Financial Data and Key Metrics Changes - In Q2 2025, total net sales reached €7.7 billion, at the upper end of guidance, primarily due to the revenue recognition of one High NA system and additional upgrade business [5] - Net system sales were €5.6 billion, with €2.7 billion from EUV sales and €2.9 billion from non-EUV sales, driven by Logic at 69% and Memory at 31% [5] - Gross margin for the quarter was 53.7%, above guidance, driven by an increase in upgrade business and lower costs [6] - Net income in Q2 was €2.3 billion, representing 29.8% of total net sales, resulting in earnings per share of €5.9 [6] - Q2 net system bookings were €5.5 billion, with €2.3 billion from EUV and €3.2 billion from non-EUV, weighted towards Logic at 84% [7] Business Line Data and Key Metrics Changes - Installed base management sales for the quarter were €2.1 billion, above guidance [6] - The upgrade business has been strong, with expectations for installed base management revenue to grow more than 20% over last year [11] - The company expects overall EUV revenue growth of around 30% in 2025 compared to 2024 [11] Market Data and Key Metrics Changes - Revenue from China is expected to account for over 25% of total revenue in 2025, reflecting its proportion in the backlog [10] - The company anticipates strong demand related to AI for both logic and memory, with system revenue expected to increase in 2025 compared to 2024 [9][12] Company Strategy and Development Direction - The company continues to focus on advancing its EUV technology and building a comprehensive EUV portfolio to meet customer needs [15] - The strategy includes transitioning customers to advanced nodes and increasing the number of EUV layers, which is expected to drive growth [18] - The company is preparing for a potential growth year in 2026, but acknowledges uncertainties due to macroeconomic and geopolitical factors [12][56] Management's Comments on Operating Environment and Future Outlook - Management highlighted that while demand remains strong, uncertainties related to macroeconomic and geopolitical developments are affecting customer capital expenditure decisions [12][56] - The company expects Q3 total net sales to be between €7.4 billion and €7.9 billion, with a gross margin between 50-52% [14] - Management remains optimistic about long-term growth driven by AI, despite short-term uncertainties [18][88] Other Important Information - The company paid a final dividend of €1.84 per ordinary share, with a total dividend for 2024 of €6.4 per ordinary share [7] - Share buybacks totaled around €1.4 billion in Q2 2025, bringing the total for the buyback program to €5.8 billion [8] Q&A Session Summary Question: Can you elaborate on the EUV capacity and revenue expectations? - Management confirmed that EUV growth is expected to be about 30%, with the delta attributed to the strong performance of the installed base business [24][26] Question: How does the pricing strategy relate to tool value? - Management stated that the ability to increase tool prices is linked to improvements in productivity and performance, which enhances customer value [32] Question: What is the outlook for the DUV business? - Management indicated that the DUV business is expected to remain stable, with China showing stronger demand than previously anticipated [27][44] Question: What has changed in customer conversations regarding 2026? - Management noted increased customer caution due to tariff discussions and geopolitical uncertainties, impacting their investment decisions [56][76] Question: Can you provide insights on memory trends and HBM driven by AI? - Management confirmed that memory revenue remains strong, driven by HBM demand, and expects continued growth in this segment [102]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was EUR 7.7 billion, which was at the high end of guidance and included revenue recognition for one High NA tool [1][2] - Gross margin for the quarter was 53.7%, above guidance, driven by installed base revenue and one-off cost benefits [1][3] - Order intake for the quarter was EUR 5.5 billion, including EUR 2.3 billion for EUV [4] - Net income for the quarter was EUR 2.3 billion [4] - Guidance for Q3 2025 expects revenue between CHF 7.4 billion and CHF 7.9 billion, with a gross margin between 50% and 52% [5] Business Line Data and Key Metrics Changes - Installed base business is expected to see approximately a 20% increase, driven by strong upgrade revenue and service business improvements [11][12] - EUV business is projected to grow by approximately 30% due to increased capacity demands from customers [10] - Deep UV and application business is expected to remain stable compared to last year [12] Market Data and Key Metrics Changes - AI is identified as the main growth driver for both logic and memory sectors [6] - Revenue from China is expected to exceed 25%, aligning with the company's backlog [6] - The overall semiconductor market remains strong, with long-term revenue forecasts for ASML between EUR 44 billion and EUR 60 billion by 2030 [30][31] Company Strategy and Development Direction - The company is focusing on advancing EUV technology and optimizing costs to meet customer needs [22][30] - There is a strategic emphasis on converting multi-patterning layers to single exposure to enhance productivity [23][30] - The company is navigating uncertainties related to macroeconomic factors and tariffs while preparing for growth in advanced logic and memory [7][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increasing uncertainty due to macroeconomic and geopolitical factors, including tariffs [7][21] - The fundamentals for AI customers remain strong, indicating potential for growth despite short-term uncertainties [6][29] - The company expects a revenue increase of approximately 15% for 2025 compared to the previous year, with a gross margin of around 52% for the full year [12][14] Other Important Information - The company has conducted share buybacks worth EUR 1.4 billion and paid a total dividend of EUR 6.4 for the fiscal year 2024 [28] - The first interim dividend for Q3 is expected to be EUR 1.6, payable by August 6 [28] Q&A Session Summary Question: Can you provide a summary of Q2 2025 results? - Revenue was EUR 7.7 billion, gross margin was 53.7%, and order intake was EUR 5.5 billion [1][4] Question: What is the guidance for Q3? - Expected revenue is between CHF 7.4 billion and CHF 7.9 billion, with a gross margin of 50% to 52% [5] Question: How are market dynamics currently? - AI is driving growth in logic and memory, with strong customer investments [6] Question: What are the long-term market expectations? - The semiconductor market remains strong, with significant opportunities driven by AI [29][30]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was EUR 7.7 billion, which was at the high end of guidance and included revenue recognition for one High NA tool [1][2] - Gross margin came in at 53.7%, above guidance, driven by installed base revenue and one-off cost benefits [1][3] - Order intake for the quarter was EUR 5.5 billion, including EUR 2.3 billion for EUV [4] - Net income for the quarter was EUR 2.3 billion [4] - Guidance for Q3 2025 expects revenue between CHF 7.4 billion and CHF 7.9 billion, with a gross margin between 50% and 52% [5] Business Line Data and Key Metrics Changes - Installed base business is expected to see a 20% increase, driven by strong upgrade revenue in the first half and sustained service revenue in the second half [11][12] - EUV business is projected to grow approximately 30% due to increased capacity demands from customers [10][12] - Deep UV and application business is expected to remain stable compared to last year [12] Market Data and Key Metrics Changes - Artificial intelligence is identified as the main growth driver for both logic and memory sectors [6] - Revenue from China is expected to exceed 25%, aligning with the company's backlog [6] - The semiconductor market remains strong, with long-term opportunities driven by advanced logic and memory needs [30][31] Company Strategy and Development Direction - The company is focusing on enhancing its EUV technology and expanding its capacity to meet customer demands [9][22] - There is an emphasis on mitigating tariff impacts and navigating macroeconomic uncertainties [20][21] - Long-term revenue forecast for 2030 is projected between EUR 44 billion and EUR 60 billion, with a gross margin between 56% and 60% [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increasing uncertainty due to macroeconomic and geopolitical factors, including tariffs [7][30] - The fundamentals for AI customers remain strong, indicating potential growth despite short-term uncertainties [7][30] - The company is preparing for growth in 2026, with a focus on advanced nodes and EUV technology [9][30] Other Important Information - The company executed a share buyback worth EUR 1.4 billion and paid a final dividend of EUR 1.84 for the last fiscal year [29] - An interim dividend of EUR 1.6 is expected to be paid in Q3 2025 [29] Q&A Session Summary Question: Can you provide guidance on Q3? - Guidance for Q3 expects revenue between CHF 7.4 billion and CHF 7.9 billion, with a gross margin between 50% and 52% [5] Question: What are the short-term market dynamics? - AI is the main growth driver for logic and memory, with strong customer investments in advanced nodes [6] Question: How does the company view the impact of tariffs? - The company is assessing both direct and indirect effects of tariffs and is working to mitigate their impact [20][21] Question: What is the long-term outlook for the semiconductor market? - The semiconductor market remains strong, with significant opportunities driven by AI and advanced technology needs [30][31]