Daqo New Energy (DQ) Q4 2025 earnings summary

Executive summary

• Annual polysilicon production in 2025 was 123,652 metric tons, a 39.7% year-over-year decrease, with sales volume at 126,707 metric tons, exceeding production and reducing inventory.

• Revenue for 2025 was $665 million, down from $1 billion in 2024, mainly due to lower sales volume and a 7.2% decrease in average selling price.

• EBITDA turned positive at $1.7 million in 2025, compared to -$337.4 million in 2024.

• Net loss attributable to shareholders narrowed to $170.5 million from $345.2 million in 2024.

• Utilization rate improved from 33% in Q1 to 55% in Q4 2025, supporting inventory reduction and market recovery.

Financial highlights

• Q4 2025 revenue was $221.7 million, down from $244.6 million in Q3 but up from $195.4 million in Q4 2024.

• Q4 gross profit was $15.4 million, with a gross margin of 7%, up from 3.9% in Q3 and -33% in Q4 2024.

• Q4 net loss attributable to shareholders was $7.3 million, improved from $14.9 million in Q3 and $180 million in Q4 2024.

• Adjusted net loss for 2025 was $114.7 million, compared to $272 million in 2024.

• Net cash provided by operating activities was $56.1 million in 2025, a turnaround from a $435 million outflow in 2024.

Outlook and guidance

• Q1 2026 polysilicon production expected at 35,000–40,000 metric tons; full-year 2026 guidance is 140,000–170,000 metric tons.

• Management expects anti-involution and anti-overcapacity initiatives to support balanced supply/demand and higher-quality growth in 2026.

• Capital expenditures for 2026 projected at $100–$150 million, mainly for Inner Mongolia project and maintenance.