ASML Holding(ASML) - 2025 Q1 - Quarterly Results

Consolidated Financial Performance (Three Months Ended) This section provides a detailed overview of ASML's financial performance, including statements of operations, key ratios, balance sheets, and cash flows for the three months ended March 30, 2025 Summary US GAAP Consolidated Statements of Operations ASML reported substantial growth in net sales, gross profit, operating income, and net income for the three months ended March 30, 2025, significantly increasing diluted net income per share Summary US GAAP Consolidated Statements of Operations (in millions €) | Metric (in millions €) | Mar 31, 2024 | Mar 30, 2025 | Change (€) | Change (%) | | :---------------------- | :----------- | :----------- | :--------- | :--------- | | Net system sales | 3,965.9 | 5,740.4 | 1,774.5 | 44.7% | | Net service and field option sales | 1,324.1 | 2,001.1 | 677.0 | 51.1% | | Total net sales | 5,290.0 | 7,741.5 | 2,451.5 | 46.3% | | Gross profit | 2,696.6 | 4,179.7 | 1,483.1 | 55.0% | | Income from operations | 1,391.4 | 2,737.9 | 1,346.5 | 96.8% | | Net income | 1,223.8 | 2,355.0 | 1,131.2 | 92.4% | | Basic net income per ordinary share | 3.11 | 6.00 | 2.89 | 92.9% | | Diluted net income per ordinary share | 3.11 | 6.00 | 2.89 | 92.9% | Ratios and Other Data Profitability ratios, lithography system sales, and net bookings improved for the three months ended March 30, 2025, alongside growth in payroll employees and a reduction in temporary staff Profitability Ratios | Metric | Mar 31, 2024 | Mar 30, 2025 | Change (pp) | | :------------------------------------ | :----------- | :----------- | :---------- | | Gross profit as a percentage of net sales | 51.0 % | 54.0 % | 3.0 | | Income from operations as a percentage of net sales | 26.3 % | 35.4 % | 9.1 | | Net income as a percentage of net sales | 23.1 % | 30.4 % | 7.3 | | Income taxes as a percentage of income before income taxes | 15.8 % | 16.7 % | 0.9 | | Shareholders' equity as a percentage of total assets | 35.3 % | 38.5 % | 3.2 | Operational Metrics | Metric | Mar 31, 2024 | Mar 30, 2025 | Change | | :------------------------------------ | :----------- | :----------- | :----- | | Sales of lithography systems (in units) | 70 | 77 | 7 | | Net bookings (in millions €) | 3,611 | 3,936 | 325 | | Number of payroll employees in FTEs | 40,940 | 43,129 | 2,189 | | Number of temporary employees in FTEs | 1,773 | 998 | (775) | - Net bookings include all system sales orders and inflation-related adjustments for which written authorizations have been accepted[3] Summary US GAAP Consolidated Balance Sheets As of March 30, 2025, ASML's total assets, liabilities, and shareholders' equity decreased, primarily driven by a significant reduction in cash and cash equivalents Summary US GAAP Consolidated Balance Sheets (in millions €) | Metric (in millions €) | Dec 31, 2024 | Mar 30, 2025 | Change (€) | Change (%) | | :---------------------- | :----------- | :----------- | :--------- | :--------- | | Total assets | 48,589.6 | 45,478.8 | (3,110.8) | (6.4%) | | Total liabilities | 30,112.8 | 27,978.1 | (2,134.7) | (7.1%) | | Total shareholders' equity | 18,476.8 | 17,500.7 | (976.1) | (5.3%) | | Cash and cash equivalents | 12,735.9 | 9,098.4 | (3,637.5) | (28.6%) | | Inventories, net | 10,891.5 | 11,024.7 | 133.2 | 1.2% | Summary US GAAP Consolidated Statements of Cash Flows ASML experienced a significant net decrease in cash and cash equivalents for the three months ended March 30, 2025, primarily due to substantial financing outflows and cash consumption from operating activities Summary US GAAP Consolidated Statements of Cash Flows (in millions €) | Cash Flow Activity (in millions €) | Mar 31, 2024 | Mar 30, 2025 | Change (€) | | :--------------------------------- | :----------- | :----------- | :--------- | | Net cash provided by (used in) operating activities | (251.9) | (58.6) | 193.3 | | Net cash provided by (used in) investing activities | (723.6) | (415.7) | 307.9 | | Net cash provided by (used in) financing activities | (927.4) | (3,151.4) | (2,224.0) | | Net increase (decrease) in cash and cash equivalents | (1,903.9) | (3,637.5) | (1,733.6) | | Cash and cash equivalents at end of the period | 5,100.8 | 9,098.4 | 3,997.6 | - Financing activities for the three months ended March 30, 2025, included significant purchase of treasury shares (€2,592.6 million) and dividend paid (€597.2 million)[5] Quarterly Consolidated Financial Performance This section provides a detailed overview of ASML's quarterly financial performance, including statements of operations, key ratios, balance sheets, and cash flows Quarterly Summary US GAAP Consolidated Statements of Operations ASML's quarterly net sales, gross profit, net income, and diluted EPS generally trended upward from Q1 2024 to Q4 2024, with a subsequent decrease in Q1 2025, yet remaining significantly higher than Q1 2024 Quarterly Summary US GAAP Consolidated Statements of Operations (in millions €) | Metric (in millions €) | Mar 31, 2024 | Jun 30, 2024 | Sep 29, 2024 | Dec 31, 2024 | Mar 30, 2025 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net sales | 5,290.0 | 6,242.8 | 7,467.3 | 9,262.8 | 7,741.5 | | Gross profit | 2,696.6 | 3,212.2 | 3,793.4 | 4,789.8 | 4,179.7 | | Net income | 1,223.8 | 1,577.9 | 2,076.5 | 2,693.4 | 2,355.0 | | Diluted net income per ordinary share | 3.11 | 4.01 | 5.28 | 6.84 | 6.00 | Quarterly Summary Ratios and Other Data Quarterly profitability ratios generally improved from Q1 2024 to Q1 2025, while lithography system sales peaked in Q4 2024 before declining, and net bookings fluctuated significantly Quarterly Profitability Ratios | Metric | Mar 31, 2024 | Jun 30, 2024 | Sep 29, 2024 | Dec 31, 2024 | Mar 30, 2025 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Gross profit as a percentage of net sales | 51.0 % | 51.5 % | 50.8 % | 51.7 % | 54.0 % | | Income from operations as a percentage of net sales | 26.3 % | 29.4 % | 32.7 % | 36.2 % | 35.4 % | | Net income as a percentage of net sales | 23.1 % | 25.3 % | 27.8 % | 29.1 % | 30.4 % | Quarterly Operational Metrics | Metric | Mar 31, 2024 | Jun 30, 2024 | Sep 29, 2024 | Dec 31, 2024 | Mar 30, 2025 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Sales of lithography systems (in units) | 70 | 100 | 116 | 132 | 77 | | Net bookings (in millions €) | 3,611 | 5,567 | 2,633 | 7,088 | 3,936 | | Number of payroll employees in FTEs | 40,940 | 41,505 | 42,372 | 42,786 | 43,129 | - Net bookings include all system sales orders and inflation-related adjustments, for which written authorizations have been accepted[8] Quarterly Summary US GAAP Consolidated Balance Sheets ASML's total assets and shareholders' equity generally increased from Q1 2024 to Q4 2024 before declining in Q1 2025, with cash and cash equivalents showing significant quarterly fluctuations Quarterly Summary US GAAP Consolidated Balance Sheets (in millions €) | Metric (in millions €) | Mar 31, 2024 | Jun 30, 2024 | Sep 29, 2024 | Dec 31, 2024 | Mar 30, 2025 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | 39,042.6 | 40,741.0 | 41,766.1 | 48,589.6 | 45,478.8 | | Total liabilities | 25,248.5 | 26,029.8 | 25,614.5 | 30,112.8 | 27,978.1 | | Total shareholders' equity | 13,794.1 | 14,711.2 | 16,151.6 | 18,476.8 | 17,500.7 | | Cash and cash equivalents | 5,100.8 | 4,813.6 | 4,979.3 | 12,735.9 | 9,098.4 | | Inventories, net | 9,864.5 | 10,972.3 | 11,414.5 | 10,891.5 | 11,024.7 | Quarterly Summary US GAAP Consolidated Statements of Cash Flows Quarterly cash flows from operating activities varied significantly, with a large Q4 2024 inflow followed by a Q1 2025 negative, while investing activities consistently used cash and financing activities showed substantial outflows Quarterly Summary US GAAP Consolidated Statements of Cash Flows (in millions €) | Cash Flow Activity (in millions €) | Mar 31, 2024 | Jun 30, 2024 | Sep 29, 2024 | Dec 31, 2024 | Mar 30, 2025 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net cash provided by (used in) operating activities | (251.9) | 923.4 | 949.9 | 9,544.8 | (58.6) | | Net cash provided by (used in) investing activities | (723.6) | (437.8) | (215.0) | (1,232.9) | (415.7) | | Net cash provided by (used in) financing activities | (927.4) | (772.3) | (565.0) | (567.4) | (3,151.4) | | Net increase (decrease) in cash and cash equivalents | (1,903.9) | (287.2) | 165.7 | 7,756.6 | (3,637.5) | | Cash and cash equivalents at end of the period | 5,100.8 | 4,813.6 | 4,979.3 | 12,735.9 | 9,098.4 | Notes and Forward-Looking Statements This section provides the basis of preparation for the financial statements and outlines the company's forward-looking statements, including industry outlook and financial expectations Basis of Preparation The unaudited Summary Consolidated Financial Statements are prepared in conformity with US GAAP and should be read with the 2024 Annual Report for comprehensive disclosure - The unaudited Summary Consolidated Financial Statements have been prepared in conformity with US GAAP[11] - These interim statements should be read in conjunction with the Consolidated Financial Statements and Notes included within the 2024 Annual Report based on US GAAP for further details on annual disclosure requirements and significant accounting policies[12] Forward-Looking Statements This section outlines ASML's forward-looking statements, encompassing industry trends, AI as a key driver, financial expectations for Q2 and full year 2025, shareholder returns, and inherent risks and uncertainties - Forward-looking statements include expectations for the semiconductor industry, with AI anticipated to be a key driver by 2030, and lithography remaining central to customer innovation[13] - The company provides an outlook for Q2 2025 and full year 2025, including expected net sales, gross margin, R&D costs, SG&A costs, estimated annualized effective tax rate, and expected growth in Installed Base Management (IBM) sales[13] - ASML expects to continue returning significant amounts of cash to shareholders through growing dividends and share buybacks, as part of its share buyback program[13] - These statements are subject to substantial known and unknown risks and uncertainties, including customer demand, semiconductor equipment industry capacity, geopolitical developments, and export controls[13]