Latest ASML Earnings Report Q4 2024

Company Overview

ASML Holding N.V. (NASDAQ: ASML) is a Dutch multinational corporation and a key supplier in the semiconductor industry, specializing in the development and manufacturing of advanced photolithography systems used in chip production. Founded in 1984 and headquartered in Veldhoven, Netherlands, ASML provides chipmakers with essential hardware, software, and services to mass-produce patterns on silicon wafers. As the sole supplier of extreme ultraviolet (EUV) lithography machines globally, ASML's technology is indispensable for producing cutting-edge semiconductors. These sophisticated machines enable the miniaturization of electronic components, thereby enhancing the performance and efficiency of modern devices. In 2023, ASML reported revenues of €27.6 billion, reflecting its significant role in the global semiconductor supply chain. The company employs over 42,000 people across more than 60 service points in 16 countries, underscoring its extensive international presence. Despite recent market fluctuations and a downward revision of its 2025 revenue forecast due to a slower-than-expected recovery in the semiconductor market, ASML remains a dominant force in the industry. The company's ongoing investments in next-generation technologies, such as high numerical aperture (High-NA) EUV systems, position it well to meet future demand for advanced chip manufacturing.

Latest ASML Earnings Comparison (Q4 2024)

Historical ASML Earnings Data

ASML Earnings Call Summary Q4 2024

Highlights

• Strong Revenue Performance: Q4 revenue reached €9.3B, surpassing guidance due to strong installed base revenue and two High-NA EUV system recognitions.

• Full-Year Growth: 2024 revenue totaled €28.3B, with 30%-35% YoY growth expected in 2025.

• EUV & High-NA Expansion: Shipped two High-NA systems with 10,000 wafers processed at customer sites, confirming performance benefits.

• Robust Demand for AI & HPC: AI-driven semiconductor demand continues to boost EUV and High-NA adoption, positioning ASML for long-term growth.

• Improved Profitability: Gross margin increased to 51.7% in Q4, with 2025 guidance at 51%-53%.

• Strong Free Cash Flow & Capital Return: €8.8B in Q4 free cash flow, with €3B returned to shareholders in 2024.

• Raised 2025 Guidance: Expected €30B-€35B in revenue, with Logic demand growing and Memory stabilizing.

Risks

Despite strong fundamentals, ASML faces key challenges:

1. Export Restrictions & Geopolitical Risks: New U.S. regulations on China could impact demand, with China sales expected to normalize at ~20% of revenue.

2. Customer Capacity Uncertainty: AI-driven semiconductor growth depends on customers scaling capacity, which remains a bottleneck for upside potential.

3. High-NA EUV Maturity Timeline: While initial customer feedback is positive, mass adoption requires 12-18 months of additional maturity validation.

4. Order Flow Volatility: ASML is phasing out quarterly booking reports in 2026, highlighting the lumpiness of order intake.

5. Macroeconomic & Industry Cyclicality: Memory demand remains uncertain, and non-AI semiconductor markets could lag recovery expectations.

Opportunities

ASML is positioned for long-term semiconductor growth:

1. AI-Driven Lithography Demand: AI and high-performance computing (HPC) are driving higher EUV layer counts and faster technology transitions.

2. 2nm & High-NA Adoption Acceleration: Customers confirmed 2nm ramp through 2026, with High-NA insertion expected in late 2025-2026.

3. EUV Expansion in Memory & Logic: DRAM (HBM3/4) and foundry demand are set to boost EUV shipments through 2025-2027.

4. China Demand Normalization & Resilience: Despite export restrictions, healthy backlog and normalized order intake support stable long-term revenue.

5. Capacity Planning for 2026 Growth: ASML is pre-building EUV tools to meet anticipated customer demand in 2026, ensuring shorter lead times.

Outlook

• 2025 Growth Expected: Revenue projected at €30B-€35B, with gross margins stabilizing at 51%-53%.

• EUV & High-NA Expansion: Customers scaling EUV adoption, with High-NA process qualification continuing.

• AI & HPC Semiconductor Shift: More EUV layers per chip and faster logic transitions support long-term revenue acceleration.

• China Sales Normalization: Returning to ~20% of total revenue, post 2023-2024 backlog fulfillment.

• Strategic Capital Deployment: Continued dividends and share buybacks, with cash reserves of €12.7B.

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.