TOYO Co., Ltd Announces First Half 2025 Financial Results

Core Insights - TOYO Co., Ltd has raised its outlook for shipments, revenues, and net income for 2025, projecting solar cell shipments to reach approximately 4.2-4.4 GW, with revenues expected between $375 million and $400 million [3][12]. Business Highlights for 1H 2025 - Revenues for the first half of 2025 were approximately $139 million, a 0.7% increase from $138.1 million in the same period of the previous year, driven by the new solar cell facility in Ethiopia [5][7]. - The company shipped approximately 1.6 GW of solar cells during the first half of 2025 [7]. - Non-GAAP Adjusted EBITDA for the first half of 2025 was approximately $23 million, down from $33 million in the prior year [9][21]. - Net income attributable to TOYO's shareholders was approximately $4 million for the first half of 2025, compared to $19.6 million for the same period in the prior year [10]. Operational Developments - The new solar cell facility in Ethiopia is operating at full 2 GW capacity and is expected to reach 4 GW by October 2025 [4][7]. - A new solar module facility in the Houston metropolitan area has commenced trial production, aligning with the company's "made-in-USA-for-the-USA" strategy [4][7]. - The company has redirected its Vietnam cell capacity to serve high-growth markets outside the U.S., particularly India and Taiwan [7][12]. Financial Performance - The cost of revenues for the first half of 2025 was approximately $116 million, compared to $111.4 million in the same period of the prior year [6]. - Gross profit margin for the first half of 2025 was 16.6%, down from 19.3% in the prior year, primarily due to rising raw material costs [8]. - Total operating expenses increased by 219.9% to approximately $13 million for the first half of 2025, driven by expenses related to new facilities [8][13]. Future Outlook - The company expects to exceed its previous guidance of 3.5 GW in solar cell shipments for 2025, projecting a total of approximately 4.2-4.4 GW [12]. - Projected net income for the full year 2025 is expected to be between $39 million and $45 million, reflecting continued growth and improving margins [12]. - The company plans to scale up production at its Ethiopian facility while expanding U.S. module capacity as it refines its sourcing strategy [12].