Daqo New Energy Stock Earnings Reports

Daqo New Energy reported a weak Q1 2026 driven by seasonal softness, elevated industry inventory and falling polysilicon prices that dropped below production cost. The company recorded a large Q1 gross loss (driven in part by a $98.4M inventory impairment), revenues of $26.7M (vs. $221.7M in Q4 2025) and a net loss attributable to shareholders of $88.4M. Production ran at roughly 57% nameplate utilization (43,402 MT produced), but sales were intentionally constrained (4,482 MT sold) as Daqo declined to sell below cost in line with Chinese self-regulation guidance. Management highlighted ample liquidity and a zero-debt balance sheet: cash, short-term investments, notes receivable, held-to-maturity investments and fixed term deposits total roughly $2.0B of assets convertible to cash. Near-term strategy is contingent on government action: management expects authorities to issue new cost/price guidance (targeted around mid‑year) and is maintaining ~50–55% utilization while waiting for enforcement of price law; if no enforcement materializes, they would reduce utilization and resume market-oriented selling. Company guidance: Q2 production ~35,000–40,000 MT; full-year 2026 production 140,000–170,000 MT. Management remains optimistic on long-term solar demand and plans continued focus on N‑type technology, efficiency and cost optimization (digital/AI).