China's Daqo New Energy Q2 revenue falls on weak demand
DQ•Q2 results missed estimates
| 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% |
Output outlook and analyst view
Daqo New Energy expects third-quarter 2026 polysilicon production of 40,000 MT to 45,000 MT and full-year 2026 polysilicon output of 160,000 MT to 180,000 MT.
The company said polysilicon prices are showing signs of recovery amid new regulatory measures.
The current average analyst rating on the shares is "buy," with 8 "strong buy" or "buy," 2 "hold" and 1 "sell" or "strong sell." The average consensus recommendation for the renewable energy equipment and services peer group is "buy," and 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.
Sales volume improved after June restart
Daqo resumed sales in June after initially refraining from below-cost sales, which boosted sales volume but left margins negative.
Sequential improvement in gross margin was mainly due to reduced provisions for inventory impairment.
