ASML Holding(US:ASML)2026-01-28 09:14Financial Performance - ASML reported total net sales of €32.7 billion and net income of €9.6 billion for the year 2025[1][25]. - In Q4 2025, total net sales reached €9.7 billion, with a gross margin of 52.2% and net income of €2.8 billion[5][6]. - For FY 2025, total net sales were €32.7 billion, with a gross margin of 52.8% and net income of €9.6 billion, resulting in earnings per share of €24.73[33]. - Q4 2025 net revenue reached €9.7 billion, with full-year revenue at €32.7 billion, a 16% increase from 2024[66]. - Net income for Q4 was €2.8 billion, with full-year net income at €9.6 billion[66]. - The company reported a significant increase in revenue, achieving a total of $6 billion, representing a year-over-year growth of 20%[101]. Future Outlook - For Q1 2026, ASML expects total net sales between €8.2 billion and €8.9 billion, with a gross margin between 51% and 53%[9]. - The company anticipates total net sales for 2026 to be between €34 billion and €39 billion, maintaining a gross margin of 51% to 53%[6][9]. - The outlook for Q1 2026 anticipates total net sales between €8.2 billion and €8.9 billion, with a gross margin between 51% and 53%[51]. - Full-year 2026 total net revenue is projected to be between €34 billion and €39 billion, maintaining a gross margin of 51% to 53%[69]. - Long-term revenue expectations for 2030 are between €44 billion and €60 billion, with a gross margin between 56% and 60%[77]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 25% and aiming for $7.5 billion in total revenue[101]. Shareholder Returns - ASML announced a new share buyback program of up to €12 billion to be executed by December 31, 2028[6][12]. - The company plans to declare a total dividend of €7.50 per ordinary share for 2025, a 17% increase compared to 2024[10]. - The company plans to return €8.5 billion to shareholders through dividends and share buybacks in 2025[33]. - The total dividend for 2025 is projected to be €7.50 per ordinary share, reflecting a 17% increase over 2024[76]. Market Demand and Trends - The company noted a positive medium-term market outlook driven by robust AI-related demand, reflected in increased capacity plans from customers[7][8]. - The semiconductor industry is projected to exceed $1 trillion in revenue by 2030, driven by AI adoption across various applications[28]. - AI applications are driving demand for advanced technology in DRAM and Logic, confirming previous forecasts[77]. - The market outlook has improved, particularly for AI applications, leading to increased capacity planning among customers[70]. Investments and Innovations - The company invested €1.3 billion in Mistral AI to accelerate AI-driven innovation in lithography and operations[33]. - ASML is focusing on strengthening engineering and innovation by streamlining its Technology and IT organizations[14]. - The qualification of the EXE:5200B tool is progressing well, with Intel accepting their first unit for high volume manufacturing[74]. - ASML anticipates continued growth in Low NA EUV utilization and litho-intensity as technology costs decrease[77]. - The company is investing heavily in R&D, allocating $500 million for the development of new technologies and innovations in the upcoming fiscal year[101]. Operational Metrics - Installed Base Management sales increased by 26% to €8.2 billion due to higher service and upgrade business[32]. - Installed Base revenue for Q4 was €2.1 billion, totaling €8.2 billion for the full year, driven by strong service revenue from EUV systems[66]. - EUV revenue is expected to significantly increase in 2026, while non-EUV system business is anticipated to remain flat[71]. - The Installed Base business is expected to grow in 2026, driven by demand for upgrades and increased output capacity[73]. - Inspection and metrology products have seen nearly 30% growth this year, indicating high demand and customer satisfaction[74]. Financial Position - Total assets increased to €50,566.6 million by December 31, 2025, up from €48,589.6 million in December 2024, reflecting a growth of approximately 4%[97]. - Cash and cash equivalents rose to €12,916.0 million in December 2025, compared to €12,735.9 million in December 2024, indicating a slight increase of about 1.4%[97]. - Current liabilities increased significantly to €24,263.9 million by December 31, 2025, from €20,051.4 million in December 2024, representing a rise of approximately 21%[97]. - Total shareholders' equity reached €19,612.2 million in December 2025, up from €18,476.8 million in December 2024, marking an increase of about 6.2%[97]. - Long-term debt remained stable at €2,709.0 million in December 2025, compared to €3,677.3 million in December 2024, showing a decrease of approximately 26.4%[97]. Cash Flow and Expenses - Cash flows from operating activities for the quarter ended December 31, 2025, amounted to €11,410.3 million, a significant increase from €9,544.8 million in the same quarter of the previous year[99]. - Cash flows from investing activities resulted in a net outflow of €1,006.3 million for the quarter ended December 31, 2025, compared to an outflow of €1,232.9 million in the previous year[99]. - Cash flows from financing activities showed a net outflow of €2,613.3 million for the quarter ended December 31, 2025, compared to an outflow of €567.4 million in the same quarter of the previous year[99]. - The company paid dividends totaling €619.2 million for the quarter ended December 31, 2025, consistent with the previous quarter's payment of €619.6 million[99]. - Depreciation and amortization expenses for the quarter ended December 31, 2025, were €255.2 million, slightly lower than €241.0 million reported in the same quarter of the previous year[99].