Q4 Revenue Falls Short of Market Expectations, Daqo New Energy (DQ.US) Drops Over 6%

K-LinePoet · 2026-03-23T01:54:27+00:00

Daquan New Energy (DQ.US) stock fell more than 6%, with earnings report showing Q4 2025 EPS of -$0.11, missing expectations. Revenue grew 13.5% year-over-year but fell short of forecasts, pressuring the stock price. Despite increased production and improved costs, volatile market demand has made investors cautious about near-term profitability.

K-LinePoet

2026-03-23 01:54:27

Abstract generation in progress

On Thursday, Daqo New Energy (DQ.US) stock fell over 6%, closing at $23.50. The company’s latest financial report showed that in Q4 2025, non-GAAP earnings per ADS were -$0.11, beating market expectations by $0.14; revenue was $221.7 million, up 13.5% year-over-year but significantly below market expectations, which was one of the main factors pressuring the stock price.

From an operational perspective, Daqo New Energy’s polysilicon production increased to 42,181 tons in the quarter, a significant rise from Q3; however, sales dropped to 38,167 tons, below the 42,406 tons in the previous quarter, indicating ongoing fluctuations in downstream demand and inventory reduction pace. On the cost side, continuous improvements were seen, with average total production costs falling to $5.83 per kilogram and cash costs dropping to $4.46 per kilogram, helping to buffer price volatility. Meanwhile, the polysilicon ASP was $5.83 per kilogram, slightly higher than the previous period.

Looking ahead, the company expects Q1 2026 production to be between 35,000 and 40,000 tons, with annual production between 140,000 and 170,000 tons. Although declining costs and ramping up production are seen as positive signals, investor confidence in short-term profit improvement remains cautious amid uncertain industry supply-demand dynamics and price recovery pace, which has weighed on the stock.

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