From The Motley Fool · Motley Fool Transcribing · · 3m
Loop Industries Q2 2027 Earnings Call
Loop Industries cuts India facility size to 45,000 kilotonnes per year to lower costs and accelerate construction.
In brief
Loop Industries cuts India facility size to 45,000 kilotonnes per year to lower costs and accelerate construction. Loop Industries reduced its first Indian facility capacity to 45,000 kilotonnes per year to cut capital costs and shorten construction timeline to 20 months. Originally reported by The Motley Fool.
Q2 2027 Earnings Call
Loop Industries reported Q2 2027 earnings with a net loss of $2.99 million, or $0.06 per share.
Revenue and Net Loss
Revenue reached $117,000 from engineering services for the India joint venture project, with a net loss of $2.99 million.
Cash Operating Expenses
Cash operating expenses dropped to $1.6 million, a year-over-year reduction of $800,000 due to targeted cuts.
Liquidity and Financing
Total liquidity stood at $1.9 million as of August 31, 2026, including $836,000 in cash to fund pre-commercial operations.
Facility Scale Reduction
Loop Industries rescaled its first Indian facility from 70,000 to 45,000 kilotonnes per annum to reduce capital requirements.
Equity Financing Requirement
Equity financing required for the company's portion is estimated at $20 million, representing its 15% share of the first Indian facility's total cost.
Project Capital Structure
Project capital structure is 70% debt and 30% equity, with the equity portion split evenly between Loop Industries and Ester Industries.
Joint Venture Investment
Loop Industries has contributed $3 million to $5 million toward the India project through joint venture investments.
Contracted Volume
Over 50% of the 45,000-ton capacity is committed through signed contracts and letters of intent with customers like Taro Plast.
Construction Timeline
Construction timeline is 20 months, with completion projected for the end of 2028 if financing is secured by Q1 2027.
Second Facility Potential
Second facility on the same site in India is projected to have a capacity of 125,000 tons, utilizing local feedstock availability.
Technical Due Diligence
Technical due diligence by project lenders in India is complete, with final project cost estimates expected before year-end.
Cost Reduction Strategy
Loop Industries achieved cost reductions through targeted cuts in personnel, insurance, and professional fees, and waived director compensation.
Financing Committee
A special committee formed in September 2026 to evaluate financing alternatives including equity, debt, and nondilutive options.
Debt Lender Engagement
Loop Industries' Indian joint venture partner is syndicating project debt with a major local bank that completed technical assessment.
Economic Viability
CEO Solomita stated that scaling down the facility maintains project economics due to low temperature and no pressure added technology.
What it means
Loop Industries reduced its first Indian facility capacity to 45,000 kilotonnes per year to cut capital costs and shorten construction timeline to 20 months.
