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Loop Industries, Inc. (LOOP)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 revenue was $0.25M, driven primarily by engineering services; net loss improved to $3.45M and EPS was $(0.07). Management highlighted continued progress toward Infinite Loop India and Europe, with site selection nearing completion and engineering services ramping .
  • Versus consensus, revenue materially missed ($0.25M actual vs $0.72M estimate); EPS was in line at roughly $(0.07). Coverage remains thin with only two estimates; expect models to shift toward engineering and licensing revenue cadence as project execution milestones hit [GetEstimates: Values retrieved from S&P Global].
  • Operating discipline continued: cash operating expenses fell to $2.6M and available liquidity ended the quarter at $12.3M, supporting operations while the company secures project financing for India and advances European modularization (a key margin lever) .
  • Strategic updates: FEED confirmed India total investment at $176M, with continuous polymerization added; KPMG engaged for debt syndication; Loop signed a $1.5M engineering contract with the India JV; modular construction strategy aims to reduce capex by ~50% for Europe and future facilities .
  • Near-term stock catalysts: India site selection announcement, additional offtake agreements (including apparel and CPG), receipt of lender term sheets, and initial European engineering/milestone revenues that can cover back-office costs for “several years” .

What Went Well and What Went Wrong

What Went Well

  • Engineering revenue ramp and operating cost discipline: Q1 cash operating expenses dropped to $2.6M; liquidity was $12.3M. Management expects engineering/milestone revenues to fund back-office for “several years” once Europe site is finalized .
  • Project execution milestones: India FEED confirmed the $176M total investment; site narrowed to two Gujarat locations; KPMG engaged for debt syndication. CEO: “We are encouraged by the progress of our off-take discussions… positions us to offer a superior product at highly competitive prices.” .
  • Modularization strategy: Loop plans to build modules in India and ship to Europe, targeting ~50% capex reduction versus stick-build and faster timelines. “Modules… assembled like Lego blocks on site” .

What Went Wrong

  • Revenue miss vs Street: Actual $0.25M vs $0.72M estimate; the miss reflects timing of engineering and limited resin sales. EPS was roughly in line, but the topline shortfall underscores thin near-term revenue while projects advance [GetEstimates: Values retrieved from S&P Global] .
  • Financing clarity needed: Loop quantified a ~$15M equity funding gap for India; while management cited multiple options (government, partners, engineering), investors will look for concrete actions to fully bridge this before ground-breaking .
  • Execution risk and timelines: Facility completion targets end-2027 with full ramp early 2028; customer contracts are gating items for debt syndication. Delays could push commercialization; management emphasized take-or-pay and fixed-price contracts to de-risk cash flows .

Financial Results

YoY comparison

MetricQ1 2025Q1 2026
Revenue ($USD)$0.006M $0.252M
Net Loss ($USD)$(5.189)M $(3.447)M
EPS (Basic & Diluted, $)$(0.11) $(0.07)

Sequential comparison (oldest → newest)

MetricQ4 2025Q1 2026Q2 2026
Revenue ($USD)$10.8M $0.252M $NA*
Net Income ($USD)$6.883M*$(3.447)M $(3.204)M*
EPS (Diluted, $)$0.145*$(0.07) $(0.066)*
Cash Operating Expenses ($USD)$2.6M $2.6M $2.43M
Liquidity ($USD)~$13.0M $12.3M $9.86M

Values with asterisk (*) retrieved from S&P Global.

Actual vs Consensus (Q1 FY2026)

MetricActual Q1 2026Consensus Q1 2026Beat/Miss
Revenue ($USD)$0.252M $0.719M*Miss (material)*
EPS ($)$(0.07) $(0.07)*In-line*
# Estimates (Revenue/EPS)—2 / 2*—

Values with asterisk (*) retrieved from S&P Global.

Revenue composition (Q1 FY2026)

ComponentAmount ($USD)
Engineering Fees$0.244M
Resin Sales$0.008M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
India ground-breakingEnd CY2025 / 2H CY2025“Break ground in 2H of this year” (Q4 FY2025) “Targeted construction start by end of calendar 2025” (Q1 FY2026) Maintained timing window
India site selectionQ2 FY2026“Land selection finalized; negotiating final contracts” (Q4 FY2025) “Site options narrowed to two; final selection anticipated in Q2” (Q1 FY2026) Slight timing refinement
India total investment (incl. financing, land, CP line)Project~$176M (FEED confirmed) (Q4 FY2025) $176M confirmed; continuous polymerization added Maintained
Capex strategy (Europe)ProjectModularization initiative underway (Q4 FY2025) Modular solution expected to reduce capex ~50% vs stick-build; direct port access at candidate sites Enhanced detail
Cash operating expensesFY trend~$2.6M quarterly (Q4 FY2025) $2.6M (Q1); $2.43M (Q2) Downward trajectory
Financing (India debt syndication)ProjectKPMG engaged; offtake gating (Q4 FY2025) Debt syndication begun; lender interest building; term sheets received in Q2 Progressing
Equity funding gap (India JV)Project“Gap” referenced (Q4 FY2025) ~$15M gap, multiple options under evaluation Quantified

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY2025 and Q4 FY2025)Current Period (Q1 FY2026)Trend
Offtake agreementsLOIs converting, offtake is gating for debt; brands need recycled content Fixed-price, take-or-pay contracts; bankability emphasized; apparel/CPG pipeline advancing Firming structure and bankability
India project timelineBreak ground 2H CY2025; complete by 2027; ramp early 2028 Site narrowed; ground-breaking targeted end CY2025; completion by end 2027 On schedule (detail added)
ModularizationEurope modular approach to cut capex and speed build ~50% capex reduction vs stick-build; modules built in India and shipped Strategy reinforced
FinancingKPMG debt syndication; Quebec facility to support equity Debt workstream active; lenders engaged; equity gap $15M identified Advancing; equity clarity needed
Revenue modelLicensing/engineering revenues emerging Q1 revenue mostly engineering; more engineering/milestones expected post Europe site Transition to services pre-plant ops
Product portfolioPET resin (bottle-grade), textile fiber, MEG/DMT optionality DMT contract signed; textile partnerships in Taiwan/Korea expanded reach Diversifying end-market exposure
Sustainability economicsFocus on low-cost manufacturing to avoid “green premium” Fixed-price contracts enabled by locked feedstock; cost-competitive sustainability Competitive positioning affirmed

Management Commentary

  • “The $176 million CapEx was confirmed… includes a polymerization unit… land acquisition, and all financing costs through startup. If we remove all of those costs, the total install cost of Loop's technology is $95 million” .
  • “Loop sees a 5% licensing fee for technology and customer sale, as well as engineering fees” .
  • “Engineering is going to be done in a modular fashion… modules… built in India and shipped to Europe… CapEx would be a 50% reduction versus… fixed build” .
  • “Cash operating expenses for the quarter were $2.6 million… Cash used in operating activities… was $3.1 million… available liquidity of $12.3 million” .
  • “CapEx per pound… 154 million pounds per year capacity… $0.61 per pound; $0.75 with polymerization” .
  • “The facility would be up at the end of 2027… customer contracts… take-or-pay element” .
  • “Permitting comes with the purchase… industrial zones… Loop would be providing all of the utilities… power less than five megawatts… steam via rice husk biomass” .

Q&A Highlights

  • Contract structures: Fixed price (India) with take-or-pay provisions to enhance bankability; cost-plus may be used in Europe given variability .
  • Debt syndication: KPMG syndicating India project debt; term sheets arriving by Q2; EDC (Canada) support interest noted .
  • CapEx intensity: Loop tech capex ~$0.61/lb (net), $0.75/lb including polymerization; scale expected to reduce per-pound capex further .
  • Equity funding gap: $15M needed for India; polymerization equipment ($5M) and Quebec government support to offset; multiple funding options being evaluated .
  • Permitting/utilities/logistics: Industrial-zone sites with permitting; utilities largely provided by Loop; modularization needs port access in Europe; biomass steam in India .

Estimates Context

  • Q1 FY2026: Revenue $0.25M actual vs $0.72M consensus (miss); EPS $(0.07) actual vs $(0.07) consensus (in-line). Only two estimates for both metrics; target price consensus $4.55 (two estimates) [GetEstimates: Values retrieved from S&P Global] .
  • Q2 FY2026: Consensus revenue $0.78M; EPS $(0.07). With engineering services scaling and potential additional offtake announcements, estimates may need to incorporate milestone timing and service revenue recognition [GetEstimates: Values retrieved from S&P Global] .

Key Takeaways for Investors

  • The quarter was operationally on plan but financially light as expected in a pre-construction phase; investors should focus on near-term catalysts: India site selection, signed offtakes (anchor apparel achieved in Q2), and lender term sheets translating into definitive financing .
  • Revenue composition is shifting to engineering/licensing ahead of plant operations; once Europe site is finalized, Loop expects engineering/milestone revenues to cover back-office expenses for “several years”—a potential inflection for cash burn .
  • Fixed-price take-or-pay offtake contracts (India) and locked feedstock underpin bankable cash flows; modularization provides meaningful capex and schedule advantages, improving project IRRs and de-risking execution .
  • Equity gap (~$15M) remains the primary financing risk; watch for Quebec support, equipment contributions, strategic capital, or milestone receipts to fully bridge before ground-breaking .
  • Strategic diversification (textile, packaging, DMT/MEG) broadens end-market resilience; early DMT traction adds optionality in specialty polymers .
  • Long-dated timeline: facility completion by end-2027 and full ramp early-2028; contract bankability and financing progress reduce slippage risk, but execution remains key .
  • For trading: headlines around site selection, signed brand agreements, and formal debt financing will likely drive near-term stock moves; monitor Q2/Q3 updates for engineering revenue scale and additional offtakes .

S&P Global Disclaimer: Asterisk-marked values in tables were retrieved from S&P Global.