US Antimony: Major Contracts Fuel Optimism Despite Quarterly Setback

US Antimony finds itself navigating a complex financial landscape, where substantial long-term government and industrial contracts contrast sharply with recent disappointing earnings. The company's stock experienced notable downward pressure following the release of its latest quarterly results, creating a puzzling scenario for market observers.

The third quarter of 2025 revealed significant challenges in US Antimony's current operations. Financial results substantially missed market expectations across key metrics:

• Earnings per share showed a loss of $0.04, compared to anticipated gains of $0.03
• Revenue reached $8.7 million, well below the projected $12.8 million
• The company reported a consolidated net loss of $4.1 million

Market reaction was swift and negative, with shares declining 5.58 percent to settle at $8.07. While the nine-month period shows impressive revenue growth of 182 percent to $26.2 million, this positive trend failed to offset investor concerns about the recent quarterly performance.

Strategic Contracts Position Company for Growth

Despite current operational headwinds, US Antimony has secured two substantial agreements that promise significant future revenue streams totaling over $351 million.

The most notable development came in September 2025, when the company landed an exclusive supplier arrangement with the U.S. Department of Defense valued at up to $245 million. This contract establishes US Antimony as a crucial provider of antimony metal for national defense reserves, with an initial $10 million order already completed.

Adding to this momentum, the company secured a five-year agreement in November 2025 with a major industrial client that could generate up to $106.7 million in revenue. This contract involves supplying antimony trioxide for flame-retardant applications.

Should investors sell immediately? Or is it worth buying US Antimony?

Expansion Initiatives and Future Outlook

Management has revised 2025 revenue projections downward to between $40 million and $43 million. However, the company maintains an optimistic outlook for 2026, targeting $125 million in revenue—a figure that substantially exceeds analyst expectations.

During the Southwest IDEAS Conference, CEO Gary C. Evans highlighted that government support programs should significantly improve profit margins. The company anticipates achieving gross margins exceeding 50 percent when using self-sourced materials.

Substantial expansion efforts are underway across operations. The Montana refinery is undergoing upgrades to quintuple its processing capacity, while the Mexican facility aims to add 200 tons of monthly production. Only Alaskan operations remain paused until spring 2026.

Market analysts at H.C. Wainwright maintain confidence in the company's prospects, reiterating a "Buy" rating with a price target of $10.25 per share. Additional positive catalysts include the company's recent inclusion in both the Russell Microcap and Russell 3000 indices, which may attract further institutional interest.

The critical question remains whether US Antimony can successfully bridge the gap between current operational challenges and its promising contractual pipeline as it moves toward projected profitability in 2026.