08:14 AM EDT, 05/12/2026 (MT Newswires) -- Neo Performance Materials ( NOPMF ) , trading at 52 week highs, on Tuesday said its adjusted net income for the first quarter more than doubled, boosted by better than expected revenues, while increasing its 2026 Adjusted EBITDA outlook

Adjusted Net Income for Q1 2026 was US$14.9 million, or $0.36 earnings per share, compared to Adjusted Net Income of $6.5 million or $0.15 earnings per share for Q1 2025. Commencing this quarter, Neo is revising the calculation of Adjusted Net Income to better reflect underlying operating performance attributable to Neo shareholders and improve comparability across periods.

Revenue for Q1 2026 was $155.0 million, compared to $121.6 million for Q1 2025 and beating a consensus forecast at FactSet of $127.3 million.

Adjusted EBITDA for Q1 2026 was $36.2 million versus $17.1 million for Q1 2025. This resulted in Adjusted EBITDA margin of 23.4% for the quarter, representing an improvement of 930 BPS over 2025.

Neo has increased its 2026 Adjusted EBITDA outlook to $100 million to $110 million (up from $75 to $80 million) based on strong first quarter performance, supportive pricing conditions across the critical materials portfolio, improved demand visibility driven by customer contracting activity, and disciplined operational execution.

Rahim Suleman, President and Chief Executive Officer, said: "We saw both strong demand and strong pricing across all three business units and all business units improved year over year. Our Rare Metals business, which focusses on critical materials such as hafnium and gallium contributed meaningfully to earnings growth. We advanced key strategic milestones, including the production of our one-millionth magnet at our European Permanent Magnet facility, and the commissioning of our new small scale heavy rare earth separation production line in Silmet, a critical step in our strategy to build the most vertically integrated rare earth magnetics value chain in Europe."

Suleman added: "Given our strong first-quarter performance, healthy demand outlook and continued favourable pricing environment, we are raising our full-year Adjusted EBITDA guidance to a range of $100 million to $110 million. As global supply chains increasingly prioritize security and localization of critical materials, and structural growth drivers including AI infrastructure, electrification, automation and aerospace continue to underpin a supportive demand environment, Neo is well positioned for the future. Looking ahead, we remain focused on delivering disciplined growth, strong execution and long-term value for our stakeholders."

Shares in NEO rose $0.56 or 1.9% to $29.64 in Canada yesterday.