Daqo New Energy Q2 Revenue Misses by 67% as Polysilicon Prices Collapse
DQ sits 29% above its 52-week low of $11.381.
Summary
Daqo New Energy's Q2 revenue missed consensus by 67% as polysilicon prices collapsed, but the company narrowed losses sequentially and holds $1.92 billion in liquid assets to weather the downturn.
Key Events · Earnings and Guidance · DQ
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Q2 Revenue Misses Consensus by 67%
Revenue of $62.7 million fell far short of the $190.3 million consensus estimate, driven by a 32% sequential decline in polysilicon average selling price to $4.04/kg.
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Net Loss Narrows to $81.2M
Net loss attributable to shareholders was $81.2 million, or $1.20 per ADS, improving from $88.4 million in Q1 2026 as inventory impairment provisions declined to $55.7 million from $98.9 million.
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Sales Volume Rebounds After Policy Pause
Polysilicon sales volume surged to 15,190 MT from 4,482 MT in Q1 as the company resumed market-oriented sales in June after a prolonged self-imposed halt.
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Strong Liquidity Position Maintained
Cash and liquid assets totaled $1.92 billion at quarter-end, including $555.3 million in cash and $994.8 million in fixed-term deposits, providing ample runway through the downturn.
Analysis · DQ · Manufacturing
Daqo New Energy reported Q2 revenue of $62.7 million, missing consensus estimates of $190.3 million by 67%, as average selling prices for polysilicon fell 32% sequentially to $4.04/kg. The company posted a net loss of $81.2 million, though this narrowed from $88.4 million in Q1. Management resumed sales in June after a self-imposed halt, driving volumes up to 15,190 MT from 4,482 MT, but at deeply depressed prices. The company maintains a strong liquidity position with $1.92 billion in cash and liquid assets, providing runway through the industry downturn. Guidance for Q3 production of 40,000-45,000 MT and full-year 160,000-180,000 MT suggests continued high utilization despite losses.
At the time of this filing, DQ was trading at $14.69 on NYSE in the Manufacturing sector, with a market capitalization of approximately $950.7M. The 52-week trading range was $11.38 to $36.59. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.