TOYO Co., Ltd.

What they do

TOYO manufactures solar cells under the 'TOYO Solar' brand and sells them primarily to its affiliate VSUN and a select group of PV module manufacturers. The company was incorporated in November 2022 to separate the solar cell and module production businesses from VSUN, a majority-owned subsidiary of Fuji Solar. Its Vietnam cell plant reached full 2GW annual capacity in the second half of 2023; its Ethiopia cell plant began production in April 2025 with 2GW at phase 1 and reached 4GW total capacity by the end of Q3 2025. It also leased a Texas facility for module production, completing the first 1GW line and starting production in October 2025.

Revenue drivers

• Solar cell sales — The primary revenue source, generated from sales of solar cells that began in the second half of 2023; a substantial portion is sold to affiliate VSUN, and the company does not enter into long-term contracts with VSUN.
• Solar module sales — Module production began in October 2025 at the Texas plant, which completed its first 1GW capacity line; the company targets 2GW total module capacity at that site by the end of 2026.
• Geographic capacity expansion — Production is split across a Vietnam cell plant (2GW annual capacity, full since H2 2023), an Ethiopia cell plant (2GW at phase 1, April 2025 start; 4GW total by end of Q3 2025), and the U.S. Texas module plant.

Recent performance

Revenue grew from $62.4M in 2023 to $177.0M in 2024 and $427.4M in 2025, reflecting the ramp of solar cell sales and expanding production capacity. Net income was $9.9M in 2023, $40.6M in 2024, and $39.7M in 2025, with diluted EPS of $0.24, $1.09, and $1.13 across those years. Operating cash flow turned positive in 2024 at $46.5M and rose to $133.0M in 2025 after negative $12.5M in 2023. At December 31, 2025, the company reported total assets of $441.4M, total liabilities of $330.2M, shareholder equity of $111.3M, and cash and equivalents of $58.9M. As of December 31, 2025, there were 37,758,997 ordinary shares issued and outstanding, including 1,046,957 unvested restricted shares subject to forfeiture and cancellation.

Strategy

TOYO is expanding solar cell and module manufacturing capacity across Vietnam, Ethiopia, and the United States, with the Texas module plant targeting 2GW by the end of 2026. Management is also assessing further solar cell capacity expansion but is deferring construction timing and venue decisions until there is more clarity on relevant regulations and government policies. The company is actively observing changes in regulations, government policies, and environmental conditions and evaluating construction plans, costs, and customer demand. It aims to diversify its customer base beyond affiliate VSUN, with whom it has no long-term contracts.

Risks

• Customer concentration — A substantial portion of solar cell revenue comes from affiliate VSUN, with no long-term contracts, so the loss of VSUN as a customer could materially harm the business.
• Short operating history — TOYO was incorporated in November 2022, and its limited operating history may not provide an adequate basis to evaluate the business or predict future results.
• Regulatory and policy uncertainty — Management is delaying decisions on further cell capacity expansion until there is more clarity on relevant regulations and government policies, which could affect construction timing and costs.
• Execution of capacity expansion — The company has rapidly scaled cell capacity in Vietnam and Ethiopia and module capacity in Texas, and expects to reach 2GW module capacity by end-2026, exposing it to construction and ramp-up risks.

Outlook

Management expects to achieve a total of 2GW solar module production capacity at the Texas plant by the end of 2026. The company plans to further increase solar cell production capacity but is deferring construction timing and venue decisions until regulations and government policies become clearer. TOYO is also focused on diversifying its customer base beyond VSUN and evaluating construction costs and customer demand before committing to additional expansion.