Daqo New Energy Reports Financial Results for Fourth Quarter and Full Year 2025

Daqo New Energy Corp. (NYSE: DQ), a key player in the polysilicon manufacturing sector for the solar photovoltaic (PV) industry, has disclosed its unaudited financial outcomes for the fourth quarter and the entire fiscal year that concluded on December 31, 2025. This report showcases the company’s operational efficiency and its response to dynamic market conditions.

Fourth Quarter 2025 Overview

In Q4 2025, Daqo reported a total cash and investment balance of $2.27 billion, marking an increase from $2.21 billion in Q3 2025. The polysilicon production for the quarter reached 42,181 metric tons (MT), up significantly from 30,650 MT in the prior quarter. However, the sales volume recorded was 38,167 MT, a slight decline from 42,406 MT in Q3 2025.

The average production cost for polysilicon came down to $5.83 per kilogram, a notable improvement compared to $6.38 per kilogram the previous quarter. Furthermore, the average cash cost also decreased to $4.46 per kilogram from $4.54 per kilogram in Q3 2025. This cost management contributed to a Q4 revenue of $221.7 million, down from the previous quarter's $244.6 million.

Gross profit for Q4 stood at $15.4 million, up from $9.7 million in Q3, with a gross margin improving to 7.0% compared to 3.9% in the previous quarter. The company experienced a net loss attributable to shareholders of $7.3 million, reduced from $14.9 million in Q3 2025. Notably, adjusted EBITDA also showed a positive trend, reaching $52.5 million.

Full Year Financial Performance

For the entire year of 2025, Daqo's polysilicon production totaled 123,652 MT, representing a decrease from 205,068 MT in 2024. Sales for the year amounted to 126,707 MT, down from 181,362 MT the previous year, leading to a revenue of $665.4 million, significantly lower than 2024's $1,029.1 million.

Despite the drop in revenue, the company successfully reduced its gross loss to $137.9 million, compared to $212.9 million in 2024, which indicated a consolidation in operations. Losses attributable to Daqo New Energy shareholders were $170.5 million, a marked reduction from a loss of $345.2 million in the prior year. The company also noted that its EBITDA turned positive for the first time in years, totaling $1.7 million.

Management's Insights

Daqo’s CEO, Xiang Xu, highlighted that the company's performance is in alignment with the broader market recovery due to China's focus on stabilizing the solar industry through anti-involution initiatives. As a measure of market adjustments, the polysilicon sector has shown promising recovery signs with improved pricing from Q3 onwards.

The anticipated production for Q1 2026 is estimated to be between 35,000 MT to 40,000 MT, and for the full year, projections range from 140,000 MT to 170,000 MT. This continued growth aligns with Daqo’s strategic plan to enhance its production capabilities while maintaining cost management.

Daqo New Energy remains committed to maintaining a strong balance sheet, with significant cash reserves aiding its operational flexibility for future investments in high-efficiency N-type technologies. The company aims to leverage advancements in digital transformation and AI to further optimize costs, ensuring its pivotal role in the transition to sustainable energy.

In the context of the solar PV market, Daqo is strategically positioned to navigate evolving conditions, fueled by its technological advances and commitment to quality. As global energy demands shift towards renewable solutions, Daqo is set to play a critical role in powering a sustainable future through its innovative approach to polysilicon production.