ASML (ASML, Financial) announced its Q1 2025 earnings, revealing a revenue of €7.74 billion, meeting market expectations. The growth was largely driven by an increase in EUV sales, despite a seasonal dip. Net profit reached €2.36 billion, surpassing expectations due to a 92.4% year-over-year increase. However, new orders fell to €3.94 billion, a 44.5% decline from the previous quarter.
The company's EUV segment continued to grow, with 14 units shipped, increasing the average selling price of lithography systems to €74.6 million. Meanwhile, revenue from South Korea rose to 40% due to memory demand, while China's revenue fell due to export restrictions.
ASML's guidance for Q2 2025 projects revenue between €7.2 billion and €7.7 billion, and a gross margin of 50-53%, both below market expectations. The company maintains its annual revenue forecast of €30-35 billion, though market expectations may adjust to €30-33 billion due to ongoing concerns over semiconductor cycles, capital expenditure cuts, and tariff policies.
