TOYO Co., Ltd.

TOYO reported 1H26 revenue of approximately $261.0 million, up 87.6% year over year from $139.1 million. First-half gross profit was approximately $84.7 million, with gross margin of 32.5% versus 16.6% last year; net income was approximately $45.8 million versus $2.5 million, and EPS was $1.21 basic and $1.20 diluted versus $0.08 in 1H25. Q2 revenue was $118.2 million, up 35.0% year over year from $87.6 million, gross profit was approximately $37.0 million, gross margin was 31.3% versus 20.9%, and net income was approximately $17.4 million versus $6.2 million. As of June 30, 2026, cash and restricted cash were $123.4 million, working capital was positive at $29.8 million, cash from operations was $61.4 million in 1H26, and capital expenditures were $27.8 million. Management did not reaffirm prior 2026 guidance on this call, saying near-term uncertainty from CBP reviews and the still-evolving Section 232 process made it too early to update.

The CEO emphasized strong first-half execution, saying TOYO is seeing continued strength in its global manufacturing platform and growing demand across markets. He highlighted Section 232 as a net positive for TOYO and U.S. solar manufacturing, but was careful to say the company cannot yet quantify the impact. He also framed the CBP-related shipment timing issues as regulatory process timing rather than a change in customer demand, and stressed the strategic importance of the $357 million HJT expansion in Texas.

The CFO detailed the quarter’s financial improvement: Q2 revenue of $118.2 million, gross profit of $37.0 million, gross margin of 31.3%, and net income of $17.4 million; for 1H26, revenue was $261.0 million, gross margin 32.5%, EBITDA $82.1 million, adjusted EBITDA $82.3 million, and adjusted net income $46.0 million. He noted cash and restricted cash of $123.4 million at June 30, 2026, up from $85.9 million at year-end 2025, and said working capital turned positive to $29.8 million from a $123.9 million deficit, helped by a loan extension with a related party. He also pointed to $52.6 million of net proceeds raised in the first half, including $47.1 million from a registered direct offering and $5.5 million from ATM sales.

Analysts focused on CBP detentions, the effect on Q3/Q4 shipments, and whether prior 2026 guidance was still valid. Management said detentions began in Q2, were not a full stop, and involved a normal review process; they expect resolution but cannot give timing or quantify the impact yet. On Section 232, management said Commerce discussions are still early, with company-specific plans likely to be negotiated over the fall, and added that pricing is too early to predict beyond noting a $0.38 module minimum price as a likely floor. When asked about the Q2 sequential revenue decline, management said it was driven by mix and lower cell sales, not a demand collapse.