Is MP Materials Stock a Buy After Earnings?

MP Materials, a U.S. rare earth mining company, experienced a surge in stock value last year, tripling in price, much of that growth attributed to a Pentagon partnership announced in July 2025. However, MP Materials' stock has since dropped nearly 45% from its 52-week high. Despite this decline, the company is showing positive signs in its recent earnings report.

In Q2 2025, MP Materials reported a 89% year-over-year increase in revenue, reaching $108 million, and saw its adjusted EBITDA turn from a loss to a positive $28.5 million. The Department of Defense's price floor of $110 per kilogram for MP's neodymium-praseodymium (NdPr) compound contributed to this financial boost, with the government paying a $18 million difference when market prices fell below the agreed level.

MP Materials is now selling a more refined NdPr product, increasing its profit margins from the element. The company has also ceased selling concentrate and began processing it in-house, leading to a significant jump in oxide and metal revenue. While MP Materials may not see a repeat of its 2025 earnings growth, the company's improved economics and the potential success of its upcoming magnet factory make it a potentially worthwhile investment for those seeking exposure to American rare-earth mining.