TOYO Targets U.S. Solar Cell Expansion as First-Half Revenue Soars 88%

Key Points

• TOYO is expanding its U.S. manufacturing footprint: Its Humble, Texas, facility now has 2 GW of module capacity, while a proposed $357 million HJT cell plant could begin pilot production in the first quarter of 2028, subject to permitting and financing.
• First-half results improved sharply: Revenue rose 87.6% year over year to $261 million, while GAAP net income increased to $45.8 million from $2.5 million and diluted EPS reached $1.20.
• Expansion financing and trade issues remain unresolved: TOYO expects to fund the HJT facility with tax credits, debt, operating cash flow and other sources, but has not signed definitive debt agreements; four Ethiopian cell shipments are also undergoing U.S. Customs admissibility reviews.

TOYO NASDAQ: TOYO used its Solar Analyst Day in Humble, Texas, to outline its U.S. manufacturing expansion, discuss first-half financial results and describe plans for a proposed heterojunction, or HJT, solar-cell facility.

Chairman and Chief Executive Officer Takahiko Onozuka said the company has completed its second module line at its Houston-area site, bringing module capacity at the facility to 2 gigawatts. TOYO acquired the VSUN brand in September 2025, began operating its first Houston module line a month later and has now completed the second line, he said.

“We are not stopping at the modules here in Humble,” Onozuka said. TOYO plans a $357 million HJT cell facility at the site, with design work completed and permitting applications underway. The company is targeting ramp-up and pilot production during the first quarter of 2028, though executives said the timeline could change based on permitting and financing.

Focus shifts upstream in U.S. supply chain

Onozuka said the company sees a gap in the U.S. solar supply chain beyond module assembly. While the United States has about 75 GW of module capacity against annual solar installations of approximately 43 GW, he said domestic cell capacity is about 3 GW and wafer capacity is roughly 5 GW.

TOYO currently has 6 GW of cell capacity, including 4 GW in Ethiopia and 2 GW in Vietnam, according to Onozuka. The company manufactures cells in Ethiopia using non-Chinese polysilicon and wafers sourced from Indonesia, executives said. TOYO’s Vietnam production does not enter the U.S. market because of antidumping and countervailing-duty considerations, according to Chief Strategy Officer Rhone Resch.

Resch said the company’s strategy is to build a non-FEOC, or Foreign Entity of Concern, supply chain and ultimately increase U.S. content. He said TOYO currently sources 70% of its polysilicon for Ethiopian production from U.S. manufacturers and aims to increase that percentage to 100% over time.

The company’s longer-term vision includes expanding U.S. HJT capacity beyond the initially proposed 1.5 GW cell facility, potentially to 3 GW and eventually 8 GW. Resch also discussed a vision for 6 GW of U.S. ingot and wafer capacity, while emphasizing that the broader expansion plans were not public commitments and would depend on financing and other factors.

First-half revenue nearly doubles

Chief Financial Officer Yasunari Harada reported first-half revenue of $261 million, up 87.6% year over year. The company delivered 2.61 GW of solar cells and 191.85 megawatts of modules during the six-month period.

• Gross profit was $84.7 million, for a 32.5% gross margin.
• GAAP net income was $45.8 million, compared with $2.5 million a year earlier.
• Adjusted net income, a non-GAAP measure, was $46 million.
• Diluted earnings per share were $1.20, compared with $0.08 in the prior-year period.
• Operating cash flow was $61.4 million, up from $40 million.

Cash stood at $103.5 million as of June 30, compared with $51.6 million at year-end, Harada said. Including restricted cash, total cash was $123.4 million. Shareholders’ equity increased to $209.8 million from $111.3 million, while total liabilities declined slightly to $327.8 million.

During the first half, TOYO raised approximately $52.6 million in net proceeds. That included about $47.1 million in net proceeds from a June registered direct offering and approximately $5.5 million from its at-the-market program through June 30.

Financing and trade-policy discussions continue

Harada said the proposed HJT facility is expected to be funded through a combination of Section 45X manufacturing tax credits, debt financing, operating cash flow and other non-dilutive financing sources. He said the plan remains preliminary and that no definitive debt-financing documents have been signed.

In response to an analyst question, Harada said TOYO has begun early-stage discussions with financial institutions in Japan and the U.S. regarding potential project financing.

Resch also discussed the company’s engagement with the Department of Commerce regarding the Section 232 program and a potential offset structure intended to encourage U.S. manufacturing. He said TOYO has submitted a draft term sheet describing its planned manufacturing investments and is seeking additional guidance from Commerce.

Regarding trade enforcement, Resch said four shipments of Ethiopian solar cells had been detained by U.S. Customs and Border Protection for admissibility reviews. He said the company submitted requested supply-chain documentation and hosted CBP personnel at its Texas facility. Ana Hinojosa, a former CBP executive now working with TOYO, said the company was optimistic about a resolution but noted that timing remained under government control.

HJT technology central to strategy

Executives positioned HJT technology as a central part of TOYO’s long-term growth strategy. Resch said HJT cells offer higher efficiency, improved performance in hot conditions, better bifaciality and lower degradation than conventional TOPCon cells, according to the company’s presentation.

TOYO also plans to develop research and development capabilities in Texas and sees future potential in combining HJT with perovskite technology. Resch said commercial perovskite applications are likely still two-and-a-half to three years away, though the company is in discussions with potential partners.

The existing 567,000-square-foot Humble manufacturing facility employs about 600 people across three shifts, Resch said. The planned cell expansion would add roughly 400 jobs, according to the company.

About TOYO (NASDAQ:TOYO)

TOYO Co, Ltd. NASDAQ: TOYO is a solar technology and renewable-energy company focused on the manufacture and supply of photovoltaic products. Through its operating subsidiaries, the company develops and produces solar cells and modules used in utility-scale, commercial, and residential solar-power systems.

TOYO's product portfolio includes high-efficiency solar cells and photovoltaic modules, with an emphasis on advanced technologies such as N-type TOPCon cells. The company has also pursued international manufacturing and expansion opportunities as it works to serve the growing global demand for solar-energy equipment.

TOYO is headquartered in Japan and has reported operations and development activities connected with solar manufacturing in international markets, including Vietnam and Ethiopia.

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