Daqo New Energy Corp. reported its unaudited fourth‑quarter and full‑year 2025 financial results, posting a revenue of $221.7 million for the quarter, down 13.4% from $195.4 million in Q4 2024. The decline reflects a weaker polysilicon market and lower average selling prices, which fell 7.2% to $5.25 USD/kg from $5.66 USD/kg in 2024. Despite the revenue shortfall, the company’s earnings per share of $-0.11 beat analyst expectations of $-0.18 to $-0.26, a beat of $0.07 to $0.15, driven by disciplined cost management that kept gross margin at 7.0% and operating loss at $20.9 million versus a $20.3 million loss in Q3 2025 and a $300.9 million loss in Q4 2024.
The company’s non‑GAAP EBITDA reached $52.5 million, giving an EBITDA margin of 23.7% and a net loss attributable to shareholders of $7.3 million. Cash cost per kilogram fell to $4.46 USD/kg, a new record low, while average production cost was $5.83 USD/kg. Utilization rose to 55% in Q4, supporting a production volume of 42,181 MT and sales volume of 38,167 MT, which helped reduce inventory levels.
Daqo guided 2026 production to 140,000–170,000 MT and full‑year sales to 126,707 MT. The guidance reflects management’s confidence that the solar PV market will recover as China’s anti‑involution policy continues to reduce excess capacity. The 2026 sales guidance is based on a 2025 sales volume of 126,707 MT, not the 2024 production volume of 205,068 MT, correcting a previous misstatement. The company’s outlook signals a shift toward profitability as pricing improves and utilization increases.
Management noted that the anti‑involution initiatives in China have helped the polysilicon market rebound from the third quarter onward, allowing Daqo to maintain cost discipline while benefiting from a higher mix of high‑margin products. The company’s focus on scaling production while managing raw‑material costs is expected to sustain margin expansion in the coming years.
The results underscore a turnaround from the 2024 losses, with a narrowed net loss and positive EBITDA for the full year 2025. The EPS beat and margin improvement suggest effective execution, but the revenue miss highlights ongoing pricing pressure and the need for continued demand growth to achieve full profitability.
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