Loop Industries’ India Facility Timeline, Customer Contract Status Don’t Match in Q3 2026 Earnings Call

Date of Call: Jan 15, 2026

Business Commentary:

Progress in India Manufacturing Facility:

• The Infinite Loop India project is reported to be on budget and on schedule, with construction to be completed by the end of 2027.
• The company has executed a supply contract with Nike for its Twist textile-to-textile polyester resin.

Strategic Partnerships and Regulatory Compliance:

• The partnership with Reed Management and Société Générale Group is progressing, with a European facility planned to address upcoming European regulations on recycled content in clothing.
• The timing of these developments aligns with the enforcement of European regulations, which will mandate more recycled content starting in 2026 and enforced in 2028.

Financial Strategy and Cost Management:

• Cash operating expenses were reduced to $2.2 million, a year-over-year decrease of $1.1 million.
• The company is focused on raising financing for its equity contribution and expects to fund ongoing operations through engineering revenues from its projects.

Market Positioning and Technological Advantage:

• Loop's low-temperature depolymerization technology is uniquely suited to recycle post-consumer textile waste, differentiating it from competitors.
• The company is well-positioned to capitalize on the large polyester textile market, which accounts for 66% of global PET production.

Sentiment Analysis:

Overall Tone: Positive

• "I’m really pleased with the progress we’re making both in India and in Europe, starting to really make meaningful revenue and profitability from the engineering fees." "The project is on schedule and on budget." "We have opportunities to reduce that further, and some of those opportunities have already been locked in."

Q&A:

• Question from Gerard Sweeney (Roth Capital Partners): How much of the facility in India is under contract? And could you delve into where it sits on the output and who’s going to do offtake for the output?
  Response: Expect between 5 to 6 total customers; currently have Tyrell Plus and Nike, with negotiations ongoing for 3-4 more CPG and textile companies to fully underpin capacity.

• Question from Gerard Sweeney (Roth Capital Partners): On the marketing side, will you still be able to market the textile and packaging with some of that marketing opportunity, like 'Made with Loop'?
  Response: Yes, will continue marketing on both sides; created a sub-brand called 'Twist' for the textile side, focusing on co-marketing around circularity with customers.

• Question from Gerard Sweeney (Roth Capital Partners): What is the timeline for the India facility?
  Response: Project is on schedule to complete construction in Q4 2027, with financing and engineering progressing as planned.

• Question from Marvin Wolff (Paradigm Capital): How big a plant would the German site be once it comes on board?
  Response: Same size, 70,000 metric tons capacity, as the Indian facility.

• Question from Marvin Wolff (Paradigm Capital): What is the size of the debt package for India and the equity component Loop must provide?
  Response: Debt package is $130 million; Loop's equity contribution is approximately $28 million.

• Question from Varyk Kutnick (D.A. Davidson): Does the same CapEx per pound translate to the European facility, especially with modularity?
  Response: European facility will be a bit more expensive due to module transportation/reconnection costs, but offset by existing on-site utilities, keeping CapEx generally in the same range.

• Question from Varyk Kutnick (D.A. Davidson): Is it safe to assume your return on invested capital and payback period would be significantly better, and will future growth be funded through India's cash flow?
  Response: Yes, payback is less than three years in India; future growth, including a potential second facility, will be 100% funded through cash flows from the joint venture, including licensing and engineering fees.

Contradiction Point 1

Construction Timeline and Commissioning Readiness

Contradictory statements on the project's readiness and timeline.

What is the timeline for the India facility's groundbreaking, mechanical completion, and commissioning? - Gerard Sweeney (Roth Capital Partners)

2026Q3: The project is already approved and moving forward; 'groundbreaking' was not a formal event. Detailed engineering started on November 1st, 2025... The facility is on schedule and on budget, with construction completion targeted for Q4 2027. - Daniel Solomita(CEO)

What is the current stage of the India project's construction and commissioning progress? - Brandon B. Rogers (ROTH Capital Partners, LLC)

2026Q2: The project is on schedule for completion by the end of 2027. Customer contracts are a gating item for finalizing debt financing. - Daniel Solomita(CEO)

Contradiction Point 2

Customer Contract Status and Debt Financing

Contradiction on the finalized status of customer contracts and their role in debt financing.

What portion of the India facility is under contract, and could you provide details on its current output position and the offtake arrangements? - Gerard Sweeney (Roth Capital Partners)

2026Q3: The company expects to have between five to six customers total for the facility. Currently, they have contracts with Tyrell Plus and Nike, and are in negotiations with several other CPG brands... They anticipate finalizing agreements with three to four more customers to fully under contract the facility’s capacity. - Daniel Solomita(CEO)

Can you elaborate on the anchor offtake agreement with the global sports brand? What is the current status of the India project's construction timeline and commissioning progress? - Brandon B. Rogers (ROTH Capital Partners, LLC)

2026Q2: Customer contracts are a gating item for finalizing debt financing. - Daniel Solomita(CEO)

Contradiction Point 3

Status of Binding Of take Agreements for India Facility

Contradiction on whether key customer contracts are finalized or still in negotiation.

What percentage of the India facility is under contract, and could you explain the current output status and offtake arrangements? - Gerard Sweeney (Roth Capital Partners)

2026Q3: The company expects to have between five to six customers total for the facility. Currently, they have contracts with Tyrell Plus and Nike, and are in negotiations with several other CPG brands for packaging in Europe and textile companies. - Daniel Solomita(CEO)

What is the latest timeline for the India JV, have any binding offtake agreements been finalized, and what are the key risks delaying the 2027 commercial operations target? - Brandon B. Rogers (ROTH Capital)

2025Q4: There are no binding agreements finalized yet, but several Letters of Intent (LOIs) are being converted into binding agreements. - Daniel Solomita(CEO)

Contradiction Point 4

Timeline for India Facility Commercial Operations

Contradiction on the expected timeline for reaching full output capacity.

What is the India facility's timeline for groundbreaking, mechanical completion, and commissioning? - Gerard Sweeney (Roth Capital Partners)

2026Q3: The facility is on schedule and on budget, with construction completion targeted for Q4 2027. - Daniel Solomita(CEO)

Is the output still 70,000 tonnes, and will full capacity be reached by 2027 or 2028? - Marvin Wolff (Paradigm Capital)

2025Q4: Full ramp-up to this capacity is expected in early 2028. - Daniel Solomita(CEO)

Contradiction Point 5

India Facility Construction Timeline

Contradiction on the targeted completion date for the India facility.

What is the timeline for the India facility, including groundbreaking, mechanical completion, and commissioning? - Gerard Sweeney (Roth Capital Partners)

2026Q3: Construction completion targeted for Q4 2027. - Daniel Solomita(CEO)

Do signing CPG agreements align with the India project's stages? - Gerard J. Sweeney (ROTH Capital Partners, LLC, Research Division)

2026Q1: The facility is targeted to start up by the end of 2027. - Daniel Solomita(CEO)