Daqo New Energy (DQ) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw persistent industry overcapacity and polysilicon prices below cash cost, resulting in operating and net losses, though losses narrowed sequentially from Q4 2024.

• Maintained a strong balance sheet with $2.15 billion in quick assets and no financial debt as of March 31, 2025.

• Operated at 33% utilization, producing 24,810 MT of polysilicon and selling 28,008 MT, reducing inventory.

• Management remains confident in strategic resilience and long-term industry prospects, focusing on high-efficiency N-type technology and digital transformation.

Financial highlights

• Q1 2025 revenue was $123.9M, down from $195.4M in Q4 2024 and $415M in Q1 2024.

• Gross loss was $81.5M (gross margin -65.8%), compared to $65.3M loss in Q4 2024 and $72M profit in Q1 2024.

• Net loss attributable to shareholders was $71.8M, improved from $180M loss in Q4 2024; EPS was -$1.07.

• Adjusted net loss (non-GAAP) was $53.2M; adjusted EPS was -$0.80.

• EBITDA (non-GAAP) was -$48.4M (margin -39.1%), up from -$236M in Q4 2024.

Outlook and guidance

• Q2 2025 polysilicon production guidance: 25,000–28,000 MT; full-year 2025: 110,000–140,000 MT.

• Expect continued low polysilicon prices (CNY 35–40/kg) for the remainder of 2025 due to high inventory and policy changes.

• Management expects long-term industry health as overcapacity is eliminated and profitability improves.

• China’s 2025 solar demand forecasted at 250–300 GW, translating to 1.4–1.6M MT poly demand.