Neo Performance Materials Reports Third Quarter 2025 Results
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(1) Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA",
"Adjusted EBITDA Margin" and "EBITDA". Please see information on this and other non-IFRS measures in the "Non-IFRS
Financial Measures" section of this news release and in the MD&A, available at www.neomaterials.com and on SEDAR+ at
www.sedarplus.ca.
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Neo Performance Materials Inc. Third Quarter 2025 News Release
Neo Performance Materials Reports Third Quarter 2025 Results
Neo Delivers Strong Third-Quarter Results and Raises Full-Year Adjusted EBITDA Guidance
TORONTO, Canada, November 14, 2025 – Neo Performance Materials Inc. (“Neo” or the “Company”) (TSX:NEO)
(OTCQX: NOPMF) today announced its financial results for the third quarter of 2025 . The financial statements
and management's discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2025,
are available at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca. All financial amounts in this news
release and the Company's financial disclosures are in United States dollars, unless otherwise stated.
“Our third-quarter results highlight Neo’s ability to deliver strong operational performance while advancing our
strategy to grow our industry-leading permanent magnet business ,” said Rahim Suleman, Neo’s President and
Chief Executive Officer. “During the quarter, Neo delivered $19 million in Adjusted EBITDA, bringing our year-to-
date total to $55 million, a 27% increase compared to the same period last year. Reflecting this solid performance,
we have raised our full-year 2025 Adjusted EBITDA guidance to a range of $67 to $71 million.”
“So far this year, we have achieved several major milestones, advancing the new heavy rare earth separation
line in Europe, securing traction -motor magnet contracts with European Tier 1 customers, extending our
partnership with Bosch, and, in September, celebrating the grand opening of our new industrial scale sintered
magnet plant in Europe. With production beginning in mid-2026, the facility will have productive capacity of
2,000 tonnes annually in its first phase, with plans to expand to 5,000 tonnes. As we continue executing our long-
term strategy, Neo is poised to become the critical enabler of diversified and localized permanent-magnet supply
chains for the West.”
Strategic and Operational Highlights
• Strong Adjusted EBITDA Performance: Neo delivered $19.2 million and $55.3 million in Adjusted EBITDA (1)
for the three and nine months ended September 30, 2025 , marking a 1.9% decrease and 26.5% increase,
respectively, from the same periods last year.
o Magnequench (“MQ”) achieved Adjusted EBITDA of $8.1 million and $22.4 million for the three and
nine months ended September 30, 2025 , increasing by $1.7 million and $3.7 million, respectively,
over the same periods last year.
o Chemicals & Oxides (“ C&O”) experienced significant improvements in Adjusted EBITDA over the
prior year, reporting $4.1 million and $16.4 million for the three and nine months ended September
30, 2025, increasing by $2.8 million and $12.8 million, respectively, over the same periods last year.
o Rare Metals (“ RM”) continued to deliver solid results with Adjusted EBITDA of $11.5 million and
$30.9 million for the three and nine months ended September 30, 2025 , decreasing by $4.8 million
and $3.5 million, respectively, over the same periods last year.
• Neo Raises Full Year 2025 Adjusted EBITDA Guidance: Neo has raised its 2025 Adjusted EBITDA outlook to
$67.0 to $71.0 million, up from $64.0 to $68.0 million as announced in August, driven by strong third quarter
performance, as the Company continues to leverage its global supply chain to respond to evolving market
dynamics.
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(1) Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA",
"Adjusted EBITDA Margin" and "EBITDA". Please see information on this and other non-IFRS measures in the "Non-IFRS
Financial Measures" section of this news release and in the MD&A, available at www.neomaterials.com and on SEDAR+ at
www.sedarplus.ca.
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Neo Performance Materials Inc. Third Quarter 2025 News Release
• Neo Opens State-of-the-Art Permanent Magnet Facility in Europe: Neo hosted the grand opening ceremony
of its new European Permanent Magnet facility in September 2025, attended by more than 270 guests ,
including senior leadership from the global automotive, renewable energy, and technology sectors, alongside
government officials, media, and investors from across Europe, North America, Australia, and Japan. The
event showcased the facility’s advanced cap abilities and its strategic importance in the global shift toward
electrification, sustainability and localized supply chains for critical materials.
• Neo Extends Partnership with Robert Bosch GmbH (“Bosch”): On September 19, 2025, Neo announced the
extension of its strategic partnership with Bosch through a multi -year Memorandum of Understanding.
Under the agreement, Neo will reserve dedicated annual magnet production capacity for Bosch at its
European Permane nt Magnet facility, ensuring a reliable and localized supply of advanced rare -earth
magnets critical for Bosch’s e-mobility and energy-efficient motor applications. The partnership underscores
Neo’s growing role in strengthening Europe’s magnet supply chain, supporting the region’s transition toward
clean technologies, and promoting sustainable industrial innovation through closer collaboration between
material producers and global OEMs.
• Heavy Rare Earth Pilot Line at Silmet Remains on Track for Production Launch: Neo’s heavy rare earth pilot
line is nearing completion, with commissioning expected in early 2026. The pilot line will produce dysprosium
and terbium, supplying the newly constructed European Permanent Magnet facility during its ramp -up
phase, in addition to serving other users and end markets. This initiative serves as a precursor to a potential
full-scale commercial production line, positioning Neo to enhance its production capabilities in Europe
significantly.
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Neo Performance Materials Inc. Third Quarter 2025 News Release
Consolidated Financial Highlights
• Revenue for Q3 2025 was $122.2 million, compared to Q3 2024 revenue of $111.3 million. On a year-to-date
basis, 2025 revenue was $358.5 million compared to $340.9 million in 2024.
• Operating income for Q3 2025 was $8.4 million, compared to Q3 2024 operating income of $11.2 million.
Year-to-date 2025 operating income was $26.2 million, compared to $22.9 million in 2024.
• Adjusted Net Income (1) for Q3 2025 was $8.5 million, or $0.20 earnings per share, compared to Q3 2024
Adjusted Net Income of $1.1 million or $0.03 earnings per share. For the nine months ended September 30,
2025, Adjusted Net Income was $19.9 million, or $0.48 earnings per share, compared to Adjusted Net Income
of $6.8 million, or $0.16 earnings per share for the first nine months of 2024.
• Adjusted EBITDA reached $19.2 million for Q3 2025 and $55.3 million for nine months ended September 30,
2025, compared to $19.6 million and $43.7 million, respectively, in the prior year period s. This resulted in
Adjusted EBITDA margin of 15.7% for the quarter and 15.4% for the first nine months, representing a
decrease of 190 basis points for the three -month period and an improvement of 280 basis points over the
prior year-to-date period, respectively.
• For the nine months ended September 30, 2025, Neo used $25.4 million in cash from operating activities,
driven by the settlement of a European patent claim for $12.5 million , higher receivables due to timing of
sales, and higher strategic inventory held due to geopolitical risks. Neo had $61.5 million in cash and
$89.9 million in gross debt on its balance sheet as of September 30, 2025.
• For the nine months ended September 30, 2025, Neo invested $18.4 million in capital expenditures, primarily
for the final phase of the new permanent magnet facility and the investment in the heavy rare earth
separation pilot line in Europe.
• For the nine months ended September 30, 2025, Neo distributed $9.1 million in dividends to shareholders
and repurchased $3.9 million of common shares for cancellation under the NCIB.
• A quarterly dividend of CAD$0.10 per common share was declared on November 11, 2025, for shareholders
of record on December 19, 2025, with a payment date of December 29, 2025.
Segment Highlights
Magnequench Delivers Solid Operating Performance and Strategic Progress:
• Strong Profitability and Volume Growth: Third-quarter volumes increased 21% year-over-year, driving a 27%
improvement in Adjusted EBITDA, Magnequench’s strongest quarterly performance in over three years .
Growth reflected solid underlying demand and customer restocking in response to evolving supply-chain and
geopolitical conditions.
• Sustained Financial Momentum: Third-quarter Adjusted EBITDA totaled $8.1 million and $22.4 million year-
to-date, increases of 27% and 20%, respectively, over the same periods last year, supported by disciplined
cost management, operational efficiency, and higher volumes.
• European Expansion Milestone: Magnequench advanced its European magnetics strategy with the grand
opening of Neo’s new industrial scale sintered magnet facility in September.
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Neo Performance Materials Inc. Third Quarter 2025 News Release
• Extended Partnership with Bosch: Neo entered into a new multi-year agreement with Bosch, securing
dedicated magnet production capacity at Neo’s European magnet facility to support Bosch’s e-mobility and
energy-efficient motor programs, reinforcing a stable and localized supply chain.
• Record Bonded Magnet Volumes: Bonded magnet shipments reached record quarterly levels, up 38% year-
over-year, supported by accelerating demand for data centers serving AI.
• Strong Powder Sales: Bonded powder volumes also increased 18% year -over-year, reflecting continued
market share gains and healthy downstream demand.
Chemicals & Oxides Delivers Strong Growth and Strategic Realignment:
• Solid Financial Performance: Adjusted EBITDA increased 213% year-over-year in the third quarter and 358%
year-to-date, reaching $4.1 million and $16.4 million, respectively. Results reflect higher rare earth prices ,
the successful transformation of the business and continued operational discipline.
• Portfolio Optimization Drives Growth: Following the sale of the Chinese separation facilities in Q1 and the
relocation of the emission catalyst operations to NAMCO, C&O remains focused on higher-margin businesses
with strong growth potential, including emission catalysts and wastewater treatment solutions.
• Robust Demand Across Key Markets: Emission catalyst volumes rose 20% in the quarter and 12% year -to-
date, while wastewater treatment volumes achieved another record quarter, up 42% year -over-year,
supported by rising global sustainability and environmental compliance needs.
• Strategic European Separation Capabilities: C&O continues to operate one of the few non-captive rare earth
separation facilities in Europe, equipped with a world-class laboratory, advanced analytical capabilities, and
a new heavy rare earth separation pilot line that remains on track and on budget with construction nearing
completion.
Rare Metals Maintains Good Performance Amid Market Normalization:
• Resilient Financial Results: Adjusted EBITDA totaled $11.5 million for the quarter and $30.9 million year-to-
date, down 30% and 10%, respectively, from the prior-year periods, reflecting the expected normalization of
hafnium prices following record highs in 2024.
• 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 Normalization: Hafnium gross margins declined 41% year -over-year as prices stabilized,
moderating profitability compared to last year’s exceptional levels.
• Gallium Business Strength: The gallium segment delivered solid results on continued pricing strength and
rising regulatory tailwinds. Neo remains one of the only gallium recyclers in North America, positioning the
business for sustained long-term growth.
• 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.
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Neo Performance Materials Inc. Third Quarter 2025 News Release
Conference Call
Neo’s third quarter 2025 financial results webcast and conference calls details are provided below.
Webcast / Conference Call Details:
Date: Friday, November 14, 2025
Time: 10:00 AM ET | 7:00 AM PT
Listen Only Webcast: Webcast Link
Conference call: 1-416-945-7677 (local) or 1-888-699-1199 (toll-free long distance) or by visiting Dial-in Link and
completing the online registration form. Once registered, you will receive the dial -in information and a unique
PIN to join the call.
A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on
www.neomaterials.com for a limited time.
Contacts
Maggie MacDougall Vasileios Tsianos
Capital Markets Advisor Media Requests
(416) 220-7950 (416) 367-8588 ext. 7335
[email protected] [email protected]
Non-IFRS Financial Measures
This new release refers to certain specified financial measures, including non-IFRS financial measures and ratios
such as “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Adjusted Earnings per
Share”, “Debt to Adjusted EBITDA”, “Free Cash Flow” and “gross margin”. These specified financial measures are
not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and may not be
comparable to similar measures presented by other companies. Rather, the se specified 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 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 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 ot herwise 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 o f issuers. Neo’s
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Neo Performance Materials Inc. Third Quarter 2025 News Release
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, thei r reconciliations to the nearest
comparable IFRS measures, please see the “Non-IFRS Financial Measures” section of Neo’s MD&A for the three
and nine months ended September 30, 2025, which is hereby incorporated by reference into this news release,
and at www.neomaterials.com and on SEDAR+ at www.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 – magnetic powders, rare earth magnets, magnetic assemblies, specialty
chemicals, metals, and alloys – are crit ical to the performance of many everyday products and emerging
technologies. Neo's products fast -forward technologies for the net -zero transition. The business of Neo is
organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo i s headquartered in
Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and
Beijing, China. Neo has a global platform that includes manufacturing facilities located in Canada, China, Estonia,
Germany, Thailand and the United Kingdom, as well as one dedicated research and development center in
Singapore. For more information, please visit www.neomaterials.com.
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 the price of rare earth elements; expected
use of cash balances; continuation of prudent management of working capital; source of funds f or 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 ra re 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 superconductor materials;
anticipated 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, and continued product qualification expected in 2025 and
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Neo Performance Materials Inc. Third Quarter 2025 News Release
2026; any anticipated final costs associated with NAMCO; 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 C&O;
expectations concerning any remediation efforts to Neo’s design of its internal controls over financial reporting
and disclosure controls and procedures; and Neo’s 2025 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 2025 guidance reflects Neo’s expectations as to financial performance in 2025 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, significant improvements in C&O, exiting lower -margin separation assets,
strong hafnium demand despite pricing moderation, continued reduction in SG&A expenses, expectations
regarding tariffs and export controls; securing new automotive customer agreements for permanent magnet and
emission catalyst facilities, expectations concerning the continued growth of the Magnequench project and
improvements in C&O. 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 www.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.
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Neo Performance Materials Inc. Third Quarter 2025 News Release
HIGHLIGHTS OF THIRD QUARTER 2025 CONSOLIDATED PERFORMANCE
($000s, except per share information) Three Months Ended
September 30,
Nine Months Ended
September 30
2025 2024 2025 2024
Revenue
Magnequench $ 54,859 $ 45,573 $ 149,599 $ 133,149
C&O 28,834 27,920 105,778 102,911
Rare Metals 39,326 38,578 107,979 107,765
Corporate / Eliminations (806) (1,435) (4,833) (2,900)
Consolidated Revenue $ 122,213 $ 111,281 $ 358,523 $ 340,925
Operating Income (Loss)
Magnequench $ 2,512 $ 2,465 $ 6,016 $ 8,106
C&O 2,463 (975) 12,150 (2,881)
Rare Metals 10,828 15,852 29,105 33,225
Corporate / Eliminations (7,439) (6,166) (21,108) (15,502)
Consolidated Operating Income $ 8,364 $ 11,176 $ 26,163 $ 22,948
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)
Magnequench $ 8,140 $ 6,424 $ 22,360 $ 18,704
C&O 4,072 1,301 16,351 3,572
Rare Metals 11,514 16,355 30,912 34,379
Corporate / Eliminations (4,550) (4,525) (14,344) (12,948)
Consolidated Adjusted EBITDA $ 19,176 $ 19,555 $ 55,279 $ 43,707
Net Earnings $ 1,358 $ (2,711) $ 5,659 $ (979)
Earnings per share attributable to equity holders of Neo
Basic $ 0.03 $ (0.06) $ 0.14 $ (0.02)
Diluted $ 0.03 $ (0.06) $ 0.13 $ (0.02)
Cash spent on property, plant and equipment and intangible
assets
$ 7,829 $ 25,527 $ 28,146 $ 52,183
Cash taxes paid $ 3,025 $ 5,529 $ 11,191 $ 18,832
Dividends paid to shareholders $ 3,014 $ 3,057 $ 9,094 $ 9,268
Dividend paid to Buss & Buss minority shareholder $ — $ 7,967 $ 7,343 $ 7,967
Repurchase of common shares under Normal Course Issuer Bid $ 1,547 $ — $ 3,889 $ 2,250
As at:
September
30, 2025
December
31, 2024
Cash and cash equivalents $ 61,481 $ 85,489
Short-term debt, bank advances & other $ 693 $ 2,740
Total debt $ 89,932 $ 71,536