This article will discuss the 13 Best Magnesium Stocks to Buy Right Now.
Magnesium is a key material used in various industrial applications. Magnesium chloride is commonly utilized for deicing roads and as an ingredient in fertilizers. Beyond its industrial uses, magnesium is essential to U.S. national security, as it supports critical sectors such as aerospace, defense, and steel production.
The automotive sector is one of the top magnesium consumers, owing to its lightweight properties, helping enhance fuel efficiency and vehicle performance. Top automakers have already started to use magnesium instead of steel and aluminum in several components, according to the International Magnesium Association. For example, a magnesium alloy wheel can reduce weight by 32% compared to aluminum. The shift toward lighter materials has helped the automotive sector meet stricter fuel economy and emission standards, transforming magnesium into an essential material in modern vehicle design.
As such, the global magnesium industry has seen strong growth in the past years, with its size forecasted to reach $4.97 billion in 2025, up from $4.67 billion in 2024, at a growth rate of 6.4%, as per The Business Research Company. This growth has primarily been driven by the rising demand for lightweight materials in the automotive industry, the increasing adoption of magnesium alloys in aerospace applications, and its widespread usage in medical implants as well as consumer electronics. The industry’s growth is also supplemented by government initiatives promoting magnesium.
Furthermore, magnesium has broader implications for efficiency due to its ability to reduce vehicle weight remarkably. According to estimates by the U.S. Automotive Material Partnership, using 150 lbs of magnesium instead of 500 lbs of steel, or 90 lbs of magnesium instead of 150 lbs of aluminum can help reduce vehicle weight by 15%. This property can save over 5 billion gallons of fuel by 2030 as magnesium gets integrated into 25% of the vehicles in the U.S. Such positives add to magnesium’s role in the shift of industry toward sustainability and cost efficiency.
Additionally, the increasing demand for battery electric vehicles (BEVs) further cement magnesium’s market. According to S&P Global Mobility, BEV sales worldwide are expected to reach 15.1 million units in 2025, a 30% surge from 2024. These sales would account for 16.7% of total light vehicle sales. As the automotive market shifts toward prioritizing weight reduction to increase battery range and efficiency, magnesium alloys are anticipated to play an important role in vehicle design.
Apart from the automotive sector, emerging trends in the magnesium market are powering innovation across sectors. Medical applications are driving the development of new magnesium-based materials, including biodegradable implants that dissolve naturally in the body, leaving no residue. This development could revolutionize the medical industry, providing more sustainable and safer options to traditional implant materials.
Additionally, as the world moves toward sustainable and recyclable materials, magnesium’s appeal is increasing in various sectors. The environmental impact of magnesium is expected to lower, as advancements are being made in magnesium recycling technologies, in line with global sustainability goals while potentially driving cost efficiency. The magnesium recycling market is expected to reach $1.03 billion by 2032, up from $558.8 million in 2023, increasing at a CAGR of 7.1%, according to Custom Market Insights. Such growth points toward the increasing role of recycled magnesium in addressing industrial demand, as well as reducing dependency on primary extraction.
Magnesium holds an essential position in the automotive and aerospace industries, driven by its high strength-to-weight ratio and high melting point. Around 70% of global magnesium produced is being used for alloy manufacturing currently, adding to its importance in structural applications. Thus, as various sectors look to move toward lightweight, durable, and eco-friendly materials, magnesium’s role is expected to grow in the global market, strengthening the trajectory of its long-term growth.
With this, let’s look into the 13 Best Magnesium Stocks to Buy Right now.
A technician in a hardhat examining a drill head inside a mining facility.
Our Methodology
To come up with our list of the 13 Best Magnesium Stocks to Buy Right now, we first identified companies with significant exposure in the magnesium industry. This exposure is measured through magnesium mining, refining, or production of magnesium-based materials. We then shortlisted stocks on the basis of the number of hedge funds invested in them as of Q4 2024, using Insider Monkey’s hedge fund database. The top stocks are the ones with the highest hedge fund interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13. Intrepid Potash, Inc. (NYSE:IPI)
Number of Hedge Fund Holders: 5
Intrepid Potash, Inc. (NYSE:IPI) is a producer and marketer of potassium, magnesium, sulfur, salt, and water products across three segments – Potash, Trio, and Oilfield Solutions. The company is a supplier of potassium chloride for agriculture, animal feed, and industrial applications, while its Trio segment specializes in fertilizers, combining sulfate, potassium, and magnesium. It also dispenses magnesium chloride for road treatment and industrial usage, alongside brines for the oil and gas industry.
Regardless of a tough pricing environment, the company reported an adjusted EBITDA of $8.6 million for Q4 ended December 31, 2024, up from $7.1 million in the previous year. The company was successful in reducing its adjusted net loss from $5.2 million to $1.4 million, driven by increased production volumes and enhanced cost efficiency. The production of potash for 2024 hit the 295,000-ton mark, an increase of 30% from 2023. Trio hit record sales of 254,000 tons, with pricing surpassing potash for the first time since 2016. Simultaneously, the Oilfield Solutions segment emanated stable growth due to strong demand in the Permian Basin.
Furthermore, Intrepid Potash, Inc. (NYSE:IPI) is furthering its strategic projects to supplement long-term growth. The company is developing HB AMEX cavern to increase potash production, while capital expenditures are expected to remain between $36 million and $42 million for 2025, majorly to sustain core operations. Production by Trio is forecasted to range between 235,000 and 245,000 tons, with higher margins as high demand is expected.
Looking forward, Intrepid Potash, Inc. (NYSE:IPI) looks to gain from increasing potash prices and potential U.S. tariffs on Canadian imports, potentially providing a pricing advantage for domestic producers. The continued strength of its Trio product, which provides essential magnesium nutrients, has well-positioned Intrepid Potash, Inc. (NYSE:IPI) in the specialty fertilizer market. However, for sustained profitability, it needs to maintain production efficiency and cost control.
Thus, the company remains a top pick among the best magnesium stocks to invest in due to its diverse product portfolio and improving financials.
12. ICL Group Ltd (NYSE:ICL)
Number of Hedge Fund Holders: 9
ICL Group Ltd (NYSE:ICL) operates in the specialty minerals and chemicals industries, with a focus on industrial products, potash, phosphate solutions, and growing solutions. The company plays an important role in the magnesium industry, producing magnesium and magnesium alloys, as well as related by-products like chlorine and sylvinite. The company is also a supplier of magnesium chloride and magnesia-based products for industrial applications.
Overcoming market challenges, ICL Group Ltd (NYSE:ICL) reported financial results for the year ended December 31, 2024. With an adjusted EBITDA of $1.47 million and sales of $6.84 billion, it posted a margin of 21%. The company’s specialty-driven businesses helped offset a 24% decrease in potash prices, as they contributed 70% to its annual EBITDA. On the other hand, Magnesium-related sales also remained stable within the potash segment, which generated $1.65 billion in revenue as potash sales reached 4.6 million metric tons.
Moreover, ICL Group Ltd (NYSE:ICL) gained from increasing potash prices, especially in the U.S., where prices saw a 15% increase. The pricing is expected to receive further support due to Chinese and Indian contract negotiations. However, pricing in Q1 may not fully reflect these changes as the company operates under existing contracts, and the company is strategically managing sales in order to maximize price improvements.
Furthermore, it expanded its specialty phosphate business, surging its market share, while the global phosphate market grew by 2-3%. Weak WPA prices were offset through the help of higher sales volumes, particularly in food, pharmaceutical, and cement applications. The company benefited from antidumping duties on TCPP imports from China, especially in Europe, where Chinese imports are being replaced by sustainable product alternatives. A similar review is being done in the U.S., where customers are already transitioning to ICL’s products.
Regardless of the operational challenges caused by the Israel conflict, ICL Group Ltd (NYSE:ICL) has improved supply chain resilience and enhanced efficiency at key production sites. The company is also monitoring investments in lithium-iron-phosphate (LFP) battery material in response to increasing energy storage demand.
Looking ahead, the company is expecting steady magnesium demand, recovery of the potash market, and continued expansion in specialty minerals. ICL Group Ltd (NYSE:ICL) is laser-focused on improving efficiency and growing its portfolio for specialty products in order to navigate industry variability and drive long-term profitability. As such, it is among the best magnesium stocks.
11. Luxfer Holdings PLC (NYSE:LXFR)
Number of Hedge Fund Holders: 14
Luxfer Holdings PLC (NYSE:LXFR) is a specialist in high-performance materials and gas containment solutions. The company serves various industries, including defense, healthcare, transportation, and industrial applications. It operates through three segments: Gas Cylinders, Elektron, and Graphic Arts. The Elektron segment operates in magnesium-based materials, supplying lightweight alloys and powders for industrial and defense use.
Luxfer Holdings PLC (NYSE:LXFR) reported its financials for Q4 ended December 31, 2024, with a revenue of $96 million and a gross margin of 23.4%. Adjusted EBITDA saw a rise to $13.8 million, emanating a margin expansion of 14.4%. The company also reported an increase of 61%, year-on-year, in its EPS to $0.29. Luxfer was able to generate $25.7 million in operating cash flow, decreasing its net debt to $41 million. Supplemented by strong defense-related magnesium sales and transportation alloys, the company posted full-year adjusted EPS of $0.99, despite weaker alternative fuel cylinder demand.
The company continues to prioritize operational efficiency and production innovation, regardless of macroeconomic uncertainties. It has been able to secure long-term customer agreements and consolidate manufacturing operations to increase cost efficiency.
Luxfer Holdings PLC’s (NYSE:LXFR) Elektron segment was able to achieve a 31.6% increase, year-on-year, in Q4, touching the $47.5 million mark in revenue. This was supplemented by military orders and climbing magnesium-based alloy demand in the automotive industry. On the contrary, its Gas Cylinders segment observed slight declines because of lower alternative fuel sales. On the other hand, the company is moving forward with its hydrogen storage solutions through its G-Stor Go HydroSphere trailers achieving European certification, reflecting increasing dependence on hydrogen-based technologies.
Looking ahead, Luxfer has forecasted flat revenue growth; however, it projects adjusted EPS between $0.95 and $1.05 and adjusted EBITDA between $48 million and $52 million. Although geopolitical risks and changing trading policies could impact costs, the company’s strategy remains focused on specialized materials and efficiency, positioning itself for long-term growth. Thus, Luxfer Holdings PLC (NYSE:LXFR) makes it to our list of the best magnesium stocks.
10. Kaiser Aluminum Corporation (NASDAQ:KALU)
Number of Hedge Fund Holders: 14
Kaiser Aluminum Corporation (NASDAQ:KALU) focuses on producing semi-fabricated specialty aluminum and magnesium alloys for the aerospace, defense, packaging, and automotive sectors. The company produces high-performance magnesium-aluminum alloys, which are extensively used in lightweight aerospace components, military vehicle armor, and structural applications.
Kaiser Aluminum Corporation (NASDAQ:KALU) reported total net sales of over $3 billion for the year ended December 31, 2024, regardless of the broader market challenges. Its conversion revenue was at $1.46 billion, a decrease of 1% year-on-year, whereas shipments saw a decrease of 2% to 24 million pounds. On the other hand, its adjusted EBITDA saw an improvement, up to $217 million, an increase of $7 million, with a 60-basis-point margin surge to 14.9%.
Moreover, Kaiser Aluminum Corporation’s (NASDAQ:KALU) General Engineering and Automotive segments observed growth, with their revenues rising by 3% to $313 million and $120 million, respectively. However, its Aerospace and High-Strength segments’ revenue decreased 1% to $530 million, whereas Packaging’s revenue dropped 3% to $490 million. Furthermore, Kaiser Aluminum held a strong liquidity position, with $572 million in funds and no major debt maturities expected till 2028, enhancing its financial stability.
Additionally, the company continues its investments in capacity expansions in its Warwick and Trentwood mills, in order to enhance coated product capabilities and strengthen its magnesium-alloy portfolio for the aerospace industry. Furthermore, its capital expenditures stood at $181 million in 2024, with a forecasted decrease to $125 million in 2025, increasing its cash flow to over $100 million.
For 2025, Kaiser Aluminum Corporation (NASDAQ:KALU) expects its aerospace shipments to decrease by 5%-7% due to a reduction in excess inventory by manufacturers. However, as aircraft production increases, the demand is forecasted to recover in 2026. Given its strategic investments and focus on lightweight magnesium-aluminum alloys, it stands among the best magnesium stocks.
9. Materion Corporation (NYSE:MTRN)
Number of Hedge Fund Holders: 15
Materion Corporation (NYSE:MTRN) is a global company producing advanced engineered materials, catering to aerospace, defense, semiconductor, automotive, and industrial markets. The company operates through three segments: Performance Materials, Electronic Materials, and Precision Optics. It also produces magnesium alloys, making use of its lightweight properties for high-performance applications in the aerospace and defense sectors.
Materion Corporation (NYSE:MTRN) reported strong financials for Q4 ended December 31, 2024, despite softness in the broader market. The company saw a 2% year-on-year increase in its value-added sales to $296.1 million, a 12% sequential increase. Its adjusted EBITDA increased 15% to $61.5 million, with improved margins of 20.8%. Materion Corporation’s adjusted earnings per share stood at $1.55, a 10% increase, emanating operational efficiency and cost management.
On the other hand, its segment performance was mixed, where its Performance Materials segment observed growth. The segments’ value-added sales rose by 5% to $195.8 million, and EBITDA showed an improvement of 17% to $78.6 million. Materion Corporation’s (NYSE:MTRN) Electronic Materials segment posted a meager 1% increase in sales to $78.6 million, whereas EBITDA surged to 18.7% compared to the previous year. However, Precision Optics segment sales decreased 17% to $21.7 million, while incurring an EBITDA loss of $1.1 million. This was attributed to lower volumes and an unfavorable product mix.
Regardless of challenges in automotive and industrial markets, the company improved its position in the aerospace and semiconductor sectors. It was able to secure a $150 million multiyear space propulsion materials contract and successfully scored a major semiconductor supplier award. Looking forward, it forecasts adjusted EPS between $5.30 and $5.70 per share in 2025, an improvement of 3% at midpoint. However, its precision-clad strip business is facing a 20% decrease, attributed to an ongoing inventory correction.
Despite such challenges, Materion Corporation’s (NYSE:MTRN) semiconductor recovery and ongoing strength in aerospace are expected to drive growth in the latter half of 2025. Such efforts position Materion Corporation among the best magnesium stocks to invest in.
8. POSCO Holdings Inc. (NYSE:PKX)
Number of Hedge Fund Holders: 19
POSCO Holdings Inc. (NYSE:PKX), an international steel leader with wide-ranging operations, has made major advancements in the magnesium sector by constructing a magnesium refining facility in South Korea.
The growing demand for magnesium in vehicle manufacturing is demonstrated by the 1 million-ton rise in sales witnessed by POSCO Holdings Inc. (NYSE:PKX), with 50% of this growth linked to automotive WTP (Workable Thin Plate) sales for the year ended December 31, 2024. With an operating profit of $1.6 billion, POSCO reported consolidated revenue of approximately $54.3 billion for the year ended December 31, 2024. However, due to declining steel demand and increasing costs, the company experienced a 29% year-over-year drop in profit.
Aggravated by $884 million in asset impairments and $900 million in inventory valuation losses, POSCO Holdings Inc.’s (NYSE:PKX) energy materials segments witnessed a $208 million loss, resulting in Q4 net loss of $542 million. Furthermore, the company made major developments in the lithium sector, completing key EV battery material plants, including POSCO Argentina and POSCO Lithium Solution.
The company also yielded $512 million from assets restructuring, allocating $77 million for share buybacks. By prioritizing lithium investments and enhanced efficiency, the company aims to decrease its capital expenditure by $770 million in 2025. Backed by China’s stimulus measures, POSCO Holdings Inc. (NYSE:PKX) projects a steel market recovery in the latter half of 2025, in spite of the uncertainties in the market.
Thus, given the strategic investments in energy materials, cost optimization, and innovation, POSCO Holdings Inc. (NYSE:PKX) is strongly positioned to benefit from the growing demand for magnesium, securing its competitiveness in the international markets. As such, it makes it to our list of the best magnesium stocks.
7. Ferroglobe PLC (NASDAQ:GSM)
Number of Hedge Fund Holders: 27
Ferroglobe PLC (NASDAQ:GSM) boasts a broad portfolio of silicon and manganese-based alloys, making it to our list of the best manganese stocks to buy. The company distributes key materials to the steel, chemical, and aluminum industries and operates internationally. Nodularisers, ferrosilicon alloys containing magnesium, further emphasize Ferroglobe’s role in magnesium-based applications within the foundry sector.
Ferroglobe PLC (NASDAQ:GSM) reported sales of $367.5 million, a drop of 15.2% from Q3 and 2.2% from the prior year. Despite the growth in manganese-based alloy shipments, the decrease was fueled by lower overall sales volumes. Weaker silicon-based alloy sales were mitigated by the surge in manganese-based alloy revenue, as the revenue for the full year stood at $1,644 million, moderately lower than $1,650 million in 2023.
Moreover, manganese-based alloy revenue achieved $78.5 million in Q4, declining 12.5% QoQ but up by 29.8% year-over-year. The segment witnessed a 16.7% drop in average realized prices while shipments rose by 5%. Lower pricing and high manganese ore costs led to adjusted EBITDA for the manganese segment to decline $7.1 million from $27.9 million in Q3. Raw material and energy costs rose to 68.2% of sales in Q4, surging nearly 10% from Q3, affecting the company’s profitability.
However, despite the challenges, for the first time, Ferroglobe PLC (NASDAQ:GSM) secured a net cash position and initiated a capital return program, including share buybacks and dividends. The company is also set to take advantage of U.S. trade measures by imposing over 1,000% in duties on Russian ferrosilicon imports, with possible additional restrictions on Brazil, Malaysia, and Kazakhstan. Alongside that, its market position could be solidified by the European Commission’s ongoing investigation into silicon metal and manganese alloy imports.
Moving ahead, with pricing pressure in silicon metal and alloys due to high imports, Ferroglobe PLC (NASDAQ:GSM) predicts soft market conditions in early 2025. However, as destocking trends ease and steel production enhances, the demand is expected to recover in the second half. The company has fixed a 2025 adjusted EBITDA forecast range of $100 million to $170 million, with trade policies, raw material costs, and geopolitical factors as prominent variables. Furthermore, Ferroglobe is further positioned for long-term growth with investments in silicon metal for EV batteries.
With magnesium demand expected to grow in the coming years, we can expect to see GSM increasing its exposure in the sector, which is why it makes it to our list of the best magnesium stocks.
6. Compass Minerals International, Inc. (NYSE:CMP)
Number of Hedge Fund Holders: 31
Compass Minerals International, Inc. (NYSE:CMP), is a producer of salt, magnesium chloride, essential minerals, and plant nutrition items. It operates across the U.K., North America, and international markets. The company functions through its Plant Nutrition and Salt segments, producing potash sulfate, sodium chloride, and magnesium chloride-based fire retardants. The company’s potential growth in the magnesium sector can be demonstrated by the total measured and indicated magnesium resources of 91.6 million tons.
Compass Minerals International, Inc. (NYSE:CMP) generated 671,486 tons of magnesium chloride for the fiscal year ending September 30, 2024. Accordingly, the company reported revenue of $307 million in Q1 FY 2025, a drop of 10% year-over-year. Although the Salt segment volumes decreased by 13%, it generated $242 million, with a 1% price rise to $97 per ton. Despite a 9% decline in pricing for the Plant Nutrition segments, it witnessed a 24% surge in revenue to $50 million, fueled by a 36% increase in sales volumes.
Furthermore, Compass Minerals International, Inc. (NYSE:CMP) aims to decrease highway deicing inventory by 10% as it continues to optimize inventory management. While the early winter conditions in October and November were mild, the winter weather intensified in December and January, increasing salt sales. Overall segment performance was majorly driven by the main component, Magnesium chloride, due to its deicing and dust control products.
Looking ahead to 2025, the company anticipates a 9% year-over-year growth in sales volumes, with adjusted EBITDA forecasted between $225 million and $250 million. By optimizing operations at Ogden Plant Nutrition complex, the company aims to improve cash flow, stabilize sulfate of potash (SOP), and decrease overall costs. As such, it is placed among the best magnesium stocks.
5. Nutrien Ltd. (NYSE:NTR)
Number of Hedge Fund Holders: 32
Nutrien Ltd. (NYSE:NTR), a multinational leader in crop inputs and services, operates through four segments: Phosphate, Potash, Ag Solutions, and Nitrogen. The company supplies a variety of products ranging from fertilizers, crop protection, agricultural services, and seeds. Its product portfolio comprises assorted fertilizers essential for plant growth, including sulfur, calcium, phosphorus, nitrogen, potassium, and magnesium.
Nutrien Ltd. (NYSE:NTR) reported an adjusted EBITDA of $5.4 billion for the year ended December 31, 2024, despite low fertilizer prices. Fueled by stronger-than-expected crop protection margins in North America, the company witnessed a 16% rise in retail adjusted EBITDA. However, due to lower net selling prices and weather-related production setbacks, the Potash and Phosphate segments faced difficulties, with their adjusted EBITDA decreasing. Whereas, the Nitrogen segment generated $1.9 billion in adjusted EBITDA by increasing sales volumes and reducing natural gas costs, maintaining a stable performance.
Furthermore, Nutrien enhanced its upstream business by growing fertilizer sales volumes by nearly one million tons compared to 2023. Nutrien Ltd. (NYSE:NTR) also made advancements in potash segments and achieved a 35% automation rate while working toward its 40-50% target. Retail enhancement initiatives generated $200 million in cost savings, anticipated to be fully realized by 2025, one year ahead of schedule.
Looking ahead to 2025, particularly in the U.S. corn acreage and potash markets, the company expects strong demand for crop inputs. It has also increased its 2025 potash shipment forecast to 71-75 million tons. Thus, Nutrien Ltd. (NYSE:NTR) remains well-positioned for growth, despite the possible tariff concerns impacting Canadian potash exports to the U.S. To prioritize nitrogen projects, retail network optimization, and potash automation, the company aims to allocate $2.0-2.1 billion in capital expenditures.
As such, Nutrien Ltd. (NYSE:NTR) remains one of the best magnesium stocks to buy, with stable dividends and ongoing share repurchases, positioning itself for sustainable growth in 2025 and beyond.
4. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB), a global specialty chemicals company, operates across catalyst solutions, energy storage, and specialty chemicals. The company provides lithium compounds for bromine-based fire safety solutions, batteries, and performance catalysts for refining petrochemical industries. Moreover, magnesium hydroxide remains a core product in its portfolio, with the MAGNIFIN line of family retardants commonly used in construction electronics and transportation for halogen-free fire protection.
For Q4 ended December 31, 2024, Albemarle Corporation (NYSE:ALB) reported net sales of $1.2 billion, indicating a 48% decrease YoY due to lower lithium prices and volumes. However, fueled by higher volumes in the Specialties segment and cost reductions, EBITDA surged to $251 million, a rise of $386 million from the prior-year quarter. The company recorded a net loss of $1.2 billion due to restructuring charges and asset write-offs. On the other hand, the full-year revenue stood at $5.4 billion, with Energy Storage sales volume rising by 26%.
Meanwhile, the company has implemented firm measures to solidify long-term resilience. Albemarle Corporation (NYSE:ALB) decreased capital expenditures by over $450 million in 2024 and aims to further reduce spending by $100 million in 2025, targeting a range of $700-$800 million. Production enhancements are in progress, with the Chengdu site set to be placed into care and maintenance by mid-2025 and shifts in lithium production at Qinzhou to improve efficiency.
With Energy Storage sales volumes anticipated to grow by 10% in 2025, Ablemarle projects a steady recovery in the lithium market. Moreover, backed by cost enhancements and working capital management, the company targets breakeven free cash flow. With this, the company makes it to our list of the best magnesium stocks to buy.
3. The Mosaic Company (NYSE:MOS)
Number of Hedge Fund Holders: 41
The Mosaic Company (NYSE:MOS) is a dominant producer of concentrated phosphate and potash crop nutrients, catering to agricultural markets in North America and internationally. The company operates through three segments, including Mosaic Fertilizantes, Phosphates, Potash, manufacturing fertilizers, animal feed ingredients, and industrial-use potash products. Under the K-Mag brand, it also offers magnesium-based crop solutions.
The Mosaic Company (NYSE:MOS) recorded a net income of $169 million and adjusted EBITDA of $594 million, reflecting solid Q4 results, ending December 31, 2024. Potash maintained a steady cash flow despite lower prices, while the phosphate segments took advantage of strong pricing. Moreover, with underlying performance reaching $120 million after FX adjustments, Mosaic Fertilizantes reported an adjusted EBITDA of $82 million.
Furthermore, The Mosaic Company (NYSE:MOS) made progress in strategic initiatives to enhance its portfolio and expand production. The Ma’aden transaction achieved a $522 million gain and $1.5 billion in shares. The company is also working toward divesting its Patos de Minas site in Brazil and evaluating other options for its Carlsbad, New Mexico, potash mine. In contrast, in 2025, Mosaic targets 7.2-7.6 million tons of phosphate production while improving reliability in Florida and Louisiana. The Esterhazy expansion will contribute 900,000 tons of capacity. With a $200 million capex cut and $150 million in targeted savings, cost reduction remains a priority.
Additionally, market conditions remain favorable, driven by rising corn and soybean prices. Moreover, Chinese export restrictions have resulted in limited supply in Phosphate markets, whereas potash has taken advantage of constrained supply in Russia, China, and Belarus. Biosciences expansion progresses with twice the revenue and acreage in 2024, and further growth is anticipated in 2025.
However, The Mosaic Company (NYSE:MOS) is well-positioned for 2025, despite the weather-related disruptions and geopolitical risks. Mosaic is positioned for better performance in the coming quarters by ensuring operational reliability and favorable pricing trends.
2. ATI Inc. (NYSE:ATI)
Number of Hedge Fund Holders: 45
ATI Inc. (NYSE:ATI), an international producer of specialty materials, supplies high-performance alloys for industrial applications, aerospace, and defense. Magnesium-based alloys are a key component of its portfolio, which are commonly used in airframes, jet engines, and military equipment due to their lightweight and high-strength properties. The company takes advantage of increasing defense budgets, as magnesium alloys improve mobility and fuel efficiency in military vehicles and aircraft.
ATI Inc. (NYSE:ATI) reported $1.2 billion in revenue, signifying a 12% sequential and 10% year-over-year growth, indicating strong financial performance for Q4 ended December 29, 2024. Adjusted EBITDA surprised its prior guidance, reaching $210 million. The company recorded full-year revenue as the highest since 2012, surging to $4.4 billion, signifying a 5% increase from 2023. Airframe revenue grew by 4.5%, jet engine revenue surged to 9%, while aerospace and defense also remained key growth drivers.
However, a key consumer of ATI Inc. (NYSE:ATI)’s magnesium-based alloys, the defense segment witnessed a 38% sequential rise in Q4 2024 and is anticipated to expand another 7% in 2025. This growth is backed by a possible $200 billion increase in U.S. defense spending, where 50% is assigned to programs ATI engages in. Moreover, it strengthened its long-term revenue pipeline by achieving $4 billion in new customer commitments in 2024.
Looking forward, the company anticipates continued strength in defense and aerospace demands, with wide-body aircraft manufacturing rising in 2026. ATI Inc. (NYSE:ATI) remains well-positioned for future growth and is a strong player among the best magnesium stocks to invest in due to these factors.
1. Martin Marietta Materials, Inc. (NYSE:MLM)
Number of Hedge Fund Holders: 54
Martin Marietta Materials, Inc. (NYSE:MLM) is a dominant dealer of building materials in the U.S. and has a strong presence in the magnesium market through its Magnesia Specialties division. This division generates high-purity magnesia and dolomitic lime products used worldwide in environmental, agricultural, industrial, and specialty applications, including paper production, wastewater treatment, pulp, and flame retardants.
Martin Marietta Materials, Inc. (NYSE:MLM) achieved outstanding overall performance in 2024, despite the challenging market conditions. The company recorded consolidated adjusted EBITDA of $545 million in Q4 ended December 31, 2024, which is an 8% rise, with margins increasing by 210 basis points to 33%. Its Magnesia Specialties yielded all-time high revenues of $320 million and gross profit of $107 million, indicating a rise of 2% and 10%, respectively, which signifies the segment’s value within Martin Marietta’s broad portfolio.
Furthermore, Martin Marietta Materials, Inc. (NYSE:MLM) accomplished $6 billion worth of transactions, including three bolt-on acquisitions in Texas, Florida, and California, while divesting non-core assets valuing $2 billion. Its long-term profitability was solidified by these tactical moves as it expanded its aggregate reserve by 1 billion tons. Additionally, volume stability was backed by Amazon warehouse developments, strong demand from infrastructure projects, and data center expansions.
Moving forward, Martin Marietta Materials, Inc. (NYSE:MLM) predicts a 4% rise in aggregate shipments and a 6.5% pricing increase for 2025, with adjusted EBITDA anticipated to reach $2.25 billion, a 9% increase over 2024. MLM remains an appealing choice among the best magnesium stocks due to its strategic market positioning, growing infrastructure investment, and increasing data center construction.
Overall, Martin Marietta Materials, Inc. (NYSE:MLM) ranks first on our list of the 13 Best Magnesium Stocks to Buy Right now. While we acknowledge the potential of MLM, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MLM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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