Release Date: July 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ASML Holding NV (ASML, Financial) reported total net sales of EUR7.7 billion for Q2 2025, reaching the upper end of their guidance.
- The company's gross margin for the quarter was above guidance at 53.7%, driven by increased upgrade business and lower-than-expected tariff impacts.
- Net income for Q2 was EUR2.3 billion, representing 29.8% of total net sales, with earnings per share of EUR5.90.
- ASML Holding NV (ASML) expects a 30% increase in EUV capacity in 2025 compared to 2024, driven by higher productivity of the NXE:3800E systems.
- The company anticipates a 15% revenue increase for the full year 2025, with a gross margin of around 52%.
Negative Points
- ASML Holding NV (ASML) faces increasing uncertainties due to macroeconomic and geopolitical developments, impacting customer capital expenditure timing.
- The gross margin in the second half of 2025 is expected to be lower than the first half, primarily due to the margin dilutive effect of High NA systems.
- There is a EUR1.4 billion adjustment in the backlog related to customer responses to export restrictions, affecting Deep UV and application business.
- The company has not confirmed growth for 2026 due to ongoing uncertainties, despite preparing for potential growth.
- ASML Holding NV (ASML) is experiencing a shift in demand dynamics, with China accounting for over 25% of total revenue, raising concerns about potential pull-forwards.
Q & A Highlights
Q: Why is the EUV revenue growth lower than expected, and how does it relate to the installed base business?
A: Roger Dassen, CFO, explained that the expected EUV growth for the year is about 30%, down from an initial higher estimate. The difference is due to a shift in revenue from system sales to the upgrade business, as many tools shipped at lower configurations are being upgraded to full capacity, which is accounted for in the installed base business rather than system sales.
Q: How does ASML price its tools, and is there a difference in value between multi-patterning Low NA and single High NA EUV?
A: Christophe Fouquet, CEO, confirmed that ASML prices its tools based on the value provided to customers, including productivity and performance improvements. High NA EUV offers significant value by simplifying processes and enabling further node advancements, which can justify higher pricing compared to multi-patterning Low NA EUV.
Q: What impact does the potential removal of export bans on AI chips to China have on ASML?
A: Roger Dassen noted that while it may not directly result in a significant increase in tool sales, the removal of export bans is positive for the broader ecosystem, potentially strengthening global reach and benefiting ASML indirectly.
Q: How does ASML view the current uncertainty around tariffs and its impact on 2026 growth projections?
A: Christophe Fouquet and Roger Dassen highlighted that ongoing tariff discussions create uncertainty, affecting customer investment decisions. This uncertainty has led ASML to be more cautious about confirming growth for 2026, despite strong underlying demand driven by AI.
Q: What are the key milestones for High NA EUV adoption, and how is the program progressing?
A: Christophe Fouquet stated that the current focus is on qualifying the technology with the EXE:5000 system. The next phase involves ensuring tool maturity for high-volume manufacturing, with the EXE:5200 system being a critical step. The program is progressing well, with positive customer feedback on performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
