Lynas Posts Record A$310 Million Sales in September Quarter
Key Facts
Lynas Rare Earths posted record quarterly sales of A$310 million in the quarter ended September 30, 2026, up 7% from the previous quarter and 55% from the same quarter last year. The company reported the figure on an earnings call covered by Investing.com, where its interim chief executive said: "Our new record sales figure for the quarter was A$310 million." Management said the figure came amid demand from customers outside China for secure rare-earth supply chains. The interim chief executive added that higher market prices supported the record sales. But record sales did not translate into results that met analysts’ published expectations for the quarter.
Revenue was $310.1 million, compared with a consensus estimate of $365.48 million, while adjusted earnings per share came in at $0.0884 against an estimate of $0.1001. Investing.com said revenue and adjusted EPS fell short of estimates, illustrating the divergence between record sales volumes and the reported financial result. The comparison shows that gross sales denominated in Australian dollars and revenue denominated in dollars were reported using different currencies in coverage of the results. The published figures did not include a detailed financial explanation for the gap between actual revenue and the consensus estimate. Management, however, offered an operational explanation for the gap between production and sales, linking it to the timing of production at the end of September, invoicing and shipments.
The interim chief executive said production exceeded sales by about 1.2 thousand tonnes during the quarter, with production strength concentrated in the second half of September. He linked the delay in recording some sales to the timing of invoicing and shipments, explaining that the company typically holds only a few days’ worth of inventory at quarter-end. He said: "Production was higher than sales by about 1.2 thousand tonnes this quarter." Management thus attributed the difference between what was produced and sold to the timing of delivery and invoicing, rather than a deliberate production cut ahead of maintenance. The explanation comes ahead of the December maintenance period, which the company typically focuses on; management said it had not reduced production in advance to prepare for it.
On operations, management said Mt Weld mine delivered September performance that exceeded the needs of downstream processing at its nameplate capacity. The LAMP plant also set a record for NdPr production in September, after recording a previous record level in August. The interim chief executive said the plant "set a production record in August, and had to exceed it again in September, setting a new level for NdPr production." The operating results indicate that record sales coincided with strong performance at the mine and plant during the final month of the quarter. In the March 2026 quarter, the company recorded gross sales of A$265 million, compared with A$201.9 million in the quarter ended December 2025, while rare earth oxide production was 3,233 tonnes.
The performance follows the financial year ended June 30, 2026, when Lynas posted record annual revenue of A$977.9 million and net profit after tax of A$222.4 million. The company attributed those results to strong demand and higher market prices. It also reported a record annual average selling price of A$80.7 per kilogram across its rare earth products, alongside improving prices and a higher share of heavy rare earth sales. These figures provide context for the demand and pricing that management said supported the new quarterly sales record. They do not, however, eliminate the gap between the result for the quarter ended September and published consensus estimates for revenue and adjusted EPS.
Management said it was confident product would be available to meet customer needs during the maintenance period and that it would continue to drive production through it. Investing.com quoted the interim chief executive as saying: "We will not leave them short of product this quarter, which is usually the period when we focus on maintenance." Upgrades at Kuantan and Kalgoorlie are intended to allow the company to begin the January quarter at maximum production rates and with equipment better prepared. Management said Mt Weld’s performance covers the needs of the hub, and that further production gains would depend on maximizing downstream processing at Kuantan and Kalgoorlie. The interim chief executive had told analysts to expect a significant increase in production in the March and June quarters and said the company aimed to test the refinery’s nameplate capacity during them.