ASML warns it may not achieve growth in 2026, shares drop
VELDHOVEN:
ASML
, the world's biggest supplier of computer chip-making equipment, warned on Wednesday that it may not achieve growth in 2026, even after its second-quarter bookings beat market expectations.
Analysts had hoped that the quarter would provide some reassurance over its outlook for 2026. However, the company warned that geopolitical uncertainty continued to cloud its prospects. Shares sank as much as 7.3% in early trading.
"The level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs," ASML's Chief Executive Christophe Fouquet said in an internal interview on the company's website.
The direct and indirect impact of tariffs are still very uncertain, CFO Roger Dassen said in the interview, ASML was working with its supply chain to mitigate any impact.
"While we still prepare for growth in 2026, we cannot confirm it at this stage," Fouquet said in a statement.
If it materialized, 2026 would be the first flat year in over a decade of uninterrupted revenue growth since 2012.
ASML investor Han Dieperink, chief investment officer at investment firm Aureus, said he was not worried about the upcoming year, noting that the quarter pointed to solid demand.
The Dutch group's net bookings, the most closely watched figure in the industry, were 5.54 billion euros ($6.4 billion). That was ahead of analysts' consensus estimate of 4.44 billion euros, according to researcher Visible Alpha.
"The second quarter beats from top to bottom," analyst Michael Roeg of Degroof Petercam said. Roeg cited strong demand from artificial intelligence related chipmakers.
ASML's EUV lithography machines, the world's most advanced chip circuit printing system, is the key enabling technology behind leading-edge chips like those used in Nvidia's GPUs, or Apple's Macs and iPhones.
Chinese demand also remained elevated, representing 27% of all machine sales in the last three quarters, and confirming the country's chipmakers have continued to buy less advanced machines in anticipation for more U.S.-led export restrictions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
42 minutes ago
- Time of India
Sona shareholders give overwhelming thumbs up to Sanjay Kaupur's wife as director amid family feud
Rani Kapur , mother of the late Sanjay Kapur , asked Sona BLW Precision last week to postpone its scheduled Annual General Meeting on July 25, alleging several irregularities in the way the Kapur family's interests were being represented in the business after her son's sudden demise last month. Kapur was the Chairman of Sona and he passed away after an alleged bee attack while playing polo. But Sona did not heed Rani's request, the AGM went ahead as scheduled and among other decisions, the company's shareholders overwhelmingly supported the appointment of Sanjay's wife Priya Sachdev Kapur as a non-executive director. Priya's appointment is for five years. It is interesting to see that amid all the whispers of a family feud and innuendos about Priya's nomination - which is believed to be one of the reasons behind Rani Kapur's request to postpone the AGM though the matriarch has not said this publicly - an overwhelming 99.4 per cent of the shareholders who were present and voting cast their votes in Priya's favour. Also Read: Sunjay's mom challenges wife's posting as Sona Comstar director In fact, of the four director-level appointments for which voting was conducted on the AGM day, only the reappointment of MD and CEO Vivek Vikram Singh as a director received slightly higher vote share, making it clear that at least as far as shareholders were concerned, the appointment of Priya was given a thumbs up. At the AGM, the appointment of Jeffery Mark Overly as chairman was also approved; Overly succeeded Sanjay. Sona was promoted by Rani's husband, the late Surinder Kapur. As of March 31 this year, however, the promoter shareholding of 28.02 per cent in Sona was held by Aureus Investment Private Limited, a company in which Priya is a director while Rani may not hold any stake at all in Aureus. As per Sona's annual report for 2024-25, Rani Kapur held just 72 shares in it as on March 31, 2005. And in a regulatory filing, Sona has said that in May 2019, it received a declaration of significant beneficial ownership 'identifying Shri Sunjay Kapur as the sole beneficial owner of RK Family Trust, a significant shareholder of AIPL (Aureus). As per company records, Mrs. Rani Kapur has not been a shareholder of the company since at least 2019'. Meanwhile, the annual report also sheds some more light on the process of appointment of Priya as a non-executive director. First of all, her appointment is dated June 23 and is, thus, not a recent development. Also Read: Sona Comstar rejects Rani Kapur's call to defer AGM, cites compliance, governance norms Second, her appointment was done after the recommendation of the Nomination and Remuneration Committee of the board of directors and upon receipt of her nomination from one of the members in writing. Third, the appointment was subject to approval by the shareholders, which is now in place. Fourth, Priya is showcased as a highly talented individual with a diverse set of skills and vast business experience. A double masters in Mathematics and Business Management, Priya is a former investment banker and 'luxury retail pioneer'. She began her professional life with Credit Suisse First Boston in London and as per the Sona annual report, Priya has led ventures in automotive retail, insurance and high fashion. Among the board level skills listed against her name are: Strategic planning, thinking and management; global exposure; accounting and legal; and regulatory compliance. Subsequent to her appointment on the board, Priya has also been made the chairperson of Sona's CSR committee. The feud: Rani Kapur has raised questions about the ownership structure of Aureus, the company through which the Kapur family owns 28.02 per cent stake in Sona BLW Precision. Reports have suggested that the matriarch has alleged she was made to sign several documents without knowing their content and that she was suspicious of the cause of death of Sanjay. Though nothing has been said about any opposition to Priya's appointment as a director in Sona after Sanjay's demise, the very fact that Aureus' shareholding is being questioned automatically brings the spotlight on to the late Chairman's wife and her role at Sona. Vaibhav Gaggar, the lawyer representing Rani Kapur, meanwhile sought more time to respond to questions over the entire dispute.
Mint
2 hours ago
- Mint
Heineken Beer Sales Fall as Price Dispute Took Longer to Fix
(Bloomberg) -- Heineken NV saw a decline in beer volumes, as retailer disputes across Europe dragged on sales and limited its ability to take advantage of the summer heat wave. The Dutch brewer reported a 0.4% fall in volumes during the second quarter, worse than analyst estimates. The main driver was Western Europe, where Heineken faced disputes with regional buying groups over price negotiations that lasted longer into the quarter than anticipated. The negotiations in France, the Netherlands and Spain that escalated in March are now resolved, Heineken said in a statement Monday. France saw a 'strong recovery' in June as a result, it added. Prices overall were up 1.2% in the first half in Europe, 'in that sense positive price mix. Which is what we were negotiating for,' Chief Executive Officer of Heineken Dolf van den Brink said on a call. A key point of contention was being able to pass on cost and wage increases, he added, declining to comment further. Heineken expects stable volumes this year amid a decline in consumer spending the Americas and Europe. It now wants to save €500 million ($587 million) in 2025, more than previously announced, to offset the lower volumes. 'We would expect the shares better today,' Jefferies analysts Edward Mundy and Sebastian Hickman said in a note, citing the reiterated outlook and strong performance in Asia and Africa offsetting pressures in Europe and the Americas. Organic operating profit grew 7.4% in the first half of the year, boosted by expansion in Vietnam, India and China. It maintained operating profit guidance of between 4-8% for the full year. Heineken beer volumes fell 1.2% in Americas in the first half as the industry grapples with a downturn in US spending including among Hispanic consumers. The world's biggest brewers have all come under pressure in the key market. Molson Coors Beverage Co. and Anheuser Busch InBev SA have seen volumes weaken, while Constellation Brands Inc, which sells the Modelo Especial and Corona brands in the US, said earlier this year beer sales were muted in states with large Hispanic populations. Beer markets have declined at a pace Heineken has 'rarely seen any time before,' said van den Brink. In the wake of the EU's trade agreement with the US, which will see the bloc face a 15% tariff on most of its exports, van den Brink said the amount was largely in line with what the company had been expecting. 'On the trade deal, what is important is that clarity, that escalation was avoided and it is a new reality for Europe to adapt to,' van den Brink said in a TV interview with Bloomberg. 'Beer is local for locals, so the impact is as expected.' Heineken manufactures locally in the vast majority of its markets, he said, adding that there would be some impact on profit of US operations, which will weigh more heavily in the second half of the year. Heineken is assessing whether to move manufacturing to the US as a result of the tariffs, he said, adding brewing was capital intensive. 'As such we really need consistency in regulation and tariffs to make a final call. We are looking at options.' More stories like this are available on
Time of India
3 hours ago
- Time of India
Heineken sees beer sales dip but keeps profit outlook
Heineken, the world's second-largest brewer, reported a dip in beer sales for the first half of the year due to declining demand in Europe and the US, despite growth in Asian markets like Vietnam and India. Total sales reached 14.2 billion euros, with operating profits slightly exceeding expectations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Dutch brewer Heineken sold less beer in the first half of the year, it announced Monday, as a slump in sales in Europe and the US failed to offset better performance in Asia. Global beer volumes for the world's second-biggest brewer after AB InBev came in at 116.4 million hectolitres, compared with 118.2 million in the first six months of was also below the 117.0 million hectolitres expected in analysts' forecasts published by the company."Notable growth in Vietnam, India... and Mexico was more than offset by declines in Brazil, the US, and parts of Europe," said the firm in a company, whose brands include Amstel, Kingfisher, and Savanna cider, maintained its full-year outlook for a gain of between four and eight percent in operating profits, its preferred Chief Executive Officer Dolf van den Brink welcomed the deal clinched late Sunday between the EU and the United States that averted a possible trade war."I think it's good that the uncertainty ends that. Further escalation has been avoided. We have now clarity going forward for Heineken," he told said the impact of the tariffs -- a flat 15-percent rate for most EU goods into the US -- had already been baked into their profit all of its products -- 95 percent said the CEO -- were manufactured and sold in local markets, so tariffs do not apply."As such, the impact for us is manageable," he said total sales were 14.2 billion euros in the first half year, compared with 14.8 billion euros in the first six months of was roughly in line with firm said this represented "organic growth" -- stripping out the impact of currency fluctuations -- of 2.1 profits excluding exceptional items and amortisation -- the firm's preferred measure -- came in at 2.0 billion euros, fractionally above expectations.
