Daqo New Energy Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw steep revenue and margin declines due to industry overcapacity, weak demand, and falling polysilicon prices, but the company maintained strong liquidity and refrained from below-cost sales. Awaiting government price law enforcement in June, which could stabilize prices and utilization.
Fiscal Year 2025
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Polysilicon market rebounded in late 2025, driving improved utilization, narrowed losses, and positive cash flow. Regulatory reforms and industry consolidation are expected to support stable pricing and further cost reductions in 2026.
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Q3 2025 saw a return to profitability with positive EBITDA and adjusted net income, driven by higher polysilicon prices, record-low production costs, and strong sales volumes. Industry consolidation and regulatory measures are expected to further improve market conditions and support long-term growth.
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Q2 2025 saw continued losses due to industry overcapacity and low prices, but the company maintained strong liquidity and no debt. Production and sales were deliberately reduced, with new government policies aiming to stabilize the market and support future price recovery.
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Q1 2025 saw continued losses due to overcapacity and low polysilicon prices, but losses narrowed sequentially and liquidity remains strong with no debt. Production and sales volumes were managed to reduce inventory, while new policy changes and market risks shape a cautious outlook for the year.
Fiscal Year 2024
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2024 saw sharp price declines and overcapacity, resulting in significant losses, asset impairments, and negative margins, despite strong liquidity and cost controls. Production and pricing are expected to remain subdued in 2025, with gradual recovery dependent on industry reforms and demand.
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Q3 2024 saw narrowed losses amid persistent oversupply and low prices, with improved margins and strong liquidity. Production guidance was lowered, but management remains optimistic about long-term industry consolidation and growth.
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Q2 2024 was marked by steep price declines and a $108M inventory write-down, resulting in significant losses despite strong liquidity. Production exceeded expectations, but guidance was lowered as the company cut utilization to manage cash burn. Industry consolidation and price recovery are expected ahead.