Toyo Co (TOYO) H2 2025 earnings summary

Executive summary

• Achieved record FY2025 revenue of $427.4 million, a 142% year-over-year increase, driven by rapid scale-up in Ethiopia and U.S. expansion.

• Shipped 4.5 GW of solar cells globally in FY2025, with significant contributions from Ethiopia and Vietnam, and launched a 1 GW module facility in Houston.

• Acquired the BridgeSun/VSUN brand in September 2025, consolidating sales, marketing, and IP to enhance U.S. market access and operational flexibility.

• Strengthened management team with the appointment of a new Chief Strategy Officer.

• Maintained a strong focus on FEOC-compliant supply chain and proprietary solar technology.

Financial highlights

• FY2025 gross profit reached $96.3 million, with gross margin improving to 22.5% from 12.4% in 2024.

• Adjusted EBITDA rose to $110.8 million, and adjusted net income was $52.2 million, up 769% from the prior year.

• GAAP net income was $37.2 million, including a one-time non-cash share-based compensation charge of $13.7 million.

• Cash and restricted cash totaled $58.9 million at year-end, with $133 million in operating cash flow and $92 million in CapEx.

• Adjusted EPS for 2025 was $1.48, up from $0.20 in 2024.

Outlook and guidance

• 2026 shipment guidance: 5.5–5.8 GW for solar cells and 1–1.3 GW for modules.

• Targeting adjusted net income of $90–$100 million in 2026, with plans to expand Houston module capacity to 2 GW and initiate domestic cell production.

• Anticipates benefiting from Section 45X tax credits ($0.07/W) through 2030 for U.S. production.

• Expecting to maintain or exceed 25% gross margin, not including potential U.S. manufacturing credits.

• Strategic focus on U.S. domestic content, onshore manufacturing, and new polysilicon sourcing relationships.