Loop Industries (LOOP) Q1 2027 earnings summary

Executive summary

• Significant progress on the Infinite Loop India and Europe projects, with debt financing advancing and additional lender term sheets received; engineering for both projects is well advanced, and site selection in Germany positions the company for EU expansion.

• Signed a multi-year offtake LOI with a major global apparel brand for up to 15,000 metric tons annually, and additional LOIs and contracts indicate strong customer interest and future demand.

• Terrebonne Facility in Québec continues to demonstrate technology effectiveness and supply resin for customer validation and R&D.

• Strategic partnerships and alliances with leading brands and companies, including Nike, Taro Plast, Shinkong, and Hyosung TNC, expand market reach and support commercialization.

• Launched Twist™, a branded circular polyester resin made entirely from textile waste.

Financial highlights

• Revenues for the quarter ended May 31, 2026, were $179,000, down from $252,000 year-over-year, primarily from engineering services to the India JV.

• Net loss for the quarter was $3.39 million, a slight improvement from $3.45 million in the prior year.

• Cash and cash equivalents at quarter-end were $1.06 million, with total available liquidity of $3.6 million including an undrawn $2.54 million credit facility.

• Cash overhead reduced to approximately CAD 500,000 per month, driven by lower employee compensation and insurance costs.

• Operating cash outflow was $1.23 million, a significant reduction from $3.08 million in the prior year.

Outlook and guidance

• India JV facility in Gujarat is expected to be operational by 2028, with a planned capacity of 70,000 tons per year; construction expected to begin in fall 2026 with an 18-month build.

• European facility in Germany targets 70,000 tons annual capacity and is expected to be operational by 2030, with engineering contracts set to begin in September and modular construction planned.

• Ongoing efforts to secure additional financing, including non-dilutive and strategic alternatives, are critical to fund operations and equity contributions to the India JV.

• Anticipated engineering revenues from India and Europe projects expected to support ongoing operations through commercial start-up.

• Expect to secure sufficient customer contracts or LOIs to begin construction, with most of the facility's capacity likely to be locked in.