China-based photovoltaic-grade polysilicon manufacturer Daqo New Energy Corporation reported revenue of $221.71 million in the fourth quarter (Q4), up 13.5% year-over-year (YoY) from $195.36 million, but missed analysts’ expectations by $55.23 million.

Revenues were significantly affected by a decline in sales volumes.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $52.5 million, increasing 122.3% YoY from a negative $235.07 million.

Net loss was $7.3 million, improving 96% from $180.2 million in the same quarter of the previous year.

Earnings per share (EPS) came in at a negative $0.11, rising from a negative $2.71 in Q4 2024 and beating analysts’ expectations by $0.14.

Daqo had posted a revenue of $244.6 million in Q3 2025, up 23% YoY from $198.5 million.

Full Year 2026

Daqo earned revenue of $665.41 million in 2025, declining 35.3% YoY from $1.03 billion.

EBITDA stood at $1.72 million, up 100.51% YoY from a negative $337.4 million.

Net loss for 2025 was $170.5, improving 50.6% from $345.2 million in 2024.

EPS came in at a negative $2.53, compared to a negative $5.22 in the previous year.

Operational Highlights

Daqo’s polysilicon production for Q4 stood at 42,181 MT, which was aligned with the guidance range of 39,500 MT to 42,500 MT. Its polysilicon sales volume for the quarter reached 38,167 MT.

Polysilicon production volume for the full year 2025 was 123,652 MT, down 39.7% YoY from 205,068 MT. However, this production volume fell within the company’s guidance range of 121,000 MT to 124,000 MT Its polysilicon sales declined 30.1%, from 181,362 MT in 2024 to 126,707 MT in 2025.

Daqo said its total production costs declined 9% to $5.83/kg in Q4 from $6.38/kg in Q3. Anita Zhu, Deputy CEO at Daqo New Energy Corporation, stated that the company reduced its production costs through process improvements, manufacturing efficiency gains, and raw material cost optimization.

The total idle facility costs, consisting primarily of non-cash depreciation expenses and roughly $0.10/kg in cash maintenance costs, fell to $0.74/kg in Q4 from $1.18/kg in Q3. This cost decline was driven by higher production levels.

Cash costs decreased 2% from $4.54/kg in Q3 to $4.46/kg in Q4.

Selling, general, and administrative expenses in Q4 2025 were $18.7 million and $118.2 million for the full year.

In Q4, Daqo recognized $19.3 million in non-cash expenses related to an allowance for credit losses. It spent $700,000 on research and development during the quarter and $2.6 million for the full year.

It suffered a loss from operations of $20.9 million in Q4 and $270.2 million for the full year 2025.

Ming Yang, Chief Financial Officer at Daqo New Energy Corporation, stated that the company had lent funds to a local government-affiliated industrial park development entity to support infrastructure for its Inner Mongolia polysilicon project. Repayment was delayed due to insufficient local tax revenues due to the industry downturn.

Zhu said China introduced measures to curb destructive price competition and excess capacity in the solar sector. These policies helped stabilize the industry after a downturn, leading to a recovery in solar product prices from Q3, with polysilicon prices rising the most. The price recovery helped increase the nameplate capacity utilization rate of 55% in Q4.

She highlighted the Chinese government’s efforts to address excessive price competition in the polysilicon segment and overcapacity in the solar sector.

Daqo expects such anti-involution initiatives to continue.

In January this year, China announced it would cancel value-added tax export rebates for photovoltaic and other related products from April 1, 2026.

Outlook

Daqo expects to produce approximately 35,000 MT to 40,000 MT of polysilicon in Q1 2026 and approximately 140,000 MT to 170,000 MT for the full year.

The company expects approximately $100 million to $150 million of capital expenditure (CAPEX) for 2026. The CAPEX will primarily cover the remaining payments for the Inner Mongolia project and the regular maintenance and upkeep of its facilities.

Discussing the future of the solar industry, Zhu said, “As the global AI industry scales rapidly, space-based solar power is increasingly viewed as a vital solution to the immense and expanding energy demands of AI data centers, creating a significant new growth engine for the sector.”