Executive Commentary
"The first quarter of 2026 was a period of fundamental transformation for USA Rare Earth, defined by the successful execution of our $1.5 billion PIPE financing and the announcement of an agreement for the 100% economic consolidation of our Round Top project," said Barbara Humpton, CEO of USA Rare Earth. "These steps, alongside the commissioning of Phase 1a at Stillwater, provide additional resources and operational momentum that continue to propel USA Rare Earth's mission to become the global rare earth leader and serve the most demanding sectors of the modern economy. We have moved with precision to assemble a world-class leadership team and board capable of scaling this industrial operating system at global scale."
Ms. Humpton continued, "Our strategic momentum only accelerated in the weeks following the quarter's end. By securing a definitive agreement to acquire Serra Verde, the only scaled producer of all four magnetic rare earths outside Asia, and agreeing to enter into a strategic partnership with Carester, we are closing the loop on our integrated global value chain. Bolstered by a strong cash position and the anticipated finalization of our $1.6 billion Department of Commerce funding package, we are well-positioned to establish the partner of choice for advanced manufacturers while ensuring a secure, high-purity supply of the critical materials essential for Western industrial leadership."
First Quarter Highlights
Financial Highlights
The Company's cash balance as of March 31, 2026 was approximately $1.75 billion
Revenues of $5.7 million
Net cash used in operating activities of $18.6 million
Capital expenditures of $38.6 million
Business Highlights
Proposed U.S. Government collaboration: In January 2026, the Company announced a proposed collaboration with the U.S. Government to accelerate domestic rare earth capabilities, and build what we believe should represent the largest domestic heavy rare earth, critical mineral, metal and magnet platform in the United States by 2030. The proposed collaboration is subject to the execution of definitive documentation, anticipated to be completed in May 2026, would provide access to $1.6 billion in funding under the Department of Commerce's CHIPS Program to reimburse the Company for capital expenditures incurred in executing its business plan upon the achievement of certain milestones.
Closed a $1.5 billion common stock private capital raise in January 2026: In conjunction with the U.S. Government non-binding letter of intent ("LOI") the Company raised $1.5 billion through a common stock PIPE, which closed in January 2026. This capital raise met one of the milestones outlined in the LOI and we believe will accelerate the build out of the Company's mine-to-magnet value chain.
Commissioned Phase 1A at our Stillwater magnet manufacturing facility: In March 2026, the Company announced the commissioning of Phase 1a at its Stillwater magnet manufacturing facility. This should enable the Company to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets in Q2 2026. Phase 1a is expected to ramp to a run rate capacity of 600 metric tons per year (MTPA) by the end of Q4 2026. Phase 1b is expected to bring capacity at the Stillwater Facility to a total of 1,200 MTPA in Q1 2027.
Expanded magnet pipeline across a diverse customer base: Our magnet business continues to mature with discussions across a diverse global customer base in the defense, industrial, mobility, healthcare, and energy sectors. This commercial momentum is further evidenced by a series of successful onsite vendor qualification visits from leaders in the semiconductor, industrial motor, heavy equipment, and aerospace sectors.
Commenced expansion of metal & alloy capacity to meet growing demand: In response to demand from our internal magnet manufacturing capabilities and the opportunities presented to widen our third-party customer base, the Company expects to expand metal making and alloy capacity at LCM's Cheshire, UK location to 3,000 MTPA by the end of 2026. LCM has seen a significant increase in interest for samarium-cobalt (SmCo), NdFeB and specialty alloys, fueled by third-party magnet manufacturers largely serving the aerospace, semiconductor, mobility, and consumer electronics sectors. Additionally, the Company is seeing heightened demand for specialized light rare earth, heavy rare earth and critical mineral metals, highlighting the broad product capabilities at LCM.
Announced selection of Fluor Corporation and WSP Global Inc. to advance our accelerated mining plan: Fluor and WSP Global were selected as engineering, procurement, and construction management (EPCM) partners for the build-out and commercialization of the Round Top deposit. The combination of Fluor and WSP brings significant expertise across deposit geology, mine design and planning, and processing design, engineering, and construction. Fluor and WSP will also lead the authoring of the Round Top Preliminary Feasibility Study (PFS) that is expected to be published by the end of Q3 2026, and the Definitive Feasibility Study (DFS) that is expected to be published in Q1 2027.
Announced plans to build a 3,750 MTPA plant through LCM Europe to produce metal and alloy in Lacq, France, co-located with Carester SAS's (Carester) Caremag oxide and recycling facility. Together, this platform is intended to establish a comprehensive supply chain for rare earth processing, metal and alloy production in Europe, and enhance the Company's globally integrated rare earth value chain, from mine to magnet.
Agreed to acquire Texas Mineral Resources Corporation: In March 2026, the Company announced a definitive agreement to acquire Texas Mineral Resources Corp. (TMRC). The transaction will establish the Company as the sole operator and 100% economic beneficiary of the Round Top project upon closing, subject to customary conditions. This strategic transaction will streamline the Round Top project ownership structure and is expected to streamline the Company's operations as it implements its accelerated mining plan.
Signed mutual sales and distribution agreement with Arnold Magnetic Technologies Corp., a subsidiary of Compass Diversified. Under this non-exclusive partnership, the Company will offer Arnold's finished permanent magnets produced from SmCo and NdFeB, and Arnold will offer the Company's processed and refined NdFeB feedstock and finished magnets. The agreement strengthens the domestic supply chain for mission-critical applications by expanding availability of U.S.-manufactured rare earth magnets.
Expanded the corporate leadership team: In March 2026, the Company appointed Valerie Ford Jacob as Chief Legal Officer, Gregory Bowman as Chief Global Policy Officer and Head of External Relations, and J.B. Lowe as Vice President, Head of Investor Relations. These executives are expected to deepen engagement with policymakers, investors, and other stakeholders.
Added expertise to the Board: In March 2026, the Company announced the addition of GlobalFoundries Executive Chairman to its Board of Directors. Dr. Thomas Caulfield brings decades of experience across leadership and global operations at leading technology companies, and has relevant expertise in scaling complex, industrial platforms and strategic capacity at the intersection of technology, manufacturing and national priorities.
Recent DevelopmentsSubsequent to quarter-end, the Company announced the following achievements and milestones:
Announced investment in Carester and strategic partnership in France: In April 2026, the Company along with InfraVia, the leading independent European private investment platform specialized in real assets and technology investments, announced it had entered into an investment term sheet aiming at each of them holding approximately 12.5% equity interests in Carester, subject to the execution of a definitive documentation and closing conditions. We believe the platform will unite the technological expertise, process innovation, and production capacity of USA Rare Earth, Less Common Metals (LCM), and Carester to accelerate development and strengthen capabilities across the rare earth value chain.
Completed first commercial Yttrium metal production: In April 2026, the Company announced the first commercial pour of 2N–2N5 (99%–99.5% purity) yttrium metal through its wholly-owned subsidiary, LCM, at its facility in Cheshire, United Kingdom. This milestone places the Company among a limited number of producers of commercial-grade yttrium metal operating outside of China. Yttrium is a key material in thermal barrier coatings used on turbine blades and other high-temperature aerospace components, where it enhances oxidation resistance and improves adhesion, helping extend component life under intense thermal and mechanical stress. Yttrium is also used in electronics, energy systems, lasers, superconductors, and advanced ceramics, where its chemical stability and high-temperature performance are essential.
Expanded the corporate leadership team with additional expertise: In April 2026, the Company announced the appointment of Chaitan Kansal as Chief Commercial Officer. Mr. Kansal brings more than 25 years of experience across the critical minerals, specialty chemicals, and advanced materials sectors. Mr. Kansal's deep experience across lithium, battery materials, and specialty chemicals - combined with a track record of executing go-to-market strategies at global scale - makes him the ideal leader to drive customer engagement, secure long-term offtake partnerships, and position the Company as the partner of choice for rare earth products across the Western world.
Announced definitive agreement to acquire Serra Verde Group for ~$2.8 billion, creating the global rare earth leader: In April 2026, the Company announced a definitive agreement to acquire 100% of Serra Verde Group, owner of the Pela Ema rare earth mine and processing plant in Goiás, Brazil. The acquisition would secure the only large-scale producer of vital HREEs outside Asia, de-risk upstream supply with a 15-year 100% offtake agreement including price floors, and accelerate the Company's EBITDA and cash-flow generation.
Awarded $14.2 million grant from the Texas Semiconductor Innovation Fund to accelerate round top heavy rare earth project. In May 2026, the Company announced it was awarded a $14.2 million grant from the Texas Semiconductor Innovation Fund to accelerate the development of its Round Top Mountain heavy rare earth project in Hudspeth County, Texas. The award supports a project expected to generate approximately 260 new jobs and to represent more than $1.4 billion in capital investment in West Texas.
2026 Outlook
As it builds a global leader in rare earths, in 2026 the Company expects to:
Sign the Definitive Funding Agreement and Definitive Funding Award with the U.S. Government in May 2026: Subject to the achievement of milestones, these agreements would provide access to $1.6 billion in funding under the Department of Commerce's CHIPS Program. This capital is expected to accelerate and derisk the Company's growth objectives, and support a business that by 2030 we expect to represent the premier domestic heavy rare earth, critical mineral, metal and magnet platform in the United States.
Commission the hydrometallurgical demonstration facility in Colorado in Q2 2026: This demonstration facility is expected to run three separate continuous demonstrations, including the Round Top flowsheet, third-party MREC (mixed rare earth carbonate) separation, and swarf recycling. These three demonstrations are expected to be complete by the end of 2026, providing oxide product for qualification by potential customers. Further, this demonstration scale data should serve as the basis for commercial engineering of the Round Top project, the third party MREC separation facility, and the swarf recycling facility.
Complete the Round Top Definitive Feasibility Study (DFS) in Q4 2026: This DFS is expected to be completed in Q4 2026 and published in Q1 2027, and is expected to provide the balance of commercial engineering and design and definitive project economics.
Reach 600 MTPA of run-rate magnet manufacturing capacity at the Stillwater Facility in Q4 2026: This manufacturing capacity build out is expected to support the Company's growing pipeline of magnet customers across the aerospace, defense, semiconductor, industrial motor, heavy equipment, mobility, healthcare, and energy sectors.
Reach 3,000 MTPA of run-rate metal making and alloy capacity at LCM in Q4 2026: This capacity build out is expected to support the Company's internal metal and alloy needs for magnet manufacturing, as well as a growing pipeline of third-party rare earth and critical mineral metal and alloy demand.
Investor Day
The Company intends to host an Investor Day in Q3 2026 to provide a more comprehensive overview of its strategic vision, and an update on its operational and financial outlook. Event details will be forthcoming.
Financial Highlights
Three Months Ended March 31,
2026
2025
(In thousands, except for per share amounts)
Loss from operations
$
(36,675
)
$
(8,718
)
Net (loss) income attributable to USA Rare Earth, Inc.
(66,989
)
51,832
Net (loss) income per share attributable to USA Rare Earth, Inc. - Diluted
(0.34
)
0.58
Net cash used in operating activities
(18,596
)
(10,329
)
Cash
1,749,644
359,925
Non-GAAP Financial Highlights (1)
Three Months Ended March 31,
2026
2025
(In thousands, except for per share amounts)
Adjusted net loss attributable to USA Rare Earth, Inc.
$
(24,145
)
$
(12,030
)
Adjusted net loss per share attributable to USA Rare Earth, Inc. - Diluted
(0.12
)
(0.14
)
(1) Refer to the sections "About Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively.
Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the proposed U.S. government collaboration and the expected timing of executing definitive documents relating thereto, the capacity and timing of the production of magnets at the Stillwater magnet manufacturing facility, commissioning the Company's hydrometallurgical demonstration facility in Colorado, the Company's magnet sales pipeline and obtaining magnet purchase orders, the amount and timing of the expansion of strip cast capacity at LCM's Cheshire, UK location, the timing of publishing the PFS and DFS for Round Top, the timing of commercial production at Round Top, the construction of a plant to produce metal and alloy in Lacq, France, the proposed acquisition of Serra Verde Group ("SVG"), the expected timing and completion of the SVG acquisition, the expected benefits of the SVG acquisition including anticipated financial results and synergies, our anticipated operating and financial performance, our business plans, strategy, goals and prospects, our plans for and prospects of our other acquisitions, investments and other business development activities, including the announced Carester and TMRC transactions, our ability to successfully capitalize on growth opportunities and prospects, and other statements regarding the Company's expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as ""accelerate," "advance," "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "growth," "intend," "may," "might," "plan," "potential," "project," "propose," "should," "target," "vision," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks that the proposed transactions with SVG, Carester and TMRC may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; the ability of our Stillwater magnet manufacturing facility to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications while developing our projects; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; our ability to enter into definitive agreements for the proposed U.S. Government financing, which is subject to conditions precedent and final government approvals, on the anticipated terms or at all and, if executed, to satisfy the milestones and other conditions of ...
