Lynas Rare Earths Ltd (ASX:LYC), a rare earths producer with operations in Western Australia and Malaysia, has recorded a sizeable share price decline over the past year despite record revenue. Lynas Rare Earths Ltd (ASX:LYC) shares were priced at $12.89, up 2.06% in today’s session, and are down 33.42% over the past year. The company released its financial results for the year ended 30 June 2026 (FY26) on 26 August 2026.

Business Model and Operational Footprint

Lynas mines rare earth ore at Mt Weld in Western Australia, processes it at the Kalgoorlie Rare Earths Processing Facility and at Lynas Malaysia in Kuantan, and sells separated rare earth oxides including neodymium-praseodymium (NdPr), used in permanent magnets. The company is headquartered in Perth, with Pol Le Roux serving as Interim CEO.

In FY26 NdPr sales Volume rose 12% to 7,337 tonnes and total rare earth oxide sales volume rose 11% to 12,122 tonnes. The company produced Samarium oxide for the first time, announced an expanded heavy rare earths separation facility at Lynas Malaysia, and signed for the development of a rare earth permanent magnet factory in Kuantan by JS Link. Malaysia’s operating licence was renewed for 10 years in March 2026.

Commodity Dynamics

Rare earth prices are influenced by Chinese Supply and demand, government policy and Demand for permanent magnets used in electric vehicles and wind turbines. The average China domestic price of NdPr, excluding VAT, rose from US$55.0 per kilogram in June 2025 to US$100.8 per kilogram in June 2026, influenced by floor price agreements led by global governments. Lynas has agreements with Japan Australia Rare Earths B.V. (JARE) for supply to Japanese industry to 2038 and with the US Government for supply over four years.

Among ASX-listed miners in this group of results, Lynas’ 33.42% one-year decline compares with a 13.94% gain for Evolution Mining Ltd (ASX:EVN), a 47.10% gain for PLS Group Ltd (ASX:PLS) and a 3.47% fall for Northern Star Resources Ltd (ASX:NST). Lynas is up 2.06% today at $12.89.

Among the 20 ASX-listed companies in this group of results, Lynas Rare Earths Ltd’s one-year change of down 33.42% ranks 19 of 20, where 1 is the strongest performer over the period.

FY26 Results Release

All figures are in Australian dollars. Revenue was $977.9 million, compared with $556.5 million. Net profit after tax was $222.4 million, compared with $8.0 million. EBITDA was $386.0 million, compared with $101.2 million, and EBIT was $247.4 million, compared with $6.2 million. Cost of sales was $585.5 million. Closing cash, cash equivalents and short-term deposits were $1,209.1 million, compared with $166.5 million.

The average selling price was a record $80.7 per kilogram of rare earth oxide across all products, reflecting improved market prices, a higher mix of heavy rare earth sales and sales not linked to the market index. NdPr production was a record in the second half. The 12-month rolling lost time injury frequency rate improved to 0.9 from 1.8, while the total recordable injury frequency rate rose to 4.1 from 3.6.

The cash balance reflects the Towards 2030 growth strategy announced in August 2025, which comprised a $750 million institutional Placement and a share purchase plan of about $182 million. Operations during the year included continued ramp-up of the Kalgoorlie facility, which experienced electricity supply challenges in the December quarter, and the commissioning of a Mt Weld hybrid renewable power station and a water recycle plant.

Lynas states that demand for rare earth permanent magnets outside China remains high, that the Malaysian operating licence renewal for 10 years replaced three-year licences, and that it is focused on optimising production Assets and delivering Towards 2030 growth initiatives. Cost of sales was $585.5 million, compared with $426.7 million, so revenue growth outpaced cost growth.

Growth Catalysts and Critical Operating Risks

Growth catalysts identified include the Towards 2030 growth pillars, heavy rare earth expansion in Malaysia, Mt Weld development scoping, the permanent magnet factory development, floor price agreements with Japan and the United States and demand for magnets outside China.

Operating risks include Volatility in rare earth prices, dependence on government-led floor price arrangements, electricity supply challenges at Kalgoorlie, a total recordable injury frequency rate that increased, an interim rather than permanent CEO and the Capital required for growth projects. Revenue was supported by an average selling price that the company states was partly linked to a mix of heavy rare earths and non-index pricing.

Where Things Stand

Lynas reports record revenue, a return to substantial profit and a cash balance above $1.2 billion, while its shares remain well below levels of a year ago. Reference points ahead include delivery of the Towards 2030 growth projects and any announcement on permanent CEO appointment.