TOYO Co., Ltd Announces Unaudited Second Quarter and First Half 2026 Financial Results
Rhea-AI Summary
TOYO (Nasdaq: TOYO) reported strong unaudited results for Q2 and the first half of 2026. Q2 2026 revenues were $118.2 million, up 35.0% year-over-year, with gross profit of $37.0 million and gross margin improving to 31.3%. Net income reached $17.4 million and diluted EPS were $0.45.
For the first half of 2026, revenues rose 87.6% year-over-year to $261.0 million, driven by 2.6 GW of solar cells and 191.5 MW of solar modules delivered. Net income was $45.8 million versus $2.5 million a year earlier, with diluted EPS of $1.20. TOYO raised approximately $52.6 million via a registered direct and at-the-market offerings, ended June 30, 2026 with $123.4 million in cash and restricted cash, expanded Houston-area module capacity toward 2 GW, and advanced a 1.5 GW HJT cell line and Section 45X tax credit eligibility.
Positive
- First-half 2026 revenue up 87.6% year-over-year to $261.0 million
- First-half net income rose to $45.8 million from $2.5 million
- Gross margin improved to 32.5% in first half 2026 from 16.6% in 2025
- Cash and restricted cash increased to $123.4 million from $58.9 million at year-end 2025
- U.S. revenue reached $210.5 million, 80.7% of first-half 2026 revenue, up 153.9%
- Houston module capacity expanding to ~2 GW with second 1 GW line starting September 2026
Negative
- Total operating expenses rose to $25.9 million in first half 2026 from $13.4 million
- General and administrative expenses more than doubled to $22.3 million in first half 2026
- Equity offerings raised about $52.6 million, implying shareholder dilution
- Policy-related uncertainty as TOYO expects potential Section 232-related impact on second-half 2026 results
News Explained
The financing was partly closed and partly sold through June 30, adding cash while increasing the reported ordinary-share count and potential dilution.
The June 25 registered direct offering is closed, delivering
The release reports
Market Reaction – TOYO
Following this news, TOYO has declined 12.94%, reflecting a significant negative market reaction. Our momentum scanner has triggered 4 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $4.98. Trading volume is exceptionally heavy at 51.8x the average, suggesting significant selling pressure.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 18 | Q1 earnings results | Positive | +16.8% | Revenue and net income increased while management reaffirmed full-year guidance |
| Mar 31 | FY2025 earnings results | Positive | -1.2% | Annual revenue and shipments increased alongside 2026 earnings and shipment forecasts |
| Mar 18 | FY2025 preliminary results | Positive | +1.8% | Preliminary revenue, shipments, EBITDA, and net income were reported |
| Sep 08 | First-half earnings results | Negative | -5.1% | Revenue growth was modest while adjusted EBITDA declined year-over-year |
| May 15 | FY2024 audited results | Positive | +2.5% | Audited net income and earnings per share increased year-over-year |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events aligned with positive price reactions three times and diverged twice, with reactions ranging from -5.08% to 16.81%.
Key Terms
registered direct offering financial
at-the-market offering financial
section 45x advanced manufacturing production credits regulatory
advanced heterojunction (hjt) technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Half 2026 Financial Highlights
- 2.6 GW of solar cells delivered, an increase of
62.5% year-over-year - 191.5 MW of solar modules delivered; module production capacity had not yet come online in the first half of 2025
- Revenues of
$261.0 million 87.6% year-over-year - Net income of $45.8 million, compared to
$2.5 million 731.6% year-over-year - EBITDA (Non-GAAP) of
$82.1 million $21.5 million 282.3% year-over-year - Adjusted EBITDA (Non-GAAP) of
$82.3 million $22.8 million 260.2% year-over-year - Adjusted Net Income (Non-GAAP) of
$46.0 million $3.9 million 090.6% year-over-year - Earnings per share, basic and diluted, of
$1.21 $1.20 $0.08 - Raised approximately
$52.6 million
"We are very pleased with our first-half 2026 results, which reflect the continued strength of our global manufacturing platform and the growing demand we're seeing across our markets," said Takahiko Onozuka, Chairman and CEO of TOYO. "Following the recent policy movement, we do expect an impact on our second-half results, though the magnitude is not yet certain, as we are currently in discussion with the Department of Commerce on a framework that would help address it. We will provide further updates as more clarity emerges."
"TOYO supports building a secure, competitive American solar supply chain, and we're putting capital behind it," said Rhone Resch, Chief Strategy Officer of TOYO. "That includes our integrated solar manufacturing campus in
Recent Developments
- Registered Direct Offering: On June 25, 2026, the Company closed a registered direct offering with certain institutional investors for gross proceeds of
$50.0 million $47.1 million - At-the-Market Offering: As of June 30, 2026, the Company had raised approximately
$5.5 million - Russell Index Inclusion: Effective following the June 2026 annual reconstitution, TOYO was added to the Russell 3000® Index and the Russell Microcap® Index.
- CFO Transition: Effective July 1, 2026, Yasunari Harada was appointed Chief Financial Officer, succeeding Taewoo (Raymond) Chung who resigned effective June 30, 2026.
- Section 45X Tax Credit Eligibility: Toyo Solar Texas LLC expects to qualify for Section 45X Advanced Manufacturing Production Credits for the tax year 2025, based on a third-party tax compliance analysis announced on July 21, 2026.
Houston -Area Module Capacity Expansion: Construction of the Company's second 1 GW solar module production line at itsHumble, Texas facility, in the greaterHouston area, is nearing completion, with production expected to begin in September 2026. Once operational, this will bring TOYO's total solar module manufacturing capacity at that site to approximately 2 GW.- HJT Cell Manufacturing Line: TOYO's previously announced 1.5 GW advanced HJT solar cell manufacturing line — a
$357 million Humble, Texas site as the Company's solar module plant — is progressing on schedule. TOYO reaffirms that the line will enter pilot production no later than the first quarter of 2028. - Section 232 Polysilicon Determination: TOYO welcomed the Section 232 determination of the Trump Administration on polysilicon, reaffirming TOYO's
$357 million Humble, Texas .
Unaudited Second Quarter 2026 Results
Revenues for the second quarter of 2026 were approximately
Cost of revenues was approximately
Gross profit was approximately
Total operating expenses increased to approximately
- Selling and marketing expenses were
$1.6 million $2.1 million - General and administrative expenses were
$12.8 million $5.3 million
Income from operations was approximately
Net income was approximately
Net income attributable to TOYO's shareholders was
Earnings per share, basic and diluted, for the second quarter of 2026 were
Unaudited First Half 2026 Results
Revenues for the six months ended June 30, 2026 were approximately
Cost of revenues was approximately
Gross profit was approximately
Total operating expenses increased to approximately
- Selling and marketing expenses were
$3.6 million $2.5 million - General and administrative expenses were
$22.3 million $10.9 million Houston module facility and increased headcount to support growth.
Income from operations was approximately
Net income was approximately
Net income attributable to TOYO's shareholders was
Earnings per share, basic and diluted, of
For the six months ended June 30, 2026, the Company generated cash from operations of
As of June 30, 2026, the Company had
Business Outlook
"The current dynamic policy environment presents both challenges and opportunities for our business. We are in constructive discussions with the Department of Commerce on the Section 232 framework, and we are working toward a favorable outcome that would limit impact on our results — though we will not know the final terms until those discussions conclude," said Takahiko Onozuka, Chairman and CEO of TOYO.
"We remain confident in the underlying strength of our business, and we continue to execute on our
"The recent Section 232 proclamation reinforces the importance of this strategy. We believe TOYO's module operations, planned HJT capacity, use of American polysilicon, and broader non-FEOC supply chain align closely with the Trump Administration's onshoring goals. While near-term implementation details remain uncertain, we view the policy direction as supportive of TOYO's long-term position in the U.S. market," said Rhone Resch, Chief Strategy Officer of TOYO.
Conference Call
TOYO will host a webcast and conference call to discuss its second quarter and first half 2026 results on August 19, 8:30 am ET. A live webcast and slide presentation will be available on TOYO's investor relations website in the "Events" section at investors.toyo-solar.com.
The dial-in numbers for the conference call are expected to be:
- Participant Toll-Free Dial-In Number: (800) 715-9871
- Participant Toll Dial-In Number: +1 (646) 307-1963
Japan –Tokyo : +81.3.4578.9081- Conference ID: 4590776
Live Webcast: https://events.q4inc.com/attendee/998298548
Exchange Rate Information
This announcement contains translations of certain Vietnamese Dong ("VND") amounts into
About TOYO Co., Ltd.
TOYO is a solar solutions company that is committed to becoming a full-service solar solutions provider in the global market, integrating the upstream production of wafers and silicon, midstream production of solar cells, downstream production of photovoltaic modules, and potentially other stages of the solar power supply chain. TOYO is well-positioned to produce high-quality solar cells at a competitive scale and cost.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the expected growth of TOYO, the expected order delivery of TOYO, TOYO's construction plan of manufacturing facilities, and strategies of building up an integrated value chain in the U.S. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of TOYO's management and are not predictions of actual performance.
These statements involve risks, uncertainties, and other factors that may cause actual results, activity levels, performance, or achievements to materially differ from those expressed or implied by these forward-looking statements. Although TOYO believes that it has a reasonable basis for each forward-looking statement contained in this press release, TOYO cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. In addition, there are risks and uncertainties described in the documents filed by TOYO from time to time with the Securities and Exchange Commission (the "SEC"). These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
TOYO cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward-looking statements are subject to several risks and uncertainties, including, among others, the outcome of any potential litigation, government or regulatory proceedings, the sales performance of TOYO, and other risks and uncertainties, including but not limited to those included under the heading "Risk Factors" of the filings of TOYO with the SEC. There may be additional risks that TOYO does not presently know or that TOYO currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. The forward-looking statements in this press release represent the views of TOYO as of the date of this press release. Subsequent events and developments may cause those views to change. However, while TOYO may update these forward-looking statements in the future, there is no current intention to do so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of TOYO as of any date subsequent to the date of this press release. Except as may be required by law, TOYO does not undertake any duty to update these forward-looking statements.
Contact Information
For TOYO Co., Ltd.
IR@toyo-solar.com
Crocker Coulson
Email: crocker.coulson@aumadvisors.com
Tel: (646) 652-7185
Non-GAAP Measures
Some of the financial information and data contained in this press release, such as EBITDA, Adjusted EBITDA and Adjusted Net Income, have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). TOYO believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to TOYO's financial condition and results of operations. TOYO's management uses these non-GAAP measures for trend analysis and for budgeting and planning purposes. TOYO believes that the use of these non-GAAP measures provides an additional tool for investors to evaluate projected operating results and trends, as well as compare TOYO's financial measures with those of other similar companies, many of which also present similar non-GAAP financial measures to investors.
Management of TOYO does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses such as share-based compensation and changes in fair value of contingent consideration and income that are required by GAAP to be recorded in TOYO's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. You should review TOYO's audited and unaudited financial statements filed with the SEC and not rely on any single financial measure to evaluate TOYO's business, results of operations and financial condition.
TOYO Co., Ltd | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Revenues from related parties | $ | 21,536,529 | $ | 14,566,338 | $ | 57,494,243 | $ | 25,087,488 | ||||||||||||
Revenues from third parties | 96,648,366 | 72,996,313 | 203,464,110 | 114,019,674 | ||||||||||||||||
Revenues | 118,184,895 | 87,562,651 | 260,958,353 | 139,107,162 | ||||||||||||||||
Cost of revenues – related parties | (20,885,274) | (9,126,165) | (49,360,863) | (17,983,523) | ||||||||||||||||
Cost of revenues – third parties | (60,333,330) | (60,151,456) | (126,870,001) | (98,037,375) | ||||||||||||||||
Cost of revenues | (81,218,604) | (69,277,621) | (176,230,864) | (116,020,898) | ||||||||||||||||
Gross profit | 36,966,291 | 18,285,030 | 84,727,489 | 23,086,264 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing expenses | (1,564,629) | (2,074,792) | (3,572,021) | (2,530,879) | ||||||||||||||||
General and administrative expenses | (12,846,480) | (5,268,587) | (22,330,242) | (10,878,506) | ||||||||||||||||
Total operating expenses | (14,411,109) | (7,343,379) | (25,902,263) | (13,409,385) | ||||||||||||||||
Income from operations | 22,555,182 | 10,941,651 | 58,825,226 | 9,676,879 | ||||||||||||||||
Other expenses | ||||||||||||||||||||
Interest income (expenses), net | 278,102 | (1,197,987) | (507,158) | (1,777,036) | ||||||||||||||||
Other expenses, net | (1,392,802) | (392,200) | (2,932,052) | (759,865) | ||||||||||||||||
Changes in fair value of contingent consideration | — | (941,764) | — | (1,341,794) | ||||||||||||||||
Total other expenses, net | (1,114,700) | (2,531,951) | (3,439,210) | (3,878,695) | ||||||||||||||||
Income before income taxes | 21,440,482 | 8,409,700 | 55,386,016 | 5,798,184 | ||||||||||||||||
Income tax expenses | (4,030,918) | (2,191,989) | (9,565,248) | (3,296,448) | ||||||||||||||||
Net income | 17,409,564 | 6,217,711 | 45,820,768 | 2,501,736 | ||||||||||||||||
Less: net loss attributable to noncontrolling | — | (502,522) | — | (965,275) | ||||||||||||||||
Net income attributable to TOYO Co., Ltd.'s | $ | 17,409,564 | $ | 6,720,233 | $ | 45,820,768 | $ | 3,467,011 | ||||||||||||
Other comprehensive loss | ||||||||||||||||||||
Foreign currency translation adjustment | (15,395) | (1,195,959) | (45,244) | (1,675,148) | ||||||||||||||||
Comprehensive income | $ | 17,394,169 | $ | 5,021,752 | 45,775,524 | 826,588 | ||||||||||||||
Less: net loss attributable to noncontrolling | — | (502,522) | — | (965,275) | ||||||||||||||||
Comprehensive income attributable to TOYO | $ | 17,394,169 | $ | 5,524,274 | 45,775,524 | 1,791,863 | ||||||||||||||
Weighted average number of ordinary share | 38,193,043 | 34,480,116 | 37,937,402 | 34,040,373 | ||||||||||||||||
Earnings per share – basic | $ | 0.46 | $ | 0.16 | $ | 1.21 | $ | 0.08 | ||||||||||||
Weighted average number of ordinary share | 38,535,995 | 34,480,116 | 38,116,031 | 34,040,373 | ||||||||||||||||
Earnings per share – diluted | $ | 0.45 | $ | 0.16 | $ | 1.20 | $ | 0.08 | ||||||||||||
TOYO Co., Ltd | ||||||||
June 30, | December 31, | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 103,467,022 | $ | 51,634,374 | ||||
Restricted cash | 6,576,827 | 714,245 | ||||||
Accounts receivable, net | 15,406,535 | 11,253,459 | ||||||
Accounts receivable – related parties | — | 494,695 | ||||||
Prepayments | 10,075,305 | 25,407,080 | ||||||
Prepayments – a related party | — | 72,264 | ||||||
Inventories, net | 132,128,202 | 79,986,077 | ||||||
Other current assets | 4,570,761 | 2,282,883 | ||||||
Total Current Assets | 272,224,652 | 171,845,077 | ||||||
Non-current Assets | ||||||||
Restricted cash, non-current | 13,375,915 | 6,511,407 | ||||||
Long-term prepaid expenses | 6,747,346 | 6,834,162 | ||||||
Deposits for property and equipment | 3,826,052 | 776,627 | ||||||
Property and equipment, net | 206,577,123 | 220,648,149 | ||||||
Right of use assets | 33,966,220 | 34,354,338 | ||||||
Deferred tax assets | 36,044 | 178,107 | ||||||
Other non-current assets | 820,781 | 285,954 | ||||||
Total Non-current Assets | 265,349,481 | 269,588,744 | ||||||
Total Assets | $ | 537,574,133 | $ | 441,433,821 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Short-term bank borrowings | $ | 25,674,455 | $ | 30,648,493 | ||||
Accounts payable | 63,065,077 | 52,376,724 | ||||||
Accounts payable – related parties | 3,068,695 | 3,269,212 | ||||||
Contract liabilities | 49,327,830 | 27,592,381 | ||||||
Contract liabilities – related parties | 64,715,769 | 80,348,303 | ||||||
Income tax payable | 24,779,716 | 15,386,467 | ||||||
Due to related parties | 11,090 | 62,328,287 | ||||||
Other payable and accrued expenses | 8,219,614 | 15,415,684 | ||||||
Lease liabilities, current | 3,534,017 | 2,867,727 | ||||||
Long-term bank borrowings, current portion | — | 5,471,119 | ||||||
Total Current Liabilities | 242,396,263 | 295,704,397 | ||||||
Lease liabilities, non-current | 34,028,802 | 34,474,040 | ||||||
Due to a related party, non-current | 51,362,654 | - | ||||||
Total Non-current Liabilities | 85,391,456 | 34,474,040 | ||||||
Total Liabilities | 327,787,719 | 330,178,437 | ||||||
Commitments and Contingencies (Note 16) | ||||||||
Shareholders' Equity | ||||||||
Ordinary shares (par value | 4,272 | 3,671 | ||||||
Additional paid-in capital | 81,534,872 | 28,779,967 | ||||||
Statutory reserves | 100,000 | — | ||||||
Retained earnings | 135,697,152 | 89,976,384 | ||||||
Accumulated other comprehensive loss | (7,549,882) | (7,504,638) | ||||||
Total Shareholders' Equity | 209,786,414 | 111,255,384 | ||||||
Total Liabilities and Shareholders' Equity | $ | 537,574,133 | $ | 441,433,821 | ||||
TOYO Co., Ltd | ||||||||||||
For the Six Months Ended | ||||||||||||
2026 | 2025 | |||||||||||
Net cash provided by operating activities | $ | 61,439,429 | $ | 40,045,122 | ||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property and equipment | (27,780,462) | (47,128,016) | ||||||||||
Advances made to a related party | — | (67,393) | ||||||||||
Net cash used in investing activities | (27,780,462) | (47,195,409) | ||||||||||
Cash flows from financing activities: | ||||||||||||
Capital injection from shareholders | — | 4,000,000 | ||||||||||
Proceeds from issuance of ordinary shares in connection with a registered direct | 47,054,065 | — | ||||||||||
Proceeds from issuance of ordinary shares in connection with ATM | 5,546,541 | — | ||||||||||
Proceeds from short-term bank borrowings | 25,640,403 | 22,755,361 | ||||||||||
Repayment of short-term bank borrowings | (30,602,649) | (15,780,809) | ||||||||||
Repayment of long-term bank borrowings | (5,479,664) | (7,051,681) | ||||||||||
Proceeds of borrowings from a related party | — | 22,725,000 | ||||||||||
Repayment of borrowings to a related party | (11,000,000) | — | ||||||||||
Net cash provided by financing activities | 31,158,696 | 26,647,871 | ||||||||||
Effect of exchange rate changes on cash and restricted cash | (257,925) | 20,838 | ||||||||||
Net increase in cash and restricted cash | 64,559,738 | 19,518,422 | ||||||||||
Cash and restricted cash at beginning of period | 58,860,026 | 17,149,389 | ||||||||||
Cash and restricted cash at end of period | $ | 123,419,764 | $ | 36,667,811 | ||||||||
Supplemental cash flow information | ||||||||||||
Cash paid for interest expense | $ | 1,671,463 | $ | 748,698 | ||||||||
Cash paid for income tax | $ | 18,430 | $ | — | ||||||||
Noncash investing and financing activities | ||||||||||||
Operating lease right-of-use assets obtained in exchange for operating lease | $ | 1,230,418 | $ | 1,863,841 | ||||||||
Payables related to purchase of property and equipment | $ | 21,931,470 | $ | 19,328,018 | ||||||||
Issuance of ordinary shares to settle contingent consideration payable | $ | $ | 5,958,794 | |||||||||
Reconciliation of cash and restricted cash to the consolidated balance sheets: | ||||||||
June 30, | December 31, | |||||||
Cash | $ | 103,467,022 | $ | 51,634,374 | ||||
Restricted cash | 6,576,827 | 714,245 | ||||||
Restricted cash, non-current | 13,375,915 | 6,511,407 | ||||||
Total Assets | $ | 123,419,764 | $ | 58,860,026 | ||||
Reconciliation of GAAP to Non-GAAP Measures** (Stated in US dollars) | ||||
For the six months ended | ||||
June 30, 2026 | June 30, 2025 | |||
Reconciliation of Non-GAAP Measures | ||||
Net income | ||||
Income tax | ||||
Interest expenses | ||||
Depreciation and amortization | ||||
Amortization of right-of-use assets | ||||
Amortization of long-term prepaid expenses | ||||
EBITDA (Non-GAAP) | ||||
Adjustments | ||||
Share-based compensation | ||||
Changes in fair value of contingent consideration | - | |||
Adjusted EBITDA (Non-GAAP) | ||||
Reconciliation of Non-GAAP Net Income Operations | ||||
Net income | ||||
Share-based compensation | ||||
Changes in fair value of contingent consideration | - | |||
Adjusted Net Income (Non-GAAP) | ||||
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SOURCE TOYO Co., Ltd