TOYO Co., Ltd (NASDAQ:TOYO) shares fell sharply in pre-market trading on Wednesday after the solar solutions company reported second-quarter earnings and revenue below Wall Street expectations.
The stock dropped 12.41% following the announcement as adjusted earnings per share came in at $0.45, missing the analyst consensus of $0.69 by $0.24.
Quarterly revenue reached $118.2 million, substantially below the $204.6 million forecast. Despite the miss, sales increased 35.0% year-on-year from $87.6 million in the second quarter of 2025.
Texas Facility Contributes to Revenue Growth
TOYO’s year-on-year revenue increase included $31.7 million in solar module sales generated by its newly operational manufacturing facility in Texas.
Profitability also improved significantly compared with the previous year. Gross margin expanded to 31.3% from 20.9%, while net income climbed to $17.4 million from $6.2 million in the corresponding quarter of 2025.
“We are very pleased with our first-half 2026 results, which reflect the continued strength of our global manufacturing platform and the growing demand we’re seeing across our markets,” said Takahiko Onozuka, Chairman and CEO. “Following the recent policy movement, we do expect an impact on our second-half results, though the magnitude is not yet certain.”
The comments highlighted uncertainty surrounding the second half of the year, with management expecting recent policy developments to affect performance but not yet able to quantify the potential impact.
First-Half Revenue Jumps Nearly 88%
TOYO delivered considerably stronger growth across the full first half of 2026. Revenue increased 87.6% year-on-year to $261.0 million from $139.1 million during the same period in 2025.
Adjusted earnings per share for the six-month period rose to $1.20, compared with just $0.08 in the first half of last year.
Production and deliveries also expanded significantly. TOYO delivered 2.6 GW of solar cells during the first six months of the year, representing growth of 62.5% from the previous year, alongside 191.5 MW of solar modules.
U.S. Customers Become Increasingly Important
The U.S. market remained a major source of growth for TOYO, with sales to American customers surging 153.9% during the first half.
U.S. customers generated $210.5 million of revenue, accounting for 80.7% of TOYO’s total first-half sales and highlighting the company’s increasing exposure to the American solar market.
The growing contribution from the Texas manufacturing facility could further strengthen that position, although the company’s warning about policy-related uncertainty introduces additional risk to the second-half outlook.
TOYO Strengthens Cash Position
TOYO also raised approximately $52.6 million through equity offerings during the first half of 2026, providing additional capital to support its manufacturing and growth plans.
The company ended the period with $123.4 million in cash and restricted cash.
While TOYO delivered strong year-on-year growth, wider margins and substantially higher first-half earnings, the sizeable second-quarter revenue and earnings misses weighed heavily on investor sentiment and triggered the double-digit pre-market decline.