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. (NYSE:DQ) 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.

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Daqo New Energy Corp. (NYSE:DQ) 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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