Evolution Metals raises 2026 revenue forecast by about 62%, maintains next year's estimates
Key Facts
Evolution Metals & Technologies raised its fiscal 2026 revenue forecast by about 62% at the midpoint, according to its statement issued on October 9, as it expanded feedstock supplies from outside China and rare earth prices improved. The company set the new range at $10 million to $11 million, according to its filing with the U.S. Securities and Exchange Commission updating its annual estimates. The midpoint of that range is $10.5 million, compared with $6.5 million in the previous forecast, the comparison underpinning the rounded percentage increase announced. At the same time, the company maintained its fiscal 2027 revenue forecast at a range of $400 million to $460 million. According to its filing, $460 million represents the upper end of next year's estimates.
Chief Executive Frank Moon said in the statement raising the forecast that "strong customer demand and improving rare earth prices" supported the company's new revenue estimates. The company also linked the update to expanded feedstock supplies from outside China and the production capacity those supplies enable across its operations. When announcing its initial forecast, it had said the revenue estimates were not based on contracted customer sales volumes. It added that the projected range reflected the production ramp-up phase and did not represent potential revenue at full utilization of planned production capacity. The estimates follow actual revenue of $1.6 million for the three months ended June 30, 2026, according to the company's quarterly results statement.
To secure feedstock, Evolution entered into an agreement with Senri Trading to purchase substantial quantities of neodymium-praseodymium metal from SRE Vietnam. In its statement on the supply contract, the company specified the metal it would purchase under the agreement as part of arrangements to supply its operations with feedstock from outside China. It subsequently announced receipt of an initial shipment of 5 metric tons from the Vietnamese supplier, a step it said brought that supply chain into operation. According to the statement on the first shipment, the neodymium-praseodymium metal is processed at the company's facilities in South Korea and converted into alloys. Those alloys are subsequently converted into magnets, according to the manufacturing sequence the company outlined when announcing the shipment's arrival and the launch of the feedstock supply chain.
On production preparations, the equipment delivery schedule was updated to October, after delivery and installation had previously been scheduled for November 2026, according to the company's statements on equipment purchases and expansion. The statement on equipment purchase agreements with ULVAC had set November as the target for completing delivery and installation under the previous plan. Planned production capacity following the expansion includes 6,000 metric tons annually of high-performance sintered magnets, according to the statement on those agreements. Alongside preparations for its production lines, the company announced a plan to expand the electrical infrastructure supporting its operations in Pohang, South Korea. The plan targets an increase in electrical capacity from the current 130 megawatts to 750 megawatts, according to the company's statement on the electrical infrastructure expansion.
To support the Pohang expansion, the company secured conditional approval for a grant of approximately US$20.7 million, according to its statement on the project's electrical infrastructure. The approval concerns the grant allocated to support the expansion, and the company explicitly described it as conditional when announcing it, while giving an approximate value. In other financing arrangements, the company announced that it had arranged a financing facility of up to $100 million to fund the expansion. The facility consists of multiple tranches, according to the financing statement, which described it as a flexible arrangement allowing funding through those tranches. The statement also specified that the facility is convertible into equity and that $100 million represents its upper limit.
Evolution scheduled an operational demonstration in Pohang, South Korea, for Thursday, December 17, 2026, according to its announcement of the upcoming event. The announced program includes an opening ceremony alongside the operational demonstration the company plans to host in the city where it is expanding its operations. The event also includes an operational briefing by executives, according to program details the company announced ahead of the scheduled date. It said it would provide a live broadcast of the executive briefing during the demonstration as part of arrangements to make the event accessible to viewers. The operational demonstration announced for December follows the equipment delivery schedule updated to October, among the steps the company outlined to expand production in South Korea.