Lynas Posts Profit Slump, Warns Texas Plant Uncertainty Amid US Offtake Talks

Lynas Rare Earths Limited reported a mixed fiscal 2025 performance, with revenues slightly surpassing estimates at AU$557 million but statutory earnings per share falling 80% below expectations. Despite this, analysts have raised their 2026 earnings per share forecasts significantly, projecting a 4,156% increase to AU$0.36, reflecting optimism about the company's future profitability. The company recently raised AU$750 million through a stock sale to accelerate its expansion plans, with shares set to resume trading after a trading halt. Lynas highlighted growth in NdPr sales volume by 18% and completed major projects under its Lynas 2025 growth initiative, while focusing on its Towards 2030 strategy to optimize recent investments and pursue new opportunities in rare earths outside China. However, Lynas also flagged considerable uncertainty regarding the future of its heavy rare-earths processing plant in Texas, as negotiations with the U.S. Department of Defense over an offtake agreement remain unresolved, and construction may not proceed. CEO Amanda Lacaze emphasized Lynas' key role in the outside-China rare earth supply chain and the importance of supportive policies, especially as the U.S. government recently backed the company's largest rival, MP Materials, in a multibillion-dollar deal.