Toyo Co (TOYO) H2 2025 earnings summary

Executive summary

• Achieved record revenue of $427.4 million in 2025, a 142% year-over-year increase, driven by rapid scale-up and strategic expansion in Ethiopia and the U.S., exceeding guidance.

• Solar cell shipments totaled 4.5 GW, surpassing targets, with 2.3 GW shipped from Ethiopia to U.S. customers and 1.9 GW from Vietnam to international markets; launched 1 GW module facility in Houston.

• Acquired the VSUN brand, consolidating sales, marketing, and IP to streamline operations and enhance customer flexibility.

• Strengthened management team with the appointment of a new Chief Strategy Officer and plans for increased investor engagement.

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

Financial highlights

• Gross profit rose 340% to $96.3 million in 2025, with gross margin expanding to 22.5% from 12.4% in 2024.

• EBITDA reached $95.8 million, up 40% year-over-year; adjusted EBITDA was $110.8 million, a 228% increase.

• Adjusted net income was $52.2 million, up 769% from the prior year; adjusted EPS was $1.48 versus $0.20 in 2024.

• Cash and restricted cash totaled $58.9 million at year-end, up from $17.2 million a year earlier, with $133 million in operating cash flow and $92 million in CapEx.

• Operating expenses rose to $37.3 million, mainly due to increased G&A and share-based compensation.

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 and initiate domestic cell production.

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

• Expectation to maintain gross margins at or above 25%, higher than industry average.