Q1/26 Results: Beat and Raise on Strong Rare Metals Peformance

Research evidence excerpt

Q1/26 Results: Beat and Raise on Strong Rare Metals Peformance

May 12, 2026 | 09:14 ET~

Neo Performance Materials Critical Minerals

Raj Ray, CFA Analyst

raj.ray@bmo.com 44 (0)20 7246 5430

NEO-TSX Rating Price: May-11 Target Total Rtn

Outperform $29.64 $30.00 3% Max Yerrill, CFA* Analyst

max.yerrill@bmo.com (437) 214-3503

Frederic Bolton VP Associate

frederic.bolton@bmo.com +44 7850 655 751

Legal Entity: BMO Capital Markets LimitedQ1/26 Results: Beat and Raise on Strong Rare Metals

Peformance BMO Nesbitt Burns Inc.*

Bottom Line:

Positive. Neo reported a large Q1/26 adjusted EBITDA beat and raised 2026 guidance,

driven by strong performance in Rare Metals. We view the guidance upgrade positively, 35 2YR Price Volume Chart

and think investor focus will turn to Neo's ability to convert the large hafnium and 30

gallium inventory positions to free cash flow in a rising price environment. Operations 25

at Narva continue to progress, with customer qualification ongoing and commercial 20 2

production expected in H2/26. 15 1.5

10 0.5

Key Points 5 0

Nov May Nov May

Adjusted EBITDA beat. Neo reported Q1/26 revenue and adjusted EBITDA of ~US$155M LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

and US$36M, beating our estimates of US$117M and US$17M, respectively. Adjusted EPS

of US$0.34/sh beat our estimate of US$0.19/sh. The beat was largely driven by strong

performance in Rare Metals with continued strong pricing in hafnium and gallium.

Our commodities team recently published a report on the superalloy outlook (Link).

A quarterly dividend of C$0.10/sh was declared and Neo finished the quarter with

~US$42M in cash.

Raised full-year guidance. Neo increased full-year 2026 adjusted EBITDA guidance

to US$100-110M (from US$75-80M). The guidance upgrade reflects management's