Financial Data and Key Metrics Changes - The company reported a record net revenue of EUR 32.7 billion for 2025, with a gross margin of 52.8% and a net income of EUR 9.6 billion, resulting in an earnings per share (EPS) of approximately EUR 25 [30][31] - EUV technology was the main driver of growth, with a 39% increase in sales compared to 2024, attributed to higher sales prices and increased productivity of tools [31][32] - The installed base business grew by 26%, indicating strong demand for service and upgrades [34] Business Line Data and Key Metrics Changes - EUV sales significantly contributed to revenue growth, while DUV sales decreased by 6%, primarily due to a decline in the Chinese market [33] - The company saw a 28% increase in applications related to process control at leading nodes, reflecting strong demand for advanced technology [34] - The installed base business reached EUR 8.2 billion, showcasing rapid growth and resilience [37] Market Data and Key Metrics Changes - The Chinese market's contribution to total sales decreased from 33% to 29%, with expectations for further decline to around 20% in 2026 [36][82] - Memory accounted for 34% of sales, while logic represented 66%, with a projected shift towards memory becoming more significant in 2026 [35] Company Strategy and Development Direction - The company aims for long-term revenue between EUR 44 billion and EUR 60 billion by 2030, with a focus on innovation and engineering to maintain leadership in the semiconductor industry [11][27] - The company is investing in AI and 3D integration technologies, as well as expanding its footprint to support customer service and manufacturing needs [24][27] - A significant reorganization is underway to streamline operations, reducing leadership positions while increasing engineering roles to enhance innovation [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of AI demand, which is expected to drive significant growth in advanced logic and memory segments [8][12] - The company anticipates a strong year for EUV in 2026, with increased shipments and productivity improvements [16][42] - Management acknowledged the need for capacity expansion among customers, particularly in the memory sector, which is seen as critical for market share [63][64] Other Important Information - The company is committed to community engagement, including investments in mobility, affordable housing, and cultural initiatives in Eindhoven [24][25][26] - A new share buyback program of EUR 12 billion over three years was announced, with a proposed dividend of EUR 7.50 per share for the year [39][40] Q&A Session Questions and Answers Question: What kind of restructuring costs or charges can be expected from the job cuts? - Management indicated that the costs would not be considered material in the grand scheme of ASML's finances [60] Question: How much of the capacity expansion announcements from customers is related to real capacity versus CapEx inflation? - Management clarified that capacity expansion translates directly into the need for more tools, with recent customer announcements indicating a strong commitment to new systems [61][62] Question: How is the AI memory shortage driving business, and how aggressive are customers in capacity expansion compared to logic? - Management noted that memory, particularly high-bandwidth memory for AI, is currently the bottleneck, leading to aggressive capacity expansion among memory customers [63][64] Question: How does the stabilizing AI market influence job growth in Eindhoven? - Management affirmed that long-term growth remains a priority, with ongoing job additions in manufacturing and customer service despite the restructuring in the technology team [67][68] Question: What changes will occur within the internal structure regarding D&E or R&D due to the reorganization? - Management confirmed that the transformation will primarily focus on D&E, aiming to improve interfaces and responsiveness within the organization [71][72] Question: Is the supply chain prepared for the new demand in machines? - Management stated that long lead time items have been secured, and the supply chain is aligned to increase capacity gradually based on strong customer signals [75]

Financial Data and Key Metrics Changes - The company reported a record net revenue of EUR 32.7 billion for 2025, with a gross margin of 52.8% and a net income of EUR 9.6 billion, resulting in an earnings per share (EPS) of approximately EUR 25 [30][31] - EUV technology was the main driver of growth, with a 39% increase in sales compared to 2024, attributed to higher sales prices and increased productivity of tools [31][32] - DUV sales decreased by 6%, primarily due to a decline in the Chinese market [33] Business Line Data and Key Metrics Changes - The installed base business saw a 26% increase, driven by service revenue from EUV and upgrades [34] - Memory accounted for 34% of sales, while logic represented 66%, with expectations for memory to become more significant in 2026 [35] - The metrology and inspection business grew by almost 30%, reflecting increased demand for process control [20][21] Market Data and Key Metrics Changes - The Chinese market's contribution to total sales decreased from 33% to 20%, indicating a significant decline in system sales from China [36][82] - The company expects the memory market to tighten significantly in 2026, with customers aggressively expanding capacity [63][64] Company Strategy and Development Direction - The company aims to grow revenue to between EUR 44 billion and EUR 60 billion by 2030, maintaining a gross margin of 56%-60% [11] - The focus on AI is expected to drive demand for advanced technology, particularly EUV, with significant growth anticipated in 2026 [10][16] - The company is restructuring its technology team to enhance agility and innovation, reducing leadership positions while increasing engineering roles [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of AI demand, which is expected to drive capacity investments from customers [8][9] - The company noted that the last three months have clarified the outlook for 2026, with customers increasingly committed to expanding capacity [5][6] - The management acknowledged the need for organizational simplification to improve responsiveness and innovation [49][52] Other Important Information - The company announced a new share buyback program of EUR 12 billion over three years, with a proposed dividend of EUR 7.50 per share for the year [39][40] - The company is committed to community engagement, including investments in mobility, affordable housing, and cultural initiatives [24][25][26] Q&A Session Questions and Answers Question: What kind of restructuring costs or charges can be expected from the job cuts? - Management indicated that the costs would not be considered material in the grand scheme of ASML's finances [60] Question: How much of the capacity expansion announcements from customers is related to real capacity versus CapEx inflation? - Management clarified that capacity expansion translates directly into the need for more tools, with significant customer commitments observed recently [61][62] Question: How is the AI memory shortage driving business, and how aggressive are customers in capacity expansion compared to logic? - Management noted that memory, particularly high-bandwidth memory for AI, is currently the bottleneck, leading to aggressive capacity expansion from memory customers [63][64] Question: How does the stabilizing AI market influence job growth in Eindhoven? - Management affirmed that long-term growth remains a priority, with job additions planned in manufacturing and customer service despite the restructuring in the technology team [67][68] Question: Does the reorganization affect the internal structure regarding D&E or R&D? - Management confirmed that the transformation will primarily focus on D&E, aiming to improve interfaces and responsiveness [71][72] Question: Is the supply chain prepared for the new demand in machines? - Management stated that they have been working with the supply chain to ensure readiness for increased capacity, with long lead time items already in place [73][75] Question: Is the decline in the Chinese market in absolute numbers? - Management confirmed that the Chinese market is indeed declining in absolute numbers, normalizing after a backlog built during the COVID period [82][84]

Financial Data and Key Metrics Changes - The company reported a record quarter and year, with net revenue of EUR 32.7 billion and a gross margin of 52.8% for 2025, resulting in a net income of EUR 9.6 billion and earnings per share of approximately EUR 25 [29][30]. - EUV technology was the main driver of growth, with a 39% increase in sales compared to 2024, attributed to higher sales prices and increased productivity of tools [30][31]. - The installed base business saw a 26% increase, reflecting strong demand for upgrades and services [33]. Business Line Data and Key Metrics Changes - EUV sales significantly contributed to revenue growth, while DUV sales decreased by 6%, primarily due to declines in the Chinese market [30][32]. - The installed base business reached EUR 8.2 billion, indicating rapid growth and resilience for the company [36]. - Applications related to metrology and inspection grew by nearly 30%, driven by the need for more process control at leading nodes [20][21]. Market Data and Key Metrics Changes - The company anticipates a decline in sales from China, projecting it to account for approximately 20% of total sales in 2026, down from 29% [35][78]. - Memory applications are expected to see increased demand, with DRAM customers aggressively expanding capacity due to high demand for AI-related memory [63][64]. - The overall semiconductor market is projected to grow significantly, with advanced logic and memory segments expected to exceed 20% year-on-year growth [12]. Company Strategy and Development Direction - The company plans to continue investing in innovation, particularly in AI and advanced lithography technologies, to maintain its leadership position in the semiconductor industry [22][47]. - A significant restructuring is underway to streamline operations, reducing leadership roles while increasing engineering positions to enhance agility and responsiveness [49][50]. - The company aims to expand its footprint and capabilities, with plans for a new campus to support growth and customer service [26][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability of AI demand, which is expected to drive significant growth in the semiconductor market [5][6]. - The company anticipates a strong year for EUV in 2026, with increased shipments and a focus on advanced technology [15][41]. - The long-term revenue forecast remains between EUR 44 billion and EUR 60 billion by 2030, with a gross margin target of 56%-60% [11]. Other Important Information - The company is actively engaged in community initiatives, including infrastructure improvements and cultural investments in Eindhoven [23][24]. - A new collaboration with Mistral aims to integrate AI capabilities into the company's products and enhance core competencies [22]. Q&A Session Summary Question: What kind of restructuring costs or charges can be expected from the job cuts? - Management indicated that the costs would not be considered material in the grand scheme of ASML's finances, pending discussions with the Work Council [59]. Question: How much of the capacity expansion announcements from customers is related to real capacity versus CapEx inflation? - Management noted that customer capacity expansion translates directly into the need for more tools, with recent announcements indicating a strong commitment to new systems [61][62]. Question: How is the AI memory shortage driving business, and how aggressive are customers in capacity expansion compared to logic? - Management highlighted that memory, particularly high-bandwidth memory for AI, is currently the bottleneck, with DRAM customers showing significant appetite for capacity expansion [63][64]. Question: How does the stabilizing AI market influence job growth in Eindhoven? - The long-term growth trajectory remains positive, with plans to add jobs in manufacturing and customer service despite the restructuring in the technology team [66]. Question: What changes will occur within the internal structure regarding D&E or R&D due to the reorganization? - The transformation will primarily focus on D&E, aiming to improve interfaces with operations, customers, and suppliers [70]. Question: Is the supply chain prepared for the increased demand for new machines? - The company has worked with its supply chain to ensure readiness for increased capacity, gradually increasing the move rate to meet demand [72].