London, August 11th (Argus) - Neo High-Performance Materials, headquartered in Toronto, has announced that its second-quarter results set a new record. The tight supply and high prices of gallium, hafnium and other key metals have boosted the performance.
From April to June, the company's operating revenue increased to $205.7 million, up 79.3% year-on-year.
The company's overall adjusted earnings before interest, taxes, depreciation and amortization soared by 200% year-on-year, reaching a record high of $57 million.
Neo's rare metals division was the main profit driver, achieving a record adjusted earnings before interest, taxes, depreciation and amortization of $44.4 million, up 313% year-on-year. Neo attributed this to the fact that the prices of hafnium, gallium and tantalum reached record highs, while maintaining stable sales in the context of global supply shortages.
The company reported that its gallium business achieved a record high gross profit, thanks to strong prices and growing market concerns about supply security. Affected by China's export control, the price of gallium soared by nearly 230% in the past year, and Neo is one of the few gallium recyclers in North America. Neo also pointed out that the demand for hafnium is strong, and it has signed contracts that will continue until 2027.
Supported by the continuous strong performance of the key material portfolio, the company raised its 2026 full-year adjusted earnings before interest, taxes, depreciation and amortization guidance from the previous range of $100 million to $110 million to $140 million to $150 million, and expects the performance to reach the upper end of this range.
Neo's Magnequench magnetic materials business achieved adjusted earnings before interest, taxes, depreciation and amortization of $10.5 million, up 39% year-on-year, thanks to a 35% increase in bonded magnet shipments and strong demand in the electrification, industrial automation and advanced computing infrastructure markets.
The company stated that its European permanent magnet factory in Estonia is still expected to be fully commercialized later this year. The company is also advancing an expansion plan to increase annual production capacity from the current 2,000 tons to 5,000 tons.
