What is the revenue and EPS growth rate for Loop Industries year over year?

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

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

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LOOP

LOOP fundamentals

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