Corrected: UPDATE 1-Australia's Lynas posts sharp rise in annual profit, but misses market estimates

Lynas Rare Earths

26/08/2026 01:42

Corrects currency in paragraph 3 to Australian dollars from U.S. dollars
Aug 26 (Reuters) - Australia's Lynas Rare Earths LYC.AX reported a sharp rise in annual profit on Wednesday, helped by record average selling prices for rare-earths oxide and strong demand, but missed market expectations, sending its shares lower in early trade.
The world's largest rare-earths producer outside China said the surge was driven by firm prices and floor price agreements with both Japanese and U.S. customers, which helped reduce volatility.
Its average selling price rose 59% to A$80.7 per kilogram, helped by improved pricing of neodymium-praseodymium, a key rare‑earth magnet material, and a higher share of heavy rare-earths sales and sales with pricing not linked to the market index.
"Demand for rare-earth permanent magnets outside China markets remains strong and Lynas is focused on optimising its production assets and delivering towards 2030 growth initiatives to meet customer needs today and tomorrow," said interim CEO Pol Le Roux.
Customers continued to prioritise sustainable rare-earths supply chains outside China amid export restrictions and efforts in the United States and Europe to secure alternative supplies, while strong demand lifted sales volumes.
Lynas posted a net profit after tax of A$222.4 million ($159.37 million) for the year ended June 30, compared with A$8 million a year ago. That missed a Visible Alpha consensus estimate of A$242.5 million.
The company also said it is undertaking a search process for global chief executive officer and will update the market in due course.
Shares of the company fell as much as 2.7% to A$16.14, while the benchmark S&P/ASX 200 .AXJO was up 0.2%.
          
($1 = 1.3955 Australian dollars)

 (Reporting by Anjali Singh in Bengaluru; Editing by Subhranshu Sahu)
 ((anjali.singh2@thomsonreuters.com;))