Will Daqo New Energy's (DQ) $100 Million Buyback Offset Ongoing Losses and Sales Pressure?

• On August 26, 2025, Daqo New Energy reported continued quarterly net losses and lower year-over-year sales, issued new production guidance for 2025, and announced a US$100 million share repurchase program valid until the end of 2026.
• This combination of operational weakness with a substantial buyback initiative highlights management's intent to bolster investor confidence amid ongoing challenges in the polysilicon market.
• We’ll examine how the newly launched share repurchase plan shapes Daqo New Energy’s investment narrative and outlook for recovery.

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Daqo New Energy Investment Narrative Recap

To be a Daqo New Energy shareholder right now, you need conviction in a recovery for polysilicon demand and prices, despite persistent oversupply and recent quarterly net losses. The August 26 updates, including fresh production guidance and a new US$100 million share buyback, do not materially shift the immediate catalyst, which remains a stabilization in industry utilization rates; meanwhile, the most pressing risk is the company's ongoing operating losses and pressure on cash reserves.

Among the latest corporate actions, the newly authorized share repurchase program stands out, with Daqo planning to spend up to US$100 million from existing cash through 2026 to buy back shares. This move sits against a backdrop of continued efforts by authorities to enforce price discipline, and shareholders may see buybacks as potentially accretive, but absent underlying margin recovery, dilution risk and long-term profitability challenges remain.

Yet, there is a difference between initial optimism and the reality of persistent net losses that investors should be aware of...

Read the full narrative on Daqo New Energy (it's free!)

Daqo New Energy's outlook anticipates $2.4 billion in revenue and $221.2 million in earnings by 2028. This is based on a projected annual revenue growth rate of 59.1% and an earnings increase of $610.4 million from current earnings of -$389.2 million.

Uncover how Daqo New Energy's forecasts yield a $23.65 fair value, a 7% downside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community place Daqo New Energy’s worth anywhere from US$23.65 to US$456.91. Against these diverse outlooks, the current environment of recurring net losses and cash burn highlights why market participants weigh the company's fundamental risks differently.

Explore 6 other fair value estimates on Daqo New Energy - why the stock might be a potential multi-bagger!

Build Your Own Daqo New Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Daqo New Energy research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Daqo New Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Daqo New Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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