Neo Performance Materials Reports Third Quarter 2026 Results
Neo Delivers Quarterly Adjusted EBITDA of $47 Million, Up 145% Over Prior Year, and Raises Full-Year Guidance to $180 – $185 Million, Up 140% From 2025
TORONTO, Nov. 9, 2026 /CNW/ -- Neo Performance Materials Inc. ("Neo" or the "Company") (TSX: NEO) (OTCQX: NOPMF) today announced its financial results for the third quarter of 2026. Neo's financial statements and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2026, are available at neomaterials.com and on SEDAR+ at sedarplus.ca. All financial amounts in this news release and the Company's financial disclosures are in United States dollars, unless otherwise stated.
Consolidated Financial Highlights
Three Months Ended September 30, | Nine Months Ended September 30, | |||
2026 | 2025 | 2026 | 2025 | |
Consolidated Revenue | $ 193,569 | $ 122,213 | $ 554,279 | $ 358,523 |
Consolidated Operating Income | $ 30,726 | $ 8,364 | $ 99,052 | $ 26,163 |
Consolidated Adjusted EBITDA (1) | $ 47,048 | $ 19,176 | $ 140,312 | $ 55,279 |
Adjusted Net Income (1) | $ 18,411 | $ 5,977 | $ 56,969 | $ 21,144 |
Adjusted earnings per share attributable to common shareholders: | ||||
Basic | $ 0.40 | $ 0.14 | $ 1.30 | $ 0.51 |
Diluted | $ 0.38 | $ 0.14 | $ 1.24 | $ 0.49 |
Net Income | $ 9,426 | $ 1,358 | $ 25,248 | $ 5,659 |
Income per share attributable to common shareholders | ||||
Basic | $ 0.20 | $ 0.03 | $ 0.58 | $ 0.14 |
Diluted | $ 0.19 | $ 0.03 | $ 0.55 | $ 0.13 |
(1) Neo reports non-IFRS financial measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Information on non-IFRS financial measures is included in the "Non-IFRS Financial Measures" section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. |
"Neo delivered another excellent quarter, with Adjusted EBITDA of $47 million, up nearly 150% year-over-year. This reflects disciplined execution across the business, record bonded magnet volumes, continued strength in hafnium and a favourable pricing environment," said Rahim Suleman, President and Chief Executive Officer of Neo. "Based on our strong year-to-date operating performance, a healthy demand outlook, firm pricing and continued operating efficiencies, we have raised our full-year Adjusted EBITDA guidance to $180 million to $185 million. At the midpoint, that's roughly 2.4 times our full-year 2025 Adjusted EBITDA and 26% above our prior 2026 guidance."
"We also achieved several significant strategic milestones recently that further reinforce our position as a cornerstone of Europe's rare earth supply chain, including the start of commercial production at our European magnet facility, the selection of our European Integrated Magnet Project for a grant of up to €126 million ($140 million) under the European Union Innovation Fund and the designation of Silmet 2.0 as a Strategic Project in Europe. With strong operational execution, a supportive demand environment and strategic investments underpinning our next phase of growth, Neo is well positioned to deliver long-term value."
Strategic and Operational Highlights
- Neo Delivers Q3 Adjusted EBITDA(1) of $47 million, Driven by Strong Pricing and Sustained Demand. Neo's solid performance through 2026 continued in the third quarter, with Adjusted EBITDA up 145% from the third quarter of 2025. Magnequench revenue increased 42% year-over-year, driven by record volumes across several targeted growth product lines. Chemicals & Oxides delivered nearly a 70% improvement in Adjusted EBITDA year over year. Rare Metals continued its exceptional performance, as the hafnium business benefited from continued favourable pricing with stable spot volumes, and the gallium business delivered its highest-ever quarterly gross profit.
- Neo Raises Full Year 2026 Adjusted EBITDA Guidance to a Range of $180 to $185 million. Building on its strong operating performance through the first nine months of the year, sustained customer demand, firm pricing and continued operating efficiencies, Neo now expects full-year 2026 Adjusted EBITDA of $180 million to $185 million, up from its previous outlook of $140 million to $150 million. The new midpoint is roughly 2.4 times 2025 Adjusted EBITDA of $76 million and 26% above prior 2026 guidance.
- European Permanent Magnet Facility Commences Commercial Production: Neo reached a major milestone in the third quarter as its European permanent magnet facility began commercial production, shipping sintered magnets to a Tier 1 electric vehicle traction motor customer. Neo has secured multiple programs from three Tier 1 motor manufacturers, including traction motors, the most demanding magnet application, with one to two more programs expected to reach commercial production by year-end.
- Neo's Integrated Magnet Project Selected for Grant of €126 million ($140 million): Neo's vision for an integrated European magnet value chain gained strong EU support in October 2026, when Neo's European Integrated Magnet Project was selected for an EU Innovation Fund grant of up to €126 million ($140 million). The project includes separation (Silmet 2.0), metallization, Phase 1B magnet expansion and digital infrastructure. The cost of the project is expected to be approximately €400 million (US$450 million).
- Neo's European Separation Facility Named a Strategic Project under the EU Critical Raw Materials Act: Silmet 2.0, the planned modernization of Neo's separation facility in Estonia, was designated as a Strategic Project under the EU Critical Raw Materials Act. The designation is expected to bring priority access to debt financing and grant funding from the EU's new budget cycle from 2028 onwards, as well as priority administrative treatment and accelerated permitting. Silmet 2.0 is expected to triple separation capacity, add a commercial-scale heavy rare earth separation platform, and draw on new feedstock.
- Neo Collaborates with Carester To Secure Heavy Rare Earth Oxides for Magnet Manufacturing: Neo's binding term sheet with Carester, signed in August 2026, is expected to strengthen Neo's European rare earth supply chain. Carester's recycling and heavy rare earth separation facility under construction in Lacq, France, is expected to supply separated dysprosium and terbium oxides to Neo's European magnet facility. Carester is also expected to recycle swarf from Neo's magnet production and return the recovered neodymium-praseodymium ("NdPr"), dysprosium, and terbium oxides, while Silmet is expected to process Carester's mixed rare earth carbonate.
- Neo Signs MOU with Rainbow Rare Earths for Offtake from the Phalaborwa Project: As part of the September 2026 memorandum of understanding ("MOU"), Rainbow will provide Neo with offtake rights to 40% of Phalaborwa's annual production of separated NdPr oxide and 65% of the mixed heavy rare earth carbonate, containing dysprosium and terbium, from Rainbow's Phalaborwa Project in South Africa. In exchange, Neo will provide Rainbow with design input and technical support for the final solvent extraction separation circuit to achieve the Phalaborwa Project's intended mix and purity. Phalaborwa is expected to recover rare earths from stockpiled phosphogypsum, without requiring new mining. Subject to binding agreements, the arrangement is expected to provide an additional feedstock source for Silmet.
Consolidated Financial Highlights
- Revenue for Q3 2026 was $193.6 million, compared to $122.2 million for Q3 2025.
- Operating income for Q3 2026 was $30.7 million, compared to $8.4 million for Q3 2025.
- Adjusted EBITDA for Q3 2026 was $47.0 million compared to $19.2 million for Q3 2025. This resulted in Adjusted EBITDA margin of 24.3% for the quarter, representing an improvement of 860 basis points over Q3 2025.
- Adjusted Net Income(1) for Q3 2026 was $18.4 million, or $0.40 per share, compared to Adjusted Net Income of $6.0 million or $0.14 per share for Q3 2025.
- Operating Cash Flow for the nine months ended September 30, 2026, was an outflow of $53.0 million in cash from operating activities, driven by higher strategic inventory held, higher costs in inventory due to material pricing, and higher receivables due to higher sales. As of September 30, 2026, Neo had $78.0 million in cash and $143.6 million in gross debt on its balance sheet.
- Other income for the nine months ended September 30, 2026 was $12.7 million, primarily due to the sale of Neo's 43.5% interest in the Sarfartoq rare earth project to Greenland Mines Ltd. including an $8.5 million gain on sale and a $3.5 million unrealized fair value gain on the Greenland Mines Ltd. shares received. These gains are included in net income and excluded from Adjusted EBITDA and Adjusted Net Income.
- Capital investment for the nine months ended September 30, 2026 was $8.5 million (net of government grant proceeds received), with funds used primarily to advance the European Permanent Magnet facility and heavy rare earth production line in Europe.
- Shareholder return of capital: for the nine months ended September 30, 2026, the Company returned $10.4 million to shareholders in the form of dividends.
- A quarterly dividend of CAD$0.10 per common share was declared on November 5, 2026 for payment on December 29, 2026 to shareholders of record on December 18, 2026.
Segment Highlights
Magnequench Delivers Record Bonded Magnet Volumes and Begins Commercial Production in Europe
- Financial Performance: Adjusted EBITDA was $10.1 million in the third quarter, up 24% from the same period last year. Year-to-date Adjusted EBITDA is $29.8 million, up 33% from last year.
- Record Quarter for Bonded Magnet Volumes: Bonded magnet volumes rose 17% year-over-year, led by server cooling fan applications in AI data centers and growth in automotive applications.
- Record Volumes for Heavy Rare Earth-Free Traction Motor Powders: Bonded powders for traction motors reached record quarterly volumes as a new model year ramped.
- European Permanent Magnet Facility Enters Commercial Production: In September, the facility delivered its first commercial volumes to a Tier 1 EV traction motor customer, and one to two more programs are expected to start before year-end.
Chemicals & Oxides Delivers Strong Earnings Growth:
- Financial Performance: Adjusted EBITDA was $6.8 million in the third quarter, up almost 70% from the same period last year, reflecting solid performance in emission catalysts and favourable rare earth pricing.
- Water Treatment Expands into New Markets: The business continued to advance its new process enhancement technology, now in use with customers, and expanded into South America and Australia.
- Separation Business Begins Transition to Diversified Supply: Silmet began a planned move from legacy feed sources to a more diversified supply base, and in October Silmet 2.0 was named a Strategic Project under the EU Critical Raw Materials Act.
Rare Metals Delivers Adjusted EBITDA Improvement of Over 200 Percent:
- Financial Performance: Adjusted EBITDA was $35.2 million in the third quarter, up 206% from the same period last year, and $103.4 million year-to-date, up 235%, based on elevated pricing and sustained demand amid tight global supply.
- Another Strong Hafnium Quarter: Spot demand held firm and supply stayed tight, and customers continued to book contracts into 2027.
- Record Gallium and Rhenium Profitability: Gallium posted the highest gross profit in Neo's history on strong demand and elevated pricing as global supply tightened further. Rhenium had its best quarter on record on favourable pricing and superalloy demand.
Conference Call
Neo's third quarter 2026 financial results webcast and conference call details are provided below.
Webcast and Conference Call Details:
Date: Tuesday, November 10, 2026
Time: 10:00 AM ET | 7:00 AM PT
Listen Only Webcast: LINK
Conference call: +1 (416) 945-7677 (local) or 1 (888) 699-1199 (toll-free long distance) or by visiting Dial-in Link.
A replay of the webcast will be available by clicking on this LINK and will be archived on the Company's website for a limited period. A teleconference recording may be accessed by calling 1(289)819-1450 (local) or 1(888)660-6345 (toll-free long-distance) and entering the passcode 25133# until December 10, 2026.
Non-IFRS Financial Measures
This news release refers to certain specified financial measures and ratios, including non-IFRS financial measures and ratios such as "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income", "Adjusted Earnings per Share", and "Free Cash Flow". These specified financial measures are not recognized measures under International Financial Reporting Standards ("IFRS") Accounting Standards as issued by the International Accounting Standards Board, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Rather, these specified financial measures ("non-IFRS 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 financial 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 financial 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 otherwise 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 of issuers. Neo's 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, their 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, 2026, which is hereby incorporated by reference into this news release, and at neomaterials.com and on SEDAR+ at 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, rare earth magnetic powders and magnets, specialty chemicals, metals, and alloys are critical to the performance of many everyday products and emerging technologies across industries. Neo's products help to deliver the technologies of tomorrow to consumers today.
As at September 30, 2026, Neo had 1,624 employees and a global platform that includes manufacturing facilities located in Canada, China, Estonia, Germany, Thailand, and the United Kingdom ("UK") as well as one dedicated research and development ("R&D") centre in Singapore. Neo has three operating segments: Magnequench, Chemicals & Oxides and Rare Metals, as well as the Corporate segment.
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 international 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 rare earth and critical materials prices; expected use of cash balances; continuation of prudent management of working capital; source of funds for 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 rare 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 superalloy and superconductor materials; continued production ramp-up at Neo's newly completed Permanent Magnet facility in Europe and related commercial production estimates, commissioning and costs associated with the facility; the planned modernization and expansion of the rare earth separation operations at the Silmet facility, and associated impacts including: the expected increase in separation capacity, the development of commercial-scale heavy rare earth separation, the transition of the facility to new feedstock sources, the expected benefits of its designation as a Strategic Project under the EU Critical Raw Materials Act, the timing of a final investment decision, and expected temporary reductions in light rare earth separation output during the modernization; the negotiation and execution of definitive supply agreements, expectations regarding tariffs and export restrictions; securing new automotive customer agreements for permanent magnet and emission catalyst facilities; expectations concerning Neo's magnet growth strategy; Neo's design of its internal controls over financial reporting and disclosure controls and procedures; and Neo's 2026 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 2026 guidance reflects Neo's expectations as to financial performance in 2026 based on assumptions which Neo believes to be reasonable as of the date of this news release including but not limited to those listed above as well as continued Magnequench growth, operational improvements, relative stability in rare earth pricing, continued strong hafnium demand alongside elevated pricing and tight raw material supply conditions, expectations regarding tariffs and export controls, and securing new customer agreements for permanent magnet and emission catalyst facilities. 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 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.
HIGHLIGHTS OF THIRD QUARTER 2026 CONSOLIDATED PERFORMANCE
($000s, except per share information; unaudited) | Three Months Ended September 30, | Nine Months Ended | ||
2026 | 2025 | 2026 | 2025 | |
Revenue | ||||
Magnequench | $ 77,885 | $ 54,859 | $ 206,960 | $ 149,599 |
C&O | 27,268 | 28,834 | 97,874 | 105,778 |
Rare Metals | 88,467 | 39,326 | 251,910 | 107,979 |
Corporate / Eliminations | (51) | (806) | (2,465) | (4,833) |
Consolidated Revenue | $ 193,569 | $ 122,213 | $ 554,279 | $ 358,523 |
Operating Income | ||||
Magnequench | $ (2,802) | $ 2,512 | $ 3,235 | $ 6,016 |
C&O | 4,811 | 2,463 | 17,774 | 12,150 |
Rare Metals | 34,519 | 10,828 | 100,999 | 29,105 |
Corporate / Eliminations | (5,802) | (7,439) | (22,956) | (21,108) |
Consolidated Operating Income | $ 30,726 | $ 8,364 | $ 99,052 | $ 26,163 |
Adjusted EBITDA | ||||
Magnequench | $ 10,122 | $ 8,140 | $ 29,830 | $ 22,360 |
C&O | 6,848 | 4,072 | 23,016 | 16,351 |
Rare Metals | 35,183 | 11,514 | 103,445 | 30,912 |
Corporate / Eliminations | (5,105) | (4,550) | (15,979) | (14,344) |
Consolidated Adjusted EBITDA | $ 47,048 | $ 19,176 | $ 140,312 | $ 55,279 |
Net Income | $ 9,426 | $ 1,358 | $ 25,248 | $ 5,659 |
Income per share attributable to common shareholders | ||||
Basic | $ 0.20 | $ 0.03 | $ 0.58 | $ 0.14 |
Diluted | $ 0.19 | $ 0.03 | $ 0.55 | $ 0.13 |
Cash spent on property, plant and equipment and intangible assets | $ 4,573 | $ 7,829 | $ 21,132 | $ 28,146 |
Cash taxes paid | $ 3,478 | $ 3,025 | $ 22,253 | $ 11,191 |
Dividends paid to shareholders | $ 3,315 | $ 3,014 | $ 10,389 | $ 9,094 |
Dividend paid to Buss & Buss minority shareholder | $ -- | $ -- | $ -- | $ 7,343 |
As at: | September 30, | December 31, | ||
Cash and cash equivalents | $ 78,035 | $ 38,360 | ||
Short-term debt, bank advances & other | $ 34,807 | $ 12,949 | ||
Short-term and long-term debt | $ 143,593 | $ 101,804 | ||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($000s; unaudited) | September 30, | December 31, |
ASSETS | ||
Cash and cash equivalents | $ 78,035 | $ 38,360 |
Accounts receivable | 141,127 | 93,186 |
Inventories | 303,484 | 205,405 |
Income taxes receivable | 2,137 | 2,196 |
Other current assets | 26,004 | 24,070 |
Total current assets | 550,787 | 363,217 |
Property, plant and equipment | 195,727 | 198,440 |
Intangible assets | 28,414 | 30,857 |
Goodwill | 67,738 | 65,857 |
Equity method investments | 13,305 | 17,116 |
Other investments | 9,891 | 3,496 |
Deferred tax assets | 2,905 | 2,799 |
Other non-current assets | 16,900 | 3,105 |
Total non-current assets | 334,880 | 321,670 |
Total assets | $ 885,667 | $ 684,887 |
LIABILITIES AND EQUITY | ||
Short-term debt | $ 34,807 | $ 12,949 |
Accounts payable and other accrued charges | 104,272 | 95,844 |
Income taxes payable | 21,712 | 15,120 |
Provisions | 3,365 | 3,470 |
Lease obligations | 1,033 | 564 |
Derivative liability | 106,017 | 60,596 |
Current portion of long-term debt | 41,258 | 9,343 |
Other current liabilities | 402 | 252 |
Total current liabilities | 312,866 | 198,138 |
Long-term debt | 67,528 | 79,512 |
Derivative liability | 854 | 1,407 |
Provisions | 3,130 | 2,392 |
Deferred tax liabilities | 12,412 | 9,405 |
Lease obligations | 4,094 | 3,170 |
Other non-current liabilities | 353 | 395 |
Total non-current liabilities | 88,371 | 96,281 |
Total liabilities | 401,237 | 294,419 |
Non-controlling interest | 459 | 464 |
Equity attributable to common shareholders | 483,971 | 390,004 |
Total equity | 484,430 | 390,468 |
Total liabilities and equity | $ 885,667 | $ 684,887 |
See accompanying notes to this table in Neo's interim condensed consolidated financial statements as at September 30, 2026 and for the period then ended.
CONSOLIDATED RESULTS OF OPERATIONS
($000s; unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | ||
2026 | 2025 | 2026 | 2025 | |
Revenue | $ 193,569 | $ 122,213 | $ 554,279 | $ 358,523 |
Cost of sales | ||||
Cost excluding depreciation and amortization | 137,859 | 86,807 | 368,971 | 254,458 |
Depreciation and amortization | 2,397 | 2,002 | 6,462 | 5,942 |
Gross profit | 53,313 | 33,404 | 178,846 | 98,123 |
Expenses | ||||
Selling, general and administrative | 15,609 | 14,985 | 52,641 | 46,619 |
Share-based compensation | 2,993 | 4,081 | 13,657 | 8,530 |
Depreciation and amortization | 2,157 | 1,793 | 5,743 | 5,299 |
Research and development | 1,828 | 4,181 | 7,753 | 11,512 |
Total expenses | 22,587 | 25,040 | 79,794 | 71,960 |
Operating income | 30,726 | 8,364 | 99,052 | 26,163 |
Other income (expense) | 12,229 | 205 | 12,662 | (4,483) |
Finance cost, net | (22,318) | (2,464) | (49,869) | (14,254) |
Foreign exchange (loss) gain | (171) | (519) | (4,014) | 7,966 |
Income from operations before income taxes and equity income of associates | 20,466 | 5,586 | 57,831 | 15,392 |
Income tax expense | (10,859) | (4,573) | (31,840) | (10,528) |
Income from operations before equity income of associates | 9,607 | 1,013 | 25,991 | 4,864 |
Equity (loss) income of associates, net of income tax | (181) | 345 | (743) | 795 |
Net income | $ 9,426 | $ 1,358 | $ 25,248 | $ 5,659 |
Attributable to: | ||||
Common shareholders | $ 9,427 | $ 1,363 | $ 25,253 | $ 5,655 |
Non-controlling interest | (1) | (5) | (5) | 4 |
Income per share attributable to common shareholders: | ||||
Basic | $ 0.20 | $ 0.03 | $ 0.58 | $ 0.14 |
Diluted | $ 0.19 | $ 0.03 | $ 0.55 | $ 0.13 |
For additional information, refer to Neo's MD&A for the three and nine months ended September 30, 2026.
RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW
($000s, except volume; unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | ||
2026 | 2025 | 2026 | 2025 | |
Sales volume (tonnes) | 3,084 | 3,537 | 9,499 | 10,228 |
Revenue | $ 193,569 | $ 122,213 | $ 554,279 | $ 358,523 |
Net income | $ 9,426 | $ 1,358 | $ 25,248 | $ 5,659 |
Add back: | ||||
Finance costs, net | 22,318 | 2,464 | 49,869 | 14,254 |
Income tax expense | 10,859 | 4,573 | 31,840 | 10,528 |
Depreciation and amortization included in cost of sales | 2,397 | 2,002 | 6,462 | 5,942 |
Depreciation and amortization included in operating expenses | 2,157 | 1,793 | 5,743 | 5,299 |
EBITDA | 47,157 | 12,190 | 119,162 | 41,682 |
Adjustments to EBITDA: | ||||
Other (income) expense | (12,229) | (205) | (12,662) | 4,483 |
Foreign exchange loss (gain) | 171 | 519 | 4,014 | (7,966) |
Equity loss (income) from associate | 181 | (345) | 743 | (795) |
Share-based compensation | 2,993 | 4,081 | 13,657 | 8,530 |
Project start-up and transition costs | 8,775 | 2,936 | 15,398 | 9,345 |
Adjusted EBITDA | $ 47,048 | $ 19,176 | $ 140,312 | $ 55,279 |
Adjusted EBITDA Margin | 24.3 % | 15.7 % | 25.3 % | 15.4 % |
Less: | ||||
Capital expenditures | $ 3,358 | $ 8,214 | $ 8,512 | $ 18,447 |
Free Cash Flow | $ 43,690 | $ 10,962 | $ 131,800 | $ 36,832 |
For additional information, refer to Neo's MD&A for the three and nine months ended September 30, 2026.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
($000s; unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | ||
2026 | 2025 | 2026 | 2025 | |
Net income | $ 9,426 | $ 1,358 | $ 25,248 | $ 5,659 |
Adjustments: | ||||
Foreign exchange loss (gain) | 171 | 519 | 4,014 | (7,966) |
Share-based compensation | 2,993 | 4,081 | 13,657 | 8,530 |
Buss & Buss non-controlling interest and related items (1) | 5,145 | (3,742) | (379) | (2,081) |
Project start-up & transition costs | 8,775 | 2,936 | 15,398 | 9,345 |
Other items included in other (income) expense | (11,942) | (200) | (12,110) | 4,628 |
Tax impact of the above items | 3,843 | 1,025 | 11,141 | 3,029 |
Adjusted Net Income | $ 18,411 | $ 5,977 | $ 56,969 | $ 21,144 |
Attributable to: | ||||
Common shareholders | $ 18,412 | $ 5,982 | $ 56,974 | $ 21,140 |
Non-controlling interest | (1) | (5) | (5) | 4 |
Weighted average number of common shares outstanding: | ||||
Basic (000s) | 46,215 | 41,588 | 43,776 | 41,732 |
Diluted (000s) | 48,617 | 43,982 | 46,022 | 43,356 |
Adjusted earnings per share attributable to common shareholders: | ||||
Basic | $ 0.40 | $ 0.14 | $ 1.30 | $ 0.51 |
Diluted | $ 0.38 | $ 0.14 | $ 1.24 | $ 0.49 |
(1) Includes (i) changes in the fair value of the derivative liabilities, (ii) dividends paid to non-controlling interest, and (iii) the non-controlling interest's share of Buss & Buss net income, excluding related tax effect shown separately |
For additional information, refer to Neo's MD&A for the three and nine months ended September 30, 2026.
SOURCE Neo Performance Materials, Inc.
Information Contacts: Investors: Jim Fitzpatrick, SVP, Investor Relations & Communications, (416) 367-8588, ext. 7318, [email protected], neomaterials.com; Media: Vasileios Tsianos, SVP, Corporate Development, (416) 367-8588 ext. 7335, [email protected]
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