USA Rare Earth Posts $3 Million in Quarterly Revenue After Serra Verde Acquisition

November 10, 2026 | By Semahegn Nigatu

USA Rare Earth reported revenue of 3 million US dollars in the third quarter of 2026, following its acquisition of Brazil-based rare earth producer Serra Verde, as the company advances plans to build an integrated mining, processing and permanent magnet manufacturing business.

The Nasdaq-listed company reported the results for the three months ended September 30, 2026, compared with no revenue in the corresponding period last year. However, its operating loss widened to 141.4 million US dollars from 15.9 million US dollars a year earlier.

Net income attributable to USA Rare Earth shareholders reached 11.7 million US dollars, reversing a loss of 156.7 million US dollars in the third quarter of 2025. The positive result included 148.1 million US dollars in other income, largely reflecting gains from the fair value of financial instruments.

For the first nine months of 2026, revenue reached 14.5 million US dollars, while the company recorded an operating loss of 224.4 million US dollars and a net loss attributable to shareholders of 65.6 million US dollars, compared with 247.4 million US dollars in the same period last year.

Operating cash outflow increased to 219 million US dollars during the nine-month period, compared with 21.1 million US dollars a year earlier.

USA Rare Earth held 1.16 billion US dollars in cash, cash equivalents and restricted cash as of September 30, compared with 359.9 million US dollars at the end of 2025.

The company's acquisition of Serra Verde, completed in September, expanded its operations into Brazil's rare earth mining and processing industry. Serra Verde operates the Pela Ema mine in Goiás state and produces rare earth materials used in permanent magnets and other industrial applications.

The Brazilian operation completed the first stage of its optimisation and expansion programme in September, on schedule and within budget. Commercial-scale shipments of mixed rare earth carbonate (MREC) began in October, with sales recorded in November.

The first expansion stage targets annual production of 4,000 tonnes of total rare earth oxides. A second stage is expected to add another 2,400 tonnes of annual capacity by the end of 2027.

The company also recorded its first commercial sales of neodymium-iron-boron permanent magnets in September from its 600-tonne-per-year manufacturing facility in Stillwater, Oklahoma. The initial sales involved sintered magnet blocks supplied to a high-performance materials manufacturer.

In Colorado, USA Rare Earth produced its first dysprosium oxide and neodymium-praseodymium oxide samples from recycled magnet manufacturing waste in July. It subsequently delivered its first yttrium oxide samples to a major customer in October.

The company is also developing a rare earth metals and magnet manufacturing facility in Blacksburg, South Carolina. Construction began in September at a 124-acre site, with the project representing an estimated investment of 1.2 billion US dollars. The facility is expected to create approximately 490 jobs and target annual production capacity of 6,400 tonnes each of strip-cast metal and alloy and sintered permanent magnets.

USA Rare Earth also disclosed that a US government-backed special purpose vehicle established to purchase Serra Verde's first-stage output had secured 1.55 billion US dollars in funding. The package includes a 750 million US dollar investment from the US Department of War, a commitment for a revolving credit facility of up to 500 million US dollars from an institutional bank and a US government forward purchase contract covering at least 300 million US dollars of rare earth products over five years.

The company is pursuing an integrated supply chain spanning mining, processing, separation, metals, alloys and permanent magnet manufacturing, with operations and projects in the United States, Brazil and the United Kingdom.

Thras Moraitis, who assumed the chief executive position on October 1, said the company was focused on integrating its businesses and improving operational execution as demand for secure supplies of rare earth products increases across technology-driven industries.

Source: FSX Business News