Shares of Daqo New Energy fell 12.4% post-earnings as investors reacted to guidance for significantly lower production volumes and ongoing margin pressure, reflecting persistent weakness in polysilicon prices and industry overcapacity. Management’s outlook reinforced near-term caution, with no signs of a clear recovery in demand or pricing.

• Second quarter 2026 production is guided to 35,000–40,000 metric tons, a material reduction from Q1’s actual output of 43,402 metric tons.
• Company ran at just 57% utilization in Q1 and highlighted a sharp drop in sales volume to 4,482 metric tons as it refrained from below-cost sales in a weak pricing environment.
• Margins remained under significant pressure: Q1 saw continued operating and net losses, with average selling price only modestly up 2.3% sequentially, and production costs rising due to exchange rates.
• Management cited high industry inventories, weak end-market demand, and no concrete policy intervention yet to address overcapacity; peers also forced to cut production.
• Liquidity remains ample ($2B in cash and equivalents), but management gave no signals of business or market improvement in the near term, emphasizing a “wait-and-see” posture.