Press Release: Neo Performance Materials Reports Third Quarter 2025 Results

Dow Jones
Nov 14, 2025

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.

/CONTACT:

Copyright CNW Group 2025 
 

(END) Dow Jones Newswires

November 14, 2025 07:00 ET (12:00 GMT)

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