TOYO’s Ethiopian factory drives revenue growth, doubling capacity to 4 GW by October 2025
VSUN acquisition aimed at expanding TOYO’s customer base while strengthening its US presence
In a strategic move, TOYO has shifted its production from Vietnam to non-US markets to mitigate tariff risks and diversify sales
Japanese solar manufacturer TOYO has posted H1 2025 revenues of $139 million, up 0.7% year-over-year (YoY). The company attributes the improvement to strong output from its new Ethiopian solar cell factory serving US customers, which will double capacity to 4 GW by October 2025 (see TOYO Solar To Double Ethiopian Solar Cell Capacity To 4 GW).
It shipped 1.6 GW of solar cell capacity during the reporting period, compared to 1.74 GW in 2024.
“Against a very turbulent environment for renewable energy and shifting tariff landscape, TOYO's team has pivoted our sourcing and production strategy,” said TOYO Chairman and CEO Junsei Ryu. Referring to the Ethiopian factory’s expansion, Ryu added, “This provides TOYO with a very attractive cost structure, state-of-the-art facility, abundant green power, and the lowest available tariff rates in a country with which the U.S. currently has a trade surplus.”
TOYO reported a cost of revenues of about $116 million in the first half of 2025, up from $111.4 million in the same period of 2024. Its gross profit margin fell to 16.6% from 19.3% year-on-year, mainly due to higher unit costs of raw materials.
The company’s non-GAAP adjusted EBITDA was approximately $23 million in the first half of 2025, compared with $33 million a year earlier, reflecting reduced sales to the US market as Vietnam’s capacity was allocated to non-US regions. Higher operating expenses further lowered net income to around $4 million, down from $19.6 million in the same period last year.
TOYO remains optimistic about its prospects, noting that the US market continues to accept Ethiopian bifacial cells without tariffs. Confirmed orders for its Ethiopian factory already cover 4 GW of production through the first half of 2026. In the US, the company has begun trial production at its new solar module plant in the Houston metropolitan area, which is set to reach 2.5 GW capacity once fully ramped up from its initial 1 GW.
To optimize manufacturing, TOYO is redirecting cell output from Vietnam, affected by high US tariffs, toward non-US growth markets such as India and Taiwan. In a strategic move to unify operations, the company has acquired the VSUN brand from its sister company, Vietnam Sunergy Joint Stock Company. VSUN has delivered more than 8 GW of modules to the US since 2018, giving TOYO immediate access to an established customer base that includes top-tier solar developers and strengthens its market position, shared Ryu.
Looking ahead, the company expects to exceed its previous guidance of 3.5 GW for solar cell shipments in 2025, now projected between 4.2 GW and 4.4 GW. Revenues are likely to range from $375 million to $400 million, with a net income of around $39 million to $45 million.