TOYO Co., Ltd. Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: Q2 2026 revenue was approximately $118.2 million, up 35% year-over-year. For the first half of 2026, revenue reached $261.0 million, an 87.6% increase from $139.1 million in H1 2025.

Net Income: Q2 2026 net income was approximately $17.4 million, compared to $6.2 million in Q2 2025. For H1 2026, net income was $45.8 million, significantly up from $2.5 million in H1 2025.

Earnings Per Share: Basic and diluted EPS for Q2 2026 were $0.46 and $0.45, respectively, compared to $0.16 in Q2 2025. For H1 2026, EPS was $1.21 and $1.20.

Gross Margin: Improved to 31.3% in Q2 2026 from 20.9% in Q2 2025, and 32.5% for H1 2026, up from 16.6% in the prior year.

Cash Position: As of June 30, 2026, TOYO held $123.4 million in cash and restricted cash, up from $85.9 million at the end of 2025.

2Strategic Updates and Business Highlights

U.S. Market Focus: Revenue from U.S. customers surged 153.9% to $210.5 million, accounting for 80.7% of total revenue in H1 2026.

Heterojunction (HJT) Expansion: TOYO is investing $357 million in an HJT solar cell facility in Humble, Texas, targeting pilot production by late 2027 or early 2028.

Polysilicon Sourcing: Approximately 70% of polysilicon used in Ethiopian production is sourced from U.S. suppliers, with plans to reach 100% by Q4 2026.

Section 232 Proclamation: The recent U.S. trade policy is seen as beneficial for TOYO, potentially supporting module pricing and allowing for duty-free imports under specific conditions.

3Forward Guidance and Outlook

Uncertainty in Guidance: Management refrained from reaffirming full-year 2026 guidance due to uncertainties surrounding U.S. Customs and Border Protection (CBP) reviews and the implementation of Section 232 measures.

Potential for Growth: Despite challenges, TOYO remains optimistic about the second half of 2026, contingent on resolving regulatory issues and finalizing agreements with Commerce.

4Bad News, Challenges, or Points of Concern

CBP Detentions: Some shipments from the Ethiopian facility faced delays due to compliance reviews, which could impact Q3 and Q4 results.

Sequential Revenue Decline: There was a sequential decline in revenue from Q1 to Q2 2026, attributed to a decrease in solar cell sales, despite overall year-over-year growth.

Regulatory Risks: Ongoing inquiries regarding anti-circumvention measures could pose risks to operations and imports.

5Notable Q&A Insights

CBP Review Process: Management provided clarity on the ongoing CBP review, indicating that while there have been detentions, it is not a complete halt of shipments. They expressed optimism about resolving these issues soon.

Impact of Section 232: Discussions with Commerce are ongoing, and while the proclamation is seen as supportive of TOYO's strategy, the timing and specifics of implementation remain uncertain.

Customer Sentiment: Customers are currently cautious, awaiting clarity on how Section 232 will affect pricing and contracts before committing to new agreements. Overall, TOYO's performance in Q2 2026 reflects strong growth driven by U.S. market demand and strategic investments, although regulatory challenges present potential headwinds for the second half of the year.