Lynas Rare Earths (LYC) H2 2025 earnings summary

Executive summary

• Major expansions at Mount Weld, Kalgoorlie, and Malaysia completed, ending the Lynas 2025 capital program and enabling first production of separated heavy rare earth oxides outside China.

• Achieved record NdPr production and sales in FY25, with revenue rising to $556.5m from $463.3m year-over-year.

• Net profit after tax dropped to $8.0m from $84.5m, impacted by higher depreciation and lower than nameplate production at Kalgoorlie.

• Launched the Towards 2030 strategy, focusing on maximizing returns from recent investments, resource expansion, and downstream integration.

• Announced a $750m fully underwritten equity raise to fund growth initiatives, resource development, and supply chain expansion.

Financial highlights

• FY25 sales revenue rose to $556.5m, up from $463.3m; NPAT declined to $8.0m from $84.5m, mainly due to higher depreciation and amortization.

• EBITDA was $101.2m, down from $132.1m; EBIT fell to $6.2m from $75.2m.

• Cash and short-term deposits at 30 June 2025 were $166.5m, down from $523.8m a year earlier.

• NdPr sales volume rose 18% to 6,555 tonnes, while total REO sales volume fell 10% to 10,970 tonnes.

• Capital invested in property, plant, equipment, and mine development totaled $430.8m.

Outlook and guidance

• Towards 2030 strategy aims to optimize recent capital investments and grow through resource expansion, downstream capacity, and supply chain integration.

• $750m equity raising and pro forma liquidity of $902m provide flexibility for growth projects.

• Demand for NdPr and NdFeB magnets forecast to grow at 6% CAGR to 2035, underpinning future growth.

• Focused on ramping up production in line with market demand, not aiming for maximum output if it means selling into lower-value markets.

• Ongoing engagement with governments for potential support, including floor price mechanisms and strategic agreements.