Lynas share price lifts off on rocketing FY22 profits

Lynas is the only substantial producer of rare earths outside China.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Lynas share price gains on FY22 results
  • Revenue leapt 88% year on year
  • NPAT was up 244% from FY21

The Lynas Rare Earths Ltd (ASX: LYC) share price is up 2.13% in late morning trade, having earlier posted gains of 5.8%.

Lynas shares closed yesterday trading for $8.92 and are currently trading for $9.11.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) rare earth producer's full-year results for the 12 months ending 30 June (FY22).

And there's certainly plenty of ASX investor interest today, with more than $32 million worth of trades having gone through within the first hour of trading.

So, why are investors bidding up the Lynas share price today?

A small child in a sandpit holds a handful of sand above his head and lets it trickle through his fingers.

Image source: Getty Images

What's piquing ASX investor interest?

As the only substantial producer of rare earths outside China, Lynas has seen strong demand from the United States and other nations looking to secure sources of the critical minerals outside of the Middle Kingdom.

Today, the Lynas share price is marching higher as investors eye FY22 revenue of $920 million, an 88% year-on-year leap.

And profits were way up from FY21 as well, with net profit after tax (NPAT) rocketing 244% to $540.8 million.

While the ASX 200 rare earths producer didn't offer specific guidance for FY23, Lynas did highlight its ongoing growth plans, stating:

Our expansion initiatives will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States.

With cash on hand as at 30 June of $966 million, Lynas arguably looks to be in a strong position to pursue those growth ambitions.

Lynas share price snapshot

Despite a sharp retrace in 2022, the Lynas share price remains up by around 37% over the past 12 months. That compares to a full-year loss of around 5% posted by the ASX 200.

Longer term, Lynas shares have gained 443% over five years, smashing the 24% return delivered by the benchmark index.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

A man rests his chin in his hands, pondering what is the answer?
Earnings Results

CBA shares: What to expect from Wednesday's FY26 earnings

Australia’s biggest bank opens its books this week.

Read more »

Man sits smiling at a computer showing graphs.
Exchange-Traded Funds (ETFs)

IonQ just posted record revenue. What does it mean for the ASX's newest quantum computing ETF?

A record quarter, a brand new fund, and one big catch.

Read more »

Business people discussing project on digital tablet.
Earnings Results

Charter Hall Retail REIT lifts FY26 profit and distributions

Here's what the property company reported for FY 2026.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Earnings Results

ResMed posts strong Q4 earnings, lifts dividend

The sleep disorder treatment company had another record quarter.

Read more »

happy investor, celebrating investor, good news, share price rise, up, increase
Earnings Results

Nick Scali shares in focus after 22% NPAT jump in FY26 earnings

The furniture retailer reported a 22% jump in net profit.

Read more »

Two happy construction workers discussing share price performance with each other.
Earnings Results

James Hardie lifts outlook as Q1 sales jump 64%

James Hardie reported adjusted EBITDA of US$422 million, which is a jump of 79% year over year.

Read more »

A businessman points to an arrow going up on a graph, indicating a share price rise for an ASX company.
Earnings Results

Up 98% since March, why are AMP shares leaping higher again on Thursday?

ASX investors are piling into AMP shares on Thursday. But why?

Read more »

A toy house sits on a pile of Australian $100 notes.
Earnings Results

REA Group boosts dividend payout as results defy the housing downturn

The company is expecting to be resilient in the face of challenges going forward.

Read more »