Loop Industries (LOOP) Q4 2026 earnings summary

Executive summary

• Advanced global growth strategy with key partnerships in India and Europe, including a memorandum with Gujarat for the India project and site selection in Germany for the European JV, focusing on commercial execution and capital discipline.

• Infinite Loop India signed an MOU with the Gujarat government, streamlining permitting and enabling phased expansion.

• Infinite Loop Europe selected BASF Industrial Park in Germany for its first facility, moving into engineering and permitting phases.

• Corporate overhead reduced through targeted expense initiatives, vendor contract reviews, and organizational realignment.

• India project capital cost estimate lowered to $165M–$170M from $190M, with operations expected in 2028.

Financial highlights

• CapEx for the initial Indian facility reduced to $165M–$170M from $190M, improving project economics.

• Debt to equity split for India project is 70% debt, 30% equity, with Loop responsible for 15%.

• EBITDA margin for the India plant projected at approximately 45%.

• Payback period for the India facility estimated at 1.5–2.5 years, improved by CapEx reduction.

• Fiscal year 2026 revenues fell to $514K from $10.9M year-over-year, mainly due to the absence of prior year licensing revenue.

Outlook and guidance

• Infinite Loop India facility expected to be operational in 2028, with phased expansion supported by government alignment.

• European JV project entering engineering and permitting phase, expected to generate engineering services revenue.

• Royalty revenue from India expected to start in 2028.

• Ongoing cost controls and non-dilutive government funding to support operational readiness through October 2027.

• Plans for a second, larger facility in India after stable operations at the first site.