China-based photovoltaic-grade polysilicon manufacturer Daqo New Energy Corporation reported a revenue of $75.2 million in the second quarter (Q2) of 2025, a 65.8% decrease from $219.9 million in the same period last year.

The revenue missed analysts’ expectations by $65.35 million.

The company’s net loss declined 36.13% year-over-year (YoY) to $76.5 million in Q2 2025, from a net loss of $119.78 million.

In Q2 2025, Daqo reported negative earnings before interest, taxes, depreciation, and amortization (EBITDA) of $48.2 million, representing a 66.73% decrease from the negative EBITDA of $144.9 million in the same quarter of the previous year.

Its earnings per share (EPS) came in at a loss of $1.14, compared to an EPS loss of $1.81in the same period last year.

The EPS missed analyst expectations by $0.44.

1H Results

In the first half (1H) of 2025, Daqo reported revenue of $199 million, a 68.6% decrease from $635 million in the same period last year.

Its net loss widened by 42% YoY to $148 million in 1H 2025 from $104 million.

During this period, its EPS came in at a loss of $2.21, compared to an EPS loss of $1.58 in 1H 2024.

Business Highlights

Daqo’s polysilicon production volume reached 26,012 MT during the quarter. Polysilicon sales volume reached 18,126 MT.

The company’s average total production cost of polysilicon fell to $7.26/kg in Q2 2025.

Its average cash cost of polysilicon reached $5.12/kg.

The average selling price of polysilicon during the quarter was $4.19/kg.

Anita Zhu, Investor Relations Director at DAQO, said that the solar industry faced continuous challenges in Q2 2025, due to a decline in market prices across the solar value chain. The market prices decline due to industry overcapacity and high inventory levels remaining below cash cost levels.

Daqo’s total production volume at its two polysilicon facilities for the quarter was within the company’s guidance range of 25,000 MT to 28,000 MT.

However, towards the end of the quarter, it scaled back new sales orders in anticipation of future price recovery in response to Chinese authorities intensifying efforts to curb disorderly competition.

Daqo, in its earnings call, said that Chinese authorities have demonstrated an increased determination to address irrational competition and industry overcapacity, with the anti-involution initiative taking a leading role in the solar sector.

The company’s cash cost decreased by 4%, including approximately $0.18/kg related to idle facility maintenance, due to a decline in the cost of silicon metal and reduced energy consumption.

Overall, polysilicon unit production cost decreased by 4% sequentially due to lower unit depreciation costs resulting from higher production.

Zhu stated that on the demand side, China experienced a surge in installations under market-based reform policies with 93 GW of new solar capacity added in May. However, the country’s installations plummeted to 14 GW in June, following a front-loading of projects in earlier months ahead of the cutoff date for new projects.

Polysilicon market prices trended downward during the quarter, falling from RMB39 (~$5.5)/kg to RMB45 (~$6.3)/kg in April, to RMB32 (~$4.48)/kg to RMB35 (~$4.9)/kg by the end of June.

“As a result, industry inventory decreased by approximately 30,000 tons to 40,000 tons between January and July, leaving overall industry polysilicon inventory lower than at the beginning of the year,” added Zhu.

The company plans to strengthen its competitive edge by enhancing its higher-efficiency N-Type technology and optimizing its cost structure through digital transformation and the adoption of artificial intelligence.

Outlook

Looking ahead, the company expects polysilicon production to reach 27,000 MT to 30,000 MT in Q3 2025, and between 110,000 MT and 130,000 MT for the full year 2025.

In Q1 2025, Daqo reported revenue of $123.9 million, a 70% decrease from $415.3 million in the same period last year. The revenue decline was primarily attributed to a reduction in sales volume.