for shareholders of
record on March 19, 2026, with a payment date of March 26, 2026.
Segment Highlights
Magnequench Delivers Strong Volume Growth and Strategic Progress:
• Financial Performance: Magnequench generated Adjusted EBITDA of $6.0 million in the fourth quarter and
$28.4 million for the year, representing a decrease of $0.8 million for the quarter and an increase of
$2.8 million or 11% for the full year compared to the same periods in 2024. Full year performance reflects
strong volume growth and continued operational discipline during 2025.
• Record Bonded Magnet Volumes : Bonded magnet shipments reached record quarterly levels, increasing
34.9% year-over-year, supported by accelerating demand in applications including electrification, industrial
automation, and advanced computing infrastructure.
• Strong Powder Sales : Bonded powder volumes increased 17.3% year-over-year, reflecting continued
market share gains, strong underlying demand from global customers, and select customers building
additional safety stock amid heightened geopolitical and supply chain risk.
• Strategic Platform Expansion: During the year, Neo continued advancing its European Permanent Magnet
facility, which is progressing through qualification and early operational milestones ahead of expected
commercial production ramp-up in 2026.
Neo Performance Materials Inc. 4 Fourth Quarter 2025 News Release
Chemicals & Oxides Delivers Significant Earnings Growth and Portfolio Transformation:
• Strong Profitability Growth : Full year Adjusted EBITDA increased approximately 376% year-over-year
reaching $23.4 million, with $7.1 million generated in the fourth quarter, reflecting improved pricing, strong
operational execution, and the benefits of portfolio optimization.
• Portfolio Simplification: Following the divestiture of legacy Chinese separation assets earlier in the year,
the Chemicals & Oxides segment is increasingly focused on higher -value specialty materials businesses
including emission catalysts and wastewater treatment solutions.
• Strong End-Market Demand: Emission catalyst volumes exceeded the Company’s previously communicated
full‑year growth target of 10%, reflecting strong global automotive demand.
• Wastewater Treatment Growth: Wastewater treatment delivered strong growth, with quarterly volumes
increasing 13.9% year-over-year, and 32.2% for the full year, driven by updated customer value proposition,
and supported by rising environmental compliance standards and global sustainability initiatives.
• Strategic European Separation Capabilities : Neo continues to operate one of the few non -captive rare
earth separation facilities in Europe. The heavy rare earth separation demonstration line at Silmet remains
on track and on budget as the Company advances commissioning activities and prepares for initial
production milestones in 2026.
Rare Metals Maintains Solid Performance Amid Hafnium Price Normalization:
• Resilient Financial Results: Adjusted EBITDA totaled $12.3 million for the quarter and $43.2 million year-to-
date, down 29.3% and 16.5%, respectively, from the prior -year periods, reflecting the expected
normalization of hafnium prices following record highs in 2024, with renewed upside emerging in 2026.
• Healthy End -Market Demand: Rare Metals continues to benefit from robust demand in aerospace,
industrial gas turbine, and semiconductor markets, supported by ongoing global investment in advanced
manufacturing and clean energy technologies.
• Hafnium Price Moderation: Hafnium quarterly gross margins declined year -over-year as prices stabilized,
moderating profitability compared to last year’s exceptional levels. Subsequently, prices increased
significantly in the fourth quarter of 2025 reaching new record levels early in 2026 amid tight supply
conditions.
• Gallium Business Strength: Neo’s gallium business continued to perform well, benefiting 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.
• 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.
Conference Call
Neo’s fourth quarter 2025 financial results webcast and conference call details are provided below.
Webcast and Conference Call Details:
Date: Thursday, March 19, 2026
Time: 10:00 AM ET | 7:00 AM PT
Listen Only Webcast: Webcast Link
Neo Performance Materials Inc. 5 Fourth Quarter 2025 News Release
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 65901# until April 14, 2026.
Contacts
Jim Fitzpatrick Vasileios Tsianos
Investor Relations & Communications Media Requests
(416) 367-8588, ext. 7336 (416) 367-8588 ext. 7335
[email protected] [email protected]
Non-IFRS Financial Measures
This new 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 ”, “ Free Cash Flow ” and “ Gross Margin ”. 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 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 year ended December 31, 2025 , 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 December 31, 2025, Neo has 1,524 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
Neo Performance Materials Inc. 6 Fourth Quarter 2025 News Release
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 international 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 the price of rare earth elements;
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
materials; anticipated commercial launch of Neo’s new Permanent Magnet facility in Europe and related
commercial production estimates, forecasted budget, commissioning and costs associated with the facility;
Neo’s requalified product portfolio, including the NAMCO product portfolio; 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; expectations concerning any remediation efforts to 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 in C&O, 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.
Neo Performance Materials Inc. 7 Fourth Quarter 2025 News Release
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.
Neo Performance Materials Inc. 8 Fourth Quarter 2025 News Release
HIGHLIGHTS OF FOURTH QUARTER 2025 CONSOLIDATED PERFORMANCE
($000s, except per share information) Three Months Ended
December 31, 2025
Year ended
December 31,
2025 2024 2025 2024
Revenue
Magnequench $ 54,956 $ 43,500 $ 204,555 $ 176,649
C&O 29,252 43,606 135,030 146,516
Rare Metals 39,686 48,441 147,665 156,206
Corporate / Eliminations (3,624) (644) (8,457) (3,543)
Consolidated Revenue $ 120,270 $ 134,903 $ 478,793 $ 475,828
Operating Income (Loss)
Magnequench $ (4,530) $ 2,018 $ 1,486 $ 10,123
C&O 5,330 27 17,480 (2,854)
Rare Metals 11,622 16,910 40,727 50,134
Corporate / Eliminations (6,831) (6,600) (27,939) (22,102)
Consolidated Operating Income $ 5,591 $ 12,355 $ 31,754 $ 35,301
Adjusted EBITDA
Magnequench $ 6,017 $ 6,824 $ 28,377 $ 25,528
C&O 7,093 1,350 23,444 4,924
Rare Metals 12,288 17,383 43,200 51,762
Corporate / Eliminations (5,031) (4,866) (19,375) (17,816)
Consolidated Adjusted EBITDA $ 20,367 $ 20,691 $ 75,646 $ 64,398
Net Loss $ (15,628) $ (12,037) $ (9,969) $ (13,016)
Loss per share attributable to common shareholders
Basic and diluted $ (0.38) $ (0.29) $ (0.24) $ (0.31)
Cash spent on property, plant and equipment and
intangible assets $ 3,518 $ 12,019 $ 31,664 $ 64,202
Cash taxes (refunded) paid $ (863) $ 3,579 $ 10,328 $ 22,411
Dividends paid to shareholders $ 2,959 $ 3,062 $ 12,053 $ 12,330
Dividend paid to Buss & Buss minority shareholder $ — $ 7,967 $ 7,343 $ 15,183
Repurchase of common shares under the NCIB $ 106 $ — $ 3,995 $ 2,250
As at:
December 31,
2025
December 31,
2024
Cash and cash equivalents $ 38,360 $ 85,489
Short-term debt, bank advances & other $ 12,949 $ 2,740
Total debt $ 101,804 $ 71,536