China's Daqo New Energy Q2 revenue falls on weak demand

Daqo New Energy

20/08/2026 11:40

Overview
China polysilicon maker's Q2 revenue fell yr/yr amid weak demand and lower prices
Company resumed sales in June, boosting sales volume but margins remained negative

Outlook
Daqo New Energy expects Q3 2026 polysilicon production of 40,000 MT to 45,000 MT
Company sees full-year 2026 polysilicon output of 160,000 MT to 180,000 MT
Company says polysilicon prices are showing signs of recovery amid new regulatory measures

Result Drivers
WEAK DEMAND AND INVENTORY - Co said cautious market sentiment, weak domestic demand and elevated inventory levels drove prices lower across the solar PV value chain
SALES STRATEGY SHIFT - Co resumed sales in June after initially refraining from below-cost sales, leading to higher sales volume but lower average selling prices
LOWER INVENTORY IMPAIRMENT - Sequential improvement in gross margin was mainly due to reduced provisions for inventory impairment

Company press release: ID:nPn1GnjDBa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$62.70 mln
$190.30 mln (2 Analysts)
Q2 Adjusted Net Loss
Miss
$81.20 mln
$33.50 mln (2 Analysts)
Q2 Net Loss
 
$81.20 mln
 
Q2 Adjusted EBITDA
Miss
-$29.30 mln
$37.20 mln (2 Analysts)
Q2 Adjusted EBITDA Margin
 
-46.80%
 

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 $28.60, about 103.6% above its August 19 closing price of $14.05

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(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.)