Daqo New Energy (DQ) Reports Q1 2026 Loss Amid Strategic Sales Reduction

Daqo New Energy Corp. (NYSE:DQ) is one of the best solar energy stocks to buy right now. On April 29, Daqo New Energy reported a sharp revenue decline to $26.7 million for Q1 2026, down from $221.7 million in the previous quarter. This resulted in a gross loss of $139.4 million and a net loss of $88.4 million, or $1.31 per ADS. The downturn was primarily driven by a decision to reduce sales volume to avoid selling below production costs, coupled with significant inventory impairment provisions.

Operationally, Daqo New Energy Corp. produced 43,402 MT of polysilicon, exceeding its guidance despite an industry-wide slowdown. However, sales volume dropped to 4,482 MT as management maintained a disciplined approach toward low market prices. Total production costs rose slightly to $5.95/kg, yet the company ended the quarter with a robust balance sheet featuring $2.00 billion in cash and liquid assets and zero debt.

For the remainder of 2026, the company expects a full-year production range of 140,000 MT to 170,000 MT, with Q2 targets set between 35,000 MT and 40,000 MT. Management anticipates that government anti-involution policies will eventually stabilize the current overcapacity. Looking ahead, Daqo remains focused on cost optimization through digital transformation and high-efficiency N-type technology to navigate the market recovery.

Daqo New Energy Corp. is a provider of polysilicon to photovoltaic product manufacturers. The company’s products are utilized in ingots, wafers, and modules for solar power solutions.

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