USA Rare Earth (NASDAQ:USAR) Announces Earnings Results

USA Rare Earth (NASDAQ:USAR) posted its earnings results on Monday. The company reported ($0.44) earnings per share for the quarter, missing the consensus estimate of ($0.19) by ($0.25), FiscalAI reports. The business had revenue of $3.00 million during the quarter.

Here are the key takeaways from USA Rare Earth’s conference call:

• Serra Verde began commercial-scale shipments in October and recorded its first sales in November; the company expects at least 325 tons of TREO sales in Q4. Its realized basket value was about $97/kg quarter to date, more than twice the $43/kg floor, driven by record dysprosium and terbium prices.
• Raw-material shortages, particularly dysprosium oxide and samarium metal, constrained LCM and Stillwater production and reduced quarterly revenue to $3 million. Adjusted net loss was $126 million, while gross margins also faced pressure from higher input costs.
• The company reported $1.2 billion in cash and outlined a Serra Verde ramp to 4,000 tons of TREO annually in 2027, followed by about 6,400 tons by year-end. Management said the expansion is progressing, with phase 2 already 40% complete and more than 75% of its capital committed.
• Stillwater made its first commercial magnet sales, but current sales are prototypes and customer qualification can take six months to two years. The company has signed letters of intent and MOUs covering about 2,500 tons of magnets, though conversion to recurring production sales remains to be demonstrated.
• Round Top drilling results so far were consistent with historical data and confirmed a 72% heavy rare earth distribution, but the project remains in development. The company expects its S-K 1300 report in Q3 2027 and said it is targeting a final investment decision in the second half of 2027.

USA Rare Earth Stock Performance

USAR stock opened at $8.76 on Tuesday. USA Rare Earth has a 1 year low of $6.84 and a 1 year high of $32.80. The stock’s 50 day moving average price is $13.04 and its 200 day moving average price is $18.53. The firm has a market cap of $2.14 billion, a P/E ratio of -3.60 and a beta of 2.79.

Analysts Set New Price Targets

Several research firms have recently issued reports on USAR. Jefferies Financial Group started coverage on USA Rare Earth in a research note on Wednesday, September 2nd. They set a “buy” rating and a $21.00 price target for the company. Texas Capital upgraded shares of USA Rare Earth to a “strong-buy” rating in a research report on Tuesday, October 20th. Roth Capital lowered their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Needham & Company LLC dropped their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of USA Rare Earth in a report on Wednesday, November 4th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $33.71.

Key Stories Impacting USA Rare Earth

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USA Rare Earth began commercial-scale shipments of mixed rare earth carbonate from Serra Verde and recorded its first sales under a 15-year, fully committed offtake agreement. Production is targeted to ramp toward about 4,000 tons per year by Q2 2027. Commercial-scale shipments and sales
• Positive Sentiment: The company ended Q3 with $1.2 billion in cash, providing funding for its development plans. It also reported its first commercial magnet sales and delivered initial yttrium oxide samples to a prospective defense, medical and specialty-coatings customer for testing. Q3 earnings call highlights First yttrium oxide samples
• Negative Sentiment: Q3 results missed expectations: the company reported a loss of $0.44 per share versus an expected loss of $0.19, with revenue of $3 million. Higher costs and raw-material shortages constrained production, while cash burn increased. Q3 results and estimates Shipments and cash burn
• Negative Sentiment: The Round Top project report has been delayed to Q3 2027, extending uncertainty around the project’s timeline. Q3 earnings call highlights

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently bought and sold shares of the stock. Allworth Financial LP purchased a new stake in shares of USA Rare Earth in the second quarter valued at $38,000. Ascentis Independent Advisors purchased a new stake in USA Rare Earth during the 1st quarter worth about $27,000. Ameritas Advisory Services LLC raised its stake in USA Rare Earth by 276.3% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,987 shares of the company’s stock valued at $43,000 after purchasing an additional 1,459 shares during the last quarter. First PREMIER Bank raised its stake in USA Rare Earth by 100.0% in the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company’s stock valued at $43,000 after purchasing an additional 1,000 shares during the last quarter. Finally, MCF Advisors LLC purchased a new position in USA Rare Earth in the 2nd quarter valued at about $43,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing.

The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.

USA Rare Earth is also developing magnet manufacturing capabilities in Stillwater, Oklahoma, and owns Less Common Metals, a U.K.-based producer of rare-earth metals and alloys.