09:24 AM EST, 11/14/2025 (MT Newswires) -- Neo Performance Materials ( NOPMF ) on Friday reported improved and higher than expected third quarter adjusted earnings and revenues, while it raised its 2025 adjusted EBITDA outlook.

The company's third-quarter adjusted net income was reported at US$8.5 million, or $0.20 earnings per share basic and $0.19 earnings per share diluted, compared to $1.1 million or $0.03 earnings per share basic and diluted in the corresponding year-ago quarter. The consensus estimates compiled by FactSet for non-GAAP EPS was $0.13 per share.

Third-quarter revenue was US$122.2 million, compared to $111.3 million in the year-ago quarter. The consensus estimates compiled by FactSet for revenue was $109.5 million.

Neo delivered $19.2 million and $55.3 million in Adjusted EBITDA 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. The company raised its 2025 adjusted EBITDA outlook to $67-$71 million, up from $64-$68 million as announced in August.

"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. He noted that in delivering $19 million in Q3 Adjusted EBITDA, this brings year to date total to $55 million, a 27% increase compared to the same period last year, prompting the raised guidance.

"So far this year," Suleman added, "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."

NEO noted a quarterly dividend of C$0.10 per common share was declared on Nov. 11, 2025, unchanged from the last quarter, for shareholders of record on Dec. 19, 2025, with a payment date of Dec. 29, 2025.

Its shares fell 7.65% on the TSX yesterday.