Daqo New Energy Corp. (DQ) reported unaudited third‑quarter 2025 results, with revenue rising to $244.6 million from $75.2 million in Q2. Gross profit turned positive at $9.7 million, a sharp improvement from the $81.4 million loss in the prior quarter. EBITDA reached $45.8 million, an 18.7% margin, and adjusted net income was $3.7 million, compared with a $76.5 million net loss and $57.9 million adjusted loss in Q2.
The company produced 30,650 MT of polysilicon, slightly above its 27,000–30,000 MT guidance, and sold 42,406 MT, a 133% increase over Q2 sales of 18,126 MT. Average selling price rose to $5.80 USD/kg in Q3 from $4.19 USD/kg in Q2, contributing significantly to the revenue turnaround.
Average total production cost fell to $6.38 USD/kg and cash cost dropped to $4.54 USD/kg, the lowest in company history, reflecting lower silicon metal costs and improved efficiency. Inventory levels were reduced as sales volume exceeded production, bringing stock to a healthy level.
On the balance sheet, cash and cash equivalents stood at $552 million, short‑term investments at $431 million, and bank notes receivable at $157 million. Fixed‑term deposits reached $1.1 billion, bringing total bank deposit and financial investment assets to $2.21 billion, an increase of $148 million from the end of Q2. Daqo remains debt‑free, providing a solid foundation for continued operations and potential capital deployment.
Looking ahead, Daqo projects fourth‑quarter production of 39,500–42,500 MT and a full‑year 2025 production volume of 121,000–124,000 MT. Management highlighted a gradual market recovery driven by rising polysilicon prices and government anti‑involution measures, positioning the company to capture upside as the industry rebalances.
The results exceeded analyst expectations for both revenue and adjusted earnings per share, sparking a positive market reaction with the stock rising in pre‑market trading. The company’s CEO, Xiang Xu, noted that the polysilicon sector reached an “inflection point” during the quarter, with prices rebounding significantly, indicating a shift from the previous downturn. The company’s robust liquidity, with a current ratio of 5.65, underscores its strong short‑term financial health.
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