Daqo New Energy (DQN) Q3 2026 Earnings Report
MX:DQN Q3 2026 EPS Results
- Actual EPS
- -MXN 14.66
- Consensus EPS
- -MXN 9.02
- Beat/Miss
- Missed by -MXN 5.64
- One Year Ago EPS
- -MXN 4.13
MX:DQN Q3 2026 Revenue Results
- Actual Revenue
- MXN 3.66B
- Expected Revenue
- MXN 1.16B
- Beat/Miss
- Beat by +MXN 2.49B
- YoY Revenue Growth
- -20.52%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 27, 2026
Daqo New Energy's next earnings date is estimated for March 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was cautiously positive overall. The company reported a substantial sequential recovery in shipment volume and revenue, record-low production costs, narrower losses, a strong zero-debt balance sheet, and progress in its AIDC diversification initiative. However, profitability remained negative, revenue and EBITDA were below the prior-year quarter, industry inventory was approximately 700 thousand metric tons, near-term demand remained weak, and policy enforcement and pricing recovery were still uncertain.
The company expects total polysilicon production volume in Q4 of 26 to be approximately 35 thousand-45 thousand metric tons and full-year 2026 production volume to be in the range of 175 thousand to 185 thousand thousand metric tons; Q4 sales volume is expected to be relatively similar to or close to production, while shipment is currently expected to be higher than Q4 production. The company’s benchmark is around 43 RMB per kilogram, with prices potentially recovering to 45 to 50 RMB per kilogram range, and Q4 cost is expected to be similar to Q3 cost, with 2027 cost also similar to Q3 cost, maybe with a slight reduction; Q4 inventory provision is expected to be less than Q3. For 2027, the goal is to maintain 20% to 25% of the market, global demand may show around a high single digit growth, China demand may be flat or even a small amount of Y-o-Y decrease, and demand may remain in the high 100 to 200-gigawatt range. For AIDC, construction is expected to be completed in the first half of next year, sales are expected to begin next year, operating cash flow is expected to be positive by the end of next year, overall CapEx next year is expected to be RMB 1 billion, gross margin will be around 15%-20%, and net profit margin will be high single digits.
- Polysilicon Market Rebounded in Q3Management said the polysilicon sector bottomed out and rebounded in Q3, supported by continued anti-involution policy and price enforcement. N-type polysilicon prices recovered from RMB 30.5-33 per kilogram in Q2 to approximately RMB 40-43 per kilogram by the end of Q3.
- Strong Balance Sheet and Zero DebtThe company maintained zero debt throughout the period. As of September 30, 2026, cash equivalents and restricted cash were $546.5 million, short-term investments were $267.3 million, bank notes receivable were $161.5 million, held-to-maturity investments were $51.6 million, and fixed-term bank deposits were $1 billion. These readily convertible assets totaled $2.06 billion, up from $1.92 billion at the end of Q2.
- Production and Capacity UtilizationNameplate capacity utilization was approximately 70% in Q3. Production at the two polysilicon facilities was 53.5 thousand metric tons; management described this as exceeding its stated guidance range of 50 thousand to 55 thousand metric tons.
- Sales Volume Increased SharplySales volume rose to 46.9 thousand metric tons in Q3 from 15.2 thousand metric tons in Q2, an increase of approximately 208.6%, following the June shift from a wait-and-see stance to a more market-oriented sales and pricing strategy. Management also said the increase reflected greater customer confidence in product quality and continued customer preference for its products.
- Average Selling Price ImprovedAverage selling price increased 2% sequentially to $4.12 per kilogram. Management attributed the improvement to the market recovery, while noting that Q3 shipments primarily fulfilled orders signed before late July.
- Record-Low Production CostsAverage total production cost declined 9.7% sequentially to a record low of $5.37 per kilogram, while average cash cost declined 7.4% sequentially to a record low of $4.23 per kilogram. Management attributed the reductions to improved manufacturing efficiency, cost control, lower electricity usage, reduced silicon powder and steam usage, and technical upgrades.
- Revenue Rebounded SequentiallyQ3 revenue was $194.2 million, compared with $62.7 million in Q2, an increase of approximately 209.7%. Management said the sequential increase was primarily driven by higher sales volume after the company resumed normal sales activities in June.
- Sequential Improvement in Gross Loss and MarginGross loss narrowed to $60.6 million in Q3 from $83.7 million in Q2, and gross margin improved to negative 31% from negative 132%. Management attributed the improvement to higher selling prices, lower production costs, and lower inventory impairment provisions.
- Lower Inventory Impairment ProvisionsInventory impairment provisions declined to $30.9 million in Q3 from $55.7 million in Q2.
- Operating and Net Losses Narrowed SequentiallyLoss from operations narrowed to $78.6 million from $98.1 million in Q2, while operating margin improved to negative 40.5% from negative 156%. Net loss attributable to Daqo New Energy shareholders narrowed to $52.9 million from $81.2 million, and loss per basic ADS improved to $0.78 from $1.20.
- EBITDA Improved SequentiallyEBITDA improved to negative $9.2 million in Q3 from negative $29 million in Q2, while EBITDA margin improved to negative 4.7% from negative 46.8%.
- Lower Year-over-Year SG&A ExpenseSelling, general and administrative expenses were $16.3 million in Q3, compared with $32 million in Q3 2025. Management attributed the year-over-year decrease primarily to the absence of the $18.6 million non-cash share-based compensation expense recognized in Q3 2025.
- AI Data Center Infrastructure ExpansionThe company is diversifying into AI data center power infrastructure, including energy storage systems, solid-state transformers, solid-state circuit breakers, transformers, busways, bus ducts, and switchgear. The platform is supported by Daqo Group, an affiliated company with more than 40 years of power equipment manufacturing experience.
- AIDC Facility Construction ProgressConstruction of the AIDC manufacturing base is underway, with pile foundation work started. Management expects construction to be completed in the first half of 2027, sales to begin in 2027, and the product to reach positive operating cash flow by the end of 2027.
- AIDC Growth and Margin ExpectationsManagement expects the fastest growth next year from plug-and-play modular AIDC solutions and said next year's overall AIDC capital expenditure is estimated at RMB 1 billion. Expected gross margin is approximately 15%-20%, with net profit margin in the high single digits.
- AIDC Committed CapEx and Available CashCommitted AIDC CapEx was approximately $20 million, primarily for manufacturing facilities and equipment. Management said the offshore entity held more than $300 million and Xinjiang Daqo held roughly RMB 10 billion in cash.
- Cost Outlook Remains StableManagement expects Q4 production costs to be similar to Q3 levels and expects 2027 costs to also be similar to Q3, with a possible slight reduction.
- Q4 Shipments Expected to Exceed ProductionManagement expects Q4 shipments to be higher than Q4 production as the company reduces inventory. It also said approximately $140 million of customer advances were contracted for products expected to be delivered in Q4, while additional orders were expected.
- Potential Shareholder Returns Under ReviewManagement said returning value to shareholders remains a key priority and that share repurchases are under consideration. The company is evaluating the timing, size, and form of a potential capital return, including either share repurchases or a dividend, after gaining more clarity on anti-involution policy enforcement and peer responses.
- Reduced Investing Cash Outflow and Share RepurchasesFor the first nine months of 2026, net cash used in investing activities was $235 million, down from $449 million in the same period of 2025. Net cash used in financing activities was $7.8 million, primarily related to share repurchases by Xinjiang Daqo from minority shareholders.
MX:DQN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 04, 2027 | 2026 (Q4) | -4.13- | -2.07 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | -9.02-14.66 | -4.13 | -254.55% (-10.52) | |
| Aug 20, 2026 | 2026 (Q2) | -10.71-22.55 | -21.42 | -5.26% (-1.13) | |
| Apr 29, 2026 | 2026 (Q1) | -5.13-24.62 | -20.11 | -22.43% (-4.51) | |
| Feb 26, 2026 | 2025 (Q4) | -3.76-2.07 | -50.93 | 95.94% (+48.86) | |
| Oct 27, 2025 | 2025 (Q3) | -11.05-4.13 | -17.29 | 76.09% (+13.15) | |
| Aug 26, 2025 | 2025 (Q2) | -23.96-21.42 | -34.01 | 37.02% (+12.59) | |
| Apr 29, 2025 | 2025 (Q1) | -13.06-20.11 | 4.51 | -545.83% (-24.62) | |
| Feb 27, 2025 | 2024 (Q4) | -39.09-50.93 | 12.03 | -523.44% (-62.95) | |
| Oct 30, 2024 | 2024 (Q3) | -5.83-17.29 | -1.69 | -922.22% (-15.60) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
