Daqo New Energy Corp. Earnings Recaps
Q2 2026
Aug 23, 2026
Shares fell 3.3% following earnings as investors reacted to continued pricing pressure and margin compression amid weak demand and elevated inventory levels in the polysilicon market. Despite increased production and sales volumes, the company faces prolonged below-cost pricing and cautious demand outlook, dampening near-term profitability.
Key takeaways
- Polysilicon production volume exceeded guidance at 43,675 metric tons, up from prior quarter, but average selling price declined to $4.04/kg, remaining below production cost of $5.95/kg.
- Sales volume surged from 4,482 to 15,190 metric tons in Q2 after adopting a more market-oriented sales approach in June.
- Cash cost slightly improved, declining 0.4% sequentially to $4.57/kg, but cost reductions failed to offset ongoing price declines.
- Market-wide low utilization and inventory pressure persist, with aggregate output decreasing 9.8% year-over-year, reflecting continued industry oversupply and subdued demand.
- Regulatory efforts and industry self-regulation initiatives aim to curb below-cost sales and improve pricing discipline, but near-term recovery remains uncertain.
Q1 2026
Apr 30, 2026
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.
Key takeaways
- 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.