Lynas Rare Earths reported a 43% year-on-year revenue increase to A$201.9 million in Q2 FY26 despite a 30% drop in key NdPr production due to power disruptions and maintenance. The company also announced CEO Amanda Lacaze’s planned retirement at year-end.
- Q2 FY26 revenue up 43% year-on-year to A$201.9 million
- NdPr production fell 30% due to power outages and maintenance
- Mt Weld expansion and renewable power station commissioned
- Heavy Rare Earths separation expansion underway with Samarium production expected Q4 FY26
- CEO Amanda Lacaze to retire at end of FY26 after 12 years
Robust Revenue Growth Despite Operational Challenges
Lynas Rare Earths has delivered a strong financial performance in the December 2025 quarter, with gross sales revenue reaching A$201.9 million, marking a 43% increase compared to the same period last year. This growth was achieved despite a notable 30% decline in neodymium-praseodymium (NdPr) production, a key rare earth element, which fell to 1,404 tonnes due to significant power supply disruptions in Kalgoorlie and scheduled maintenance at the Malaysian processing facility in Kuantan.
Operational Resilience and Renewable Energy Milestone
The company successfully completed commissioning of the Mt Weld expansion project, with the new flotation circuit operating at 70% capacity. Notably, Lynas’ hybrid renewable power station at Mt Weld, featuring four wind turbines, achieved an impressive 92% renewable electricity generation in December, surpassing its 70% target. These developments underscore Lynas’ commitment to sustainable operations amid ongoing challenges.
Strategic Growth and Market Positioning
Lynas is advancing its Towards 2030 growth strategy, with work underway to expand Heavy Rare Earths (HRE) separation capabilities at its Malaysian facility. The first production of Samarium is anticipated in the fourth quarter of FY26, reflecting progress in diversifying product offerings. Market conditions remain positive, supported by increased demand and pricing for NdPr and heavy rare earths like Dysprosium and Terbium, alongside new contracts that reduce reliance on market index pricing.
Leadership Transition on the Horizon
In a significant corporate development, CEO and Managing Director Amanda Lacaze announced her intention to retire at the end of the current financial year after 12 years at the helm. The board has commenced a search for her successor, aiming for a smooth leadership transition as Lynas enters its next phase of growth. Ms Lacaze remains committed to guiding the company through this period.
Financial Strength and Future Outlook
Despite reduced capital expenditure during the quarter, Lynas maintains a robust cash position of A$1.03 billion, providing a strong buffer for ongoing investments and operational needs. The company continues to explore off-grid energy solutions to mitigate future power disruptions at Kalgoorlie. Meanwhile, uncertainty persists around the construction of the Heavy Rare Earths processing facility in Texas, with negotiations ongoing with the U.S. Department of War.
Bottom Line?
Lynas’ solid financial footing and strategic expansions position it well, but power stability and leadership changes will be key to watch.
Questions in the middle?
- How will Lynas mitigate future power disruptions at Kalgoorlie to stabilise production?
- What impact will CEO Amanda Lacaze’s departure have on Lynas’ strategic direction?
- When will clarity emerge on the U.S. Heavy Rare Earths processing facility’s construction and funding?