#China #Shanghai #Daqo New Energy #polysilicon #Solar PV

Daqo New Energy's Third Quarter 2025 Results Overview

Daqo New Energy Corp. (NYSE: DQ), a prominent producer of high-purity polysilicon for the solar photovoltaic (PV) industry, released its financial results for the third quarter of 2025. The results reflect a strong recovery in the market along with a strategic focus on enhancing operational efficiency.

Financial Highlights for Q3 2025

Daqo's financial performance for the quarter captures the rebound in the solar PV sector. Total revenue reached $244.6 million, significantly up from the preceding quarter's $75.2 million. The spike in revenue was primarily attributed to increased polysilicon sales volume of 42,406 MT, up from 18,126 MT in Q2 of 2025. Moreover, the average selling price of polysilicon surged to $5.80/kg, up from $4.19/kg in the previous quarter.

The company recorded a gross profit of $9.7 million, a notable shift from the gross loss reported in the previous quarter. The gross margin improved to 3.9%, from a stark -108.3% in Q2, indicating better pricing strategies and cost management.

Operational Efficiency and Cost Reductions

Daqo has been proactive in enhancing its operational capabilities. The total polysilicon production was 30,650 MT, slightly exceeding the guidance range of 27,000 to 30,000 MT. This production capacity not only supported current market demands but also facilitated the sale of existing inventory, thus aligning supply with robust customer confidence.

A vital component of Daqo's operational improvement has been the reduction in production costs. The average production cost dropped to $6.38/kg, from $7.26/kg in Q2, marking a reduction trend that the company anticipates to continue. Additionally, the cash cost reached a historical low of $4.54/kg, down from $5.12/kg in the previous quarter.

Future Outlook

Looking ahead, Daqo has set an optimistic production target for Q4 2025, estimating approximately 39,500 MT to 42,500 MT of polysilicon output, leading to a full-year projection of 121,000 MT to 124,000 MT. This forecast aligns with the strengthening market conditions and increased demand for solar energy solutions.

In the broader context, Daqo noted that the solar industry is witnessing a significant transformation, propelled by governmental initiatives aimed at promoting low-carbon technologies. China's recent announcements regarding enhancing renewable energy targets are expected to drive significant long-term growth in the solar PV sector, positioning Daqo as a key player in capturing these opportunities.

Management's Remarks

CEO Xiang Xu emphasized the company’s strengthened balance sheet, with cash and investments totaling $2.21 billion. He expressed confidence in Daqo’s strategic flexibility to navigate the recovering market while continuing to improve product quality and cost efficiency via technologies such as digital transformation and AI adoption.

Daqo’s robust performance amid challenging industry conditions showcases its resilience and adaptability, positioning it for future success in the ever-evolving energy landscape. With plans for continual improvement and meeting upcoming market demands, Daqo New Energy is set to maintain its competitive edge in the solar supply chain.