Daqo New Energy (DQ) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw continued industry overcapacity and polysilicon prices below cash cost, resulting in operating and net losses, though losses narrowed sequentially from Q4 2024.

• Maintained a strong balance sheet with $2.15 billion in quick assets and no financial debt as of March 31, 2025.

• Operated at 33% utilization rate, producing 24,810 metric tons of polysilicon and selling 28,008 metric tons, reducing inventory.

Financial highlights

• Q1 2025 revenue was $123.9 million, down from $195.4 million in Q4 2024 and $415.3 million in Q1 2024.

• Gross loss was $81.5 million (gross margin -65.8%), compared to $65.3 million loss in Q4 2024 and $72.1 million profit in Q1 2024.

• Net loss attributable to shareholders was $71.8 million, improved from $180.2 million loss in Q4 2024.

• Adjusted net loss (non-GAAP) was $53.2 million, with adjusted loss per ADS at $0.80.

• EBITDA (non-GAAP) was -$48.4 million, with EBITDA margin at -39.1%, both improved from Q4 2024.

Outlook and guidance

• Q2 2025 polysilicon production expected at 25,000–28,000 MT; full-year 2025 guidance at 110,000–140,000 MT.

• Anticipates continued low polysilicon prices (CNY 35-40/kg) for the remainder of 2025 due to high inventory and policy changes.

• Expects China’s 2025 solar demand to remain strong at 250-300 GW, translating to 1.4-1.6 million metric tons of polysilicon demand.

• Management expects long-term industry health as overcapacity is eliminated and profitability improves.