Evolution Metals & Technologies Reports Second Quarter 2026 Financial Results and Provides Corporate Update
Rhea-AI Summary
Evolution Metals & Technologies (Nasdaq: EMAT) reported Q2 2026 results and detailed progress on building a non-China, defense-grade rare earth magnet supply chain. Revenue reached $1.6 million in Q2 2026 (none in Q2 2025) with a $0.1 million gross loss, while net loss narrowed to $11.9 million from $40.9 million; Adjusted Net Loss was $13.6 million.
The company OEM-qualified six NdFeB magnet grades with two Tier‑1 electronics customers, received the first five-metric-ton shipment of non-China NdPr metal under a bulk-supply agreement, and advanced ULVAC contracts for 13 sintered magnet production machines targeting about 10,000 metric tons annual magnet capacity by late 2026. EMAT also put in place a $100 million convertible debenture facility with Yorkville, issued $25.8 million to date, and strengthened leadership by appointing magnet expert Kenji Konishi and retired four-star General Thomas A. Bussiere.
Positive
- Q2 2026 revenue $1.6 million versus none in prior-year quarter
- OEM qualification across six NdFeB grades with two Tier‑1 electronics OEMs
- First five-metric-ton non-China NdPr shipment under bulk-supply agreement
- $100 million Yorkville convertible debenture facility, with $25.8 million issued
- ULVAC contracts for 13 sintered magnet machines, targeting ~10,000 mt capacity by Nov 2026
- Non-cash $425.2 million charge tied to pre-combination instruments, described as non-recurring
Negative
- Q2 2026 net loss $11.9 million, or $(0.02) per share
- Six-month 2026 net loss $452.2 million, or $(0.73) per share
- Adjusted Net Loss $13.6 million in Q2 2026 and $28.6 million year-to-date
- SG&A expenses rose to $12.1 million in Q2 2026 from $2.9 million a year earlier
- Operating loss of $12.2 million in Q2 2026 and $27.8 million for six months
- Gross loss $0.1 million in Q2 2026 despite initial revenue
News Explained
As of June 30, EM&T held $5,254 thousand in cash, while the $100 million convertible facility was only partly issued.
EM&T reported second-quarter results and has issued two convertible debentures—
Although the release describes a
At
Sources and calculations
- Evolution Metals & Technologies Q2 2026 results and corporate update (2026-08-17)
- Evolution Metals & Technologies Q1 2026 fundamentals (2026Q1)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $5,389,000 / ($5,569,000 / 90) = [object Object]
Market reaction after Q2 2026 earnings report: EMAT -6.72%
Following this news, EMAT has declined 6.72%, reflecting a notable negative market reaction. The stock is currently trading at $2.83.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 13 | Board appointment | Positive | +34.1% | Retired four-star general appointed as an independent director |
| Mar 18 | Operations video | Positive | +5.5% | Corporate video showcased sintered and bonded magnet operations |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Both available prior company-news events were followed by positive 24-hour moves, including 34.07% and 5.48%.
Key Terms
ndpr metal technical
ndfeb technical
convertible debentures financial
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Executed on the delivery of a defense-grade, non-China rare earth magnet supply chain: became one of the only known commercial-scale producers with OEM-qualified NdFeB magnet grades and took delivery of the first non-China NdPr metal shipment ahead of the January 1, 2027 DFARS deadline and the July 20, 2026 Executive Order on Securing America’s Defense Supply Chains
Launched
Subsequent to quarter-end, strengthened senior leadership with the appointment of Kenji Konishi, former Vice President and Chief Technology Officer of JL MAG Rare Earth, as Head of Magnet Engineering Production, and appointed four-star U.S. Air Force General Thomas A. Bussiere (Ret.), former Commander of Air Force Global Strike Command, to the Board of Directors
MIAMI, FL, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Evolution Metals & Technologies Corp. (“EM&T” or the “Company”) (Nasdaq: EMAT), a U.S.-based critical materials and advanced manufacturing company focused on continuing to build a secure, vertically integrated supply chain for rare earth permanent magnets, battery materials, and related critical technologies, today reported financial results for the three and six months ended June 30, 2026 and provided a corporate update on recent operational progress and business developments.
David Wilcox, Executive Chairman of EM&T, stated: “Q2 was a defining quarter for EM&T as we continued to execute on all fronts of our commercial-scale, non-China rare earth magnet platform ahead of the January 1, 2027 DFARS deadline restricting Chinese-origin rare earth magnets in U.S. defense systems. During the quarter we brought the first shipment of non-China NdPr metal into commercial magnet production, secured OEM qualifications across six high-performance NdFeB grades, and kept our ULVAC sintered-magnet equipment plan on schedule for November 2026 delivery that we expect will bring us to approximately 10,000 metric tons of annual rare earth magnet production capacity by year-end. Subsequent to quarter-end, we also welcomed a retired four-star general to our board who spent his career operating the very platforms that depend on the magnets we make. The July 20, 2026 Executive Order on Securing America’s Defense Supply Chains and the August 13, 2026 White House tariff action on drones and their critical components confirm the strategic direction of the platform we have been building for eighteen years: a Western-aligned rare earth magnet supply chain purpose-built to serve the U.S. defense industrial base and its allies. We expect the pace of execution to continue accelerating through the second half.”
Recent Corporate and Business Highlights
- Continued commercial-scale rare earth magnet production: During the second quarter, the Company continued the commercial-scale production and sale of bonded and sintered rare earth permanent magnets through its consolidated operating subsidiaries, building on more than eighteen years of operating history serving global OEM customers across the automotive, consumer electronics, defense, and industrial sectors. The Company’s grade 42SH sintered magnets remain in commercial production, and its grade 48SH high-performance sintered magnets remain in the final stages of customer quality certification.
- Validated commercial-scale, non-China rare earth magnet supply capability: On June 11, 2026, the Company’s subsidiaries completed OEM qualification with two Tier-1 electronics OEMs across six NdFeB magnet grades - N48M, N50M, N42H, N45H, N35SH and N46SH - validating commercial-scale, non-China supply of high-performance rare earth permanent magnets ahead of the January 1, 2027 DFARS 252.225-7052 deadline. The Company believes this positions EM&T among a very limited group of producers globally, and one of the only known Western producers, capable of delivering OEM-certified NdFeB magnets at commercial scale on the timeline required by the U.S. defense industrial base.
- Executed non-China NdPr feedstock supply arrangement and received first shipment: On May 29, 2026, the Company entered into a bulk-supply agreement with Senri Trading Co., Ltd. for neodymium-praseodymium (NdPr) metal produced entirely outside of China by SRE Vietnam, a wholly owned subsidiary of Japan’s Tokai Trading Co., Ltd. Subsequent to quarter-end, on July 22, 2026, the Company received the first five-metric-ton shipment — to the Company’s knowledge, the first commercial shipment of non-China NdPr metal received by a U.S.-listed producer for use in DFARS-compliant magnet manufacturing.
$100 million convertible debenture facility with Yorkville Advisors Global: On May 7, 2026, the Company entered into a Securities Purchase Agreement with YA II PN, Ltd., a fund managed by Yorkville Advisors Global, LP, providing for the issuance and sale of convertible debentures in an aggregate principal amount of up to$100.0 million . The Company issued a first convertible debenture of$20.0 million on May 7, 2026 and, subsequent to quarter-end, a second convertible debenture of$5.775 million on July 14, 2026, with up to an additional$74.2 million available in subsequent tranches. The Company intends to use the proceeds to fund the buildout of its expanded rare earth magnet production capacity, including the ULVAC-supplied equipment described below, and for general corporate purposes.- Progressed ULVAC binding equipment supply contracts: On May 13, 2026, the Company entered into binding equipment supply contracts with ULVAC Korea, Ltd., a subsidiary of ULVAC, Inc. — widely regarded as the global standard-setter for sintered NdFeB magnet production technology — covering thirteen high-performance sintered rare earth magnet production machines, with delivery and installation scheduled by November 2026. Upon commissioning, the Company expects the expansion to increase its annual rare earth magnet production capacity to approximately 10,000 metric tons, including approximately 6,000 metric tons of high-performance sintered magnets, positioning EM&T among the largest planned producers of rare earth permanent magnets outside of China ahead of the January 1, 2027 DFARS 252.225-7052 effective date.
- Continued alignment with an intensifying U.S. industrial policy environment: On July 20, 2026, the President of the United States issued an Executive Order titled “Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials,” which the Company believes sharpens enforcement of the existing DFARS 252.225-7052 rule by ending routine waivers and requiring formal mitigation plans for exceptions. Just recently, on August 13, 2026, the White House also announced tariff action on drones and drone components - including tariffs of up to
100% on non-allied imports of larger drones and their critical components - which the Company believes reinforces demand for domestic, non-China rare earth permanent magnet supply, given the fundamental dependence of drone motors, gimbals and actuators on high-performance NdFeB magnets. Together with the January 14, 2026 Section 232 Proclamation identifying rare earth permanent magnets as “vital to nearly all electronics and vehicles,” the approximately$12 billion Project Vault Strategic Critical Minerals Reserve, and the April 17, 2026 U.S.-Korea Critical Minerals Framework, these actions reinforce EM&T’s strategic positioning as a commercial-scale, non-China source of high-performance rare earth permanent magnets ahead of the January 1, 2027 DFARS effective date. - Strengthened senior operating leadership and governance: Subsequent to quarter-end, on August 10, 2026, the Company appointed Kenji Konishi as Head of Magnet Engineering Production, together with a core team of senior Japanese magnet-manufacturing veterans. Mr. Konishi joins EM&T from JL MAG Rare Earth Co., Ltd., where he served as Vice President and Chief Technology Officer and oversaw annual revenue growth from approximately
$115 million in 2015 to approximately$318 million in 2020, and previously founded and led JL MAG Japan. His expertise spans sintered NdFeB, bonded and SmCo magnet systems, from alloy design through mass production. On August 12, 2026, the Company appointed retired U.S. Air Force four-star General Thomas A. Bussiere (Ret.), former Commander of Air Force Global Strike Command, as an independent director.
Frank Moon, Chief Executive Officer of EM&T, added: “In the second quarter, we executed on the operational commitments we made in Q1. OEM qualification across six NdFeB grades is not marketing language, it is a gating step for defense-prime and Tier-1 electronics customers, and it takes years of magnet chemistry and process discipline to achieve. In parallel, our ULVAC equipment schedule remains on track for November 2026 delivery, and we received our first shipment of non-China NdPr metal into our production process. Equipment and financing get you a factory; operators get you a magnet business. That is why, subsequent to quarter-end, we recruited Kenji Konishi, former Vice President and Chief Technology Officer of JL MAG Rare Earth, and a core group of senior Japanese magnet-manufacturing veterans, alongside our existing 42-engineer, 11-PhD operating team. We believe EM&T will be producing at an annual rate of approximately 10,000 metric tons of rare earth magnets before the end of 2026, and we are focused on converting the near-term OEM and defense-prime pipeline into contracted volume.”
Financial Highlights for the Three and Six Months Ended June 30, 2026
Adjusted Net Loss (Non-GAAP). Adjusted Net Loss was
Net Loss. Net loss for the three months ended June 30, 2026 was
Revenue and Gross Profit. Revenue was
Operating Expenses. Selling, general and administrative (“SG&A”) expenses for the three months ended June 30, 2026 were
Operating Loss. Operating loss for the second quarter of 2026 was
Change in Fair Value of Financial Instruments. The Company recognized a non-cash gain of
About Evolution Metals & Technologies Corp.
Evolution Metals & Technologies Corp. (Nasdaq: EMAT) is a U.S.-based critical materials and advanced manufacturing company for rare earth permanent magnets, battery materials, and related critical minerals and technologies. By leveraging proven commercial-scale operations, advanced processing technologies, and strategic partnerships, EM&T operates what it believes is the only vertically integrated critical materials supply chain spanning end-of-life electronics and batteries, high-grade concentrates, and the manufacture of finished rare earth magnets (including high-performance rare earth magnets) and battery materials. For additional information, please visit https://investors.evolution-metals.com and follow the Company on LinkedIn.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including Adjusted Net Loss and Adjusted Net Loss per share (basic and diluted). Adjusted Net Loss is defined as GAAP net loss adjusted to exclude the change in fair value of financial instruments. Adjusted Net Loss per share (basic and diluted) is defined as Adjusted Net Loss divided by weighted average basic and diluted shares outstanding for the applicable period. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”). These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company believes that the non-GAAP financial measures presented in this press release provide useful supplemental information to management and investors by isolating the impact of certain non-cash and non-recurring items, including the change in fair value of financial instruments described above.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding EM&T’s plans, objectives, expectations, projections, strategies, anticipated production capacity, expansion plans, customer qualifications and certifications, machine delivery and commissioning timelines, competitive positioning, non-China feedstock sourcing arrangements and expected delivery volumes, compliance with DFARS 252.225-7052, the July 20, 2026 Executive Order “Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials,” and the August 13, 2026 White House tariff action on drones and their critical components, the Company’s ability to serve as a compliant supplier to U.S. defense prime contractors and their subcontractors under the mitigation-plan framework, the Company’s capital-formation activities, the availability and timing of tranches under the Yorkville convertible debenture facility, the Company’s ability to continue as a going concern, the expected contributions of recently appointed directors and senior management, and commercial operations. All statements, other than statements of historical facts, included herein and public statements by our officers or representatives, that address activities, events or developments that our management expects or anticipates will or may occur in the future, are forward-looking statements, including but not limited to statements regarding future business strategy, production capacity, plans and goals, competitive strengths, and expansion and growth of our business. These forward-looking statements, along with terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should,” “believes,” “positioned,” and other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those risks include risks related to changes in our operations; uncertainties concerning estimates and projections; industry-related risks; the commercial success of, and risks related to, our development activities; uncertainties and risks related to our reliance on contractors, equipment suppliers, and consultants; risks related to key personnel retention and the integration of newly hired personnel and teams, including the integration of Mr. Konishi and other recently appointed senior operating personnel; risks related to customer qualification and certification timelines and outcomes; risks related to customer concentration and customer relationships; risks related to the interpretation, enforcement, amendment, or repeal of DFARS 252.225-7052, the July 20, 2026 Executive Order, the August 13, 2026 White House tariff action on drones and their critical components, and related U.S. Government regulations; risks related to non-China feedstock sourcing, including timing and volume of deliveries under supply arrangements; risks related to defense contractor customer qualification under mitigation-plan frameworks and traceability documentation requirements; risks that the Company’s competitive positioning as a compliant supplier may not materialize as expected; risks related to machine delivery schedules, commissioning timelines, and production ramp-up; risks relating to the Company’s liquidity, its ability to continue as a going concern, and its ability to raise additional capital on acceptable terms or at all; risks related to the conversion mechanics, registration requirements, and other terms of the Yorkville convertible debenture facility; and risks that future U.S. industrial policy actions or changes thereto may not benefit the Company in the manner currently expected. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated, or intended. While these forward-looking statements were based on assumptions that the Company believes are reasonable when made, you are cautioned that forward-looking statements are not guarantees of future performance and that actual results, performance, or achievements may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results, performance, or achievements are consistent with the forward-looking statements contained in this press release, those results, performance, or achievements may not be indicative of results, performance, or achievements in later periods. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statements made in this press release speak only as of the date of those statements, and we undertake no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments unless required by law. Additional information concerning these and other factors that may impact EM&T’s expectations and projections can be found in filings it makes with the SEC, including the Annual Report on Form 10-K of EM&T for the year ended December 31, 2025 filed with the SEC on February 20, 2026 and the Quarterly Report on Form 10-Q of EM&T for the three and six months ended June 30, 2026 to be filed with the SEC, in each case including the disclosures under “Risk Factors” therein, and other documents filed or to be filed with the SEC by EM&T. SEC filings are available on the SEC’s website at www.sec.gov.
Investor Relations Contacts
Judith McGarry
Evolution Metals & Technologies Corp.
investor.relations@evolution-metals.com
Arx Investor Relations
North American Equities Desk
EMAT@arxhq.com
EVOLUTION METALS & TECHNOLOGIES CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except share and per share data)
| June 30, | December 31, | |
| 2026 (Unaudited) | 2025 | |
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | ||
| Accounts receivable, net | 2,218 | — |
| Non-trade accounts receivable, net | 1,848 | 1,493 |
| Non-trade accounts receivable — related parties | 796 | — |
| Inventories, net | 1,499 | — |
| Prepaid expenses and other current assets | 3,084 | 48 |
| Total current assets | 14,699 | 13,226 |
| Property, plant and equipment, net | 7,333 | — |
| Intangible assets, net | 6,347 | — |
| Deferred transaction costs | — | 9,265 |
| Goodwill | 58,909 | — |
| Other noncurrent assets | 7,796 | — |
| TOTAL ASSETS | ||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | ||
| Accounts payable — related parties | 78 | — |
| Non-trade accounts payable | 47,553 | — |
| Non-trade accounts payable — related parties | 461 | — |
| Short-term debt | 2,625 | — |
| Short-term debt — related parties | 1,659 | 484 |
| Current portion of long-term debt | 1,246 | — |
| Convertible promissory notes | 2,296 | — |
| July investment agreement derivative | — | 379,205 |
| CPU Share Allocation Obligation | — | 292,680 |
| Accrued expenses and other current liabilities | 27,408 | 339 |
| Total current liabilities | 93,467 | 677,359 |
| Long-term debt | 2,309 | — |
| Long-term debt — related parties | 16 | — |
| Convertible debentures | 17,395 | — |
| Other noncurrent liabilities | 749 | — |
| Total liabilities | 113,936 | 677,359 |
| Commitments and contingencies (Note 19) | ||
| STOCKHOLDERS' DEFICIT | ||
| Common stock, | 62 | 45 |
| Additional paid-in capital | 1,113,050 | (2,374) |
| Convertible preferred units (Note 13 — Equity) | — | 26,262 |
| Accumulated deficit | (1,131,031) | (678,807) |
| Accumulated other comprehensive (loss) income | (942) | 6 |
| Total stockholders' deficit | (18,862) | (654,868) |
| Noncontrolling interest | 10 | — |
| Total deficit | (18,852) | (654,868) |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |
* Par value of common stock, additional paid-in capital and share data have been retroactively restated to give effect to the reverse recapitalization discussed in Note 3.
EVOLUTION METALS & TECHNOLOGIES CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2026 | 2025 | 2026 | 2025 | |
| Revenues | $— | $— | ||
| Cost of sales | (1,751) | — | (3,186) | — |
| Gross (loss) profit | (115) | — | 329 | — |
| OPERATING EXPENSES: | ||||
| Selling, general and administrative | (12,072) | (2,900) | (28,171) | (5,702) |
| Operating loss | (12,187) | (2,900) | (27,842) | (5,702) |
| Other income (expense): | ||||
| Interest (expense) income, net | (821) | 525 | (1,526) | 1,019 |
| Other (expense) income, net | (124) | — | 1,171 | 250 |
| Provision for credit losses | — | (5,059) | — | (5,529) |
| Change in fair value of financial instruments | 1,671 | (33,457) | (423,556) | (48,925) |
| Loss on foreign currency | (500) | — | (521) | — |
| Loss before income taxes | (11,961) | (40,891) | (452,274) | (58,887) |
| Income tax benefit | 51 | — | 51 | — |
| NET LOSS | ||||
| Net loss per share attributable to common stockholders | ||||
| Basic and diluted | ||||
| Weighted average shares of common stock outstanding | ||||
| Basic and diluted | 621,762,506 | 454,712,290 | 617,779,981 | 454,712,290 |
EVOLUTION METALS & TECHNOLOGIES CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
| Six Months Ended June 30, | ||
| 2026 | 2025 | |
| Cash flows from operating activities: | ||
| Net loss | ||
| Non-cash adjustments | 430,086 | 55,400 |
| Changes in operating assets and liabilities | 7,319 | (975) |
| Net cash used in operating activities | (14,818) | (4,462) |
| Cash flows from investing activities: | ||
| Net cash acquired in Business Combination | $— | |
| Acquisitions of property, plant and equipment | (7,736) | — |
| Issuance of notes receivable (including related party) | (650) | (761) |
| Payment for acquisition of business | (350) | — |
| Other investing activities, net | (8) | 200 |
| Net cash used in investing activities | (7,365) | (561) |
| Cash flows from financing activities: | ||
| Proceeds from issuance of convertible debentures | $— | |
| Proceeds from issuance of convertible preferred units | — | 7,050 |
| Cash assumed in reverse recapitalization | 13 | — |
| Advances to related party | (1,408) | (2,495) |
| Payments for appraisal rights | (936) | — |
| Other financing activities, net | (627) | (533) |
| Net cash provided by financing activities | 16,443 | 4,022 |
| Effect of exchange rate changes on cash | (691) | — |
| Net decrease in cash, cash equivalents and restricted cash | (5,741) | (1,001) |
| Cash and cash equivalents, and restricted cash, beginning of period | 11,685 | 2,615 |
| Cash and cash equivalents, and restricted cash, end of period | ||
EVOLUTION METALS & TECHNOLOGIES CORP.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(U.S. dollars in thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2026 | 2025 | 2026 | 2025 | |
| Net loss (GAAP) | ||||
| Add: Change in fair value of financial instruments | (1,671) | 33,457 | 423,556 | 48,925 |
| Adjusted net loss (non-GAAP) | ||||
| Net loss per share attributable to common stockholders, basic and diluted (GAAP) | ||||
| Add: Change in fair value of financial instruments per share | * | |||
| Adjusted net loss per share, basic and diluted (non-GAAP) | ||||
| Weighted average shares of common stock outstanding, basic and diluted | 621,762,506 | 454,712,290 | 617,779,981 | 454,712,290 |
* Represents change less than
