China's Daqo New Energy Q1 revenue plunges 89% on weak prices, industry overcapacity

Daqo New Energy

29/04/2026 12:22

Overview

China polysilicon maker's Q1 revenue fell sharply, missing analyst expectations

Q1 adjusted EBITDA was negative and missed analyst expectations

Company limited sales volume due to weak prices and industry overcapacity

Outlook

Company expects Q2 2026 polysilicon production of 35,000 MT to 40,000 MT

Company expects full-year 2026 polysilicon production of 140,000 MT to 170,000 MT

Company says polysilicon prices are showing signs of bottoming out entering Q2 2026

Result Drivers

LOW SALES VOLUME - Revenue decline was primarily due to a sharp reduction in polysilicon sales volume as the company limited sales in response to low market prices and industry overcapacity

INVENTORY IMPAIRMENT - Gross margin deterioration was mainly due to increased provisions for inventory impairment

MARKET CONDITIONS - Seasonal weakness, high inventories, rising module input costs, and geopolitical tensions depressed demand, especially in China, per CEO Xiang Xu

Company press release: ID:nPnsQz54a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$26.70 mln
$186.28 mln (3 Analysts)
Q1 Adjusted Net Income
Miss
-$88.40 mln
-$31.35 mln (2 Analysts)
Q1 Net Income
-$88.40 mln
Q1 Adjusted EBITDA
Miss
-$83.10 mln
$37.02 mln (3 Analysts)
Q1 Adjusted EBITDA Margin
-311.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "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 $30.00, about 36.7% above its April 28 closing price of $21.95

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.)