Toyo Co (TOYO) H2 2025 earnings summary

Executive summary

• Achieved record revenue of $427.4 million in FY2025, a 142% year-over-year increase, driven by rapid scale-up of manufacturing, including a 4-GW Ethiopia cell facility and strategic expansion into compliant, high-demand markets.

• Shipped 4.5 GW of solar cells globally in FY2025, with 249 MW of modules delivered, and ramped up Houston's 1-GW module facility, planning to double capacity to 2 GW in 2026.

• Acquired the VSUN brand in September 2025, consolidating sales, marketing, and IP, enhancing U.S. market access and streamlining operations.

• Maintained strong operational execution and FEOC-compliant supply chain despite volatile trade and regulatory environments.

• Management highlighted robust order book, strategic execution, and plans for further U.S. onshore manufacturing and supply chain integration.

Financial highlights

• FY2025 revenue reached $427.4 million, up 142% year-over-year, with $241.6 million growth in solar cell sales and $7.6 million in module sales.

• Gross profit rose 340% to $96.3 million, with gross margin expanding to 22.5% from 12.4% in 2024.

• EBITDA (Non-GAAP) was $95.8 million, up from $68.2 million in FY2024; adjusted EBITDA (excluding share-based comp and contingent consideration) was $110.8 million, up 228%.

• Adjusted net income was $52.2 million, up from $6 million, with adjusted EPS of $1.48 in 2025, up from $0.20 in 2024.

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

Outlook and guidance

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

• Targeting 2026 adjusted net income of $90–$100 million, nearly doubling from 2025, despite increased R&D and technology investments.

• Plans to expand Houston module capacity to 2 GW, initiate domestic cell production, and establish a U.S. R&D center.

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

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