Toyo Co (TOYO) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $142.8 million, up 177% year-over-year, with net income of $28.4 million, reversing a prior net loss.

• Diluted EPS was $0.75 versus a loss of $0.10 in Q1 2025.

• Shipped 1.45 GW of solar cells globally, with strong U.S. and international presence.

• Rapid expansion through acquisition of VSUN brand, boosting U.S. market access and manufacturing scale.

• Focused on FEOC-compliant, vertically integrated supply chain with major facilities in the U.S., Ethiopia, and Vietnam.

Financial highlights

• Gross margin expanded to 33.5% from 9.3% year-over-year, with gross profit rising to $47.8 million, up 894.8% from Q1 2025.

• Non-GAAP EBITDA was $48.1 million, up from $2.4 million; adjusted EBITDA was $48.3 million, up from $2.8 million.

• Operating expenses increased to $11.5 million, mainly due to higher sales commissions, advertising, and headcount.

• Cash and restricted cash stood at $72.2 million as of March 31, 2026.

• Net cash provided by operating activities in Q1 2026 was $33.4 million.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: solar cell shipments of 5.5–5.8 GW, module shipments of 1.0–1.3 GW, and adjusted net income of $90–100 million.

• U.S. module capacity expected to reach 2 GW by 2026, with domestic cell manufacturing in planning.

• Section 45X credits are not included in 2026 guidance, representing potential upside.

• Shipment CAGR projected at ~82% from 2024 to 2026E.

• Plans for a U.S.-based R&D center focused on solar cell engineering and manufacturing excellence.