Loop Industries, Inc. Q1 FY2026 earnings call

• Steady progress towards groundbreaking of Infinite Loop manufacturing facilities in India and Europe with good local JV partners. - Infinite Loop India: Off-take discussions with leading global apparel and CPG brands progressing well, offering textile-to-textile and high-quality PET solutions. Confirmed $176 million CapEx (excluding some costs it's $95 million), site selection narrowed in Gujarat, signed $1.5 million engineering contract. - Infinite Loop Europe: Societe Generale advancing project, site selection in Western Europe, modularization of engineering with India's low-cost manufacturing, initial CapEx estimate 50% reduction vs stick build. - Financials: Q1 fiscal 2026 cash operating expenses $2.6 million (-$2.2 million or 46% y-o-y), cash used in operating activities $3.1 million, ended quarter with $12.3 million available liquidity, aim to secure financing for India project.

No specific product segments with detailed financial performance breakdown provided in terms of absolute and revenue contribution % as the focus is on facility development and off-take discussions.

• Aim to secure sufficient financing to fund Loop's equity contribution for India until start-up. - Anticipated sources include government funding, engineering revenues, and new capital. - Long-term vision to drive shareholder value creation by rolling out manufacturing facilities with licensing, engineering, modularization revenues and project economics share.

Q: Touch upon off-take agreements, potential timing, and if CPG agreements need to coincide with India project stages.

A: Discussions with customers steady, contracts take time due to internal steps, longer-term contracts (3-5 years) with take-or-pay elements, pricing competitive.

Q: Details on contract structure.

A: India offers fixed-price contracts for predictability, Europe may have cost-plus.

Q: Next key steps.

A: Debt financing work stream underway, land selection near completion, customer contracts key.

Q: Loop's capital intensity.

A: Excluding some costs, CapEx per pound $0.61 net, $0.75 with polymerization, technology scalable.

Q: Offtake agreement out clauses.

A: Take-or-pay penalties if customer doesn't accept, no penalty if Loop can't deliver.

Q: Equity contribution for India.

A: $25 million total, part from reused equipment and government, timeline fall.

Q: Funding gap for India project.

A: ~$15 million, acceleration of SocGen project helps.

Q: Licensing pipeline.

A: Increased interest due to CapEx reduction and modularization, SocGen interested in multiple facilities, potential in Asia, North America.

Q: Site details.

A: Indian sites in industrial zones with zoned permits, utilities to be provided by Loop; European sites may have common utilities.

Q: Power needs.

A: Less than 5 megawatts, steam is main energy source, India uses biomass for steam.