Expansion of heavy rare earth separation in Estonia moves forward.
Neo Performance Materials has published results for the fourth quarter and full year 2025. While the final quarter was marked by declining revenue, the full-year figures show improved profitability.
Revenue in the fourth quarter totaled $120.3 million, below the level recorded in the same period last year. Operating income also declined significantly. On a full-year basis, however, the Canadian company achieved slight growth and, more importantly, improved profitability. Adjusted EBITDA rose to $75.6 million, while net income increased substantially.
Strategically, the company continues to expand its value chain outside China. Key initiatives include expanding magnet production in Europe and further investing in processing heavy rare earth elements in Estonia. Neo already operates a light rare earth refinery there and has been operating a permanent magnet manufacturing facility since September 2025. The sale of its Chinese rare earth separation assets last year underscores this strategic realignment.
For 2026, Neo remains cautiously optimistic and expects adjusted EBITDA in the range of USD 75–80 million, roughly in line with the previous year.
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