Loop Industries, Inc. Q3 FY2026 earnings call

• Infinite Loop India project is on budget and schedule, with discussions ongoing for additional offtake agreements for the facility.
• Textile-to-textile is a key growth driver due to European regulations mandating more recycled content in clothing.
• Loop's technology is uniquely suited to recycle post-consumer textile waste with low temperature depolymerization.
• Hired Toyo for detailed engineering of the India project, which started November 1.
• Debt syndication for the India project is moving well with term sheets received from various lenders.
• Partnership with Reed Societe Generale Group in Europe has site selection narrowed to 3, with a lead site in Germany being negotiated.
• Cash operating expenses decreased year-over-year, and focus is on raising remaining financing for equity contribution and operating expenses until Indian facility startup.

Loop had a busy Q3 with progress on multiple fronts. The Infinite Loop India manufacturing facility is on budget and schedule. A supply contract with Nike was announced, with Loop to supply Nike with textile-to-textile polyester resin annually. Discussions are ongoing for additional offtake agreements. The textile-to-textile segment is a growth driver due to European regulations. The India project is near a free trade zone. Toyo was hired for engineering. Debt syndication for the India project is progressing. With Reed Societe Generale Group, site selection in Europe narrowed to 3, with a lead site in Germany being negotiated. Cash operating expenses for the quarter were $2.2 million, a year-over-year decrease of $1.1 million.

• Anticipate closing debt financing for the India project in the coming months in line with project schedule.
• European project with Reed Societe Generale Group expects to begin generating meaningful revenue and profits from engineering for the project over the next 3 years.
• Focus on raising remaining financing for equity contribution to ELITe and operating expenses until Indian facility startup.

Q: Question on Nike and the India facility, specifically how much of the facility is under contract and offtake details.

A: Expect 5 to 6 total customers for the India facility, currently with Taro Plast and Nike, and in negotiations with other CPG and apparel brands for packaging and textile sides.

Q: Question on the German site selection and size of the plan once onboard.

A: The German site is the same size as the Indian facility, 70,000 tons capacity, mainly on packaging side but could have textile recycling due to European regulation, with same customers as Indian facility.

Q: Question on CapEx per pound for European facility compared to India, and magic behind cost advantage.

A: European facility will be a bit more expensive due to transportation and reconnection of modules, but offset by existing utilities on site; magic comes from low-cost manufacturing in India with lower labor rates and locally sourced equipment.