Daqo New Energy drops 11% after 2Q revenue misses estimates

Daqo New Energy drops 11% after 2Q revenue misses estimates

Daqo New Energy Corp. (NYSE: DQ) saw its shares drop by 11% on July 2, 2025, following the release of its unaudited financial results for the second quarter of 2025. The company reported a revenue of $75.2 million, which missed market expectations. This decline was driven by a combination of factors including market price fluctuations and operational challenges.

The company's polysilicon sales volume for the second quarter was 18,126 MT, down from 28,008 MT in the first quarter. This decrease was attributed to reduced utilization rates and proactive measures to scale back new sales orders in anticipation of a future price recovery. The polysilicon average selling price (ASP) decreased to $4.19/kg from $4.37/kg in the first quarter, contributing to the revenue shortfall.

Daqo New Energy's gross loss for the second quarter was $81.4 million, compared to $81.5 million in the first quarter. The company's gross margin was -108.3%, a significant increase from -65.8% in the first quarter. The net loss attributable to Daqo New Energy Corp. shareholders was $76.5 million, up from $71.8 million in the first quarter. The loss per basic American Depositary Share (ADS) was $1.14, compared to $1.07 in the first quarter.

The company's financial position remains strong, with a total cash, short-term investments, bank notes receivable, and fixed term bank deposit balance of $2.06 billion at the end of the second quarter. This liquidity position provides Daqo New Energy with ample financial flexibility to navigate the current market downturn.



Despite the challenging market conditions, Daqo New Energy expects its total polysilicon production volume in the third quarter of 2025 to be approximately 27,000 MT to 30,000 MT, and for the full year 2025 to be in the range of 110,000 MT to 130,000 MT. The company is well-positioned to capitalize on long-term growth in the global solar PV market, leveraging its high-quality N-type technology and cost structure optimization through digital transformation and AI adoption.

References:
[1] https://www.marketscreener.com/news/daqo-new-energy-announces-unaudited-second-quarter-2025-results-ce7c50d9d88bf220