Neo reports increased 2024 EBITDA with strong performance in its Rare Metals and Magnequench divisions
March 25, 2025
Neo Performance Materials Inc, headquartered in Toronto, Canada, has reported its full-year 2024 financial results. For 2024, the company posted $64 million in adjusted EBITDA, a 73% increase year over year and 20% above guidance. Adjusted EBITDA for 2024 at its Magnequench division increased 21% year over year and more than doubled in its Rare Metals division.
Neo’s advanced industrial materials include magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys. The company’s business is organised into three segments: Magnequench, Chemicals & Oxides and Rare Metals.
Despite divesting three non-core facilities and the normalisation of hafnium prices, Neo increased its adjusted EBITDA 2025 guidance range from $53 – $58 million to $55 – $60 million.
“Neo delivered outstanding financial and operational results in 2024, exceeding guidance with adjusted EBITDA growth of over 70%, driven by strong performance in Rare Metals and Magnequench. We successfully executed major capital projects, including completing our Emissions Control Catalyst facility on time and under budget. Our European Permanent Magnet facility remains on track for a grand opening in 2025, marking a significant step forward in strengthening our global supply chain for Permanent Magnets,” said Rahim Suleman, Neo’s President and Chief Executive Officer.
The company added that the core manufacturing building for its European permanent magnet facility is complete, and all key equipment has been received. Customer qualification sample production is set to begin in first half of 2025, with large-scale commercial production expected in 2026.
“We maintained a strong balance sheet with a net cash position, supported by healthy cash flow generation and working capital improvements. At the same time, we took decisive action to streamline our portfolio, divesting our rare earth separation assets in China, subject to closing conditions. This aligns with our strategy to reduce earnings volatility and focus on high-value-add growth business,” Suleman added. “With a reinforced foundation, Neo is positioned for long-term growth as we expand our Permanent Magnet capabilities to meet accelerating demand, creating lasting value for our shareholders.”
In addition to its Toronto headquarters, Neo has corporate offices in the USA, Singapore, and China. Neo has a global platform that includes manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as one dedicated research and development centre in Singapore.
