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ASML reported €2.4bn in profit for the first quarter of 2025. (Photo: PixelBiss/Shutterstock)
ASML reported €7.7bn in net sales for the first quarter of 2025 (Q1 2025), slightly below consensus estimates, while net income reached €2.4bn. The Dutch semiconductor equipment maker maintained its full-year revenue guidance of between €30bn and €35bn. However, the company cautioned that growing trade tensions and new US tariffs could introduce further unpredictability in demand trends over the coming quarters.
Both CEO Christophe Fouquet and chief financial officer Roger Dassen acknowledged that macroeconomic uncertainty has increased following recent tariff announcements affecting semiconductor supply chains.
“Our conversations so far with customers support our expectation that 2025 and 2026 will be growth years,” said Fouquet. “However, the recent tariff announcements have increased uncertainty in the macro environment, and the situation will remain dynamic for a while.”
ASML’s net bookings for the reported quarter, which indicate future demand, totalled €3.94bn, falling short of analyst expectations of €4.89bn. Within that figure, extreme ultraviolet (EUV) bookings contributed €1.2bn. The shortfall in order intake contributed to a 6% decline in ASML’s share price during early trading on Wednesday, reported CNBC.
Despite the dip in bookings, the company’s gross margin for the quarter improved to 54%, aided by a favourable mix of EUV systems and performance-linked customer rewards. Dassen noted that EUV tools of the NXE:3800 type made up a larger share of shipments and were configured at higher value levels than anticipated.
Looking ahead, ASML expects Q2 2025 net sales to range between €7.2bn and €7.7bn, with gross margins projected to fall between 50% and 53%. The wider margin range reflects ongoing uncertainties stemming from potential tariff impacts on system shipments, manufacturing inputs, and operational tools used in the US.
Dassen explained that there are four main categories of tariffs that could impact ASML’s business. The first involves duties on system deliveries into the US. The second relates to levies on tools and components used in field operations within the country. The third concerns import costs tied to ASML’s manufacturing activities in the US. Dassen said that the fourth category includes retaliatory tariffs imposed by other countries on exports originating from the US. He added that the broader implications on global GDP and market demand remained unclear.
AI demand and technology adoption in core segments
The semiconductor sector continues to be driven by demand for AI applications. Fouquet stated that while AI-linked growth remained strong, customer readiness to scale capacity would determine whether ASML’s full-year revenue lands at the upper or lower end of its forecast range. Advanced logic nodes, particularly 2nm process adoption, are expected to contribute to sustained demand, while memory-related exposure is projected to stay broadly stable year-on-year.
ASML sold 73 new lithography systems during the quarter, down from 119 in the previous quarter. The Installed Base Management business, which includes service and field options, contributed €2bn in sales. Operating income for Q1 2025 was €2.7bn, representing 35.4% of total net sales, while earnings per share stood at €6.
The company reiterated its full-year gross margin projection of between 51% and 53%. However, Dassen warned that gross margin in the second half of 2025 could come under pressure from the shipment of high numerical aperture (High NA) tools, which are not yet margin-accretive. The company also expects lower upgrade business and the continuing uncertainty around tariffs to affect profitability in the latter half of the year.
ASML said it remains on track to meet its 2030 revenue ambition of between €44bn and €60bn, as presented at its November 2024 Capital Markets Day. The forecast is based on scenarios tied to lithography intensity, AI demand, and advanced semiconductor node adoption, with expected gross margins of between 56% and 60%.
