TOYO H1 2025 Earnings Report

TOYO EPS Results

• Actual EPS: $0.10
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: $0.48

TOYO Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

TOYO Announcement Details

• Quarter: H1 2025
• Date: 9/8/2025
• Time: Before Market Opens
• Conference Call Date: Monday, September 8, 2025
• Conference Call Time: 8:30AM ET

TOYO (NASDAQ:TOYO) Co. Ltd. engages in the design, manufacture, and sale of solar cells and modules. It is involved in integrating the upstream production of wafer and silicon, midstream production of solar cell, downstream production of photovoltaic (PV) modules, and potentially other stages of the solar power supply chain. The company was founded on November 8, 2022 and is headquartered in Tokyo, Japan.

TOYO H1 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: We acquired the Nissan brand, streamlining operations under one umbrella to accelerate market growth and reinforce customer confidence.
• Positive Sentiment: Our new 2 GW Ethiopian solar cell plant is operating at full capacity and module production in Houston has commenced, bolstering low‐cost, “Made in USA” manufacturing.
• Negative Sentiment: First‐half revenue rose 0.7% to $139 million, but gross profit margin slid to 16.6% and operating expenses spiked 220%, pulling net income down to $4 million.
• Positive Sentiment: We raised full‐year 2025 guidance to 4.2–4.4 GW of shipments, with revenue of $375–400 million and net income of $39–45 million, above prior targets.

Presentation

[Operator]

Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to Toyo Co., Ltd. Announcements, First half 2025 Financial Results. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Crocker Coulson, Investor Relations. Please go ahead.

[Crocker Coulson, Head of Investor Relations at Toyo Co., Ltd.]

Thanks so much, Kate. Hello, everyone. Thank you for joining us to review Toyo's 2025 First half results. This morning, Toyo posted both the earnings release and the related investor presentation to its website, and you can find that at investors.toyo-solar.com. With us on the call today, we have Mr. Junsei Ryu, Toyo's founder and Chief Executive Officer. We also have Raymond Chung, Toyo's Chief Financial Officer, and Simon Shi. The senior management team is in New York today in advance of participating in the HCW conference today and tomorrow, and they'll also be present at the RE+ conference on September 10th and 11th. After the prepared remarks are concluded, we're going to open up this call to your questions. But before we begin, I'd like to let you know that some statements in the teleconference are forward-looking within the meaning of federal securities laws.

[Crocker Coulson, Head of Investor Relations at Toyo Co., Ltd.]

Although we believe these statements are reasonable, we can provide no assurance that they will prove to be accurate because they're prospective in nature. Actual results could differ materially from those we discuss today. We encourage you to review the most recent report on Form 6-K and other SEC filings for risk factors that could materially impact our results. As I mentioned, the earnings release is available on our website at investors.toyosolar.com. With those formalities now out of the way, it's my great pleasure to turn this call over to Mr. Junsei Ryu, Chief Executive Officer. Ryu-san, please go ahead.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

Okay, thank you. 財政緩和への意向に反応する関税構造の変化や、世界的なサプライチェーンの進展といった非常にダイナミックな環境の中、当社チームは機動的かつ計画的に行動し、成果は出てまいりました。強靭と呼び、生産戦略を柔軟に適用させることで、競争力を維持しつつ事業の強靭性を高めています。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

Against a highly dynamic backdrop for the renewable energy sector, marked by shifting tariff structures and evolving global supply chains, our team has executed with agility and precision. We have successfully adapted our sourcing and production strategy to maintain momentum.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

先週、当社はベトナム産エナジー、ジョイントストックコンパニーから富士山ブランドを取得したと発表しました。今回の戦略的な決定は、トイオの事業を一貫化し、統合し、富士山ブランドを完全に当社の傘下に収めるものです。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

Last week, we announced the acquisition of the VSUN brand from our sister company, Vietnam Sunergy Joint Stock Company, a strategic move to streamline and unify Toyo's operations by bringing the VSUN brand fully under our umbrella.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

富士山とトイオは当社の筆頭株主である平和の株式会社の共通支配下にあるわけで、長年にわたり深い事業上の協業関係を築いてまいりました。本件の富士山ブランドの買収により、トイオは成長と人数拡大を次のステージに加速させることを可能にしました。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

VSUN and Toyo have long operated as sister companies, not only through common controls under our majority shareholder T-Balance Corporation, but also through deep ongoing business collaboration. This acquisition of the VSUN brand positions us to accelerate Toyo's growth and expand to the next level.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

2018年以降、富士山ブランドのサイズモジュールを多くアメリカ市場に出荷されています。これは同ブランドが技術、強固な顧客基盤、そしてユーティリティ規模での着実な導入実績を持つことの印です。さらに、主要な金融機関からの高い信頼とミュー返済による保険付与に支えられており、富士山ブランドはトイオの市場での信頼性を高め、顧客の信頼を強化し、国交デベロッパーによる幅広い対応を後押ししています。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

Since 2018, many of VSUN branded solar modules have been delivered to the U.S. market, a testament to the brand's strong customer base and success in utility-scale deployments. Recognized by leading financial institutions and backed by insurance firms, we agree, the VSUN brand strengthens Toyo's market credibility, reinforces customer confidence, and global development.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

日曜日に新設した当社の太陽光セル製造工場は、現在2ギガのフル稼働に到達しました。加えて、さらに2ギガ生産が開始しており、2025年10月までに合計4ギガへと倍増する計画は順調に進んでいます。本工場が競争力あるコスト構造と最新技術、豊富なクリーン電力に加えて、全面でも大きな優位性を持ち続けております。当面、この傾向は続くと思われます。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

Our new solar cell manufacturing facility in Ethiopia is now operating at full 2 GW capacity. As we have commenced production for an additional 2 GW capacity in Ethiopia, we remain on track to double that to 4 GWs by October 2025. This facility provides us with a compelling cost structure, state-of-the-art technology, abundant green power, and some of the lowest tariff rates available. It's expected that this trend will continue.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

[Foreign language] panels equipped with industry-leading performance and the benefits of domestic manufacturing.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

In the United States, we have commenced pilot production at our new module facility in the Houston metropolitan area, delivering on our Made in USA for the USA strategy. Through our sister company VSUN, we will leverage the newly acquired VSUN brand to build on VSUN's long-standing relationship with many of North America's leading utility-scale developers. These partners are eager to deploy panels that combine industry-leading performance with the benefits of manufacturing.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

今後も可能な限り主要部材の調達はアメリカに移行するために、業界パートナーと緊密に連携し、サプライチェーンをさらに強化するとともに、米国製造コミットメントを一層確かなものにしてまいります。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

Looking ahead, we will continue to work closely with our industry partners to migrate the key components to the U.S. wherever possible, further strengthening our supply chain and reinforcing our commitment to American manufacturing.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

それではここから、当社CFOのレノンド・チャンより財務実績についての説明を行います。

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

I will now turn the call over to our CFO, Raymond Chung, to review our financial results.

[Raymond Chung, CFO at Toyo Co., Ltd.]

Thank you, Junsei. Okay, let me take over from here. Okay, in the first half of 2025, we delivered 1.6 GWs of solar cells, up from 985 MWs in the same period last year. In terms of revenue, we generated approximately $139 million in the first half of 2025, which increased 0.7% from $138.1 million in the same period last year. The increase was due to the positive contribution of our new solar cells line in Ethiopia, which began in April 2025, serving U.S.-end customers and providing more attractive pricing and margin opportunities. Our cost of revenue was approximately $160 million for the first half of 2025, compared to $111.4 million for the same period last year. Gross profit margin was 16.6% for the first half of 2025, compared to 19.3% for the same period last year. The decrease was due to the increasing unit cost of raw materials.

[Raymond Chung, CFO at Toyo Co., Ltd.]

Total operating expenses increased 219.9% to approximately $30 million for the first half of 2025, from $4.2 million for the same period last year. Selling expenses were approximately $3 million for the first half of 2025, compared to $40,000 for the same period last year. The increase was attributable to higher sales commission from new customers. General and administrative expenses were approximately $11 million for the first half of 2025, compared to $3.8 million for the same period last year. The increase was primarily due to expenses related to managing new facilities in Houston and Ethiopia, as well as increased expenses associated with being a public company. Non-GAAP adjusted EBITDA of approximately $23 million for the first half of 2025, compared to $33 million for the same period last year, reflecting increases in operating expenses and reduced sales volume to the U.S. market.

[Raymond Chung, CFO at Toyo Co., Ltd.]

As Vietnamese capacity was allocated to non-U.S. regions, while Ethiopia's operations only commenced in April 2025, as well as changes in fair value of a contingent consideration payable related to earn-out shares. Net income attributable to our shareholders was approximately $4 million for the first half of 2025, compared to $19.6 million for the same period last year. Earnings per share, basic and diluted, were $0.10 compared to earnings per share, basic and diluted, of $0.48 for the same period last year. Turning to our balance sheet, as of June end 2025, we had a total of approximately $30 million in cash and current restricted cash, compared to $15.1 million as of December end 2024. As we move into the second half of 2025, our priorities are clear.

[Raymond Chung, CFO at Toyo Co., Ltd.]

We are expanding solar cell production at our Ethiopian facility toward a 4 GW run rate, while strategically redirecting output from our Vietnam operations to a high-growth market that is not impacted by the elevated U.S. tariffs. In the U.S., we will take a measurable approach to expanding our module capacity, aligning that growth with the refinement of our sourcing strategy and disciplined allocation of investment. Even with recent shifts in energy policy, we remain confident that solar is the fastest, the most cost-effective way to add capacity to the energy grid and meet the increasing rise in electricity demand across the U.S. and other developing countries. The cash flow generated from our facilities will give us the flexibility to fund this expansion from within. The launch of U.S. production also marks the beginning of a strategic consolidation of the VSUN brand, sales channels, and customer base into Toyo.

[Raymond Chung, CFO at Toyo Co., Ltd.]

This integration will create a streamlined, unified organization capable of delivering the high-performance solar solution that utility-scale customers expect. Geared with all these strategic initiatives, for the full year of 2025, we expect to exceed our previous guidance of 3.5 GWs in solar cell shipment, projecting approximately 4.2 GW-4.4 GW for the full year 2025. This is anticipated to drive revenue in the range of approximately $375 million-$400 million, with projected net income between approximately $39 million-$45 million. We look forward to sharing more on our strategy in the near future, as we believe it will meaningfully strengthen our financial profile and enhance the value we deliver to our shareholders. With that, we'll be happy to address your questions.

[Operator]

At this time, I would like to remind everyone, in order to ask a question, please press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Our first question comes from the line of Justin Smith with Maxim Group. Your line is open.

[Justin Smith, Equity Research Associate at Maxim Group]

Hi, thank you, guys, and congratulations on the good quarter and first half of the year. My question was relating to gross profit margin you guys discussed. I saw that it briefly declined, or very marginally declined year-over-year. But as the Ethiopia facility reaches scale and Houston production comes online, do you see any way those gross margins start trending back higher up to where they were in the first half of 2024, or are some of these tariff-related costs sort of weighing on that and putting a cap on that? Thank you.

[Justin Smith, Equity Research Associate at Maxim Group]

Hi, Justin. Thank you for the question. Yes, our gross margin decreased slightly for the first half of the year, mainly for two reasons. Number one, the plan of the product destination for our product shipped earlier this year was changed from last year. Last year, over 80% actually was shipped to the U.S., and for the first half of the year, we have only 44% going to the U.S. And with the change of the product plan, our margin was slightly affected, secondly, also because we were in the process of ramping up of the production in Ethiopia. So the overall cost, the cost of the product, was still in the process of being refined. So that's why the two main reasons our gross margin was slightly slower than what it was last year.

[Justin Smith, Equity Research Associate at Maxim Group]

Going forward with our efforts to refine our cost structure and sourcing strategy, we do hope to see our gross margin level to at least go back to what it was last year. Justin.

[Justin Smith, Equity Research Associate at Maxim Group]

Okay, that's very helpful, and thank you for the detail there. I appreciate it. And once again, congrats on the good results.

[Raymond Chung, CFO at Toyo Co., Ltd.]

Thank you.

[Operator]

Again, if you would like to ask a question, press star one on your telephone keypad. I will now turn the call back over to Junsei Ryu for closing remarks.

[Junsei Ryu, Founder and CEO at Toyo Co., Ltd.]

So we want to thank you all for your time this morning. I know that the company is going to be visiting with a number of investors and analysts later this week, and happy to answer your questions in person. If anybody has any follow-up questions after the call, please reach out to investor relations, and we're happy to either get back to you or schedule a meeting with management. This now concludes our call, operator. Thank you so much.

[Operator]

Ladies and gentlemen, as that concludes today's call, thank you all for joining. You may now disconnect.

Participants

Analysts

• Translator
• Company Representative
• Crocker Coulson, Head of Investor Relations at Toyo Co., Ltd.
• Justin Smith, Equity Research Associate at Maxim Group
• Junsei Ryu, Founder and CEO at Toyo Co., Ltd.
• Raymond Chung, CFO at Toyo Co., Ltd.