Daqo New Energy (DQ) Q4 2025 earnings summary

Executive summary

• Annual polysilicon production in 2025 was 123,652 MT, a 39.7% year-over-year decrease from 205,068 MT in 2024, aligning with guidance; sales volume reached 126,707 MT, exceeding production and reducing inventory.

• Utilization rates improved from 33% in Q1 to 55% in Q4 2025, supporting increased sales efforts and improved customer confidence.

• Revenue for 2025 was $665 million, down from $1 billion in 2024, mainly due to lower ASPs and sales volume.

• 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.

• Strong liquidity was maintained with $2.27 billion in highly liquid assets at year-end 2025.

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; gross profit was $15.4 million with a 7% margin.

• Q4 net loss attributable to shareholders was $7.3 million, improved from $14.9 million in Q3 and $180 million in Q4 2024; loss per ADS was $0.11.

• Q4 EBITDA (non-GAAP) was $52 million (23.7% margin), up from $45.8 million in Q3 and -$235 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 in 2025 was $56.1 million, versus a $435 million outflow in 2024.

Outlook and guidance

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

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

• Free cash flow is expected to improve further in 2026, building on positive trends from Q4 2025.