MP Materials Corp. (NYSE:MP) shares are advancing Friday after the rare earth materials company posted second-quarter revenue that surpassed analyst expectations.

A Revenue Beat Drives the Session’s Gains

The company brought in $108.49 million in second-quarter revenue, surpassing the $99.18 million consensus by 9.4% and nearly doubling the $57.39 million produced in the comparable period a year earlier. An adjusted loss of one cent per share came in short of the breakeven the Street had been expecting, though the result marked a dramatic improvement from the 13 cents per share loss absorbed in the year-ago quarter.

Combined revenue and PPA Income reached $126.1 million for the period, comprising $108.5 million in revenue and $17.6 million in PPA Income. The Materials Segment contributed $95.6 million in revenue and $32.5 million in adjusted EBITDA while the Magnetics Segment added $16.5 million in revenue and $7.5 million in adjusted EBITDA. The quarter closed with $1.45 billion sitting in cash, cash equivalents and short-term investments.

NdPr oxide output reached 840 metric tons, a 41% advance from the prior year, while NdPr sales volumes surged 127% to 1,006 metric tons.

A New Defense Contract and Project Swarm Add Dimension to the Growth Story

Separate from the financial results, MP Materials executed a long-term offtake agreement with a previously unannounced American aerospace and defense customer for separated gadolinium, a transaction CEO James Litinsky described as expanding both the company’s customer base and its heavy rare earth product portfolio at attractive economics.

The company also unveiled Project Swarm, a new initiative built around aggregating demand and establishing standardized specifications for the drone industry, with subscription agreements already executed with multiple leading customers across the United States and allied nations.

Litinsky said magnet qualification efforts at the Independence facility moved forward through additional deliveries supporting customer qualification and regulatory testing, while work on the 10X facility picked up pace during the quarter.

MP Shares Are Climbing

MP Price Action: MP Materials shares were up 3.71% at $49.25 at the time of publication on Friday, according to Benzinga Pro.

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