Neo Performance Materials Reports Second Quarter 2026 Results

About this update from Neo Performance Materials, Inc.

Neo Delivers Record Quarterly Adjusted EBITDA of $57 Million, Exceeding Expectations on Strong Demand and Sustained Favourable Pricing Environment TORONTO, Aug. 11, 2026 /CNW/ -- Neo Performance Materials Inc. (" Neo " or the " Company ") (TSX: NEO) (OTCQX: NOPMF) today announced its financial results for the second quarter of 2026. Neo's financial statements and management's discussion and analysis (" MD&A ") for the three and six months ended June 30, 2026, are available at neomaterials.com  and on SEDAR+ at sedarplus.ca . All financial amounts in this news release and the Company's financial disclosures are in United States dollars, unless otherwise stated. Consolidated Financial Highlights "Neo delivered outstanding second-quarter results, with Adjusted EBITDA of $57 million, up over 200% year-over-year. This represents our second straight record quarter and reflects continued strength in volumes across all of our segments, disciplined operational execution and a sustained favourable pricing environment," said Rahim Suleman, President and Chief Executive Officer of Neo. "On the back of this momentum and a healthy demand outlook, in early July we raised our full-year Adjusted EBITDA guidance to $140 million to $150 million, and we expect results at the high end of this range — this would represent close to double our full year 2025 Adjusted EBITDA of $76 million. The updated guidance also reflects higher contracted volumes of critical materials, including hafnium, for the second half of 2026 and into 2027. This gives us improved visibility, and it's supported by a pricing environment that remains strong. As we continue to advance our strategic priorities, we are well-positioned to build on this progress through the remainder of 2026 and beyond." Strategic and Operational Highlights Consolidated Financial Highlights Segment Highlights Magnequench Delivers Volume Growth and Strongest Quarterly Adjusted EBITDA since Q2 2022: Chemicals & Oxides Delivers Significant Earnings Growth: Rare Metals Delivers Adjusted EBITDA Improvement of Over 300 Percent: Conference Call Neo's second quarter 2026 financial results webcast and conference call details are provided below. Webcast and Conference Call Details: Date:  Tuesday, August 11, 2026 Time : 10:00 AM ET | 7:00 AM PT Listen Only Webcast:   L INK 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 this LINK and will be archived on the Company's website for a limited period. 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 14554# until September 11, 2026. Non-IFRS Financial Measures This news release refers to certain specified financial measures and ratios, including non-IFRS financial measures and ratios such as " EBITDA ", " Adjusted EBITDA ", " Adjusted EBITDA Margin ", " Adjusted Net Income ", " Adjusted Earnings per Share ", and " Free Cash Flow ". These specified financial measures are not recognized measures under International Financial Reporting Standards (" IFRS ") accounting standards as issued by the International Accounting Standards Board, 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 (" non-IFRS 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 financial measures used in this news release 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 financial 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 and six months ended June 30, 2026, which is hereby incorporated by reference into this news release, and at neomaterials.com  and on SEDAR+ at 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, rare earth magnetic powders and magnets, specialty chemicals, metals, and alloys are critical to the performance of many everyday products and emerging technologies across industries. Neo's products help to deliver the technologies of tomorrow to consumers today. As at June 30, 2026, Neo had 1,532 employees and a global platform that includes manufacturing facilities located in Canada, China, Estonia, Germany, Thailand, and the United Kingdom (" UK ") as well as one dedicated research and development (" R&D ") centre in Singapore. Neo has three operating segments: Magnequench, Chemicals & Oxides (" C&O ") and Rare Metals, as well as the Corporate segment. 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 news release 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 rare earth and critical materials prices; 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 products and applications; expectations regarding the growth of superalloy and superconductor materials; anticipated commercial launch of Neo's new Permanent Magnet facility in Europe and related commercial production estimates, commissioning and costs associated with the facility; expectations regarding tariffs and export restrictions; securing new automotive customer agreements for permanent magnet and emission catalyst facilities; expectations concerning the continued growth of the Magnequench project and improvements in operations; Neo's design of its internal controls over financial reporting and disclosure controls and procedures; and Neo's 2026 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 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 2026 guidance reflects Neo's expectations as to financial performance in 2026 based on assumptions which Neo believes to be reasonable as of the date of this news release including but not limited to continued Magnequench growth, operational improvements, relative stability in rare earth pricing, continued strong hafnium demand alongside elevated pricing and tight raw material supply conditions, reduction in operating expenses, expectations regarding tariffs and export controls, and securing new customer agreements for permanent magnet and emission catalyst facilities. 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 filings available under Neo's profile at sedarplus.ca.  Information contained in forward-looking statements in this news release 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 SECOND QUARTER 2026 CONSOLIDATED PERFORMANCE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION See accompanying notes to this table in Neo's interim condensed consolidated financial statements as at June 30, 2026 and for the period then ended. CONSOLIDATED RESULTS OF OPERATIONS For additional information, refer to Neo's MD&A for the three and six months ended June 30, 2026. RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW For additional information, refer to Neo's MD&A for the three and six months ended June 30, 2026. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME For additional information, refer to Neo's MD&A for the three and six months ended June 30, 2026. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2026/11/c0534.html

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