• Full-Year Revenue: $177 million, a 184% year-on-year increase.
• Second-Half Revenue: $38.9 million, a decrease of 37.7% from the second half of 2023.
• Full-Year Gross Profit: $21.9 million, compared to $16.6 million in 2023.
• Gross Profit Margin: 12.4% in fiscal year 2024, down from 26.7% in 2023.
• Full-Year Net Income: $40.9 million, compared to $9.9 million in 2023.
• Second-Half Net Income: $21.3 million, compared to $11.8 million in the second half of 2023.
• Operating Expenses: $12.7 million in fiscal year 2024, up from $4.7 million in 2023.
• Cash and Restricted Cash: $15.5 million as of December 31, 2024, compared to $19 million as of December 31, 2023.
• Earnings Per Share: $0.13 for fiscal year 2024, compared to $0.24 in 2023.
• Projected 2025 Net Income: $33 million, with a projected shipment of approximately 3.5 gigawatts.

• Warning! GuruFocus has detected 3 Warning Signs with TOYO.

Release Date: April 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Toyo Co Ltd (NASDAQ:TOYO) achieved a significant revenue increase of 184% year-on-year, closing fiscal year 2024 with $177 million.
• The company successfully commissioned a 2-gigawatt solar cell facility in Ethiopia, which is now partly operational and fully allocated.
• TOYO plans to double its production capacity in Ethiopia to 4 gigawatts by the end of August 2025, driven by strong customer demand.
• The company has strategically redirected its Vietnam cell factory to serve high-growth non-US markets, focusing on India and Taiwan.
• TOYO's Houston metropolitan area solar module plant is on track to commence production by mid-2025, with strong customer interest in the US market.

Negative Points

• Margins were adversely affected by anti-dumping and countervailing duties imposed by the US Department of Commerce, leading to compressed margins.
• Revenue for the second half of 2024 decreased by 37.7% compared to the same period in 2023, primarily due to the impact of duties and customer adjustments.
• Gross profit margin decreased from 26.7% in 2023 to 12.4% in 2024, affected by customer adjustments and reduced capacity utilization in Vietnam.
• Operating expenses increased significantly by 172.7% year over year, due to expenses related to listing and land and plant lease expenses in the US and Ethiopia.
• Cash and restricted cash decreased from $19 million as of December 31, 2023, to $15.5 million as of December 31, 2024.

Q & A Highlights

Q: Can you provide an overview of TOYO's financial performance for fiscal year 2024? A: Junsei Ryu, CEO, reported that TOYO closed fiscal year 2024 with $177 million in revenue, marking a 184% year-on-year increase. However, margins were affected by anti-dumping and countervailing duties imposed by the US, which disrupted delivery times and pricing models. Despite these challenges, TOYO remains committed to its long-term vision, including the successful commissioning of a 2-gigawatt solar cell facility in Ethiopia.

Q: How did TOYO's financial results for the second half of 2024 compare to the previous year? A: Raymond Chung, CFO, stated that TOYO generated $38.9 million in revenue in the second half of 2024, a decrease of 37.7% from $62.4 million in the second half of 2023. This decline was primarily due to the impact of anti-dumping and countervailing duties and a strategic shift to focus on non-US customers.

Q: What are the strategic plans for TOYO's solar cell production capacity? A: Junsei Ryu, CEO, announced plans to double the production capacity of the Ethiopia facility to 4 gigawatts by the end of August 2025, driven by strong customer demand. The initial 2-gigawatt capacity is already fully allocated, and a second 2-gigawatt expansion is underway to capitalize on sustained customer demand.

Q: How is TOYO addressing the challenges posed by US tariffs? A: Junsei Ryu, CEO, explained that TOYO is redirecting its Vietnam cell factory to serve high-growth non-US markets, focusing on India and Taiwan. The Ethiopia expansion has helped offset tariffs and enhance global competitiveness, with the 2025 capacity already allocated.

Q: What is the outlook for TOYO's US market operations? A: Junsei Ryu, CEO, mentioned that the Houston metropolitan area solar module plant is on track to commence production by mid-2025, with strong customer interest. TOYO is accelerating its manufacturing expansion to deepen its long-term commitment to the US market, despite recent tariff shifts.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.