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

What happened

Daqo New Energy's third-quarter revenue more than tripled from the prior quarter on higher polysilicon sales volume after normal sales resumed in June. Its net loss narrowed from the prior quarter but remained wider than a year earlier as market conditions stayed difficult.

Confirmed

Global impact / market context

Selling more polysilicon at record-low production costs reduced Daqo's quarterly loss, showing volume and efficiency gains. Yet the loss remains wider than a year ago, so higher revenue alone has not returned the company to profit, and weak pricing still weighs on results.

Analyst inference

Polysilicon is the raw material for solar panels, and elevated industry inventories plus weak near-term demand challenge the market. Daqo's planned 2026 output of 175,000 to 185,000 metric tons implies it expects to keep producing despite that oversupply.

Analyst inference

What to watch

1. Daqo guides fourth-quarter 2026 polysilicon production volume of 35,000 to 45,000 metric tons and full-year 2026 production of 175,000 to 185,000 metric tons. Confirmed
2. Watch whether Daqo can narrow its net loss further if record-low production and cash costs hold, given that lower inventory impairment provisions already helped lift gross margin this quarter. Proposed
3. Track whether elevated industry inventories and weak near-term demand ease, because sustained oversupply could keep polysilicon prices low and delay a return to profit for Daqo even at higher sales volumes. Analyst inference

Evidence

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