Daqo New Energy (DQ) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a significant recovery in polysilicon prices and sales, resulting in positive EBITDA of $45.8 million and adjusted net income of $3.7 million, marking a turnaround from prior quarters.

• Sales volume surged to 42,406 metric tons, far exceeding production of 30,650 metric tons, reducing inventory to healthy levels.

• Production costs and cash costs reached historic lows, supporting improved margins.

• Strong balance sheet with $2.21 billion in cash, short-term investments, and bank deposits as of September 30, 2025.

• Proactive operational measures included maintaining 40% capacity utilization to counter market oversupply.

Financial highlights

• Q3 2025 revenue was $244.6 million, up from $75.2 million in Q2 2025 and $198.5 million in Q3 2024.

• Gross profit of $9.7 million, reversing gross losses in prior quarters; gross margin improved to 3.9% from -108% in Q2 2025.

• Net loss attributable to shareholders narrowed to $14.9 million from $76.5 million in Q2 2025.

• Adjusted net income was $3.7 million, compared to an adjusted net loss of $57.9 million in Q2 2025.

• EBITDA improved to $45.8 million from negative $48 million in Q2 2025, with an EBITDA margin of 18.7%.

Outlook and guidance

• Q4 2025 polysilicon production expected at 39,500–42,500 metric tons; full-year 2025 guidance raised to 121,000–124,000 metric tons.

• Management anticipates continued industry recovery and long-term growth, supported by regulatory measures and market discipline.

• Utilization rates expected to exceed 50% in 2026, reflecting confidence in demand recovery.

• Anticipates further price increases post-industry consolidation, potentially reaching RMB 60–80/kg.