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ASML Reaffirms 2025 Outlook Despite Q1 Booking Decline and Tariff Concerns

ASML Reaffirms 2025 Outlook Despite Q1 Booking Decline and Tariff Concerns. Source: HHahn, CC BY-SA 3.0, via Wikimedia Commons

ASML (AS:ASML) reported first-quarter 2025 net sales of €7.74 billion and net income of €2.36 billion, aligning with its prior guidance. The Dutch chip equipment maker maintained its full-year revenue forecast between €30 billion and €35 billion, citing continued demand growth driven by artificial intelligence.

The gross margin improved to 54%, exceeding expectations due to a favorable EUV product mix and milestone achievements. However, gross profit fell to €4.2 billion from €4.8 billion in Q4 2024, and basic earnings per share declined to €6 from €6.85.

Net bookings dropped to €3.9 billion, including €1.2 billion from EUV lithography systems, down from €7.1 billion the previous quarter. ASML shipped 73 new lithography systems and 4 used ones, compared to 119 and 13, respectively, in Q4.

Installed Base Management revenue, which includes services and upgrades, totaled €2 billion, slightly lower than the previous quarter’s €2.1 billion. The company ended the quarter with €9.1 billion in cash and equivalents, down from €12.7 billion.

For Q2 2025, ASML expects sales of €7.2 billion to €7.7 billion, with a gross margin between 50% and 53%. R&D expenses are projected at €1.2 billion, and SG&A at €300 million. The company continues to target a full-year gross margin between 51% and 53%.

CEO Christophe Fouquet noted the shipment of the fifth High NA EUV system and its installation at three customer sites. He added that while AI remains a strong demand driver, recent tariff developments have introduced macroeconomic uncertainty.

ASML plans a 2024 dividend of €6.40 per share, up 4.9% year-over-year, including a proposed final dividend of €1.84. The company also repurchased €2.7 billion in shares during Q1 under its ongoing buyback program.

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