Daqo New Energy (DQ) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw continued industry overcapacity and low solar PV prices, resulting in operating and net losses, but the company maintained a strong balance sheet with $2.06 billion in liquid assets and no financial debt as of June 30, 2025.

• Production was deliberately reduced to 34% utilization, with sales volume dropping to 18,126 MT from 28,008 MT in Q1, as the company held back sales in anticipation of price recovery.

• Chinese authorities intensified efforts to curb irrational competition and overcapacity, with new regulations and industry meetings aiming to stabilize the market and support high-quality growth.

• Management expects long-term industry prospects to remain strong, with recovery anticipated as government measures address overcapacity.

Financial highlights

• Q2 2025 revenue was $75.2 million, down from $123.9 million in Q1 and $219.9 million in Q2 2024, mainly due to lower sales volume.

• Gross loss was $81.4 million, with a gross margin of -108.3%, compared to -65.8% in Q1 and -72% in Q2 2024.

• Net loss attributable to shareholders was $76.5 million, or $1.14 per ADS, versus $71.8 million in Q1 and $119.8 million in Q2 2024.

• Adjusted net loss (non-GAAP) was $57.9 million, with adjusted loss per ADS at $0.86.

• EBITDA (non-GAAP) was -$48.2 million, with an EBITDA margin of -64.0%.

Outlook and guidance

• Q3 2025 polysilicon production is expected to be 27,000–30,000 MT; full-year 2025 guidance is 110,000–130,000 MT.

• The company expects to maintain a 30–35% utilization rate, adjusting as market conditions and regulations evolve.

• Management anticipates positive cash margin from sales in Q3, excluding non-cash depreciation from idle facilities.

• Management expects to maintain strong liquidity and strategic resilience amid market volatility.