TOYO Co., Ltd. Q4 FY2025 earnings call

• 2025 was a year of decisive action with a 142% revenue increase to over $427 million. The 4 gigawatt Ethiopia facility was completed in Oct 2025 and running at full capacity. In Q4 2025, commercial operation started at the 1 gigawatt module facility in Houston. In Sep 2025, acquired the VSUN brand from sister company, migrating its sales, marketing, IP, brand, and certification to TOYO. Intend to scale up production in 2026 and invest to expand Houston module capacity to 2 gigawatts by 2026. Will continue to work with industry partners to migrate key components sourcing to US to strengthen supply chain.
• 2026 strategic road map: Initiating shipment guidance of between 5.5 - 5.8 gigawatts for solar cells and 1 - 1.3 gigawatts for solar modules in 2026. Primary operational focus is maximizing existing infrastructure, with Ethiopia cell facility at full nameplate capacity and Houston module facility ramping up. Plan to add an additional 1 gigawatt of module capacity in Houston in 2026, and currently in final stages of planning for domestic cell production. Target adjusted net income of approximately $90 - $100 million in 2026 despite investments in R&D and technology.

For full year 2025, revenues were $427 million, a 142% increase from 2024. Cost of revenue was $331 million, a 113% increase from 2024. Gross profit increased by 340% to $96.3 million in 2025, with a gross profit margin expanding to 22.5% from 12.4% in 2024. EBITDA was $95.8 million in 2025, a 40% increase from 2024. Adjusted net income in 2025 was $52.2 million compared to $6 million in 2024. For 2026, adjusted net income is expected to be approximately $90 million to $100 million. The primary engine of growth in 2025 was the rapid ramp-up of the 4 gigawatt Ethiopia facility and the dispatch of solar cells from Vietnam. In Q4 2025, commercial operation started at the new 1 gigawatt module facility in Houston. In September 2025, TOYO acquired the VSUN brand from its sister company.

• For full year 2026, initiating shipment guidance of between 5.5 and 5.8 gigawatts for solar cells and 1 to 1.3 gigawatts for solar modules. - Target adjusted net income of approximately $90 million to $100 million in 2026. - Hoping to see pilot production for the extra 1 gigawatt in Houston's module facility from third quarter or latest fourth quarter of 2026, but not taking that into account for current guidance. - Expect to report quarterly earnings from this year, with first quarter numbers expected to be released in May 2026.

Q: Perhaps a fairly strong performance of '25 and a positive outlook for 2026. Just in the context of gross margins, can you provide any color on how we should think about gross margins now that a share of revenues could potentially come from the U.S. market?

A: We are not currently providing our gross margins hold for the year. But as the Ethiopia facility has come to operate at full capacity and our U.S. factory has come online. We believe that we will be able to continue to achieve very competitive margins in the market. Also, for 2025, we achieved a cross-border average gross margin around 25%, and we do hope to at least maintain these gross margin across group gross margin level going forward. And also, the numbers we have indicated through our historical financials and in the 2026 guidance are pre the 45x, meaning the $0.07, 45x supposed to receive from our manufacturing are actually not taken into account in the guidance or in the historical financials.

Q: For 2026, will you potentially be receiving credits for the at capacity or potentially 2 gigawatts capacity? Just any color on that would be helpful.

A: We are running cautious on giving out the guidance for our Houston production. As mentioned, we are currently running 1 gigawatt capacity over there. And we are hoping to achieve at least 60% to 70% utilization of the capacity in Houston based on the current nameplate capacity. And the additional 1 gigawatt, as mentioned by our CEO, this is a new investment plan that's happening in progress in our Houston facility. Now we are hoping to see a pilot production for the extra 1 gigawatt from third quarter or latest the fourth quarter of this year. So that could be an actual contribution to the delivery from Houston. However, we are not taking that into account for our guidance for the moment.

Q: Will you be sort of hosting quarterly earnings call going forward? Or will this be sort of every 6 months? How should investors think about sort of reporting and just engagement with the investor community going forward now that the business is most sums in place to provide a little bit more comment to investors more frequently, I guess?

A: Yes, the short answer is, yes, we are planning to report quarterly from this year. So hopefully, we can get our first quarter number released May of this year. And on a going forward basis, where we will continue to report quarterly starting from this year.