TOYO · TOYO Co., Ltd.

TOYO’s FY2025 results reflect a transformative year marked by rapid operational scaling and strategic execution. Revenue surged 142% YoY to $427.4 million, decisively exceeding guidance, driven almost entirely by $241.6 million in incremental solar cell sales — a direct result of the full ramp-up of the 4 GW Ethiopia facility, which achieved nameplate capacity in October 2025. Gross profit more than quadrupled to $96.3 million, with gross margin expanding sharply from 12.4% to 22.5%, attributable to higher average selling prices realized on U.S.-bound cell shipments — a benefit of TOYO’s FEOC-compliant positioning and tariff-advantaged supply chain. While GAAP net income declined slightly to $37.2 million (from $40.5 million in 2024), this reflects a $13.7 million non-cash share-based compensation charge tied to management and board incentives; Adjusted Net Income soared 769% to $52.2 million, underscoring underlying profitability and operating leverage. Management attributes the outperformance to disciplined capital allocation, traceable sourcing (including polysilicon agreements with OCI and a major U.S. domestic producer), and early realization of vertical integration benefits. Looking ahead, the 2026 guidance — 5.5–5.8 GW cell shipments and $90–100 million Adjusted Net Income — implies continued margin stability and volume growth, supported by the Houston module plant’s expansion and planned U.S. cell manufacturing. The company’s emphasis on Section 45X eligibility, domestic bill-of-materials development, and alignment with U.S. policy priorities positions it uniquely among non-Chinese suppliers — a strategic advantage explicitly cited by CEO Onozuka and CSO Resch in their commentary on navigating trade complexity and securing utility-scale partnerships.