Key insights
- The analysis compares two US solar manufacturers, TE and TOYO, highlighting TOYO's significantly lower valuation, higher gross margins, better EBITDA conversion, and positive operating cash flow relative to TE. Despite TE's larger scale and policy-driven platform, TOYO is presented as a cheaper play on capacity and profitability. This suggests potential for TOYO to outperform if market sentiment favors value and profitability over scale and policy support in the renewable energy sector.
If you like TE, you’ll love TOYO
Same theme: U.S. solar manufacturing, domestic content, and tariff reshoring
Different valuation
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Market value
TE: ~USD 2.4B market cap / ~USD 2.7B EV post-raise
TOYO: ~USD 510M market cap / ~USD 500M EV
TE trades at roughly 4.6x TOYO’s market cap and around 5x TOYO’s EV.
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2026 production
TE: 3.1–4.2GW module production guide from G1_Dallas
TOYO: 5.5–5.8GW solar cell shipments + 1.0–1.3GW module shipments
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Q1 financials
TE: USD 178M revenue / 16.4% gross margin / USD 9.1M adjusted EBITDA / -USD 72.9M operating cash flow
TOYO: USD 143M revenue / 33.5% gross margin / USD 48.3M adjusted EBITDA / +USD 33.4M operating cash flow
TE has slightly more revenue.
TOYO has better margins, EBITDA conversion, profitability, and cash generation.
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Expansion plans
TE: 5GW G2_Austin TOPCon cell plant, with the first 2.1GW phase targeted for initial production in Q4 2026
TOYO: 1.5GW Houston HJT cell plant, co-located with its U.S. module facility
TE is the larger U.S. platform.
TOYO is the cheaper earnings/capacity play.
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KORE acquisition
TE is acquiring KORE Power for about USD 32M EV
This adds exposure to BESS + data center power infrastructure
It improves TE’s strategic positioning, but does not erase the valuation gap
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Balance sheet
TE: better working capital, but heavier debt/preferred/convertible structure and still funding G2
TOYO: tighter liquidity, negative working capital, and Houston funding risk
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So the apples-to-apples conclusion is:
TE = bigger, more institutional U.S. policy platform
TOYO = smaller, already profitable, and trading at a fraction of the valuation