Neo Delivers Strong Third-Quarter Results and Raises Full-Year Adjusted EBITDA Guidance
TORONTO, Nov. 14, 2025 /CNW/ - Neo Performance Materials Inc. ("Neo" or the "Company") (TSX: NEO) (OTCQX: NOPMF) today announced its financial results for the third quarter of 2025. The financial statements and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2025, are available at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca. All financial amounts in this news release and the Company's financial disclosures are in United States dollars, unless otherwise stated.
"Our third-quarter results highlight Neo's ability to deliver strong operational performance while advancing our strategy to grow our industry-leading permanent magnet business ," said Rahim Suleman, Neo's President and Chief Executive Officer. "During the quarter, Neo delivered $19 million in Adjusted EBITDA, bringing our year-to-date total to $55 million, a 27% increase compared to the same period last year. Reflecting this solid performance, we have raised our full-year 2025 Adjusted EBITDA guidance to a range of $67 to $71 million."
"So far this year, we have achieved several major milestones, advancing the new heavy rare earth separation line in Europe, securing traction-motor magnet contracts with European Tier 1 customers, extending our partnership with Bosch, and, in September, celebrating the grand opening of our new industrial scale sintered magnet plant in Europe. With production beginning in mid-2026, the facility will have productive capacity of 2,000 tonnes annually in its first phase, with plans to expand to 5,000 tonnes. As we continue executing our long-term strategy, Neo is poised to become the critical enabler of diversified and localized permanent-magnet supply chains for the West."
Strategic and Operational Highlights
-- Strong Adjusted EBITDA Performance : Neo delivered $19.2 million and
$55.3 million in Adjusted EBITDA(1) for the three and nine months ended
September 30, 2025, marking a 1.9% decrease and 26.5% increase,
respectively, from the same periods last year.
-- Magnequench ("MQ") achieved Adjusted EBITDA of $8.1 million and
$22.4 million for the three and nine months ended September 30,
2025, increasing by $1.7 million and $3.7 million, respectively,
over the same periods last year.
-- Chemicals & Oxides ("C&O") experienced significant improvements in
Adjusted EBITDA over the prior year, reporting $4.1 million and
$16.4 million for the three and nine months ended September 30,
2025, increasing by $2.8 million and $12.8 million, respectively,
over the same periods last year.
-- Rare Metals ("RM") continued to deliver solid results with
Adjusted EBITDA of $11.5 million and $30.9 million for the three
and nine months ended September 30, 2025, decreasing by $4.8
million and $3.5 million, respectively, over the same periods last
year.
-- Neo Raises Full Year 2025 Adjusted EBITDA Guidance : Neo has raised its
2025 Adjusted EBITDA outlook to $67.0 to $71.0 million, up from $64.0 to
$68.0 million as announced in August, driven by strong third quarter
performance, as the Company continues to leverage its global supply chain
to respond to evolving market dynamics.
-- Neo Opens State-of-the-Art Permanent Magnet Facility in Europe : Neo
hosted the grand opening ceremony of its new European Permanent Magnet
facility in September 2025, attended by more than 270 guests, including
senior leadership from the global automotive, renewable energy, and
technology sectors, alongside government officials, media, and investors
from across Europe, North America, Australia, and Japan. The event
showcased the facility's advanced capabilities and its strategic
importance in the global shift toward electrification, sustainability and
localized supply chains for critical materials.
-- Neo Extends Partnership with Robert Bosch GmbH ("Bosch") : On September
19, 2025, Neo announced the extension of its strategic partnership with
Bosch through a multi-year Memorandum of Understanding. Under the
agreement, Neo will reserve dedicated annual magnet production capacity
for Bosch at its European Permanent Magnet facility, ensuring a reliable
and localized supply of advanced rare-earth magnets critical for Bosch's
e-mobility and energy-efficient motor applications. The partnership
underscores Neo's growing role in strengthening Europe's magnet supply
chain, supporting the region's transition toward clean technologies, and
promoting sustainable industrial innovation through closer collaboration
between material producers and global OEMs.
-- Heavy Rare Earth Pilot Line at Silmet Remains on Track for Production
Launch : Neo's heavy rare earth pilot line is nearing completion, with
commissioning expected in early 2026. The pilot line will produce
dysprosium and terbium, supplying the newly constructed European
Permanent Magnet facility during its ramp-up phase, in addition to
serving other users and end markets. This initiative serves as a
precursor to a potential full-scale commercial production line,
positioning Neo to enhance its production capabilities in Europe
significantly.
____________________________________
(1) Neo reports non-IFRS measures such as "Adjusted
Net Income", "Adjusted Earnings per Share", "Adjusted
EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Please
see information on this and other non-IFRS measures
in the "Non-IFRS Financial Measures" section of this
news release and in the MD&A, available at www.neomaterials.com
and on SEDAR+ at www.sedarplus.ca.
Consolidated Financial Highlights
-- Revenue for Q3 2025 was $122.2 million, compared to Q3 2024 revenue of
$111.3 million. On a year-to-date basis, 2025 revenue was $358.5 million
compared to $340.9 million in 2024.
-- Operating income for Q3 2025 was $8.4 million, compared to Q3 2024
operating income of $11.2 million. Year-to-date 2025 operating income was
$26.2 million, compared to $22.9 million in 2024.
-- Adjusted Net Income(1) for Q3 2025 was $8.5 million, or $0.20 earnings
per share, compared to Q3 2024 Adjusted Net Income of $1.1 million or
$0.03 earnings per share. For the nine months ended September 30, 2025,
Adjusted Net Income was $19.9 million, or $0.48 earnings per share,
compared to Adjusted Net Income of $6.8 million, or $0.16 earnings per
share for the first nine months of 2024.
-- Adjusted EBITDA reached $19.2 million for Q3 2025 and $55.3 million for
nine months ended September 30, 2025, compared to $19.6 million and $43.7
million, respectively, in the prior year periods. This resulted in
Adjusted EBITDA margin of 15.7% for the quarter and 15.4% for the first
nine months, representing a decrease of 190 basis points for the
three-month period and an improvement of 280 basis points over the prior
year-to-date period, respectively.
-- For the nine months ended September 30, 2025, Neo used $25.4 million in
cash from operating activities, driven by the settlement of a European
patent claim for $12.5 million, higher receivables due to timing of sales,
and higher strategic inventory held due to geopolitical risks. Neo had
$61.5 million in cash and $89.9 million in gross debt on its balance
sheet as of September 30, 2025.
-- For the nine months ended September 30, 2025, Neo invested $18.4 million
in capital expenditures, primarily for the final phase of the new
permanent magnet facility and the investment in the heavy rare earth
separation pilot line in Europe.
-- For the nine months ended September 30, 2025, Neo distributed $9.1
million in dividends to shareholders and repurchased $3.9 million of
common shares for cancellation under the NCIB.
-- A quarterly dividend of CAD$0.10 per common share was declared on
November 11, 2025, for shareholders of record on December 19, 2025, with
a payment date of December 29, 2025.
Segment Highlights
Magnequench Delivers Solid Operating Performance and Strategic Progress:
-- Strong Profitability and Volume Growth: Third-quarter volumes increased
21% year-over-year, driving a 27% improvement in Adjusted EBITDA,
Magnequench's strongest quarterly performance in over three years. Growth
reflected solid underlying demand and customer restocking in response to
evolving supply-chain and geopolitical conditions.
-- Sustained Financial Momentum: Third-quarter Adjusted EBITDA totaled $8.1
million and $22.4 million year-to-date, increases of 27% and 20%,
respectively, over the same periods last year, supported by disciplined
cost management, operational efficiency, and higher volumes.
-- European Expansion Milestone: Magnequench advanced its European magnetics
strategy with the grand opening of Neo's new industrial scale sintered
magnet facility in September.
-- Extended Partnership with Bosch: Neo entered into a new multi-year
agreement with Bosch, securing dedicated magnet production capacity at
Neo's European magnet facility to support Bosch's e-mobility and
energy-efficient motor programs, reinforcing a stable and localized
supply chain.
-- Record Bonded Magnet Volumes: Bonded magnet shipments reached record
quarterly levels, up 38% year-over-year, supported by accelerating demand
for data centers serving AI.
-- Strong Powder Sales: Bonded powder volumes also increased 18%
year-over-year, reflecting continued market share gains and healthy
downstream demand.
Chemicals & Oxides Delivers Strong Growth and Strategic Realignment:
-- Solid Financial Performance: Adjusted EBITDA increased 213%
year-over-year in the third quarter and 358% year-to-date, reaching $4.1
million and $16.4 million, respectively. Results reflect higher rare
earth prices, the successful transformation of the business and continued
operational discipline.
-- Portfolio Optimization Drives Growth: Following the sale of the Chinese
separation facilities in Q1 and the relocation of the emission catalyst
operations to NAMCO, C&O remains focused on higher-margin businesses with
strong growth potential, including emission catalysts and wastewater
treatment solutions.
-- Robust Demand Across Key Markets: Emission catalyst volumes rose 20% in
the quarter and 12% year-to-date, while wastewater treatment volumes
achieved another record quarter, up 42% year-over-year, supported by
rising global sustainability and environmental compliance needs.
-- Strategic European Separation Capabilities: C&O continues to operate one
of the few non-captive rare earth separation facilities in Europe,
equipped with a world-class laboratory, advanced analytical capabilities,
and a new heavy rare earth separation pilot line that remains on track
and on budget with construction nearing completion.
Rare Metals Maintains Good Performance Amid Market Normalization:
-- Resilient Financial Results: Adjusted EBITDA totaled $11.5 million for
the quarter and $30.9 million year-to-date, down 30% and 10%,
respectively, from the prior-year periods, reflecting the expected
normalization of hafnium prices following record highs in 2024.
-- Healthy End-Market Demand: Rare Metals continues to benefit from robust
demand in aerospace, industrial gas turbine, and semiconductor markets,
supported by ongoing global investment in advanced manufacturing and
clean energy technologies.
-- Hafnium Price Normalization: Hafnium gross margins declined 41%
year-over-year as prices stabilized, moderating profitability compared to
last year's exceptional levels.
-- Gallium Business Strength: The gallium segment delivered solid results on
continued pricing strength and rising regulatory tailwinds. Neo remains
one of the only gallium recyclers in North America, positioning the
business for sustained long-term growth.
-- Strategic Supply Initiatives: The segment continues to focus on securing
scrap and input materials through strategic sourcing partnerships and
recovery initiatives, ensuring a stable, diversified supply base to
support future growth.
Conference Call
Neo's third quarter 2025 financial results webcast and conference calls details are provided below.
Webcast / Conference Call Details:
Date: Friday, November 14, 2025
Time: 10:00 AM ET | 7:00 AM PT
Listen Only Webcast: Webcast Link
Conference call: 1-416-945-7677 (local) or 1-888-699-1199 (toll-free long distance) or by visiting Dial-in Link and completing the online registration form. Once registered, you will receive the dial-in information and a unique PIN to join the call.
A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on www.neomaterials.com for a limited time.
Non-IFRS Financial Measures
This new release refers to certain specified financial measures, including non-IFRS financial measures and ratios such as "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income", "Adjusted Earnings per Share", "Debt to Adjusted EBITDA", "Free Cash Flow" and "gross margin". These specified financial measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Rather, these specified financial measures are provided as additional information to complement IFRS financial measures by providing further understanding of Neo's results of operations from management's perspective. Neo's definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting.
Specified financial measures such as non-IFRS measures and ratios have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Neo's financial information reported under IFRS. Neo uses specified financial measures to provide investors with supplemental measures of its base-line operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Neo believes that securities analysts, investors and other interested parties frequently use specified financial measures such as non-IFRS financial measures and ratios in the evaluation of issuers. Neo's management also uses non-IFRS financial measures and ratios to facilitate operating performance comparisons from period to period. Readers are cautioned that these measures should not be construed as an alternative to their nearest or directly comparable financial measures determined in accordance with IFRS as an indication of Neo's financial performance. For further information on how Neo defines such specified financial measures, including non-IFRS financial measures and ratios and, where applicable, their reconciliations to the nearest comparable IFRS measures, please see the "Non-IFRS Financial Measures" section of Neo's MD&A for the three and nine months ended September 30, 2025, which is hereby incorporated by reference into this news release, and at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca.
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials -- magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys -- are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in Canada, China, Estonia, Germany, Thailand and the United Kingdom, as well as one dedicated research and development center in Singapore. For more information, please visit www.neomaterials.com.
Cautionary Statements Regarding Forward Looking Statements
This news release contains "forward-looking information", within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of Neo. All statements in this news release, other than statements of historical facts, with respect to Neo's objectives and goals, as well as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions are forward-looking information.
Specific forward-looking information in this news release include, but are not limited to: expectations regarding certain of Neo's future results and information, including, among other things; revenue; expenses; growth prospects; capital expenditures; and operations; risk factors relating to national or international economies, geopolitical risk and other risks present in the jurisdictions in which Neo, its customers, its suppliers, and/or its logistics partners operate; statements with respect to current and future market trends that may directly or indirectly impact sales and revenue of Neo, including but not limited to the price of rare earth elements; expected use of cash balances; continuation of prudent management of working capital; source of funds for ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for uncollectible accounts and inventory provisions; analysis regarding sensitivity of the business to changes in exchange rates and changes in rare earth prices; impact of recently adopted accounting pronouncements; risk factors relating to intellectual property protection and intellectual property litigation; expectations regarding demand for products and applications; expectations regarding the growth of superconductor materials; anticipated launch of Neo's new permanent magnet facility in Europe and related commercial production estimates, forecasted budget, commissioning and costs associated with the facility; Neo's requalified product portfolio, including the NAMCO product portfolio, and continued product qualification expected in 2025 and 2026; any anticipated final costs associated with NAMCO; expectations regarding tariffs and export restrictions; securing new automotive customer agreements for permanent magnet and emission catalyst facilities; expectations concerning the continued growth of the Magnequench project and improvements in C&O; expectations concerning any remediation efforts to Neo's design of its internal controls over financial reporting and disclosure controls and procedures; and Neo's 2025 guidance and the assumptions relating thereto.
Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
Additionally, Neo's 2025 guidance reflects Neo's expectations as to financial performance in 2025 based on assumptions which Neo believes to be reasonable as of the date of this news release including but not limited to continued Magnequench growth, significant improvements in C&O, exiting lower-margin separation assets, strong hafnium demand despite pricing moderation, continued reduction in SG&A expenses, expectations regarding tariffs and export controls; securing new automotive customer agreements for permanent magnet and emission catalyst facilities, expectations concerning the continued growth of the Magnequench project and improvements in C&O. Neo believes the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this discussion and analysis should not be unduly relied upon. For more information on Neo, investors should review filings available under Neo's profile at www.sedarplus.ca.
Information contained in forward-looking statements in this news release is provided as of the date hereof and Neo disclaims any obligation to update any forward-looking information, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.
HIGHLIGHTS OF THIRD QUARTER 2025 CONSOLIDATED PERFORMANCE
($000s, except per Three Months Ended Nine Months Ended
share information) September 30, September 30
2025 2024 2025 2024
Revenue
Magnequench $ 54,859 $ 45,573 $ 149,599 $ 133,149
C&O 28,834 27,920 105,778 102,911
Rare Metals 39,326 38,578 107,979 107,765
Corporate /
Eliminations (806) (1,435) (4,833) (2,900)
Consolidated Revenue $ 122,213 $ 111,281 $ 358,523 $ 340,925
Operating Income
(Loss)
Magnequench $ 2,512 $ 2,465 $ 6,016 $ 8,106
C&O 2,463 (975) 12,150 (2,881)
Rare Metals 10,828 15,852 29,105 33,225
Corporate /
Eliminations (7,439) (6,166) (21,108) (15,502)
Consolidated
Operating Income $ 8,364 $ 11,176 $ 26,163 $ 22,948
Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization ("Adjusted EBITDA")
Magnequench $ 8,140 $ 6,424 $ 22,360 $ 18,704
C&O 4,072 1,301 16,351 3,572
Rare Metals 11,514 16,355 30,912 34,379
Corporate /
Eliminations (4,550) (4,525) (14,344) (12,948)
Consolidated
Adjusted EBITDA $ 19,176 $ 19,555 $ 55,279 $ 43,707
Net Earnings $ 1,358 $ (2,711) $ 5,659 $ (979)
Earnings per share attributable to equity holders
of Neo
Basic $ 0.03 $ (0.06) $ 0.14 $ (0.02)
Diluted $ 0.03 $ (0.06) $ 0.13 $ (0.02)
Cash spent on
property, plant and
equipment and
intangible
assets $ 7,829 $ 25,527 $ 28,146 $ 52,183
Cash taxes paid $ 3,025 $ 5,529 $ 11,191 $ 18,832
Dividends paid to
shareholders $ 3,014 $ 3,057 $ 9,094 $ 9,268
Dividend paid to
Buss & Buss
minority
shareholder $ -- $ 7,967 $ 7,343 $ 7,967
Repurchase of common
shares under Normal
Course Issuer
Bid $ 1,547 $ -- $ 3,889 $ 2,250
As at: September 30, December 31, 2024
2025
Cash and cash
equivalents $ 61,481 $ 85,489
Short-term debt,
bank advances &
other $ 693 $ 2,740
Total debt $ 89,932 $ 71,536
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited; ($000s) September 30, December 31,
2025 2024
ASSETS
Current
Cash and cash equivalents $ 61,481 $ 85,489
Accounts receivable 90,662 61,232
Inventories 160,710 139,321
Income taxes receivable 6,518 4,108
Assets held for sale -- 40,949
Other current assets 21,405 22,389
Total current assets 340,776 353,488
Property, plant and equipment 196,042 178,925
Intangible assets 31,010 33,580
Goodwill 65,077 64,029
Equity method investments 17,096 16,330
Other investments 3,281 217
Deferred tax assets 3,114 4,045
Other non-current assets 6,088 2,640
Total non-current assets 321,708 299,766
Total assets $ 662,484 $ 653,254
LIABILITIES AND EQUITY
Current
Short-term debt $ 693 $ 2,740
Accounts payable and other accrued charges 79,368 69,546
Income taxes payable 14,011 10,463
Provisions 587 12,512
Lease obligations 770 1,229
Derivative liability 51,676 47,416
Current portion of long-term debt 4,923 4,610
Liabilities directly associated with the assets
held
for sale -- 10,254
Other current liabilities 385 647
Total current liabilities 152,413 159,417
Long-term debt 84,316 64,186
Derivative liability 1,406 1,311
Provisions 6,639 6,726
Deferred tax liabilities 10,216 12,646
Lease obligations 3,053 3,244
Other non-current liabilities 285 842
Total non-current liabilities 105,915 88,955
Total liabilities 258,328 248,372
Non-controlling interest 453 2,714
Equity attributable to common shareholders 403,703 402,168
Total equity 404,156 404,882
Total liabilities and equity $ 662,484 $ 653,254
See accompanying notes to this table in Neo's unaudited
interim condensed consolidated financial statements
as at September 30, 2025 and for the period then ended.
CONSOLIDATED RESULTS OF OPERATIONS
($000s) Three Months Ended Nine Months Ended
September 30, September 30
2025 2024 2025 2024
Revenue $ 122,213 $ 111,281 $ 358,523 $ 340,925
Cost of sales
Cost excluding
depreciation and
amortization 86,807 75,851 254,458 248,849
Depreciation and
amortization 2,002 2,107 5,942 6,041
Gross profit 33,404 33,323 98,123 86,035
Expenses
Selling, general and
administrative 14,985 15,707 46,619 44,954
Share-based compensation 4,081 909 8,530 2,289
Depreciation and
amortization 1,793 1,791 5,299 5,395
Research and development 4,181 3,474 11,512 9,976
(Reversal of impairment)
/ impairment of assets -- 266 -- 473
Total expenses 25,040 22,147 71,960 63,087
Operating income 8,364 11,176 26,163 22,948
Other income (expense) 205 (696) (4,483) 2,897
Finance cost, net (2,464) (10,695) (14,254) (13,607)
Foreign exchange (loss)
gain (519) 1,235 7,966 (31)
Income from operations
before income taxes and
equity
income of associates 5,586 1,020 15,392 12,207
Income tax expense (4,573) (2,991) (10,528) (10,374)
Income (loss) from
operations before equity
income
(loss) of associates 1,013 (1,971) 4,864 1,833
Equity income (loss) of
associates (net of
income
tax) 345 (740) 795 (2,812)
Net income (loss) $ 1,358 $ (2,711) $ 5,659 $ (979)
Attributable to:
Common shareholders $ 1,363 $ (2,627) $ 5,655 $ (895)
Non-controlling interest (5) (84) 4 (84)
$ 1,358 $ (2,711) $ 5,659 $ (979)
Earnings (loss) per share attributable
to common
shareholders:
Basic $ 0.03 $ (0.06) $ 0.14 $ (0.02)
Diluted $ 0.03 $ (0.06) $ 0.13 $ (0.02)
For additional information, refer Neo's MD&A for
the three and nine months ended September 30, 2025.
RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW
Unaudited; Three Months Ended September Nine Months Ended September 30
($000s, except 30,
volume)
2025 2024 2025 2024
Sales volume
(tonnes) 3,537 3,036 10,228 9,256
Revenue $ 122,213 $ 111,281 $ 358,523 $ 340,925
Net income
(loss) $ 1,358 $ (2,711) $ 5,659 $ (979)
Add back:
Finance costs,
net 2,464 10,695 14,254 13,607
Income tax
expense 4,573 2,991 10,528 10,374
Depreciation
and
amortization
included in
cost of
sales 2,002 2,107 5,942 6,041
Depreciation
and
amortization
included in
operating
expenses 1,793 1,791 5,299 5,395
EBITDA 12,190 14,873 41,682 34,438
Adjustments to
EBITDA:
Other (income)
expense (205) 696 4,483 (2,897)
Foreign
exchange loss
(gain) 519 (1,235) (7,966) 31
Equity
(income) loss
of associates (345) 740 (795) 2,812
Share-based
compensation 4,081 909 8,530 2,289
Project
start-up and
transition
costs 2,936 3,306 9,345 6,561
Impairment of
assets -- 266 -- 473
Adjusted
EBITDA $ 19,176 $ 19,555 $ 55,279 $ 43,707
Adjusted
EBITDA Margin 15.7 % 17.6 % 15.4 % 12.8 %
Less:
Capital
expenditures $ 8,214 $ 21,339 $ 18,447 $ 57,387
Free Cash Flow $ 10,962 $ (1,784) $ 36,832 $ (13,680)
For additional information, refer Neo's MD&A for
the three and nine months ended September 30, 2025.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME
($000s) Three Months Ended September Nine Months Ended September
30, 30
2025 2024 2025 2024
Net income
(loss) $ 1,358 $ (2,711) $ 5,659 $ (979)
Adjustments to
net income
(loss):
Foreign exchange
loss (gain) 519 (1,235) (7,966) 31
Impairment of
assets -- 266 -- 473
Share-based
compensation 4,081 909 8,530 2,289
Project start-up
& transition
costs 2,936 3,306 9,345 6,561
Other items
included in
other (income)
expense (200) 891 4,628 (1,999)
Tax impact of
the above items (201) (287) (300) 407
Adjusted net
income $ 8,493 $ 1,139 $ 19,896 $ 6,783
Attributable to:
Common
shareholders $ 8,498 $ 1,223 $ 19,892 $ 6,867
Non-controlling
interest (5) (84) 4 (84)
Weighted average number of common shares outstanding:
Basic (000s) 41,588 41,752 41,732 41,778
Diluted (000s) 43,982 42,466 43,356 42,459
Adjusted earnings per share attributable to common
shareholders:
Basic $ 0.20 $ 0.03 $ 0.48 $ 0.16
Diluted $ 0.19 $ 0.03 $ 0.46 $ 0.16
For additional information, refer Neo's MD&A for
the three and nine months ended September 30, 2025.
SOURCE Neo Performance Materials, Inc.
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