China-based photovoltaic-grade polysilicon manufacturer Daqo New Energy Corporation has posted a revenue of $244.6 million in the third quarter (Q3) of 2025, up 23% year-over-year (YoY) from $198.5 million.

It beat analysts’ revenue expectations by $67.82 million.

The increase in revenue has been attributed to a rise in sales volume and average selling price (ASP).

Its net loss declined 75.4% to $14.9 million in Q3 2025, from $60.7 million in the same quarter last year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were $45.8 million, from an EBITDA loss of $34.3 million in the same quarter of the previous year.

Its earnings per share (EPS) came in at a loss of $0.22, compared with a loss of $0.92 in the same period last year. The EPS, however, exceeded analysts’ expectations by $0.05.

9M Results

In the first nine months (9M) of 2025, Daqo reported revenue of $443.7 million, a 46.7% YoY decrease from $833.7 million.

Its net loss reduced by 1.1% YoY to $163.2 million from $165 million.

The EPS came in at a loss of $2.43, compared to an EPS loss of $2.5 in 9M 2024.

Business Highlights

In Q3 2025, Daqo reported polysilicon production volume of 30,650 MT compared to 26,012 MT in Q2 2025.

Its polysilicon sales volume increased to 42,406 MT, increasing from 18,126 MT in the previous quarter of the same year.

Daqo’s average total production cost for polysilicon was $6.38/kg in Q3 2025, a 12% YoY decrease from $7.26/kg.

The company said that it was able to reduce production costs due to a decline in slick metal prices. Consequently, it increased production by more than 10% compared to the previous quarter.

The ASP of polysilicon was $5.8/kg in Q3 2025, compared to ASP of $4.19/kg in the previous quarter

Xiang Xu, CEO at Daqo New Energy, said that with the recovery of market prices across the solar value chain in the third quarter of 2025, the polysilicon industry is gradually recovering from its cyclical downturn.

He said that the polysilicon sector reached an inflection point during the quarter, with prices rebounding significantly.

The company implemented proactive measures to counteract the continued market oversupply, and maintained a nameplate capacity utilization rate of 40%. “We also capitalized on favorable pricing conditions to sell not only our current quarter’s output but also a significant portion of our existing inventory, leading to a sharp rise in our sales volume to 42,406 MT from 18,126 MT in the previous quarter,” Xu said.

Daqo said that at the industry level, monthly supply of polysilicon in Q3 remained within the range of approximately 100,000 MT to 130,000 MT.

Xu added that China’s “anti-involution” initiative to restrict low-price competition in the polysilicon sector continued to impact the industry in Q3 2025.

In its earnings call, Xu referred to the draft of a new mandatory national standard setting energy consumption limits per unit of polysilicon production. “Once implemented, polysilicon manufacturers with unit energy consumption higher than 6.4kgce/kg must implement corrective improvements within a specified period. Those failing to comply or meet the entry threshold (5.5kgce/kg) after rectification will be ordered to cease operations.”

According to China’s Silicon Industry Association, China’s polysilicon production is expected to decline to 2.4 million MT/year, a decrease of 16.4% from the end of 2024 and of 31.4% from total installed production capacity.

Daqo expects that implementing this new energy consumption standard will substantially ease overcapacity.

Xu added that as a result of these more forceful measures, polysilicon price rose sharply to RMB45 (~$6.3)/kg-RMB49 (~$6.8)/kg in July from RMB32 (~$4.4)/kg-RMB35 (~$4.9)/kg in June and further climbed to RMB49 (~$6.8)/kg-RMB55 (~$7.7)/kg at the end of the quarter.

Outlook

Daqo anticipates production volume for 2025 to be in the range of 121,000 MT to 124,000 MT.

It expects to produce approximately 39,500 MT to 42,500 MT of polysilicon during Q4 of 2025

The ASP of polysilicon is expected to go up to RMB80 (~$11.24)/kg.

In Q2 of 2025, Daqo reported a revenue of $75.2 million, a 65.8% decrease from $219.9 million in the same period last year. The revenue missed analysts’ expectations by $65.35 million.