Neo Performance Materials (NEO) Investor presentation summary

Market context and strategic positioning

• Global demand for rare earth magnets is surging, driven by electric vehicles, robotics, AI, and energy transition sectors, with supply chain risks due to China's dominance and export restrictions.

• Over 85% of EV/HEV motors use rare earth magnets, and demand for magnetic rare earth elements is expected to triple by 2035.

• Public policy in the EU and US is pushing for supply chain diversification and local sourcing of critical materials.

• Billions are being invested globally to build capabilities that match existing strengths.

Business model and operations

• Operates across three segments: Magnequench (magnetic powders/magnets), Chemicals & Oxides (rare earth separation/catalysts), and Rare Metals (hafnium, gallium, niobium, tantalum).

• Maintains a vertically integrated supply chain with global facilities, including rare earth separation and magnet production in Europe.

• Holds a leading market position in bonded magnets outside China and is a top recycler of gallium and hafnium.

• Longstanding relationships with major OEMs and Tier 1 customers in automotive, electronics, and industrial sectors.

Financial performance and growth

• Achieved record Q1 2026 Adjusted EBITDA of $36M, up from $17M the prior year, with rare metals segment Adjusted EBITDA up 176% year-over-year.

• Q1 2026 consolidated revenue reached $155M, with strong growth in all business units, especially rare metals (revenue up 75% year-over-year).

• Raised full-year 2026 Adjusted EBITDA guidance to $100–$110M.

• Maintains a strong balance sheet, robust cash flow, and above-industry-average dividend yield.