Loop Industries (3L9) Q2 2027 Earnings Report

The call was predominantly positive on the India commercialization project, with a smaller facility expected to reduce capital requirements, positive lender discussions, over 50% of capacity covered by contracts or commitments, declining operating expenses and continued investor interest. However, construction remains conditional on securing financing, available liquidity was $1.9 million, and the final project cost and equity requirement were not yet known.

Management expects the first India facility to be reduced from 70 thousand kilotons to 45 thousand kilotons per annum, with construction beginning in Q1 calendar of 2027 and construction and commissioning taking a total of 20 months, allowing the plant to be up and running commercially producing material by the end of 2028 if funding is secured; the final cost estimate is expected in the coming weeks and definitely before year end. The company said the equity contribution is in the area of $20 million, while banks seem realistic to finance 70% of the project, leaving 30% equity split evenly between Loop and Ester, with Loop’s portion about 15% of total project cost; the prior 165 to 170 million dollar facility implied 25 to 30 in that range for Loop, the cost will come down but may not come down by 40%, and Loop has already contributed in the 3 to $5 million range. More than 50% of the 45 thousand size facility is covered by committed LOIs or contracts, feedstock is available for a total of at least 170 thousand tons, and the second facility could grow to 125 thousand tons.