Neo Performance Materials (NEO) Investor presentation summary

Market context and demand drivers

• Global demand for rare earth magnets is surging, driven by electric vehicles, robotics, energy transition, and stricter environmental regulations.

• Over 85% of EV/HEV traction motors use rare earth magnets, with demand for magnetic REEs expected to triple by 2035.

• Geopolitical risks and China's dominance in rare earth supply chains are prompting Western governments and OEMs to diversify sourcing.

• EU and US policies are incentivizing local production and recycling of critical materials, with targets for reduced reliance on single-country sources.

• Prices for critical metals like gallium, hafnium, and tantalum have risen sharply due to supply constraints and export restrictions.

Business model, operations, and technology

• Operates across the value chain: rare earth separation, metals, magnets, and assemblies, with a global, vertically integrated footprint.

• Holds leading positions in bonded magnets, environmental catalysts, and specialty oxides, with unique capabilities in HRE-free magnet technology.

• Opened a new permanent magnet facility in Europe, with phased capacity expansion and a major supply agreement with Bosch.

• Runs one of the only non-captive rare earth separation facilities in Europe and is expanding heavy rare earth capabilities.

• Largest gallium recycler in North America and only hafnium recycler in Europe, supporting secure supply chains for critical materials.

Financial performance and growth

• Achieved record Q1 2026 Adjusted EBITDA of $36M, up from $17M year-over-year, with rare metals segment Adjusted EBITDA up over 175%.

• LTM total revenue reached $512M and LTM Adjusted EBITDA $95M, with strong cash flow and above-industry-average dividend yield.

• Raised full-year 2026 Adjusted EBITDA guidance to $100–$110M, reflecting operational momentum and favorable pricing.

• Magnequench and Rare Metals segments delivered significant volume and profit growth, driven by demand in EVs, aerospace, and semiconductors.

• Additional growth expected from new magnet programs, European facility ramp-up, and expanded recycling and separation capabilities.