TOYO Reports First Half 2026 Revenue of $261 Million

en.Wedoany.com Reported - TOYO Co., Ltd (Nasdaq: TOYO; OTC: TOYWF), a solar solutions company, announced its unaudited financial results for the second quarter and first half of the fiscal year ended June 30, 2026. In the first half of 2026, the company reported revenue of $261.0 million, an increase of 87.6% year-over-year; net profit of $45.8 million, an increase of 1,731.6% year-over-year; solar cell shipments of 2.6 GW, an increase of 62.5% year-over-year; and net proceeds of approximately $52.6 million raised through registered direct offerings and at-the-market (ATM) offerings during the first half.

In the second quarter of 2026, the company reported revenue of approximately $118.2 million, an increase of 35.0% from $87.6 million in the same period of 2025, primarily reflecting approximately $31.7 million in solar module sales revenue contributed by the newly operational module manufacturing plant in Humble, Texas (Greater Houston area) during the quarter. Cost of revenue for the quarter was approximately $81.2 million, compared to $69.3 million in the same period of the prior year; gross profit was approximately $37.0 million, an increase of 102.2% from $18.3 million in the same period of the prior year, with gross margin improving from 20.9% to 31.3%. Total operating expenses increased to approximately $14.4 million from $7.3 million in the same period of the prior year, including selling and marketing expenses of $1.6 million (compared to $2.1 million in the same period of the prior year) and general and administrative expenses of $12.8 million (compared to $5.3 million in the same period of the prior year). Operating income was approximately $22.6 million, compared to $10.9 million in the same period of the prior year; net profit was approximately $17.4 million, compared to $6.2 million in the same period of the prior year; net profit attributable to shareholders of TOYO was $17.4 million, compared to $6.7 million in the same period of the prior year. Basic and diluted earnings per share were $0.46 and $0.45, respectively, compared to $0.16 for both in the same period of the prior year.

In the first half of the year, the company's solar module shipments were 191.5 MW, compared to no module production capacity in operation in the same period of the prior year. Revenue growth was primarily driven by increased solar cell and module revenue, with sales to end customers in the United States reaching $210.5 million, an increase of 153.9% year-over-year, accounting for approximately 80.7% of total first-half revenue. Cost of revenue for the first half was approximately $176.2 million, compared to $116.0 million in the same period of the prior year; gross profit was approximately $84.7 million, an increase of 267.0% from $23.1 million in the same period of the prior year, with gross margin rising from 16.6% to 32.5%, primarily reflecting expanded production capacity and improved production efficiency. Total operating expenses increased to approximately $25.9 million from $13.4 million in the same period of the prior year, including selling and marketing expenses of $3.6 million (compared to $2.5 million in the same period of the prior year) and general and administrative expenses of $22.3 million (compared to $10.9 million in the same period of the prior year), with the increase primarily reflecting the expanded scale of operations at the Houston module plant and increased headcount to support growth. Operating income was approximately $58.8 million, an increase of 507.9% from $9.7 million in the same period of the prior year; net profit attributable to shareholders of TOYO was $45.8 million, compared to $3.5 million in the same period of the prior year.

On a non-GAAP basis, EBITDA (non-GAAP) for the first half was $82.1 million, compared to $21.5 million in the same period of the prior year, an increase of 282.3% year-over-year; adjusted EBITDA (non-GAAP) was $82.3 million, compared to $22.8 million in the same period of the prior year, an increase of 260.2% year-over-year; adjusted net profit (non-GAAP) was $46.0 million, compared to $3.9 million in the same period of the prior year, an increase of 1,090.6% year-over-year. Net cash provided by operating activities for the first half was $61.4 million, with capital expenditures of $27.8 million. As of June 30, 2026, the company's total cash and restricted cash (including non-current restricted cash) was $123.4 million, compared to $58.9 million as of December 31, 2025; of which cash and cash equivalents were $103.5 million, current restricted cash was $6.6 million, and non-current restricted cash was $13.4 million, with restricted cash primarily used to secure letters of credit and bank credit facilities. Basic and diluted earnings per share were $1.21 and $1.20, respectively, compared to $0.08 in the same period of the prior year.

In terms of financing and corporate governance, on June 25, 2026, the company completed a registered direct offering to certain institutional investors, with gross proceeds of $50.0 million and net proceeds of approximately $47.1 million; as of June 30, net proceeds of approximately $5.5 million were raised from ATM offerings under the at-the-market equity programs with Roth Capital Partners, LLC and H.C. Wainwright & Co., LLC. Following the annual index reconstitution in June 2026, the company was added to the Russell 3000® Index and the Russell Microcap® Index. Effective July 1, 2026, Yasunari Harada was appointed Chief Financial Officer, succeeding Taewoo (Raymond) Chung, who resigned effective June 30, 2026.

In terms of production capacity, the second 1 GW solar module production line at the company's facility in Humble, Texas (Greater Houston area) is nearing completion, with production expected to commence in September 2026, which will bring the site's total solar module production capacity to approximately 2 GW. The company reaffirmed that its previously announced $357 million investment in a 1.5 GW advanced heterojunction (HJT) solar cell production line at the same site is progressing as planned, with pilot production expected to commence before the first quarter of 2028. Based on a third-party tax compliance analysis published on July 21, 2026, Toyo Solar Texas LLC is expected to qualify for the Section 45X Advanced Manufacturing Production Tax Credit for the 2025 tax year.

TOYO Chairman and Chief Executive Officer Takahiko Onozuka stated that the first-half results reflect the continued strength of the company's global manufacturing platform and growing demand across markets. He also noted that recent policy developments are expected to impact second-half results, though the extent of the impact remains uncertain, and the company is in discussions with the U.S. Department of Commerce regarding a framework that could help resolve the issue, with further updates to be provided once the situation becomes clearer. Regarding business outlook, Onozuka stated that the company is engaged in constructive discussions with the U.S. Department of Commerce regarding the Section 232 framework, seeking a favorable outcome to limit the impact on results, though the final terms cannot be known until the discussions conclude; the company remains confident in the underlying strength of its business and will continue to execute its U.S. manufacturing strategy. He noted that the second module production line at the Humble campus is on track to commence production in September, bringing the site's total capacity to approximately 2 GW, and the 1.5 GW heterojunction cell facility at the same site is also progressing as planned, with these investments marking tangible progress in building a larger, increasingly integrated U.S. manufacturing platform.

TOYO Chief Strategy Officer Rhone Resch stated that the company supports building a secure, competitive U.S. solar supply chain and is investing capital toward that end, including the integrated solar manufacturing campus in Humble, Texas (2 GW module plant and co-located 1.5 GW heterojunction cell plant), and is working with the U.S. Department of Commerce on investment offsets to support this buildout and ensure U.S. solar module manufacturers have access to cell supply, while remaining committed to developing U.S. solar manufacturing and establishing a secure non-FEOC supply chain. The company welcomes the Trump administration's Section 232 ruling on polysilicon and reaffirms its investment in the $357 million heterojunction facility in Humble. Resch believes the Section 232 announcement reinforces the importance of the company's strategy, and that TOYO's module business, planned heterojunction capacity, use of U.S. polysilicon, and broader non-FEOC supply chain are highly aligned with the Trump administration's reshoring goals, and while implementation details remain uncertain, the policy direction is favorable to TOYO's long-term position in the U.S. market.

TOYO Co., Ltd is a solar solutions company with operations spanning upstream production of silicon wafers and polysilicon, midstream production of solar cells, downstream production of photovoltaic modules, and other segments of the solar power supply chain.