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China's Daqo New Energy Q3 revenue jumps on higher polysilicon sales volume

By Reuters News


Overview

  • China polysilicon maker's Q3 revenue more than triples sequentially on higher sales volume

  • Company's net loss narrows from prior qtr but remains wider than a year ago

  • Lower production costs and improved efficiency helped reduce losses, but market conditions remain difficult


Outlook

  • Company expects Q4 2026 polysilicon production volume of 35,000 MT to 45,000 MT

  • Daqo New Energy forecasts full-year 2026 polysilicon production of 175,000 MT to 185,000 MT

  • Company says elevated industry inventories and weak near-term demand continue to challenge the market


Result Drivers

  • HIGHER SALES VOLUME - Co said sequential revenue growth was primarily driven by increased polysilicon sales volume after resuming normal sales activities in June

  • LOWER PRODUCTION COSTS - Co said average total production cost and cash cost fell to new record lows due to improved manufacturing efficiency and cost control

  • INVENTORY IMPAIRMENT PROVISIONS - Co said lower inventory impairment provisions contributed to improved gross margin


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$194.20 mln

$61.90 mln (1 Analyst)

Q3 Adjusted Net Loss

$52.90 mln

Q3 Net Loss

$52.90 mln

Q3 Adjusted EBITDA

Miss

-$9.20 mln

$4.41 mln (1 Analyst)

Q3 Adjusted EBITDA Margin

-4.70%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the renewable energy equipment & services peer group is "buy"

  • Wall Street's median 12-month price target for Daqo New Energy Corp is $19.00, about 87.9% above its October 26 closing price of $10.11


Reuters Recommended Reads

  • Oct 27 - China's industrial profit growth picks up amid deepening economic divergence

  • Oct 26 - China's lab-grown diamond makers target AI, chip sectors for next wave of growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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