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SHANGHAI - On Tuesday, Daqo New Energy Corp. (NYSE:DQ) reported second-quarter revenue that fell far short of analyst expectations, as the solar industry continues to struggle with overcapacity and pricing pressures.
The polysilicon manufacturer’s shares plunged 15.31% in pre-market trading after the release.
The company posted revenue of $75.19 million for the second quarter, significantly below the analyst consensus of $130.49 million. While adjusted earnings per share came in at -$0.86, beating estimates of -$1.00, the massive revenue miss overshadowed this positive surprise. Revenue declined 65.8% YoY from $219.9 million in the same quarter last year.
Daqo’s polysilicon sales volume dropped to 18,126 metric tons in Q2, down from 28,008 metric tons in the first quarter. The company’s average selling price fell to $4.19/kg from $4.37/kg in the previous quarter, while production costs decreased slightly to $7.26/kg from $7.57/kg.
"The solar PV industry faced continued challenges in the second quarter of 2025 with market prices across the solar value chain declining due to industry overcapacity and high inventory levels, remaining below cash cost levels," said Xiang Xu, CEO of Daqo New Energy. "As a result, Daqo New Energy recorded quarterly operating and net losses."
The company operated at only 34% of its nameplate capacity during the quarter in response to challenging market conditions. For the third quarter, Daqo expects to produce approximately 27,000 to 30,000 metric tons of polysilicon, and has revised its full-year 2025 production guidance to 110,000-130,000 metric tons.
Despite the poor results, the company highlighted its strong financial position with $2.06 billion in cash and investments and no financial debt, which management believes provides "strategic resilience to navigate the current market downturn."
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