Loop Industries, Inc. Q4 FY2026 earnings call

### International Partnership Progress - **Infinite Loop India**: Signed a memorandum of understanding with the government of Gujarat that streamlines permitting, infrastructure coordination and administrative processes for the first large-scale commercial facility. The site supports multiple facilities, enabling phased expansion. Reduced initial project CapEx to $165 million-$170 million from the prior $190 million estimate via design optimization, procurement refinements, lower land costs, and favorable FX movements. The project timeline remains unchanged, with commercial operation expected in 2028. Debt syndication is underway, with multiple term sheets received from international banks, and technical due diligence is set to begin at Loop's Terrebonne facility. Customer engagement is strong, with 100% recycled high-quality PET offered at prices matching lower-quality mechanical recycled PET. - **Infinite Loop Europe (JV with Société Générale Group)**: Officially selected BASF Industrial Park in Schwarzheide, Germany as the site for the first European facility. The project has moved into the engineering and permitting phase, starting with a 6-month feasibility study to be conducted at the Terrebonne facility. The feasibility study will generate meaningful, high-profit engineering revenue for Loop starting in the near term.

### Operational Efficiency and Cost Reduction - Secured up to CAD 2.9 million in non-repayable, non-dilutive clean tech funding from the National Research Council of Canada Industrial Research Assistance Program, extending through October 2027 to support innovation and operational readiness. - Shifted resources from technology development to commercial execution, resulting in streamlined headcount and material corporate overhead reduction. - Completed an aggressive review of vendor contracts and fixed overhead audits, yielding immediate savings in areas such as insurance.

No segmented financial performance data (absolute revenue values or revenue contribution percentages) for individual product or business segments was disclosed in this call. Management only discussed general operational progress on international projects and overhead reduction initiatives, with no segmented financial results reported.

• The Infinite Loop India facility remains on track to begin commercial operations in calendar year 2028, with no changes to the timeline after the CapEx reduction. • Management confirms Loop has sufficient liquidity to operate through the end of 2026, and upcoming engineering services revenue from the European feasibility study is expected to cover back-office operating expenses for the next several years. • Meaningful engineering revenue from the European project is expected to begin within the next few weeks to months, after engineering contracts are finalized. • Royalty revenue from the Infinite Loop India project will start in 2028 once the facility is operational, and additional milestone payments from the European licensing agreement are expected prior to the start of construction. • The JV plans to begin construction on a second, larger facility at the Gujarat site within 6-12 months of the first plant achieving stable operations, as enough land has already been acquired for expansion.

• Long-term offtake contract negotiations face delays, as most consumer and textile brands are accustomed to 6-12 month contracts and face internal governance hurdles for multi-year commitments 2+ years in advance of production start. • Finalization of debt financing for the Infinite Loop India project is contingent on securing signed long-term offtake contracts for a minimum of 50% of the facility's capacity. • Global PET prices are volatile, having risen 30%-50% year-to-date driven by higher oil prices and supply chain shocks from geopolitical conflict (the Iran conflict), creating pricing uncertainty for long-term projects. • High cost manufacturing locations in developed markets will not be prioritized for Loop's direct capital investment, due to the favorable low-cost manufacturing structure available in India.

Q: Where does Loop stand in the Infinite Loop India debt syndication, what milestones remain, what is the target capital structure, and does Loop have sufficient liquidity for the next 12 months? / A: The planned capital structure is 70% debt, 30% equity, with the 30% equity split 50/50 between Loop and partner Ester Industries (15% each). Multiple term sheets have been received, and the next step is technical due diligence at the Terrebonne facility, expected to be completed by mid-July. Management confirmed Loop has enough liquidity to operate through the end of 2026, and upcoming engineering revenue from the European project will cover back-office expenses for the next several years.

Q: What share of Infinite Loop India capacity needs to be locked in via offtake contracts to close debt financing, where do customer discussions stand, and what explains the project's CapEx reduction? / A: Debt financing requires 50% of capacity contracted via minimum 3-year offtake agreements, with the remaining capacity covered by binding letters of intent. Negotiations are ongoing with large CPG and textile firms, but internal governance hurdles for long 5-year commitments have slowed progress. Approximately 50% of the $25-$30 million CapEx reduction came from favorable FX movements, with the rest from lower land costs, optimized design, and lower-cost supplier sourcing.

Q: What are the key terms of the existing Nike offtake agreement, and what pricing frameworks will be used for future customer contracts? / A: The Nike agreement is a 3-year renewable fixed-price, fixed-volume contract with a 40% take-or-pay obligation. Nike has an option to increase volume but no right of first refusal for future capacity. Textile customers typically sign fixed-price long-term contracts, while beverage packaging customers prefer index-based pricing with a floor and cap to hedge both parties against price volatility.

Q: What is Loop's long-term expansion strategy after the first India and Europe projects? / A: After the first India plant is operational, the JV will quickly move to build a larger second facility on the same Gujarat site, which already has allocated land and sufficient feedstock. Loop will prioritize low-cost manufacturing in India for future directly owned projects, as the cost structure delivers stronger project economics than developed markets. For European projects, modules will be manufactured in India at low cost and assembled on-site in Germany to cut CapEx by roughly 50% compared to local stick-built construction.