Ladies and gentlemen, thank you for standing by. My name is Krista and I will be your conference operator today. At this time, I would like to welcome you to the TOYO Co., Ltd. second half and full year results, financial results, conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, simply press star then the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I would now like to turn the conference over to Crocker Coulson, Investor Relations. Please go ahead.
Thank you, Krista. Hello, everyone. Thank you for joining us to review TOYO's 2025 second half and fiscal year results. This morning, TOYO posted both the earnings release and a related investor presentation to our website, and you can find it in the investor relations section, investors.toyo-solar.com. With us on the call today are Mr. Onozuka, TOYO's Chief Executive Officer, Raymond Cheung, the company's Chief Financial Officer, and Rhone Resch, TOYO's Chief Strategy Officer, whose appointment was announced just this morning. We also have Simon Shi, who will be available during the Q&A portion. After the prepared remarks are concluded, we'd like to open this call up for your questions. Before we begin, I want to make you aware that some statements in this teleconference are forward-looking within the meaning of Federal securities laws.
Although we believe the statements are reasonable, we can provide no assurance that they will prove to be accurate because they're perspective in nature. During this call, we'll also discuss certain non-GAAP financial measures, such as adjusted net income and adjusted EBITDA. We believe these measures provide meaningful supplemental information regarding our operational performance by excluding non-cash items and one-time charges that may not be indicative of our core business. Please refer to the reconciliation tables in our press release and SEC filings for the most directly comparable GAAP measures. Actual results could differ materially from those we discuss today, and therefore, we encourage you to carefully review the most recent report on Form 20-F and other SEC filings for risk factors that could materially impact our results. As I mentioned, the earnings release is available today on our website at investors.toyo-solar.com.
With those formalities now out of the way, it's my great pleasure to turn this call over to Onozuka-san, our Chief Executive Officer. Onozuka-san, please go ahead.
Thank you, Crocker. 2025 was the year of decisive action for TOYO. We doubled our operational scale while navigating one of the most volatile trade environments in recent memory. By strengthening our position as a vertically integrated solution provider, we have built a resilient foundation capable of navigating persistent market headwinds and adapt to the shifting regulatory landscape. Our record-breaking revenue of over $427 million, a 142% increase over 2024, is a clear validation of our strategic pivot toward high demand and compliant manufacturing hubs. The primary engine of this growth was the rapid ramp-up of our 4-GW Ethiopia cell facility, which was completed in October 2025 and is now running at full nameplate capacity.
During fiscal year 2025, we successfully shipped 2.3 GW from Ethiopia to our U.S. end customers, while an additional 1.9 GW of solar cells were dispatched from our Vietnam facility to international markets. As we enter 2026, Ethiopia has provided our U.S. utility-scale partners with high efficiency, policy compliant solar cell technology, and we are on track to deliver a full 4 GW of solar cells from this facility in the coming year. In the fourth quarter of 2025, we launched commercial operation at our new 1 GW module facility in Houston. Last year, we delivered 249 megawatts of modules inclusive of American-made modules and those supplied by our OEM facility overseas.
By scaling our domestic module production while maintaining our global reach, we ensure that TOYO can provide the right mix of products our customers require from the right location with zero lead time friction. Our intent is to scale up production continuously in 2026 and invest to expand capacity in Houston to 2 GW by 2026. In September 2025, we acquired the well-established BridgeSun brand from our sister company. A strategic move to streamline and unify TOYO operations by bringing the VSUN brand fully under our umbrella. We have successfully migrated the VSUN sales and marketing team, IP, brands, and certification to TOYO, and we are now migrating all existing customers to become direct customers of TOYO as we complete qualification.
Acquiring the VSUN brand has allowed us to accelerate TOYO growth and gives our clients the flexibility to choose the sourcing that best fits their individual needs. This acquisition was made without any dilution to TOYO shareholders, while the production assets remain with VSUN . Looking ahead, we will continue to work closely with our industry partners to migrate the sourcing of key components to the U.S. wherever possible, further strengthening our supply chain and reinforcing our commitment to American manufacturing. I will now turn the call over to our CFO, Rhone Resch, to review our strategy for 2026.
Thank you, Onozuka-san. It's a great honor to be joining TOYO, and I look forward to meeting our shareholders over the coming months and quarters. As you know, this was a challenging year for many solar companies. To be able to more than double our revenue while dramatically increasing gross margins, EBITDA, and adjusted net income validates that TOYO has the right strategy in place, combined with exceptional execution capability. Turning to our strategic roadmap for 2026, TOYO is entering a phase of significant operational scaling, designed to meet the accelerating demand in the U.S. solar market. For the full year 2026, we are initiating shipment guidance of between 5.5 and 5.8 GW for solar cells and 1 to 1.3 GW for solar modules.
This growth is supported by a robust order book and a favorable domestic policy environment that continues to prioritize high-efficiency, traceable technology. Our primary operational focus for 2026 is maximizing our existing infrastructure. Our Ethiopia cell facility is now positioned to run at full nameplate capacity, providing the high-efficiency solar cells that are the backbone of our utility-scale offerings. Simultaneously, our Houston module facility is aggressively ramping up its initial 1 GW of module capacity to meet localized demand. To further solidify our domestic footprint, we plan to add an additional 1 GW of module capacity in Houston during 2026, which will bring our total U.S. module capacity to 2 GW. The next phase of our U.S. expansion involves building out a domestic cell production.
We are currently in the final stages of the planning process and anticipate disclosing further details regarding our operational roadmap in the near future. Financially, we are targeting a 2026 adjusted net income of approximately $90 million-$100 million, despite increasing very substantial investments in R&D and technology this year. These costs are a deliberate choice. They align directly with our core commitment to establish a robust technology leadership position within the United States. We aren't just building capacity. We are building the IP foundation that will define the next generation of American solar energy. TOYO is now uniquely positioned with the domestic capacity, the traceable supply chain, and the technical IP to lead this transition profitably. I will now turn the call over to our CFO, Raymond Chung, to review our financial results. Raymond.
Thank you, Rhone. Okay. For full year 2025, revenues were $427 million, representing 142% year-over-year increase from the prior year. This growth was primarily driven by $241 million increase in solar cell sales and a $7.6 million increase in module sales. For the full year 2025, cost of revenue was $331 million, a 113% increase from $155 million in the prior year. Cost of revenue grew at a slower pace than revenue, driven by a higher mix of sales to U.S. end customers with stronger average selling prices. Gross profit increased by 340% to $96.3 million in 2025, up from $21.9 million in 2024.
Gross profit margin expanded to 22.5% from 12.4% in 2024. Margin expansion was driven by a higher proportion of sales to U.S. end customers with stronger pricing. For full year 2025, operating expenses were $37.3 million compared to $13 million in the prior year, representing an increase of 186% year over year. Selling and marketing expenses were $5.9 million compared to $1.6 million in 2024. The increase was primarily driven by higher sales commissions in line with revenue growth. General and administrative expenses were $31.4 million, an increase from $11.4 million in 2024. The increase was primarily due to $13.7 million in non-cash share-based compensation issued to management, directors and consultants.
Administrative costs also rose as the company scaled its workforce and infrastructure to support the full activation of our Ethiopia and Texas manufacturing plants. EBITDA was $95.8 million in 2025, representing a 40% increase from $68.2 million in the prior year. This was driven by record shipment volume and enhanced operational scale across our global facilities. Non-GAAP adjusted EBITDA, excluding share-based compensation and changes in fair value of contingent consideration payable to earn-out shares, was $110.8 million for 2025, up by 228% compared to $33.8 million for the same period in the prior year. GAAP net income was $37.2 million for 2025, compared to a net income of $40.5 million for the same period last year.
Adjusted net income, excluding share-based compensation in 2025 and changes in fair value of contingent consideration payable related to earn-out shares in 2024, was $52.2 million, compared to $6 million in 2024. Earnings per share, basic and diluted, was $0.98, compared to earnings per share, basic and diluted, of $1.09 in the prior year. Adjusted earnings per share, excluding share-based compensations in 2025 and changes in fair value of contingent consideration payable related to earn-out shares in 2024, was $1.48 per share in 2025 as compared to $0.20 per share in 2024. Turning to our balance sheet.
As of December 31, 2025, the company had $58.9 million in cash and restricted cash in total, compared to $17.2 million as of December 31, 2024. In 2025, TOYO generated cash flow from operations of $133 million, with $92 million of CapEx invested across our Ethiopia cell facility and U.S. module operations. This level of cash generation provides us with a strong financial flexibility to invest in continuing to expand our fully integrated production platform in the U.S. as we expand our Made in America for Americans strategy. For 2026, we expect adjusted net income to reach approximately $90-$100 million. With that, we'll be happy to address your question.
Thank you. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you'd like to withdraw that question, again, press star one. Your first question comes from Amit Dayal with H.C. Wainwright. Please go ahead.
Thank you. Good morning, everyone. I appreciate you taking my questions. A really strong performance in 2025 and, you know, a positive outlook for 2026. Just in the context of gross margins, can you provide any color on how we should think about gross margins now that, you know, a lot of share of revenues could potentially come from the U.S. market?
Satoshi, you want to translate that? I don't know if Simon or Raymond wants to take that question.
はい、私どものこのアラリーリッツについては詳細を申し上げることはできませんか。私どものエチオピア工場、それから昨年のアメリカのモジュール工場、いずれも今期、今年はですね、フル、通年でですね、こういった競争力、我々、特にエチオピアのコストセービングは非常に大きいものと認識しておりまして。これがフルで効いてくるということで、我々としては十分、互角にですね、より一層の競争力を持って、今年は稼働できるというふうに考えております。
We are not currently providing our gross margins provided for the year. As the Ethiopia facility has come to operate at full capacity and our U.S. factory has come online, we believe that we will be able to continue to achieve very competitive margins in the market.
Simon, any color you want to provide on that?
Sure. Thanks, Amit, for the question. I think, for 2025, we achieved a cross-border average gross margin around 25%, and we do hope to at least maintain this gross margin, cross-group, you know, gross margin level going forward. Also, just a remark to our like, you know, our CEO just mentioned, we don't really provide the breakdown of our gross margin for different markets. We think our gross margin level is higher than the overall industry number.
The numbers we have, you know, indicated through our either historical numbers, historical financials and in the 2026 guidance, they are pre the 45X, meaning the $0.07 45X supposed to receive for our Houston manufacturer are actually not taken into account in the guidance or in the historical financials. Thank you.
Yeah, that was.
Thanks, Simon.
I was gonna ask, you know, about the credits in the U.S. market. For 2026, will you potentially be receiving credits for the 1 GW capacity or the potentially 2 GW capacity? Just any color on that would be helpful. Thank you.
Oh, sure. Actually, we are being cautious on giving out a guidance for our Houston production. As mentioned, we are currently running 1 GW capacity over there. We are hoping to achieve, you know, at least a 60%-70% utilization of the capacity in Houston, based on the current nameplate, you know, capacity. The additional 1 GW, as mentioned by our CEO, this is a new investment plan that's happening in progress in our Houston facility. Now, we are hoping to see a pilot production for the extra 1 GW from third quarter or at latest the fourth quarter of this year. So that could be an actual contribution to the delivery from Houston.
However, we are not taking that into account for our guidance for the moment.
Okay. Understood. Just maybe last one from me. Will you be sort of hosting, you know, quarterly earnings calls going forward or just be sort of every six months? How should investors think about sort of, you know, recording and just engagement with the investor community going forward now that, you know, the business is more set in place to, you know, provide a little bit more color to investors more frequently, I guess?
Yeah, sure. Thanks. That's very helpful. Yes, Amit, the short answer is yes. We are planning to report quarterly from this year. Hopefully we can get our first quarter number released, you know, May of this year and going forward, on a going-forward basis where we will continue to report quarterly starting from this year.
Okay. Thank you. Appreciate all your answers, guys. Thank you so much.
Thank you, Amit.
We have no further questions at this time. Crocker, I'd like to turn the conference back over to you.
Yeah, let's just give it one more chance for people to ask questions, operator, and then if we don't have further, I'll wrap it up.
Absolutely. If you would like to ask a question, please press star one on your telephone keypad. We have no questions.
Okay.
We have no questions.
Great. Thanks, Krista. We appreciate everyone taking the time to join us on the call today. As you can tell, the whole team is very excited about what's ahead for TOYO in 2026 and in the years beyond. We're also thrilled to have a strengthened management team going into this year with Rhone Resch joining us, and he'll be based primarily in the U.S. We will be more available to meet with investors going forward.
If you have questions you'd like to ask that you didn't have a chance to get to on this call, please reach out to me and I'm happy to either respond or arrange a follow-up call with management or a visit next time that we have a future trip to the U.S. Thank you everyone, and have a fantastic day.
Ladies and gentlemen, this does conclude today's call. Thank you for joining, and you may now disconnect.