TOYO Co., Ltd reported second-quarter results that fell short of Wall Street expectations, prompting a significant decline in share value. The solar solutions company’s adjusted earnings per share reached $0.45, representing a miss of $0.24 against the analyst consensus estimate of $0.69. Quarterly revenue totaled $118.2 million, substantially underperforming the forecasted $204.6 million.
Despite the quarterly shortfall, TOYO demonstrated considerable year-over-year improvement. Second-quarter sales increased 35.0% from $87.6 million in the prior-year period, driven partly by $31.7 million in solar module sales from the company’s newly operational Texas manufacturing facility. Profitability metrics showed marked strengthening, with gross margin expanding to 31.3% from 20.9% year-over-year, while net income climbed to $17.4 million from $6.2 million.
For the first half of the year, TOYO’s performance was substantially stronger. Revenue increased 87.6% year-over-year to $261.0 million from $139.1 million, while adjusted earnings per share rose to $1.20 compared with $0.08 in the first half of 2025. The company delivered 2.6 gigawatts of solar cells during the period, representing 62.5% growth year-over-year, alongside 191.5 megawatts of solar modules. U.S. operations proved particularly robust, with American customer sales surging 153.9% to generate $210.5 million, or 80.7% of total first-half revenue.
Management cautioned that recent policy developments would likely impact second-half results, though the company stated the magnitude of potential effects remained uncertain. Chairman and CEO Takahiko Onozuka noted confidence in the company’s global manufacturing platform and market demand while acknowledging the policy-related headwinds ahead. TOYO raised approximately $52.6 million through equity offerings during the first half and ended the period with $123.4 million in cash and restricted cash.
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