Daqo New Energy (DQ) Q4 2025 earnings summary

Executive summary

• Annual polysilicon production dropped 39.7% year-over-year to 123,652 MT, with sales volume at 126,707 MT, exceeding production and reducing inventory.

• 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, a significant improvement from -$337.4 million in 2024.

• Net loss attributable to shareholders narrowed to $170.5 million from $345.2 million in 2024; positive operating cash flow of $56.1 million marked a turnaround.

• Q4 2025 saw improved gross margin (7.0% vs. 3.9% in Q3) and reduced net loss ($7.3 million vs. $14.9 million in Q3), with EBITDA margin rising to 23.7%.

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 in Q4 2025 was $15.4 million, up from $9.7 million in Q3 and a gross loss of $65.3 million in Q4 2024.

• Q4 2025 gross margin improved to 7.0% from 3.9% in Q3 and -33% in Q4 2024.

• Q4 2025 EBITDA (non-GAAP) was $52.5 million, EBITDA margin 23.7%.

• Full-year adjusted net loss was $114.7 million, improved from $272 million 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.

• Company expects free cash flow to improve further in 2026, especially in the second half.

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

• Polysilicon prices expected to remain at or above RMB 53–54/kg, in line with industry-level costs due to regulatory enforcement.