ASML Holding(US:ASML)2025-01-29 23:07Financial Performance - ASML reported total net sales of €28.3 billion and net income of €7.6 billion for the full year 2024[1]. - In Q4 2024, total net sales reached €9.3 billion, with a gross margin of 51.7% and net income of €2.7 billion[4]. - Total net sales for 2024 reached €28.3 billion with a gross margin of 51.3%[70]. - Net income for 2024 was €7.6 billion, resulting in an EPS of €19.25[70]. - Total net sales for Q4 2024 reached €9,262.8 million, a significant increase from €7,237.0 million in Q4 2023, representing a growth of 28.1%[101]. - Gross profit margin improved to 51.7% in Q4 2024, up from 51.4% in Q4 2023[102]. - Net income for Q4 2024 was €2,693.4 million, compared to €2,048.1 million in Q4 2023, reflecting a year-over-year increase of 31.5%[101]. - The company reported a basic net income per ordinary share of €6.85 for Q4 2024, up from €5.21 in Q4 2023[101]. Sales and Bookings - Q4 2024 net bookings amounted to €7.1 billion, including €3.0 billion from EUV systems[5]. - ASML sold 119 new lithography systems in Q4 2024, totaling 380 units for the full year[2]. - Installed Base Management sales increased by 16% to €6.5 billion due to higher service and upgrade business[70]. - EUV system sales decreased by 9% to €8.3 billion, with revenue recognized on 44 EUV systems[70]. - DUV system sales increased by 4% to €12.8 billion, recognizing revenue on 374 systems, of which 34% were immersion systems[70]. - Metrology & Inspection systems sales rose by 20% to €646 million, driven by higher YieldStar and MBI systems sales[70]. Future Outlook - The company expects Q1 2025 total net sales to be between €7.5 billion and €8.0 billion, with a gross margin between 52% and 53%[5]. - For 2025, ASML anticipates total net sales to be between €30 billion and €35 billion, maintaining a gross margin between 51% and 53%[5]. - By 2030, the company anticipates annual revenue between approximately €44 billion and €60 billion, with a gross margin between approximately 56% and 60%[90]. Research and Development - R&D costs for Q1 2025 are expected to be around €1,140 million, with SG&A costs around €290 million[5]. - Research and development costs for Q4 2024 were €1,116.0 million, slightly higher than €1,041.3 million in Q4 2023[101]. - The company is investing heavily in R&D, with a budget increase of 25%, totaling $500 million for new technology development[106]. - Research and development expenses increased by 12%, totaling $150 million, focusing on innovative technologies[108]. Sustainability and ESG - ASML's EUV NXE energy use per wafer pass has been reduced by 54% since 2018, showcasing advancements in sustainability[65]. - The company has set a goal to achieve carbon neutrality by 2025, with an investment of $200 million in sustainable practices[106]. - ASML's ESG ratings have improved, with Sustainalytics ranking it 1 in the industry and MSCI giving it an AAA rating[65]. Employee and Talent Development - The number of interns and work-study students increased by 22% compared to 2023, highlighting the company's commitment to talent development[58]. - The number of payroll employees increased to 42,786 in Q4 2024, up from 40,310 in Q4 2023[102]. Market Trends and Industry Insights - The growth in artificial intelligence is identified as a key driver for growth in the semiconductor industry[6]. - The semiconductor industry is projected to exceed $1 trillion in sales by 2030, driven by significant investments in AI[35]. - Global data center and edge AI demands are expected to represent over 40% of semiconductor sales demand by 2030[38].