Lynas Rare Earths Posts 55% Revenue Growth as REEx Analysis Exposes the Investment Questions Behind the Headlines

Highlights

• Lynas reported A$310.1M in quarterly revenue, up 55% year over year, driven by an 88% rise in average selling prices while sales volumes fell 18%
• Customer cash receipts declined 10.3% quarter over quarter despite rising revenue, raising questions about working capital and cash flow quality
• REEx calculated Lynas trading at approximately 13.4x FY2026 revenue and 59x trailing earnings, prompting scrutiny of whether the valuation is justified
• Lynas produced 23 tonnes of dysprosium and terbium combined, but key data on individual volumes, realized prices, and margins remain undisclosed
• Downstream partnerships include a ~A$50M equity investment in a Malaysian magnet plant and a proposed metal-making facility in Vietnam