Lynas Rare Earths Ltd has reported a striking half-year turnaround with a 1260% surge in net profit, underpinned by rising rare earth prices and strategic expansions. The company also completed a major equity raise to fuel its ambitious Towards 2030 growth plan.
- Net profit after tax jumps to A$80.2 million, up 1260%
- Revenue climbs 63% to A$413.7 million driven by higher NdPr sales and new Dysprosium and Terbium products
- Successful A$932 million equity raising supports expansion and innovation
- Operational challenges from Kalgoorlie power disruptions and Malaysian maintenance overcome
- CEO Amanda Lacaze announces retirement, triggering leadership transition
Financial Performance Rebounds Strongly
Lynas Rare Earths Ltd has delivered a remarkable financial performance for the half year ended 31 December 2025, posting a net profit after tax of A$80.2 million, a staggering 1260% increase compared to the same period last year. Revenue surged 63% to A$413.7 million, driven primarily by a 14% increase in sales volume of neodymium-praseodymium (NdPr) rare earth oxides and the introduction of higher-value Dysprosium and Terbium products.
The company’s gross profit nearly tripled to A$142 million, reflecting both volume growth and improved pricing. Notably, the average selling price of rare earth oxides rose to A$68.4 per kilogram, up from A$44.6 per kilogram in the prior comparable period, buoyed by a strengthening NdPr market price that approached US$100/kg in early 2026.
Operational Progress Amid Challenges
Operationally, Lynas increased ready-for-sale rare earth oxide production to 6,375 tonnes, including 3,407 tonnes of NdPr. This was achieved despite significant power supply disruptions at the Kalgoorlie Rare Earths Processing Facility in November and major maintenance activities at the Malaysian plant in December. The company has since stabilised electricity supply at Kalgoorlie and is pursuing off-grid energy solutions to mitigate future risks.
Commissioning of the Mt Weld expansion project progressed well, with the new flotation circuit ramping up to 70% of capacity. The Mt Weld hybrid renewable power station also achieved an impressive 92% renewable electricity generation in December 2025, exceeding its 70% target and underscoring Lynas’ commitment to sustainable operations.
Strategic Growth and Capital Strengthening
Lynas bolstered its balance sheet through a successful equity raising comprising a A$750 million institutional placement and a A$182 million Share Purchase Plan, exceeding initial targets. These funds underpin the company’s Towards 2030 growth strategy, which aims to optimise existing assets and develop new rare earth processing capabilities.
Key strategic milestones include signing first customer contracts for separated Heavy Rare Earth oxides (Dy, Tb), expanding the Heavy Rare Earth separation facility in Malaysia, and forging non-binding Memoranda of Understanding with Korean and U.S. permanent magnet manufacturers. These partnerships aim to establish scalable, secure supply chains for rare earth permanent magnets, critical components in electric vehicles and renewable energy technologies.
Leadership Transition and Regulatory Outlook
In a significant leadership development, CEO and Managing Director Amanda Lacaze announced her intention to retire after 12 years at the helm. The Board has commenced a search for her successor, signalling a pivotal moment as Lynas enters its next growth phase.
On the regulatory front, Lynas submitted its Malaysian operating licence renewal application following a successful compliance audit. The licence, valid until 2 March 2026, is pending renewal under amended legislation, with terms yet to be finalised. This remains a key area for investors to watch given its operational importance.
Outlook
With a strengthened financial position, expanding production capacity, and strategic partnerships in place, Lynas Rare Earths is well positioned to capitalise on improving market conditions and geopolitical shifts favouring diversified rare earth supply chains. However, the company must navigate ongoing operational risks and regulatory uncertainties as it executes its ambitious growth agenda.
Bottom Line?
Lynas’ robust half-year results and strategic initiatives set the stage for accelerated growth, but leadership change and regulatory renewal will be critical to watch.
Questions in the middle?
- How will Lynas manage operational risks at Kalgoorlie amid ongoing power supply challenges?
- What impact will the CEO transition have on the execution of the Towards 2030 strategy?
- When will the Malaysian operating licence renewal be finalised, and under what terms?