TOYO Co., Ltd (NASDAQ: TOYO) reported first-half 2026 revenues of $261.0 million, up 87.6% year over year, and net income of $45.8 million against $2.5 million a year earlier. The Tokyo based solar manufacturer makes cells in Vietnam and Ethiopia and modules at a leased site in Humble, Texas, in the greater Houston area, and the Texas plant is what changed the shape of the half.
Second-quarter revenues were approximately $118.2 million, up 35.0% from $87.6 million, including approximately $31.7 million of module sales from the Texas facility. Cost of revenues was approximately $81.2 million against $69.3 million, gross profit approximately $37.0 million, up 102.2% from $18.3 million, and gross margin 31.3% against 20.9%. Operating expenses rose to approximately $14.4 million from $7.3 million, income from operations was approximately $22.6 million against $10.9 million, and net income approximately $17.4 million against $6.2 million. Quarterly earnings per share were $0.46 basic and $0.45 diluted, against $0.16 on both measures.
The half in volumes and mix
For the six months to June 30, 2026, cost of revenues was approximately $176.2 million against $116.0 million, gross profit approximately $84.7 million, up 267.0% from $23.1 million, and gross margin 32.5% against 16.6%. Earnings per share were $1.21 basic and $1.20 diluted against $0.08. Sales to end customers in the United States rose 153.9% to $210.5 million, approximately 80.7% of first-half revenue.
Volumes tell the same story from the other side. TOYO delivered 2.6 GW of solar cells in the half, up 62.5%, and 191.5 MW of solar modules, a product line with no capacity online in the first half of 2025. The company completed the first 1 GW of module capacity in Texas and began production there in October 2025. Its Vietnamese cell plant has run at its full 2 GW annual capacity since commercial production began in the second half of 2023, and the Ethiopian plant at Hawassa started in April 2025 with 2 GW at phase one, reaching 4 GW by the end of the third quarter of 2025.
Financing kept pace. A registered direct offering closed on June 25, 2026, placing 4,545,456 ordinary shares with institutional investors at $11.00 per share and accompanying warrant, each warrant exercisable at $13.20 for five years, for gross proceeds of $50.0 million and net proceeds of approximately $47.1 million. At-the-market sales added approximately $5.5 million net by June 30, 2026, taking aggregate net proceeds for the half to approximately $52.6 million. TOYO joined the Russell 3000 Index and the Russell Microcap Index at the June 2026 reconstitution. Yasunari Harada became chief financial officer on July 1, 2026.
The policy that arrives in December
Management flagged the second half. Chairman and chief executive Takahiko Onozuka said that following recent policy movement “we do expect an impact on our second-half results”, with the magnitude not yet certain while the company is in discussion with the Department of Commerce.
The policy in question is Proclamation 11052 of August 6, 2026, published in the Federal Register on August 11, 2026, which adjusts imports of polysilicon and its derivatives under section 232 of the Trade Expansion Act of 1962. It does two things at once. It sets minimum import prices of $21 per kilogram for polysilicon, $100 per kilogram for ingots and wafers, $0.22 per watt for solar cells and $0.38 per watt for solar modules, and it imposes a 15 percent ad valorem duty on imports of polysilicon derivatives, replacing the narrower safeguard tariff on solar cells and modules that expired in February 2026.
The minimum import price programme takes effect for goods entered for consumption on or after 12:01 a.m. eastern time on December 4, 2026. Importers may certify at entry that the first arm’s length sale in the United States will occur at or above the applicable minimum, or that the sale is pursuant to fixed contract terms agreed before the proclamation was signed. An importer that files no such documentation faces a specific tariff equal to the minimum price itself; an importer that files it but enters below the minimum pays the difference. The proclamation also authorises the Secretary of Commerce to enter company-specific deals with producers investing in United States production.
Analysis: the tariff wall runs through the middle of TOYO’s own supply chain
The structural point about this quarter is that TOYO is on both sides of the new border. Modules made in Humble are domestic output that the minimum import price is designed to protect. The cells that feed them come from Vietnam and Ethiopia, and cells are covered at $0.22 per watt. A vertically integrated producer whose upstream sits offshore and whose downstream sits in Texas does not get a clean win or a clean loss from a measure like this; it gets a cost line at the point where the two halves meet.
The company describes discussions with the Department of Commerce about an investment offset rather than about exemption. The proclamation’s own text contemplates company-specific arrangements for producers investing in United States capacity, and TOYO has a concrete build to point at: a second 1 GW module line at Humble expected to start production in September 2026, taking module capacity there to approximately 2 GW, and a 1.5 GW heterojunction cell line on the same site, a $357 million investment scheduled for pilot production no later than the first quarter of 2028. The cell line is the part that would move TOYO’s cell supply inside the wall, and it is the part that is furthest away.
The timing gap is the number that matters most in this release. The minimum import price starts on December 4, 2026. Pilot production of domestic cells is not due before the first quarter of 2028. Between those dates the company’s Texas modules are built from imported cells under the new regime, with a contract carve-out only for terms fixed before August 6, 2026. That timing gap sits between the chief executive’s stated expectation of an impact on second-half results and the company’s statement that the magnitude is not yet certain.
Two other exposures sit in the background. The first is trade remedy history: in April 2025 the Commerce Department issued final affirmative antidumping and countervailing duty determinations covering crystalline silicon photovoltaic cells from Cambodia, Malaysia, Thailand and Vietnam, assigning a final antidumping rate of 271.28% and a countervailing rate of 124.57% for Vietnamese solar cells and modules involved in circumvention, and a separate antidumping rate of 77.12% to TOYO’s affiliate VSUN. The second is concentration: with 80.7% of first-half revenue going to United States end customers, there is no geographic hedge inside the revenue line.
What the release establishes is revenue growth over the half on higher volumes, a gross margin of 32.5% against 16.6%, and equity issued at $11.00 per share in June. What it does not establish is any second-half number. There is no guidance, no quantified tariff impact and no confirmed outcome from the Commerce discussions. The checkpoints are dated and public: whether the second Humble line starts in September 2026 as stated, what the December 4, 2026 entry date does to cell landed cost, whether any company-specific arrangement is announced, and whether the first-quarter 2028 pilot date for the heterojunction line is reaffirmed in the next report.
