TOYO's H1 2026 revenue of $261 million had an 80.7% share from US sales
Its Texas module production facility was a significant contributor to Q2 2026 revenue
The company expects Section 232 policy changes to affect its H2 2026 business
Japan-headquartered, Nasdaq-listed solar manufacturer TOYO Co., Ltd. reported higher revenue and profit for H1 2026, supported by increased solar cell deliveries and the start of module production at its Texas facility. The company is now navigating uncertainty created by the Section 232 framework.
During H1 2026, TOYO generated $261.0 million in revenue, up 87.6% from $139.1 million a year earlier, attributing the increase to higher solar cell and module shipments. It delivered 2.61 GW of solar cells and 191.5 MW of modules during the period. This includes a 153.9% increase in sales to end customers in the US, representing $210.5 million or close to 80.7% of H1 revenue.
For the initial six months of 2026, TOYO’s net income rose to $45.8 million from $2.5 million in H1 2025. Gross profit of $84.7 million improved by 267% year-on-year (YoY) while gross margin rose to 32.5% from 16.6%. TOYO attributes the improvement to expanded production capacity and improved production efficiency.
To the H1 2026 revenue, Q2 contributed $118.2 million, up 35% YoY, including solar module sales of $31.7 million from its newly operational solar module facility in Texas. Net income for the reporting quarter increased to $17.4 million from $6.2 million. Gross profit rose by 102.2% YoY to $37 million, while gross margin improved to 31.3% from 20.9%.
TOYO's earnings presentation shows that module shipments accelerated in Q2 2026 to 135.8 MW, up from 55.7 MW in Q1 2026, while solar cell shipments were 1.16 GW and 1.45 GW in the respective periods.
TOYO is expanding its manufacturing footprint in Humble, Texas. This integrated manufacturing campus will house 2 GW solar module and 1.5 GW heterojunction (HJT) initial solar cell capacity. While a 1 GW module line is already operational on site, the other 1 GW line is targeted for completion by September 2026. The HJT line, with an investment of $357 million, is targeted for completion by Q1 2028 (see TOYO Announces 1.5 GW US HJT Solar Cell Factory).
The US DOC has initiated a circumvention inquiry into solar cells and modules from Ethiopia following a petition submitted by members of the Alliance for American Solar Manufacturing and Trade (AASMT). This impacts the company since TOYO also operates 4 GW solar cell production capacity in Ethiopia, along with another 2 GW in Vietnam.
TOYO claims its US solar supply chain is 100% non-Chinese as it sources 70% of polysilicon for its Ethiopia production from a US producer, while 30% comes from OCI in Malaysia. It targets a 100% US polysilicon supply for its Ethiopia location by Q4 2026.
“Our Ethiopia facility is a substantial manufacturing platform. It employs approximately 1,800 people and performs the full wafer to cell production process. We believe these facts position TOYO well while recognizing that Commerce's review remains ongoing,” stated company management on its earnings call.
It is also developing a US-based bill of materials (BOM) as it currently sources ingots and wafers from non-FEOC suppliers in Southeast Asia.
The company said the Section 232 policy environment could affect its second-half performance. Notably, the US has announced a 15% tariff on imported polysilicon derivatives while creating an incentive framework for companies to set up polysilicon manufacturing facilities in the US (see US Announces 15% Tariff On Imported Polysilicon Under Section 232).
“We do expect an impact on our second-half results, though the magnitude is not yet certain,” CEO Takahiko Onozuka said. He added that TOYO is discussing a Section 232 framework with the US Department of Commerce that could help address the impact.
TOYO’s Chief Strategy Officer Rhone Resch added, “We believe TOYO's module operations, planned HJT capacity, use of American polysilicon, and broader non-FEOC supply chain align closely with the Trump Administration's onshoring goals. While near-term implementation details remain uncertain, we view the policy direction as supportive of TOYO's long-term position in the U.S. market.”
