TOYO ENGINEERING REVISES FY2025 PROJECTIONS; EXPECTS LOSSES FROM BRAZIL PROJECT

Source disclosure: February 12, 2026

TOYO ENGINEERING CORPORATION [6330.T]

TOKYO, Feb 12 (Pulse News Wire) – TOYO ENGINEERING CORPORATION (6330.T) revised its fiscal year 2025 projections, expecting significant losses due to delays and additional costs associated with a Brazilian gas-fired power plant project. Despite progress on cost-cutting measures and improved revenue forecasts, the company anticipates a lower net profit of ¥30 billion for the quarter ending February 12, 2026, and a full-year loss of ¥150 billion, marking a downward revision of ¥200 billion from previous estimates.

The company also noted that orders had reached 70% of the annual target as of the end of September 2025. However, due to ongoing disputes with the client over contract changes and payment issues, TOYO ENGINEERING decided to file for arbitration in July 2025. As a result, payments have been suspended since October 2025, leading to increased borrowing costs and interest expenses.

In response, TOYO ENGINEERING is focusing all available resources on resolving the dispute. The company has deployed senior management and legal experts to Brazil to address the arbitration proceedings and mitigate further risks. Additionally, TOYO ENGINEERING plans to strengthen risk assessment procedures across all projects to prevent similar situations in the future.

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