Industrial materials supplier Neo's Q2 revenue beats expectations, raises full-year EBITDA guidance

Overview

• Neo Q2 revenue rises to $114.7 mln, beating analyst expectations

• Adjusted EBITDA up 42% yr/yr, driven by strong operational performance

• Company raises full-year 2025 adjusted EBITDA guidance to $64-$68 mln

Outlook

• Neo raises full-year 2025 Adjusted EBITDA guidance to $64.0-$68.0 mln

• Company expects $50 mln revenue from new traction motor program

• Neo focuses on leveraging global supply chain amid geopolitical shifts

Result Drivers

• MAGNEQUENCH GROWTH - 31% volume growth in Magnequench segment contributed to strong Q2 results

• ADJUSTED EBITDA GROWTH - Neo delivered $19.0 million and $36.1 million in Adjusted EBITDA for three and six months ended June 30, 2025, marking a 41.6% and 49.5% increase, respectively, from the same periods last year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty mining & metals peer group is "buy"

• Wall Street's median 12-month price target for Neo Performance Materials Inc is C$17.50, about 2.2% above its August 11 closing price of C$17.11

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nCNW7s7tZa