Daqo New Energy Corp. (NYSE:DQ) shares surged 7.57% in pre-market trading on Monday after the solar materials producer reported third-quarter results that far exceeded analyst expectations, signaling signs of recovery in the polysilicon market.
The company posted adjusted earnings of $0.05 per ADS, a sharp turnaround from the expected loss of $0.49 per share. Revenue rose to $244.6 million, well above the consensus forecast of $192.95 million and up from $75.2 million in the previous quarter. It also marked an increase from $198.5 million in the same period last year.
Daqo’s improved performance was fueled by a rebound in polysilicon prices and lower costs. The average selling price climbed to $5.80/kg from $4.19/kg in Q2, while cash costs fell to a record low of $4.54/kg, down 11% sequentially.
“With the recovery of market prices across the solar PV value chain in the third quarter of 2025, we believe the industry is gradually recovering from its cyclical downturn,” said Xiang Xu, CEO of Daqo New Energy. “In particular, the polysilicon sector reached an inflection point during the quarter, with prices rebounding significantly.”
Production volume reached 30,650 MT in Q3, slightly above guidance, while sales volume surged to 42,406 MT from 18,126 MT in Q2 as the company worked down inventory.
For Q4 2025, Daqo expects to produce between 39,500 MT and 42,500 MT of polysilicon, bringing its full-year production forecast to a range of 121,000 MT to 124,000 MT.
This performance represents a major turnaround from Q2, when the company posted a gross loss of $81.4 million. In Q3, Daqo reported a gross profit of $9.7 million and positive EBITDA of $45.8 million.