Lynas Rare Earths (LYC) AI Stock Analysis

• Market Cap: AU$12.93B
• Dividend Yield: N/A
• Average Volume (3M): 11.06M
• Price to Earnings (P/E): 1494.2
• Beta (1Y): 0.82
• Revenue Growth: 20.12%
• EPS Growth: -90.49%
• Country: AU
• Employees: 270
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): <0.01
• Shares Outstanding: 1,006,502,560
• 10 Day Avg. Volume: 6,378,462
• 30 Day Avg. Volume: 11,056,006
• PEG Ratio: -11.12
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 14.84
• P/FCF Ratio: -24.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$15.71
• Price Target Upside: 22.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): AU$1.07B

• Rating: 62 Neutral
• Price Target: AU$16.00 ▲(24.51% Upside)

Lynas Rare Earths' overall score is driven by strong earnings call highlights and a solid balance sheet. However, challenges in profitability, cash flow, and high valuation metrics weigh down the score. The technical indicators suggest limited upward momentum, adding to the cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Lynas's products, driven by the global transition to green technologies and increased use of electric vehicles.

Strategic Partnerships

Strategic partnerships in Malaysia and Korea enhance Lynas's market position and support long-term growth through expanded production capabilities and market reach.

Production Milestone

Achieving commercial production of heavy rare earths outside China strengthens Lynas's competitive position and diversifies its product offerings.

Negative Factors

Profitability Challenges

Significant margin contraction indicates challenges in maintaining profitability, which could affect long-term financial stability if not addressed.

Cash Flow Issues

Persistent cash flow challenges could limit Lynas's ability to invest in growth opportunities and manage operational expenses effectively.

Operational Challenges

Ongoing operational challenges at the Kalgoorlie facility could delay production targets and impact Lynas's ability to meet market demand efficiently.

Lynas Rare Earths Business Overview & Revenue Model

Company Description

Lynas Rare Earths Limited (LYC) is a leading global producer of rare earth materials, primarily focused on the extraction, separation, and production of rare earth elements (REEs) from its operations in Australia and Malaysia. The company operates in the mining and processing sectors, with core products including neodymium, praseodymium, and other rare earth oxides, which are essential for a variety of high-tech applications, including electric vehicles, renewable energy technologies, and advanced electronics.

How the Company Makes Money

Lynas Rare Earths generates revenue primarily through the sale of rare earth oxides, which are produced from its mining operations and processing facilities. The company benefits from long-term supply agreements with various customers in key industries, including automotive, electronics, and clean energy. Additionally, Lynas has established partnerships with manufacturers and technology firms to secure stable demand for its products. The growing global demand for rare earth elements, driven by the transition to green technologies and the increasing use of electric vehicles, contributes significantly to Lynas's revenue streams. The company also explores opportunities for expanding its production capacity and diversifying its product offerings to enhance its market position and financial performance.

Lynas Rare Earths Financial Statement Overview

Summary

Lynas Rare Earths shows promising revenue growth but faces challenges with profitability and cash flow. The balance sheet is strong with low leverage, but improving cash flow management and profitability margins are crucial for sustained financial health.

Income Statement

Lynas Rare Earths has shown a positive revenue growth rate of 12.4% in the most recent year, indicating a recovery from previous declines. However, margins have significantly contracted compared to prior years, with the net profit margin dropping to 1.47% from 18.2% the previous year. This suggests challenges in maintaining profitability despite revenue growth.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.086, indicating conservative leverage. The equity ratio is robust, and while return on equity has decreased to 0.34%, it remains positive, reflecting stable financial health.

Cash Flow

Cash flow analysis reveals a concerning trend with negative free cash flow growth and a free cash flow to net income ratio of -3.14, indicating cash flow challenges. The operating cash flow to net income ratio is 0.69, suggesting operational cash generation is not fully covering net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	556.51M	542.66M	464.45M	739.28M	920.01M	489.02M
Gross Profit	129.82M	179.21M	184.46M	325.60M	571.63M	179.48M
EBITDA	45.54M	116.30M	172.44M	416.61M	607.80M	239.28M
Net Income	7.99M	7.99M	84.51M	310.67M	540.82M	157.08M
Balance Sheet
Total Assets	2.94B	2.94B	2.80B	2.64B	2.06B	1.48B
Cash, Cash Equivalents and Short-Term Investments	166.49M	166.49M	523.84M	1.01B	965.58M	680.83M
Total Debt	202.05M	202.05M	183.98M	190.35M	190.46M	173.19M
Total Liabilities	591.51M	591.51M	562.12M	475.27M	416.02M	394.17M
Stockholders Equity	2.35B	2.35B	2.24B	2.16B	1.65B	1.08B
Cash Flow
Free Cash Flow	-326.66M	-326.66M	-544.38M	-183.65M	271.16M	170.69M
Operating Cash Flow	104.17M	104.17M	34.96M	411.87M	457.46M	211.14M
Investing Cash Flow	-425.43M	-406.19M	-507.22M	-585.86M	-87.54M	-140.76M
Financing Cash Flow	-38.96M	-45.30M	-22.54M	205.25M	-7.26M	412.02M

Lynas Rare Earths Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LYC, the sentiment is Negative. The current price of 12.85 is below the 20-day moving average (MA) of 14.33, below the 50-day MA of 16.04, and above the 200-day MA of 11.70, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LYC.

Lynas Rare Earths Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYC	62 Neutral	AU$12.93B	1,494.19	0.34%	―	20.12%	-90.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ARU	46 Neutral	AU$1.02B	-26.83	-13.10%	―	―	82.10%
MAU	44 Neutral	AU$381.14M	-25.20	-179.67%	―	-100.00%	-6.00%
NTU	44 Neutral	AU$286.32M	-8.11	―	―	―	32.73%
ASM	43 Neutral	AU$155.47M	-4.28	-12.73%	―	2.00%	8.82%
PEK	34 Underperform	―	―	―	―	―	44.66%

Lynas Rare Earths Corporate Events

Lynas Rare Earths Secures Strong Shareholder Support at 2025 AGM

Lynas Rare Earths Ltd announced the successful passing of all resolutions at its 2025 Annual General Meeting. Key resolutions included the re-election of Vanessa Guthrie, the election of Kathleen Bozanic, and the grant of performance rights to CEO Amanda Lacaze. This outcome reflects strong shareholder support and is likely to bolster Lynas’ strategic direction and leadership stability, reinforcing its position in the rare earths industry.

Lynas Rare Earths Outlines Strategic Vision at Annual General Meeting

Lynas Rare Earths Limited has released a presentation for its Annual General Meeting, emphasizing the company’s strategic plans and market positioning. The document highlights the company’s focus on enhancing its financial and operational performance, while also addressing potential risks and uncertainties in the industry. The presentation underscores Lynas’ commitment to maintaining its leadership in the rare earths sector, which is vital for the global supply chain of critical technologies.

Lynas Rare Earths Concludes Growth Strategy and Launches New Ambitious Plans

Lynas Rare Earths concluded its Lynas 2025 growth strategy with significant achievements, including the completion of major projects at Kalgoorlie and Mt Weld, and the first production of dysprosium and terbium oxides in Malaysia. The company launched its Towards 2030 strategy, supported by a $930 million capital raise, to enhance its market position and expand its operations. Despite challenges like low market pricing, Lynas reported increased annual revenue and NdPr sales. The company continues to strengthen its operational footprint and engage with global governments to develop non-China rare earths supply chains.

Lynas Faces Production Challenges Due to Power Disruptions

Lynas Rare Earths Ltd has announced significant power supply disruptions at its Kalgoorlie Rare Earths Processing Facility, leading to substantial production losses of Mixed Rare Earth Carbonate (MREC). This disruption is expected to impact the production of finished goods at Lynas’ Malaysian facility, as the shortfall in MREC feedstock cannot be compensated due to scheduled maintenance. Lynas is collaborating with the WA Government and Western Power to address the power issues and is also exploring off-grid power solutions to recover lost production within the financial year. Despite the challenges, Lynas aims to meet key customer needs with sufficient finished products.

Lynas Rare Earths Strengthens Position with Strong Q1 and Strategic Partnerships

Lynas Rare Earths reported a strong first quarter for FY26, with significant increases in sales revenue and REO production. The company raised $750 million through an institutional placement and a Share Purchase Plan, bolstering its balance sheet to support its growth strategy ‘Towards 2030.’ Lynas signed MoUs with Korean and U.S. companies to develop sustainable rare earth magnet supply chains, and it continues to advance its Lynas 2025 facilities. The geopolitical landscape is favorable, with new agreements signed between Australia, the U.S., Malaysia, and Japan to secure critical mineral supply chains, underscoring Lynas’s role as a key player in the non-China supply chain.

Lynas Rare Earths Expands Heavy Rare Earths Facility in Malaysia

Lynas Rare Earths Ltd has announced plans to establish a new Heavy Rare Earth separation facility in Malaysia to meet the growing demand for non-Chinese sources of Heavy Rare Earth oxides. The facility, with a processing capacity of up to 5,000 tonnes per annum, will enhance Lynas’ production capabilities and strengthen its market position. The project, costing approximately A$180 million, will be self-funded and is expected to begin production in April 2026. This expansion is part of Lynas’ growth strategy and aims to cater to high-demand sectors such as electronics, providing customers with a broader range of separated Heavy Rare Earth products.

Lynas Rare Earths to Announce Quarterly Results on 30 October 2025

Lynas Rare Earths announced it will release its quarterly results for the period ending 30 September 2025 on 30 October 2025. The announcement will be accompanied by a briefing hosted by CEO Amanda Lacaze, which will be accessible via webcast, indicating the company’s commitment to transparency and stakeholder engagement.

Lynas Rare Earths Announces 2025 Annual General Meeting Details

Lynas Rare Earths Limited has announced its 2025 Annual General Meeting (AGM) to be held on November 26, 2025, both in-person in Sydney and online. Key agenda items include the consideration of the FY25 Annual Financial Report, an advisory vote on the Remuneration Report, and the re-election of Vanessa Guthrie as a director. These proceedings are crucial for stakeholders as they address financial performance and leadership continuity, impacting the company’s strategic direction and governance.

Lynas Rare Earths Unveils ‘Towards 2030’ Strategy and New Board Appointment

Lynas Rare Earths Ltd has announced its new ‘Towards 2030’ strategy, following the completion of its Lynas 2025 growth plan. This strategy aims to optimize performance from previous investments and expand its business by increasing resource and scale, enhancing downstream capacity, and integrating further into the non-Chinese metal and magnet supply chain. The company also introduced a new non-executive director, Kathleen Bozanic, and detailed plans for its upcoming Annual General Meeting, which will be accessible both in-person and online.

Lynas Rare Earths Unveils 2025 Sustainability Report

Lynas Rare Earths has released its 2025 Sustainability Report, highlighting its commitment to sustainable practices across its operations. The report outlines the company’s efforts in governance, ethical behavior, risk management, and community engagement, emphasizing its focus on environmental stewardship and social responsibility. This announcement underscores Lynas’ strategic positioning in the industry as it continues to prioritize sustainability, which is likely to enhance its reputation and stakeholder trust.

Lynas Rare Earths Appoints New Director

Lynas Rare Earths Limited has announced the appointment of Kathleen Bozanic as a new director, effective October 17, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, which could have implications for its strategic direction and stakeholder relations.

Lynas Rare Earths Strengthens Board with New Appointment

Lynas Rare Earths Limited has announced the appointment of Ms. Kathleen Bozanic as an independent Non-Executive Director, effective from October 17, 2025. With over 30 years of experience in the resources sector, Ms. Bozanic’s expertise is expected to support Lynas’s growth strategy, ‘Towards 2030,’ and contribute to the company’s board renewal efforts.

Lynas and Noveon Partner to Strengthen U.S. Rare Earth Magnet Supply Chain

Lynas Rare Earths and Noveon Magnetics have signed a Memorandum of Understanding to form a strategic partnership aimed at establishing a domestic U.S. supply chain for rare earth permanent magnets. This collaboration seeks to address supply chain disruptions and meet the demand for critical applications in the defense and commercial sectors by providing a reliable and sustainable supply of high-performance magnets. The partnership will focus on developing a traceable and transparent supply chain, prioritizing national defense systems and critical infrastructure, and working with U.S. policymakers to ensure alignment with national interests.

Lynas Rare Earths Director Increases Shareholding

Lynas Rare Earths Limited announced a change in the director’s interest, with Grant Bruce Murdoch acquiring 2,265 ordinary shares through G & M Murdoch Pty Ltd under a Share Purchase Plan. This transaction increases Murdoch’s indirect holdings to 163,272 ordinary shares, reflecting a strategic move to strengthen his investment in the company.

Lynas Rare Earths Director Increases Shareholding

Lynas Rare Earths Limited announced a change in the director’s interest, with Director John Humphrey acquiring 2,265 ordinary shares, bringing his total to 72,265 shares. This acquisition under a Share Purchase Plan reflects a potential increase in confidence in the company’s future performance and may impact stakeholder perceptions positively.

Lynas Rare Earths Director Increases Shareholding

Lynas Rare Earths Limited announced a change in the director’s interest, with John Beevers acquiring 2,265 ordinary shares through The Beevers Family Trust under a Share Purchase Plan. This acquisition increases his indirect holding to 30,052 shares, reflecting a strategic move that may influence investor perception and stakeholder confidence in the company’s governance and future prospects.

Lynas Rare Earths Expands Market Presence with New Securities Quotation

Lynas Rare Earths Limited announced the application for quotation of 13,779,092 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of a previously announced transaction, potentially enhancing the company’s financial flexibility and market presence. The issuance of these securities may impact Lynas’s operational capabilities and its strategic positioning within the rare earth industry, offering potential benefits to stakeholders.

Lynas Rare Earths Completes Oversubscribed Share Purchase Plan

Lynas Rare Earths Ltd has successfully completed its Share Purchase Plan (SPP), raising approximately $182 million, significantly exceeding its initial target of $75 million. The funds will support the company’s ‘Towards 2030′ growth strategy, enhancing Lynas’ balance sheet and financial flexibility to expand its resource scale, increase downstream capacity, and enter the non-China metal and magnet supply chain.

Lynas Rare Earths Director Increases Stake, Signaling Confidence

Lynas Rare Earths Limited announced a change in the director’s interest, with Vanessa Ann Guthrie acquiring additional shares through the Stolz Guthrie Superannuation Fund. This acquisition reflects continued confidence in the company’s strategic direction and potential for growth, potentially impacting stakeholder perceptions positively.

Lynas Rare Earths Announces 2025 Annual General Meeting Details

Lynas Rare Earths Ltd has announced its 2025 Annual General Meeting, scheduled for November 26, 2025, at The Mint in Sydney and online via the Lumi platform. This meeting will provide shareholders with updates on company operations and strategic directions, with a closing date for director nominations set for October 8, 2025, potentially impacting company governance and future leadership.

Lynas Rare Earths Updates Director’s Interest in Securities

Lynas Rare Earths Limited announced a change in the director’s interest, specifically involving Amanda Lacaze. The change includes the exercise of 148,675 Employee Performance Rights, resulting in the acquisition of an equal number of Ordinary Shares by the Morgan Lacaze Family Trust, while 193,206 Employee Performance Rights lapsed due to unmet performance conditions. This adjustment reflects the company’s ongoing management of executive incentives and could impact stakeholder perceptions regarding performance targets and executive compensation.

Lynas Rare Earths Announces Quotation of New Securities

Lynas Rare Earths Limited announced the quotation of 672,840 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its market presence and provide liquidity for its stakeholders, potentially strengthening its position in the rare earths industry.