Daqo New Energy Reports Q1 2025 Financial Results

Daqo New Energy ( (DQ) ) has released its Q1 earnings. Here is a breakdown of the information Daqo New Energy presented to its investors.

Daqo New Energy Corp. is a leading manufacturer of high-purity polysilicon for the global solar photovoltaic (PV) industry, recognized for its cost-effective production processes. The company recently released its unaudited financial results for the first quarter of 2025, highlighting a challenging period marked by reduced revenues and increased losses.

The first quarter of 2025 saw Daqo New Energy report revenues of $123.9 million, a significant drop from $195.4 million in the previous quarter. The company faced a gross loss of $81.5 million, with a gross margin of -65.8%. Despite these challenges, the net loss attributable to shareholders improved to $71.8 million from $180.2 million in the fourth quarter of 2024. The company maintained a strong balance sheet with $2.15 billion in liquid assets and no financial debt.

Daqo’s polysilicon production and sales volumes decreased compared to the previous quarter, with production at 24,810 metric tons and sales at 28,008 metric tons. The average selling price of polysilicon also declined, contributing to the financial losses. The company operated at a reduced capacity utilization rate of 33% due to market conditions, leading to higher production costs per unit.

Looking ahead, Daqo New Energy remains optimistic about its strategic position in the solar PV market. The company plans to produce between 110,000 and 140,000 metric tons of polysilicon for the full year 2025. Management expects the current market downturn to eventually lead to a more sustainable industry, with Daqo poised to capitalize on long-term growth opportunities through technological advancements and cost optimization.

Overall, while Daqo New Energy faces short-term challenges, its strong financial position and strategic initiatives position it well for future growth in the renewable energy sector.