What is Loop Industries's gross profit margin?

What is the market's earnings forecast for Loop Industries next quarter?

What were the key takeaways from Loop Industries’s earnings call?

What guidance did Loop Industries's management provide for the next earnings period?

What factors drove the changes in Loop Industries's revenue and profit?

What is Loop Industries's latest dividend and current dividend yield?

What were the key takeaways from Loop Industries's earnings call?

What does Loop Industries do and what are its main business segments?

- **India Project Breakthrough**: $95M Loop technology cost (vs. $176M total CapEx), 100% recycled PET at competitive pricing, fixed-price contracts with penalties.
- **Modularization Game-Changer**: Europe project CapEx cut 50% via India-built modules; $0.61/lb cost efficiency.
- **Financial Discipline**: 46% YoY expense reduction, $12.3M liquidity, targeting $15M funding gap closure.
- **Customer Commitment**: Long-term contracts (3-5 years), no penalties for delays, SocGen accelerating European expansion.
- **Technology Superiority**: Virgin-quality PET from 100% recycled content, cost-plus structure for Europe, fixed-price for India.


**【Management Opening Remarks】**
- Progress on Infinite Loop manufacturing facilities in India and Europe highlighted, with focus on low-cost structure and modularization strategy.
- Off-take discussions advancing with global apparel and CPG brands, emphasizing Loop's textile-to-textile recycling advantage.
- India project CapEx confirmed at $176 million (Loop's technology: $95 million), with modularization reducing Europe project CapEx by 50%.

**【CEO Summary Section】**
- **India Project**: 
  - $176 million CapEx ($95 million for Loop's technology), 100% recycled PET at competitive pricing.
  - Fixed-price contracts (3-5 years) with take-or-pay penalties (40%-100% of contract value).
  - Site selection finalized in Gujarat; land acquisition and construction to begin Q4 2025.
  - Licensing fees (5% of sales), engineering revenue ($1.5M signed), andJV returns (50% ownership).
- **Europe Project**: 
  - Modular units built in India, shipped to Europe, assembled like LEGO blocks.
  - CapEx reduced by 50% vs. traditional build, leveraging India's low-cost manufacturing.
  - Site selection focused on Western Europe, with SocGen's new CEO driving project acceleration.
- **Technology Differentiation**: 
  - Produces virgin-quality PET from 100% recycled content, outperforming mechanical recycling.
  - Cost-plus structure for Europe, fixed-price for India due to stable feedstock costs.

**【CFO Financial Commentary】**
- Q1 2026: 
  - Cash operating expenses: $2.6 million (46% YoY decline).
  - Cash used in operations: $3.1 million (includes $0.8M working capital outflows).
  - Liquidity: $12.3 million, targeting debt financing for India project equity contribution ($25M, $15M funding gap).
- Anticipated funding sources: government grants, engineering revenues, and new capital.

**【Q&A Key Highlights】**
- **Customer Contracts**: 
  - Long-term (3-5 years), fixed-price with take-or-pay penalties; no penalties for Loop delays.
  - Contracts between Loop and customers, with back-to-back agreements with JV.
- **CapEx Efficiency**: 
  - Loop's technology: $0.61 per pound (net, excluding polymerization).
  - Future scale: India 2 facility (150,000 tpa) to reduce cost further.
- **Funding and Risks**: 
  - $15M funding gap for India project; exploring SocGen modularization revenue and government support.
  - No penalties for construction delays, but customer contracts tied to production volume.
- **Licensing Pipeline**: 
  - Active interest in North America, Asia, and Europe; SocGen plans multiple facilities.
  - India 2 facility planned for post-2027 expansion.
- **Operational Details**: 
  - India site permits and utilities included in land acquisition; steam from rice husk biomass.
  - No long-lead equipment; reactors already in stock.


Loop Industries, Inc. (LOOP) Q1 2026 Earnings Call Transcript

- **Revenue Breakthrough**: $10.8 million Q4 revenue, up 2,600% YoY, driven by $10.4 million tech license sale.
- **India JV Efficiency**: $176 million CapEx (80% lower than prior projects), 70,000 tonnes/year capacity, 2027 ramp-up.
- **Modular Strategy**: 80% CapEx reduction via low-cost modules, enabling global scale.
- **Financial Strength**: 44% YoY cost reduction, $13 million cash, 5% licensing fee covering Loop's expenses.
- **Growth Catalysts**: $5-10 million annual engineering revenue, 2025 Europe site selection, 2027 India commercial launch.

**【CEO Summary Section】**
- **Revenue Milestone**: Q4 2024 marked Loop's first quarter of material revenue ($10.8 million), driven by a $10.4 million technology license sale to Reed Societe Generale Group and $600,000 in engineering services for the India JV.
- **India JV Progress**: FEED engineering study completed by TATA with CapEx of $176 million (80% lower than prior projects), enabling 70,000 tonnes/year of virgin-quality PET fiber and resin. Groundbreaking expected Q4 2025, with full ramp-up by early 2028.
- **Modular Construction Strategy**: Reduces CapEx by 80% via low-cost manufacturing of standardized modules, shortens timelines, and enhances scalability for global projects.
- **Europe Partnership**: Reed Societe Generale advancing timeline for European facility, with site selection expected Q3-Q4 2025 and Loop leading modular engineering studies.
- **Financial Efficiency**: 5% licensing fee on JV sales covers Loop's back-office expenses, ensuring profitability from day 1.

**【CFO Financial Commentary】**
- **Revenue Growth**: Q4 2024 revenue of $10.8 million, up from $0.4 million in Q4 2023, driven by license sale and engineering services.
- **Cost Reduction**: Operating expenses decreased 44% YoY to $2.6 million, with cash burn reduced to $8-9 million annually.
- **Liquidity**: $13 million cash balance post-Q4, with $2.4 million undrawn credit line. $20.8 million from Reed transaction enhanced liquidity.
- **JV Contribution**: $1.9 million equity contribution to India JV, with $25 million total commitment expected to be covered by Quebec government financing.

**【Q&A Key Highlights】**
- **India JV Timeline**: Groundbreaking Q4 2025, 2027 commercial operations target remains on track. Offtake agreements with multiple brands in final stages.
- **Europe Project**: Reed prioritizing modular construction for faster deployment. Site selection across Europe with focus on government incentives.
- **Financial Projections**: India JV expected to generate $5-10 million in annual engineering revenue. Licensing fee covers Loop's operating costs, with equity pickup enabling reinvestment in new projects.
- **Risk Mitigation**: Modular construction reduces CapEx risk, while take-or-pay contracts ensure bankable cash flows for debt syndication.
- **Margins**: Robust EBITDA margins from day 1, with 5% licensing fee and 50-50 JV equity split providing rapid payback on $25 million equity commitment.

Loop Industries (LOOP)-30 May 25-2025 Q4 Earnings call transcript

- **European Expansion Milestone**: Secured EUR 20M financing and first European technology license with Societe Generale, with potential EUR 10M engineering services revenue.
- **India JV On Track**: Polyester-to-polyester plant set to break ground Q2 2025, targeting circular fashion supply chain in low-cost manufacturing hub.
- **Cost Optimization**: Q3 expenses down 13-25%, 2025 head office spend reduced to $10M, supporting cash runway for growth projects.
- **New Revenue Channel**: Started selling spun fiber directly to fashion brands, expanding into Tier 3 supply chain with global spinner partnerships.

**【CEO Key Milestones】**
- **Societe Generale Transaction**: Secured EUR 20M financing (EUR 10M convertible preferred shares, EUR 10M upfront license fee) and first European technology license. Societe Generale will develop an Infinite Loop facility in Europe, with potential EUR 10M engineering services revenue over 24 months.
- **India JV Progress**: Finalizing land acquisition for polyester-to-polyester recycling plant, targeting Q2 2025 groundbreaking. Feedstock will be textile waste from India's polyester industry, aligning with circular fashion trends.
- **Technology Licensing Strategy**: Shifting to high-cost regions (Europe, Asia) for licensing, while deploying capital in low-cost markets like India. Terminated SK JV due to high manufacturing costs in South Korea.
- **New Revenue Stream**: Started selling spun fiber directly to fashion brands, bypassing traditional chip sales. Qualified material with global spinners for tolling agreements.

**【CFO Financial Highlights】**
- **Cost Efficiency**: Q3 R&D expenses down 25% to $1.38M (testing phase complete), G&A down 13% to $2.15M (insurance claims reduction). Full-year 2025 head office spend guided to $10M (from prior $12M).
- **Cash Management**: Q3 cash burn $2.8M, targeting $900K/month in Q4 2024 and $800-900K/month in 2025. Recent $20.8M Reed financing will support India JV equity contributions.
- **Non-Cash Adjustments**: $1.2M polymerization equipment write-down (accounting rule, no impact on operational use).

LOOP

LOOP fundamentals

Earnings Call

You can ask Aime