Lynas FY25 Revenue Hits $556.5m Despite Profit Drop to $8m

Financial Performance and Operational Highlights

Lynas Rare Earths has reported a mixed set of full-year results for FY25, with revenue climbing to $556.5 million, up from $463.3 million the previous year, driven primarily by increased production and sales of neodymium-praseodymium (NdPr) products. However, net profit after tax (NPAT) sharply declined to $8 million from $84.5 million in FY24. This profit contraction reflects higher depreciation costs associated with recent capital investments and lower-than-expected production at the Kalgoorlie Processing Facility.

The company’s EBITDA also fell to $101.2 million from $132.1 million, while cost of sales rose by 29%, reflecting the ramp-up of new facilities and increased sales volumes of higher-value rare earth products. Despite these pressures, Lynas achieved record NdPr concentrate production at its Mt Weld site, underscoring the operational progress made during the year.

Completion of Lynas 2025 Growth Projects

The Lynas 2025 growth initiative, launched in 2019, has largely reached completion. Key milestones include the expansion of the Mt Weld mine and processing capacity, the integration of the Kalgoorlie Rare Earths Processing Facility into global operations, and significant upgrades at the Malaysian separation plant. Notably, Lynas has become the only commercial producer outside China of separated heavy rare earth oxides such as dysprosium and terbium, critical components for electric motor magnets.

These capital projects have laid a solid foundation for Lynas to meet growing global demand for rare earth elements, particularly as geopolitical tensions and supply chain concerns drive customers and governments to diversify sources away from China.

Towards 2030 Strategy and $750 Million Equity Raising

Building on this momentum, Lynas has unveiled its Towards 2030 strategy, which aims to optimise returns from the Lynas 2025 investments while pursuing new growth avenues. The strategy focuses on expanding resource bases, increasing downstream processing capacity, and entering the rare earth metal and magnet supply chain outside China through partnerships and investments.

To fund this ambitious plan, Lynas announced a fully underwritten $750 million equity raising. This capital injection is intended to strengthen the balance sheet and enable the company to capitalise on the accelerating demand for rare earths driven by the global transition to clean energy and advanced technologies.

Challenges and Uncertainties in the US Market

While Lynas is actively engaging with US rare earth buyers and has achieved initial sales of heavy rare earth oxides in the country, the company faces uncertainty regarding its Heavy Rare Earth processing facility at Seadrift, Texas. A permitting issue related to wastewater management has delayed progress, requiring additional capital expenditure and raising questions about the project's viability. Lynas is negotiating with the US Department of Defence on offtake agreements, but no guarantees exist that these will be finalised on commercially acceptable terms.

Strategic Positioning Amid Global Supply Chain Shifts

CEO Amanda Lacaze highlighted the growing importance of rare earths in geopolitical trade discussions and the increasing efforts by governments to develop diversified supply chains. Lynas’ unique position as a major producer outside China, combined with its recent investments and strategic partnerships, positions it well to benefit from these market dynamics. The company’s focus on reliability and independence in supply aims to attract a broader customer base amid rising global demand for critical materials.

As Lynas transitions from its 2025 growth phase into the next decade, the company’s ability to execute its Towards 2030 strategy will be closely watched by investors and industry observers alike.