Toyo to Expand U.S. Module Capacity to 2GW by Q3 2026 with 45x Credit Upside
Toyo Co Ltd's 2026 net income guidance excludes upside from 45x production tax credits, while U.S. module capacity is set to reach 2GW by Q3 2026 with majority CapEx deferred to 2027. Management forecasts at least 75% of 2026 revenues from U.S. customers due to strong demand.
1. Upside from Production Tax Credits
Management clarified that 45x production tax credits are excluded from 2026 guidance, creating potential upside if realized. The company continues to evaluate its Houston facility’s 2025 output to determine eligibility.
2. U.S. Module Facility Expansion
The Houston module plant is expanding to 2GW capacity by Q3 2026 to meet rising U.S. demand. Equipment deliveries remain on schedule with no material delays or expediting fees.
3. CapEx Schedule
This year’s CapEx includes final payments for the Ethiopia project and the second gigawatt of module build-out in Houston. The bulk of investment for U.S. cell plant build-out is slated for 2027.
4. Revenue Mix and Demand Outlook
At least 75% of Toyo’s 2026 revenues are expected from U.S. customers as the domestic market intensifies. Strong supply agreement interest and competitive positioning support robust demand forecasts.