Earnings release
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neo Performance Materials Neo Performance Materials Reports Second Quarter 2026 Results Neo Delivers Record Quarterly Adjusted EBITDA of $ 57 Million , Exceeding Expectations on Strong Demand and Sustained Favourable Pricing Environment - TORONTO , Canada , August 11 , 2026 – Neo Performance Materials Inc. ( " Neo " or the " Company " ) [ TSX : NEO ; OTCQX : NOPMF ] today announced its financial results for the second quarter of 2026. Neo's financial statements and management's discussion and analysis ( " MD & A " ) for the three and six months ended June 30 , 2026 , are available at neomaterials.com and on SEDAR + at sedarplus.ca . All financial amounts in this news release and the Company's financial disclosures are in United States dollars , unless otherwise stated . Consolidated Financial Highlights Three Months Ended June 30 , Six Months Ended June 30 , 2026 2025 2026 2025 Consolidated Revenue $ 205.748 $ 114,700 $ 360,710 $ 236,310 Consolidated Operating Income $ 41,769 $ 8,210 $ 68,326 $ 17,799 Consolidated Adjusted EBITDA ( 1 ) $ 57,033 $ 18,968 $ 93,264 $ 36,102 Adjusted Net Income ( 1 ) $ 23,694 $ 8,655 $ 38,558 $ 15,166 Adjusted earnings per share attributable to common shareholders : Basic Diluted Net Income SSS $ 0.55 $ 0.21 $ 0.91 $ 0.36 $ 0.51 $ 0.20 $ 0.85 $ 0.35 $ 17,463 $ 5,688 $ 15.823 $ 4,301 Income per share attributable to common shareholders Basic Diluted SS $ 0.40 $ $ 0.38 $ 0.14 $ 0.13 $ 0.37 $ 0.10 0.35 $ 0.10 " Neo delivered outstanding second - quarter results , with Adjusted EBITDA of $ 57 million , up over 200 % year - over- year . This represents our second straight record quarter and reflects continued strength in volumes across all of our segments , disciplined operational execution and a sustained favourable pricing environment , ” said Rahim Suleman , President and Chief Executive Officer of Neo . - " On the back of this momentum and a healthy demand outlook , in early July we raised our full - year Adjusted EBITDA guidance to $ 140 million to $ 150 million , and we expect results at the high end of this range this would represent close to double our full year 2025 Adjusted EBITDA of $ 76 million . The updated guidance also reflects higher contracted volumes of critical materials , including hafnium , for the second half of 2026 and into 2027. This gives us improved visibility , and it's supported by a pricing environment that remains strong . As we continue to advance our strategic priorities , we are well - positioned to build on this progress through the remainder of 2026 and beyond . " ( 1 ) Neo reports non - IFRS financial measures such as " Adjusted Net Income " , " Adjusted Earnings per Share " , " Adjusted EBITDA " , " Adjusted EBITDA Margin " and " EBITDA ” . Information on non - IFRS financial measures is included in the " Non - IFRS Financial Measures ” section of this news release and in the most recent MD & A , available at neomaterials.com and on SEDAR + at sedarplus.ca . Neo Performance Materials Inc. 1 Second Quarter 2026 News Release
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 2 Second Quarter 2026 News Release Strategic and Operational Highlights • Neo Delivers Record Adjusted EBITDA: Neo delivered $57.0 million in Adjusted EBITDA (1) for the three months ended June 30, 2026, an over 200% increase from the $19.0 million in the second quarter of last year. This was driven by strong demand across the busines s, disciplined execution and a sustained favourable pricing environment. Magnequench generated Adjusted EBITDA of $10.5 million, up 39% year-over-year. Chemicals & Oxides (“C&O”) generated Adjusted EBITDA of $8.5 million, up 56% from the same quarter last year. Rare Metals generated another record quarter with Adjusted EBI TDA of $44.4 million, an increase of over 300% from the second quarter of last year. • Neo Raises Full Year 2026 Adjusted EBITDA Guidance on Continued Momentum: In July 2026, Neo announced that the Company increased its full-year 2026 Adjusted EBITDA guidance, reflecting strong operating performance through the first half of the year, as well as sustained higher-than-expected pr icing across its critical materials portfolio. Neo raised its full-year 2026 Adjusted EBITDA of $140 million to $150 million, up from its prior guidance range of $100 m illion to $110 million, and the Company now expects results at the high end of this range, which repres ents nearly double the full-year 2025 Adjusted EBIT DA of $76 million. • European Permanent Magnet Facility Advances Toward Commercial Production: The state-of-the-art permanent magnet facility continues to advance through its planned ramp up to full commercial production later this year. The facility is producing and ship ping qualification sample magnets in support of mul tiple awarded automotive platforms and remains on track f or two to three customer programs to enter commercial production in 2026. Neo has begun advanced equipment purchases for its Phase 1B expansion, which is planned to increase the facility's nameplate capacity from approximately 2,000 metric tonnes (“mt”) to approximately 5,000 mt annually. This is aligned with Neo's broader strategy to establish a scalable, fully integrated permanent magnet manufacturing platform capable of supporting long-term automotive and industrial demand. • Neo Completes C$115 Million Equity Offering to Accelerate Growth: In May 2026, Neo completed a bought deal treasury offering of common shares for total gross proceeds of C$115.1 million ($83.3 million), including the full exercise of the underwriters' over-allotment option. The offering positions the Company to accelerate its growth opportunities with a significant portion of the proceeds directed towards capacity expansio n in magnetics. Specifically, this includes advanced pur chasing of long-lead sintered magnet equipment for the proposed Phase 1B expansion of its European permanent magnet plant, as well as investment in expanding the bonded magnetics business. • Neo Successfully Commissions Heavy Rare Earth Separation Production Line in Europe: In April 2026, Neo successfully commissioned a small -scale heavy rare earth element solvent extraction p roduction line at its Silmet facility. This milestone validates the techn ical and operational performance of the heavy rare earth separation process under continuous operation and r epresents an important step toward establishing localized heavy rare earth processing capability in Europe. The commissioning supports Neo’s strategy to enhance security of supply for critical rare earth inputs used in high-performance permanent magnets and provides a foundation for potential future commercial-scale expansion.
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 3 Second Quarter 2026 News Release Consolidated Financial Highlights • Revenue for Q2 2026 was $205.7 million, compared to $114.7 million for Q2 2025. • Operating income for Q2 2026 was $41.8 million, compared to $8.2 million for Q2 2025. • Adjusted EBITDA for Q2 2026 was $57.0 million compared to $19.0 mil lion for Q2 2025. This resulted in Adjusted EBITDA margin of 27.7% for the quarter, representing an im provement of 1,240 basis points over 2025. • Adjusted Net Income(1) for Q2 2026 was $23.7 million, or $0.55 earnings per share, compared to Adjusted Net Income of $8.7 million or $0.21 earnings per share for Q2 2025. • Operating Cash Flow for the six months ended June 30, 2026, was an out flow of $49.6 million in cash from operating activities, driven by higher strategic in ventory held, higher costs in inventory due to mate rial pricing, higher receivables due to timing of sales, as well as the settlement of the European patent litigation in January 2026. As of June 30, 2026, Neo had $96.2 million in cash and $157.2 million in gross debt o n its balance sheet. • Capital investment for the six months ended June 30, 2026 was $5.2 mi llion (net of government grant proceeds received), with funds used primarily to advance the European Permanent Magnet facility and heavy rare earth production line in Europe. • Shareholder return of capital. For the six months ended June 30, 2026, the Company returned $7.1 million to shareholders in the form of dividends. • A quarterly dividend of CAD$0.10 per common share w as declared on August 6, 2026, for shareholders of record on September 18, 2026, with a payment date of September 28, 2026. Segment Highlights Magnequench Delivers Volume Growth and Strongest Quarterly Adjusted EBITDA since Q2 2022: • Financial Performance: Magnequench generated Adjusted EBITDA of $10.5 mi llion in the second quarter, representing an increase of $2.9 million or 39% year-over-year. Year-to-date Adjusted EBITDA totalled $19.7 million, an increase of 39% compared to the prior year period. • Record Quarter for Bonded Magnet Volumes : Bonded magnet shipments increased 35% year-over-y ear, reflecting continued strong execution, supported by sustained demand in applications including electrification, industrial automation, and advanced computing infrastructure. • Bonded Powder Business Remains Strong: Bonded powder volumes fell 13.8% year-over-year bu t remain modestly higher year-to-date. The quarter’s variance primarily reflected customer order timing rather than any change in underlying demand, as customer volumes, margins and overall business fundamentals remain strong. The business continues to see encouraging demand signals from customers seeking security of supply and geographic diversification, reinforcing the strategic value of Neo’s global manufacturing footprint.
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 4 Second Quarter 2026 News Release • Strategic Platform Expansion: During the period, Neo continued advancing its European Permanent Magnet facility, which is now producing and shipping quali fication magnets as the operation moves closer to f ull commercial production later this year. Neo remains on track to meet its target of launching two to thr ee commercial programs in the second half of 2026. Chemicals & Oxides Delivers Significant Earnings Growth: • Financial Performance: C&O generated Adjusted EBITDA of $8.5 million in the second quarter representing an increase of $3.1 million or 56.4%, reflecting im proved pricing, strong operational execution, and t he benefits of portfolio optimization. Year-to-date A djusted EBITDA is $16.2 million, up 32% from the sa me period last year. • Emission Catalyst Strength: Second quarter volumes were up 7.0% year-over-year, reflecting continued solid commercial execution, supported by improved cost performance at the new emission catalyst manufacturing facility. • Improved Pricing and Reduced Volatility in Rare Ear th Separation: The European separation business benefited from improved pricing, while the divestiture of Chinese separation assets in 2025 has significantly reduced exposure to rare earth price volatility and strengthened earnings predictability. • Water Treatment Advances New Technology: The Water Treatment business advanced the development of a new process enhancement technology, with initial units deployed to customers and commercial adoption expected in the coming quarters. Rare Metals Delivers Adjusted EBITDA Improvement of Over 300 Percent: • Financial Performance: Rare Metals generated Adjusted EBITDA of $44.4 mi llion in the second quarter of 2026 representing an increase of $33.7 million or 3 13% over the same quarter last year, reflecting rec ord hafnium, gallium and tantalum pricing, as well as resilient volumes amid tight global supply. • Healthy End-Market Demand: Rare Metals continues to benefit from the increase d global focus on critical materials, many of which are supported by programs and targets aimed at reducing concentration risk fo r items considered critical materials on most government critical materials lists. • Gallium Business Strength: Neo’s gallium business achieved the strongest gros s profit in its history, benefitting from strong pricing and increasing regu latory focus on supply security. Neo remains one of the few gallium recyclers in North America, reinforcing the segment’s strategic importance and long-term growth potential. Gallium is used in the manufacturing of semi-conductors and permanent magnets among other end uses. • Strategic Supply Initiatives: The segment continues to focus on securing scrap a nd input materials through strategic sourcing partnerships and recovery initiatives, ensuring a stable, diversified supply base to support future growth.
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 5 Second Quarter 2026 News Release Conference Call Neo’s second quarter 2026 financial results webcast and conference call details are provided below. Webcast and Conference Call Details: Date: Tuesday, August 11, 2026 Time: 10:00 AM ET | 7:00 AM PT Listen Only Webcast: LINK Conference call: +1 (416) 945-7677 (local) or 1 (888) 699-1199 (toll-free long distance) or by visiting Dial-in Link. A replay of the webcast will be available by clicking on this LINK and will be archived on the Company’s website for a limited period. A teleconference recording ma y be accessed by calling 1(289) 819-1450 (local) or 1 (888) 660-6345 (toll-free long distance) and entering passcode 14554# until September 11, 2026. Information Contacts Investors: Media: Jim Fitzpatrick Vasileios Tsianos SVP , Investor Relations & Communications SVP , Corporate Development (416) 367-8588, ext. 7318 (416) 367-8588 ext. 7335 ir@neomaterials.com media@neomaterials.com neomaterials.com Non-IFRS Financial Measures This news release refers to certain specified financial measures and ratios, including non-IFRS financial measures and ratios such as “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Adjusted Earnings per Share ”, and “ Free Cash Flow ”. These specified financial measures are not recog nized measures under International Financial Reporting Standards ( “IFRS”) accounting standards as issued by the Internatio nal Accounting Standards Board, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. R ather, these specified financial measures (“ non-IFRS financial measures”) are provided as additional information to complement IFRS financial measures by providing further understanding of Neo’s results of operations from management's perspective. Neo’s definitions of non- IFRS financial measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting. Specified financial measures such as non-IFRS finan cial measures and ratios have limitations as analyt ical tools and should not be considered in isolation nor as a substitute for analysis of Neo’s financial information reported under IFRS. Neo uses specified financial measures to provide investors with supplemental measures of its base- line operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Neo believes that securities analysts, investors and other interested parties frequently
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 6 Second Quarter 2026 News Release use specified financial measures such as non-IFRS financial measures and ratios in the evaluation of issuers. Neo’s management also uses non-IFRS financial measures and ratios to facilitate operating performance comparisons from period to period. Readers are cautioned that these measures should not be construed as an alternative to their nearest or directly comparable financial measures determined in accordance with IFRS as an indic ation of Neo’s financial performance. For further informatio n on how Neo defines such specified financial measu res, including non-IFRS financial measures and ratios an d, where applicable, their reconciliations to the n earest comparable IFRS measures, please see the “Non-IFRS Financial Measures” section of Neo’s MD&A for the three and six months ended June 30, 2026, which is hereby incorporated by reference into this news release, and at neomaterials.com and on SEDAR+ at sedarplus.ca. About Neo Performance Materials Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo’s advanced industrial materials, rare earth magnetic powders and magnets, specialty chemicals, metals, and alloys are critical to the performance of many ever yday products and emerging technologies across indu stries. Neo’s products help to deliver the technologies of tomorrow to consumers today. As at June 30, 2026, Neo had 1,532 employees and a global platform that includes manufacturing facilities located in Canada, China, Estonia, Germany, Thailand, and the United Kingdom (“UK”) as well as one dedicated research and development (“R&D”) centre in Singapore. Neo has three operating segments: Magnequench, Chemicals & Oxides (“C&O”) and Rare Metals, as well as the Corporate segment. Cautionary Statements Regarding Forward Looking Statements This news release contains “forward-looking informa tion”, within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of Neo. All statements in this news release, other than statements of historical facts, with respect to Neo’s objectives and goals, as well as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions are forward-looking information. Specific forward-looking information in this news release include, but are not limited to: expectations regarding certain of Neo’s future results and information, in cluding, among other things; revenue; expenses; gro wth prospects; capital expenditures; and operations; ri sk factors relating to national or international ec onomies, geopolitical risk and other risks present in the ju risdictions in which Neo, its customers, its suppli ers, and/or its logistics partners operate; statements with respect to current and future market trends that may direc tly or indirectly impact sales and revenue of Neo, includi ng but not limited to rare earth and critical mater ials prices; expected use of cash balances; continuation of prud ent management of working capital; source of funds for ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for uncollectible accounts and inventory provisions; an alysis regarding sensitivity of the business to cha nges in exchange rates and changes in rare earth prices; im pact of recently adopted accounting pronouncements; risk factors relating to intellectual property protectio n and intellectual property litigation; expectation s regarding demand for products and applications; expectations regarding the growth of superalloy and superconduct or
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 7 Second Quarter 2026 News Release materials; anticipated commercial launch of Neo’s n ew Permanent Magnet facility in Europe and related commercial production estimates, commissioning and costs associated with the facility; expectations regarding tariffs and export restrictions; securing new autom otive customer agreements for permanent magnet and emission catalyst facilities; expectations concerni ng the continued growth of the Magnequench project and improvements in operations; Neo’s design of its internal controls over financial reporting and disclosure controls and procedures; and Neo’s 2026 guidance and the assumptions relating thereto. Often, but not always, forward-looking information can be identified by the use of words such as “plan s”, “expects”, “is expected”, “budget”, “scheduled”, “e stimates”, “continues”, “forecasts”, “projects”, “p redicts”, “intends”, “anticipates” or “believes”, or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occu r or be achieved. This information involves risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Additionally, Neo’s 2026 guidance reflects Neo’s ex pectations as to financial performance in 2026 base d on assumptions which Neo believes to be reasonable as of the date of this news release including but not limited to continued Magnequench growth, operational improveme nts, relative stability in rare earth pricing, cont inued strong hafnium demand alongside elevated pricing an d tight raw material supply conditions, reduction i n operating expenses, expectations regarding tariffs and export controls, and securing new customer agreements for permanent magnet and emission catalyst facilities. Neo believes the expectations reflected in such forward- looking information are reasonable, but no assuranc e can be given that these expectations will prove t o be correct and such forward-looking information included in this discussion and analysis should not be unduly relied upon. For more information on Neo, investors should review filings available under Neo’s profile at sedarplus.ca. Information contained in forward-looking statements in this news release is provided as of the date he reof and Neo disclaims any obligation to update any forward-looking information, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.
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_____________________________________________ (1) Neo reports non-IFRS financial measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Information on non-IFRS financi al measures is included in the “Non-IFRS Financial Measures ” section of this news release and in the most recent MD&A, available at neomaterials.com and on SEDAR+ at sedarplus.ca. Neo Performance Materials Inc. 8 Second Quarter 2026 News Release HIGHLIGHTS OF SECOND QUARTER 2026 CONSOLIDATED PERFORMANCE ($000s, except per share information; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue Magnequench $ 64,343 $ 50,468 $ 129,075 $ 94,740 C&O 37,424 29,443 70,606 76,944 Rare Metals 106,349 35,948 163,443 68,653 Corporate / Eliminations (2,368) (1,159) (2,414) (4,027) Consolidated Revenue $ 205,748 $ 114,700 $ 360,710 $ 236,310 Operating Income Magnequench $ 2,356 $ 1,611 $ 6,037 $ 3,504 C&O 6,641 3,959 12,963 9,687 Rare Metals 43,345 10,127 66,480 18,278 Corporate / Eliminations (10,573) (7,487) (17,154) (13,670) Consolidated Operating Income $ 41,769 $ 8,210 $ 68,326 $ 17,799 Adjusted EBITDA Magnequench $ 10,467 $ 7,558 $ 19,708 $ 14,217 C&O 8,506 5,439 16,168 12,282 Rare Metals 44,405 10,756 68,262 19,397 Corporate / Eliminations (6,345) (4,785) (10,874) (9,794) Consolidated Adjusted EBITDA $ 57,033 $ 18,968 $ 93,264 $ 36,102 Net Income $ 17,463 $ 5,688 $ 15,823 $ 4,301 Income per share attributable to common shareholders Basic $ 0.40 $ 0.14 $ 0.37 $ 0.10 Diluted $ 0.38 $ 0.13 $ 0.35 $ 0.10 Cash spent on property, plant and equipment and intangible assets $ 9,126 $ 8,889 $ 16,559 $ 20,317 Cash taxes paid $ 4,199 $ 2,960 $ 18,775 $ 8,166 Dividends paid to shareholders $ 3,813 $ 3,159 $ 7,074 $ 6,080 Dividend paid to Buss & Buss minority shareholder $ — $ — $ — $ 7,343 As at: June 30, 2026 December 31, 2025 Cash and cash equivalents $ 96,224 $ 38,360 Short-term debt, bank advances & other $ 43,146 $ 12,949 Total debt $ 157,234 $ 101,804
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Neo Performance Materials Inc. 9 Second Quarter 2026 News Release CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($000s; unaudited) June 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 96,224 $ 38,360 Accounts receivable 133,324 93,186 Inventories 276,599 205,405 Income taxes receivable 2,434 2,196 Assets held for sale 2,378 — Other current assets 24,458 24,070 Total current assets 535,417 363,217 Property, plant and equipment 195,798 198,440 Intangible assets 29,513 30,857 Goodwill 67,178 65,857 Equity method investments 13,476 17,116 Other investments 3,282 3,496 Deferred tax assets 2,636 2,799 Other non-current assets 10,562 3,105 Total non-current assets 322,445 321,670 Total assets $ 857,862 $ 684,887 LIABILITIES AND EQUITY Short-term debt $ 43,146 $ 12,949 Accounts payable and other accrued charges 98,792 95,844 Income taxes payable 16,491 15,120 Provisions 3,445 3,470 Lease obligations 871 564 Derivative liability 85,630 60,596 Current portion of long-term debt 10,832 9,343 Other current liabilities 434 252 Total current liabilities 259,641 198,138 Long-term debt 103,256 79,512 Derivative liability 1,018 1,407 Provisions 3,145 2,392 Deferred tax liabilities 10,376 9,405 Lease obligations 3,801 3,170 Other non-current liabilities 420 395 Total non-current liabilities 122,016 96,281 Total liabilities 381,657 294,419 Non-controlling interest 461 464 Equity attributable to common shareholders 475,744 390,004 Total equity 476,205 390,468 Total liabilities and equity $ 857,862 $ 684,887 See accompanying notes to this table in Neo’s interim condensed consolidated financial statements as at June 30, 2026 and for the period then ended.
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Neo Performance Materials Inc. 10 Second Quarter 2026 News Release CONSOLIDATED RESULTS OF OPERATIONS ($000s; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 205,748 $ 114,700 $ 360,710 $ 236,310 Cost of sales Cost excluding depreciation and amortization 128,567 78,770 231,112 167,651 Depreciation and amortization 2,074 2,019 4,065 3,940 Gross profit 75,107 33,911 125,533 64,719 Expenses Selling, general and administrative 21,426 16,326 37,032 31,634 Share-based compensation 7,343 3,513 10,664 4,449 Depreciation and amortization 1,779 1,725 3,586 3,506 Research and development 2,790 4,137 5,925 7,331 Total expenses 33,338 25,701 57,207 46,920 Operating income 41,769 8,210 68,326 17,799 Other income (expense) 125 24 433 (4,688) Finance cost, net (8,961) (5,717) (27,551) (11,790) Foreign exchange (loss) gain (2,227) 4,700 (3,842) 8,485 Income from operations before income taxes and equity income of associates 30,706 7,217 37,366 9,806 Income tax expense (12,740) (1,599) (20,981) (5,955) Income from operations before equity income of associates 17,966 5,618 16,385 3,851 Equity (loss) income of associates, net of income tax (503) 70 (562) 450 Net income $ 17,463 $ 5,688 $ 15,823 $ 4,301 Attributable to: Common shareholders $ 17,474 $ 5,772 $ 15,826 $ 4,292 Non-controlling interest (11) (84) (3) 9 Income per share attributable to common shareholders: Basic $ 0.40 $ 0.14 $ 0.37 $ 0.10 Diluted $ 0.38 $ 0.13 $ 0.35 $ 0.10 For additional information, refer to Neo’s MD&A for the three and six months ended June 30, 2026.
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Neo Performance Materials Inc. 11 Second Quarter 2026 News Release RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW ($000s, except volume; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Sales volume (tonnes) 3,221 3,366 6,415 6,691 Revenue $ 205,748 $ 114,700 $ 360,710 $ 236,310 Net income $ 17,463 $ 5,688 $ 15,823 $ 4,301 Add back: Finance costs, net 8,961 5,717 27,551 11,790 Income tax expense 12,740 1,599 20,981 5,955 Depreciation and amortization included in cost of sales 2,074 2,019 4,065 3,940 Depreciation and amortization included in operating expenses 1,779 1,725 3,586 3,506 EBITDA 43,017 16,748 72,006 29,492 Adjustments to EBITDA: Other (income) expense (125) (24) (433) 4,688 Foreign exchange loss (gain) 2,227 (4,700) 3,842 (8,485) Equity loss (income) from associate 503 (70) 562 (450) Share-based compensation 7,343 3,513 10,664 4,449 Project start-up and transition costs 4,068 3,501 6,623 6,408 Adjusted EBITDA $ 57,033 $ 18,968 $ 93,264 $ 36,102 Adjusted EBITDA Margin 27.7% 16.5% 25.9% 15.3% Less: Capital expenditures $ (12) $ 3,403 $ 5,154 $ 10,233 Free Cash Flow $ 57,045 $ 15,565 $ 88,110 $ 25,869 For additional information, refer to Neo’s MD&A for the three and six months ended June 30, 2026.
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Neo Performance Materials Inc. 12 Second Quarter 2026 News Release RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME ($000s; unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 17,463 $ 5,688 $ 15,823 $ 4,301 Adjustments: Foreign exchange loss (gain) 2,227 (4,700) 3,842 (8,485) Share-based compensation 7,343 3,513 10,664 4,449 Buss & Buss non-controlling interest and related items (1) (12,160) (196) (5,524) 1,661 Project start-up & transition costs 4,068 3,501 6,623 6,408 Other items included in other (income) expense (70) 20 (168) 4,828 Tax impact of the above items 4,823 829 7,298 2,004 Adjusted Net Income $ 23,694 $ 8,655 $ 38,558 $ 15,166 Attributable to: Common shareholders $ 23,705 $ 8,739 $ 38,561 $ 15,157 Non-controlling interest (11) (84) (3) 9 Weighted average number of common shares outstanding: Basic (000s) 43,457 41,838 42,537 41,806 Diluted (000s) 46,168 43,257 45,152 43,186 Adjusted earnings per share attributable to common shareholders: Basic $ 0.55 $ 0.21 $ 0.91 $ 0.36 Diluted $ 0.51 $ 0.20 $ 0.85 $ 0.35 (1) Includes (i) changes in the fair value of the derivati ve liabilities, (ii) dividends paid to non-controlling interest, and (iii) the non- controlling interest’s share of Buss & Buss net income, excluding related tax effect shown separately For additional information, refer to Neo’s MD&A for the three and six months ended June 30, 2026.