TOYO Q2 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: Q2 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 Q2 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 Total Co Ltd. Announces first half twenty twenty five financial results. All lines have been placed on you to prevent any background noise.

[Operator]

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 with 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 Carlson, investor relation. Please go ahead.

[Crocker Coulson, CEO at AUM Advisors]

Thanks so much, Kate. Hello, everyone. Thank you for joining us to review Toyo's twenty twenty five 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.toyosolar.com. With us on the call today, we have Mr. Yoon Se Roo, ToYO's Founder and Chief Executive Officer we also have Raymond Cheung, Toyeo'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 plus conference on September. 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, CEO at AUM Advisors]

Although we believe these statements are reasonable, we can provide no assurance that they will prove to be accurate because they are perspective in nature. Actual results could differ materially from those we discuss today. We encourage you to review the most recent report on Form six ks 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. Junse Roo, Chief Executive Officer. Roo San, please go ahead. Okay. Thank you.

[Junsei Ryu, CEO & Chairman of The Board at Toyo Co]

Against the highly dynamic backdrop for the renewable energy sector marked by shifting tariff structures and evolving global supply chain, our team has executed with agility and precision. We have successfully adapted our sourcing and production strategy Last week, we announced the acquisition of the VESAN brand from our sister company, Vietnam's Sun Energy joint joint stock company, a strategic move to streamline and unify Telia's operations by bringing the Nissan brand fully under our umbrella. Nissan and Toyo have long operated as sister companies, not only through common control under our majority shareholder, K Balance Corporation, but also through deep ongoing business collaboration. This acquisition of the Nissan brand positions us to accelerate Toyota's growth and expand next level. 02/2018, many of Nissan branded solar modules have been delivered to The US market, a testament to the brand's strong customer and success in utility scale develop deployment recognized by leading financial institutions and backed by insurance from Ygrene.

[Junsei Ryu, CEO & Chairman of The Board at Toyo Co]

The Nissan brand strengthens Toyota's market key credibility, reinforces customer confidence. Our new solar cell manufacturing facility in Ethiopia is now operating at full two gigawatt capacity As we have commenced production for an additional two gigawatt capacity in Ethiopia, we remain on track to double that to four gigawatts 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. In The United States, we have commenced bioproduction at our new module facility in the Houston Metropolitan Area, delivering on our Made in USA for The USA strategy.

[Junsei Ryu, CEO & Chairman of The Board at Toyo Co]

Through our sister company, V Sun, we will leverage the newly acquired V Sun brand to build on Nissan's long standing relationships 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 them capturing. Looking ahead, we will continue to work closely with our industry partners migrate the key components to The US wherever possible, further strengthening our supply chain and reinforcing our commitment to American manufacturing. I will now turn the call over to our CFO, Raymond Chung, to review our financial results.

[Taewoo Chung, CFO & Director at Toyo Co]

Thank you, Joo san. K. Let me take over from here. Okay. In the 2025, we delivered 1.6 gigawatts of solar cells, up from 985 megawatts in the same period last year.

[Taewoo Chung, CFO & Director at Toyo Co]

In terms of revenue, we generated approximately $139,000,000 in the 2025, which increased 0.7% from $138,100,000 in the same period last year. The increase was due to the positive contribution of our new solar sales line in Ethiopia, which began in April 2025, serving US end customers and providing more attractive pricing and margin opportunities. Our cost of revenue was approximately $116,000,000 for the 2025 compared to $111,400,000 for the same period last year. Gross profit margin was 16.6% for the 2025 compared to 19.3% for the same period last year. The decrease was due to the increasing unit cost of raw materials.

[Taewoo Chung, CFO & Director at Toyo Co]

Total operating expenses increased 219.9% to approximately $30,000,000 for the 2025 from $4,200,000 for the same period last year. Selling expenses were approximately $3,000,000 for the 2025 compared to $40,000 for the same period last year. The increase was attributable to a higher sales commission from new customers. General and administrative expenses were approximately $11,000,000 for the 2025 compared to $3,800,000 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.

[Taewoo Chung, CFO & Director at Toyo Co]

Non GAAP adjusted EBITDA of approximately $23,000,000 for the 2025 compared to $33,000,000 for the same period last year, reflecting increasing in operating expenses and reduced sales volume to The US market. As Vietnamese capacity was allocated to non US 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 $4,000,000 for the 2025 compared to $19,600,000 for the same period last year. Earnings per share basic and diluted were 10¢ compared to earnings per share basic and diluted of 40¢ 48¢ for the same period last year. Turning to our balance sheet.

[Taewoo Chung, CFO & Director at Toyo Co]

As of June 2025, we had a total of approximately $30,000,000 in cash and current restricted cash compared to $15,100,000 as of December 2024. As we move into 2025, our priorities are clear. We are expanding solar cell production at our Ethiopian facility for the four gigawatt run rate while strategically redirecting output from our Vietnam operations to a high growth market that are not impacted by the elevated US tariffs. In The US, we'll take a measurable approach to extending our module capacity, aligning that growth with the refinement of our sourcing strategy and disciplined allocation of investment. Even with recent shift 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 US and other develop and other development countries.

[Taewoo Chung, CFO & Director at Toyo Co]

The cash flow generated from our facilities will give us the flexibility to fund this expansion from within. The launch of The US production also makes also marks the beginning of a strategic consolidation of the Beethoven brand, sales channels, and customer base into Toyo. 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 gigawatts in solar cell shipment, projecting projecting approximately 4.2 to 4.4 gigawatt for the full year 2025. This is anticipated to drive revenue in the range of approximately 375 to $400,000,000 with projected net income between approximately 39,000,000 and $45,000,000.

[Taewoo Chung, CFO & Director at Toyo Co]

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 and 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 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 of those gross margins start trending back, you know, higher up to where they were in the '24 or some of these tariff related costs?

[Justin Smith, Equity Research Associate at Maxim Group]

So I'm sort of weighing on that and putting a cap on that. Thank you.

[Simon Shi, President at Toyo Co]

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 products shipped earlier this year was changed from last year.

[Simon Shi, President at Toyo Co]

Last year, over over 80% actually were shipped to US. And for the first half of year, we have only 44% are going to US. And with the change of the product blend, our margin was slightly, you know, affected secondly. Also because we we were in a process for ramping up of the production in Ethiopia. So the overall cost the cost of the of the products was still in the process of of being refined.

[Simon Shi, President at Toyo Co]

So that's why that's the two main reasons our gross margin is slightly slower sorry, lower than than what it was last year. And going forward with our efforts to refine our cost structure and smelting strategy, we we do hope to see our gross margin level to at least go back to the to what it was last year, Justin.

[Justin Smith, Equity Research Associate at Maxim Group]

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

[Simon Shi, President at Toyo Co]

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 Jones Ibrayo for closing remarks.

[Crocker Coulson, CEO at AUM Advisors]

So we wanna thank you all for your time, this morning. I know that the company is gonna 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 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, that concludes today's call. Thank you for joining. You may now disconnect.

Participants

Analysts

• Crocker Coulson, CEO at AUM Advisors
• Junsei Ryu, CEO & Chairman of The Board at Toyo Co
• Taewoo Chung, CFO & Director at Toyo Co
• Justin Smith, Equity Research Associate at Maxim Group
• Simon Shi, President at Toyo Co