Neo Performance Materials Inc. ("Neo") (TSX: NEO) reported today its first quarter 2025 financial results. The financial statements and management's discussion and analysis ("MD&A") for the three months ended March 31, 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. 

"Neo's Q1 2025 results have again demonstrated its resilience and strategic importance within global supply chains. Amid an increasingly complex global macro environment, Neo continues to deliver exceptional performance. Our financial results exceeded expectations, demonstrating our ability to navigate volatility while maintaining a focus on execution. We have made significant progress on our growth projects, particularly in ramping up our rare earth permanent magnet production capabilities in Europe. We have also taken a leading role in the push to localize rare earth supply chains."

"Chemicals & Oxides delivered its strongest EBITDA performance in recent years, driven by our emission catalyst business and increased volumes in water treatment. Magnequench performed in line with expectations, delivering strong EBITDA, and our Rare Metals segment posted solid results despite the anticipated normalization of hafnium prices. These achievements demonstrate our dedication to operational excellence and margin improvement. In addition, completing the JAMR and ZAMR divestitures has amplified our financial strength, positioning us well for growth and disciplined investment in high-return projects."

"Looking ahead, at a time when our products are more in demand than ever, Neo is uniquely positioned to address critical structural gaps in the global supply chain, particularly the absence of permanent magnet manufacturing and heavy rare earth separation capabilities outside of China. We are continuing the engineering and design work on our pilot-scale heavy rare earth separation line in Estonia. Our deep technical expertise and strategically located operational base enable us to meet the accelerating demand for robotics, wind farms, and EVs across global markets. Our investments to date have built the foundation for tomorrow's outperformance. Neo is ready to confidently navigate the path ahead," said Rahim Suleman, Neo's President and Chief Executive Officer.

European Permanent Magnet Facility Launch on Track

Heavy Rare Earth Pilot Line Being Designed at the Silmet Facility

Completed Sale of Majority Equity Interest of China Rare Earth Separation Assets

Conference Call

Neo's first quarter 2025 financial results webcast and conference call details are provided below.

Webcast / Conference Call Details:

Date: Friday, May 9, 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.

A replay of the webcast will be available by clicking on the webcast LINK above and will be archived on the Company's website for a limited period of time. A teleconference recording may be accessed by calling 1-289-819-1450 (local) or 1-888-660-6345 (toll-free long distance) and entering passcode 40582# until June 9, 2025.

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", "Free Cash Flow conversion", "Net Debt", 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 presentation 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 months ended March 31, 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 â?? magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys â?? 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 China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as one dedicated research and development centre 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 presentation 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 fan motors and superalloys; expectations regarding the growth of superconductor materials; anticipated completion and launch of Neo's new PM facility in Europe and related commercial production estimates, forecasted budget, commissioning and costs associated with the facility; targeted reductions in SG&A; Neo's requalified product portfolio, including the NAMCO product portfolio, and continued product qualification expected in 2025; anticipated final costs associated with the NAMCO project; expectations regarding tariffs and export controls; securing new automotive customer agreements for PM and emissions control 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, including Neo's 2025 Adjusted EBITDA 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 known and unknown 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 presentation, 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 restrictions; securing new automotive customer agreements for PM and emissions control 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 Neo's continuous disclosure filings available under its profile at www.sedarplus.ca. Information contained in forward-looking statements in this presentation 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 FIRST QUARTER 2025 CONSOLIDATED PERFORMANCE

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

See accompanying notes to this table in Neo's unaudited interim condensed consolidated financial statements as at March 31, 2025 and for the period then ended.

CONSOLIDATED RESULTS OF OPERATIONS

For additional information, refer Neo's MD&A for the three months ended March 31, 2025.

RECONCILIATIONS OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW

 

RECONCILIATIONS OF NET (LOSS) INCOME TO ADJUSTED NET (LOSS) INCOME

 

SOURCE Neo Performance Materials, Inc.

SOURCE: Neo Performance Materials, Inc.

Contacts: Irina Kuznetsova, Investor Relations, (416) 367-8588 ext. 7334,
ir@neomaterials.com; Vasileios Tsianos, Media Requests, (416) 367-8588 ext. 7335,
media@neomaterials.com, www.neomaterials.com

COMTEX_465344740/2197/2025-05-09T07:00:00