MP Materials Corp (MP)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -93,347 | -80,043 | -49,653 | 11,412 | 33,075 | 100,820 | 189,407 | 273,135 | 341,152 | 348,753 | 316,208 | 252,898 | 160,195 | 111,773 | 74,709 | -20,776 | -39,461 | -44,691 | -56,381 | 472 |
| Revenue (ttm) | US$ in thousands | 203,855 | 184,074 | 173,663 | 206,429 | 253,445 | 305,485 | 377,414 | 456,952 | 527,510 | 533,374 | 508,683 | 438,239 | 331,952 | 275,021 | 216,289 | 173,562 | 134,310 | 113,180 | 99,074 | 81,407 |
| Pretax margin | -45.79% | -43.48% | -28.59% | 5.53% | 13.05% | 33.00% | 50.19% | 59.77% | 64.67% | 65.39% | 62.16% | 57.71% | 48.26% | 40.64% | 34.54% | -11.97% | -29.38% | -39.49% | -56.91% | 0.58% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-93,347K ÷ $203,855K
= -45.79%
MP Materials Corp's pretax margin has exhibited significant fluctuations over the past few years. The company experienced a negative pretax margin for most of 2020 and 2021, indicating that its total operating expenses and interest payments exceeded its pre-tax earnings during those periods.
However, starting from June 2021, the pretax margin showed a positive trend, reaching a high of 65.39% by September 2022. This improvement suggests that MP Materials Corp was able to effectively control its costs and increase its profitability relative to its revenue.
Despite the positive momentum, there was a slight decline in the pretax margin in the following quarters, dropping below 20% by December 2023. This decline may raise concerns about the company's ability to sustain its profitability levels in the long term.
The pretax margin further deteriorated in 2024, with negative margins recorded in the second half of the year, reflecting challenges in managing expenses and generating sufficient pre-tax income.
Overall, MP Materials Corp's pretax margin performance has been volatile, with periods of both positive and negative margins. It is essential for the company to address cost control measures and revenue generation strategies to enhance its financial performance and ensure long-term sustainability.
Peer comparison
Dec 31, 2024