Daqo New Energy Corp. Q3 2026 Earnings Recap

Daqo’s shares rose 7.9% after earnings, with the clearest positive signals being a sharp rebound in shipments, lower unit costs and losses that narrowed sequentially. The recovery remains fragile: polysilicon sales prices were still below production cost, near-term demand and industry inventory were weak, and management expects lower production in Q4.

Key Takeaways

• Q3 polysilicon sales volume climbed to 46.9 thousand metric tons from 15.2 thousand in Q2; production was 53.5 thousand metric tons, with utilization around 70%.
• Average selling price increased 2% sequentially to $4.12/kg, while average total production cost fell 9.7% to $5.37/kg and cash cost fell 7.4% to $4.23/kg.
• Management expects Q4 production of approximately 35–45 thousand metric tons and full-year 2026 production of 175–185 thousand metric tons; it is also evaluating lower near-term utilization to align output with demand.
• Polysilicon prices recovered by quarter-end, but downstream buyers remained cautious and elevated inventories and weak near-term demand continued to weigh on the sector.
• Readily convertible assets totaled $2.06 billion at September 30, up from $1.92 billion at Q2-end; Daqo also outlined plans to enter AI data-center power infrastructure through an affiliated entity.