ASML Holding NV (ASML) Q2 2025 Earnings Call Highlights: Strong Sales and Margin Performance ...
Net System Sales: EUR5.6 billion, with EUR2.7 billion from EUV sales and EUR2.9 billion from non-EUV sales.
Installed Base Management Sales: EUR2.1 billion, above guidance.
Gross Margin: 53.7%, above guidance.
R&D Expenses: EUR1.2 billion.
SG&A Expenses: EUR299 million.
Net Income: EUR2.3 billion, representing 29.8% of total net sales.
Earnings Per Share: EUR5.90.
Cash, Cash Equivalents, and Short-term Investments: EUR7.2 billion.
Net System Bookings: EUR5.5 billion, with EUR2.3 billion from EUV and EUR3.2 billion from non-EUV.
Backlog: Approximately EUR33 billion.
Final Dividend Paid: EUR1.84 per ordinary share.
First Quarterly Interim Dividend for 2025: EUR1.60 per ordinary share.
Share Buyback: EUR1.4 billion in Q2 2025, totaling EUR5.8 billion for the 2022-2025 program.
Full Year 2025 Revenue Growth Guidance: Around 15% increase with a gross margin of around 52%.
Q3 2025 Revenue Guidance: EUR7.4 billion to EUR7.9 billion.
Q3 2025 Gross Margin Guidance: 50% to 52%.
Q3 2025 R&D Expenses Guidance: Around EUR1.2 billion.
Q3 2025 SG&A Expenses Guidance: Around EUR310 million.
Warning! GuruFocus has detected 6 Warning Sign with FHN.
Release Date: July 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
ASML Holding NV (NASDAQ:ASML) reported total net sales of EUR7.7 billion for Q2 2025, reaching the upper end of their guidance.
The company's gross margin for the quarter was above guidance at 53.7%, driven by increased upgrade business and lower-than-expected tariff impacts.
Net income for Q2 was EUR2.3 billion, representing 29.8% of total net sales, with earnings per share of EUR5.90.
ASML Holding NV (NASDAQ:ASML) expects a 30% increase in EUV capacity in 2025 compared to 2024, driven by higher productivity of the NXE:3800E systems.
The company anticipates a 15% revenue increase for the full year 2025, with a gross margin of around 52%.
Negative Points
ASML Holding NV (NASDAQ:ASML) faces increasing uncertainties due to macroeconomic and geopolitical developments, impacting customer capital expenditure timing.
The gross margin in the second half of 2025 is expected to be lower than the first half, primarily due to the margin dilutive effect of High NA systems.
There is a EUR1.4 billion adjustment in the backlog related to customer responses to export restrictions, affecting Deep UV and application business.
The company has not confirmed growth for 2026 due to ongoing uncertainties, despite preparing for potential growth.
ASML Holding NV (NASDAQ:ASML) is experiencing a shift in demand dynamics, with China accounting for over 25% of total revenue, raising concerns about potential pull-forwards.
Q & A Highlights
Q: Why is the EUV revenue growth lower than expected, and how does it relate to the installed base business? A: Roger Dassen, CFO, explained that the expected EUV growth for the year is about 30%, down from an initial higher estimate. The difference is due to a shift in revenue from system sales to the upgrade business, as many tools shipped at lower configurations are being upgraded to full capacity, which is accounted for in the installed base business rather than system sales.
Q: How does ASML price its tools, and is there a difference in value between multi-patterning Low NA and single High NA EUV? A: Christophe Fouquet, CEO, confirmed that ASML prices its tools based on the value provided to customers, including productivity and performance improvements. High NA EUV offers significant value by simplifying processes and enabling further node advancements, which can justify higher pricing compared to multi-patterning Low NA EUV.
Q: What impact does the potential removal of export bans on AI chips to China have on ASML? A: Roger Dassen noted that while it may not directly result in a significant increase in tool sales, the removal of export bans is positive for the broader ecosystem, potentially strengthening global reach and benefiting ASML indirectly.
Q: How does ASML view the current uncertainty around tariffs and its impact on 2026 growth projections? A: Christophe Fouquet and Roger Dassen highlighted that ongoing tariff discussions create uncertainty, affecting customer investment decisions. This uncertainty has led ASML to be more cautious about confirming growth for 2026, despite strong underlying demand driven by AI.
Q: What are the key milestones for High NA EUV adoption, and how is the program progressing? A: Christophe Fouquet stated that the current focus is on qualifying the technology with the EXE:5000 system. The next phase involves ensuring tool maturity for high-volume manufacturing, with the EXE:5200 system being a critical step. The program is progressing well, with positive customer feedback on performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
a few seconds ago
- USA Today
Trump's EU trade deal ushers in a golden age for blue-collar workers
Critics can hate Donald Trump's personality all they want, but the president's ability to forge trade deals that favor American workers shouldn't be discounted. Between golf rounds in Scotland, President Donald Trump secured a deal with the European Union this weekend that promises an extraordinary boon for American workers. After months of negotiations, the EU succumbed to Trump's pressure on trade, agreeing on July 27 to 15% tariffs on many U.S. imports from Europe. The EU also agreed to buy $750 billion worth of oil, gas and nuclear fuel from U.S. energy producers over the next three years. And Europe's governing body agreed to invest $600 billion in U.S. operations. Details on the energy and investment stipulations are vague for now. But if they happen at anywhere close to the levels promised, they will be a huge boost for the U.S. economy and drive job growth in agriculture, energy and other vital sectors. Trump's EU trade deal is fuel for US economy The EU deal is a big deal on multiple fronts. When Trump threatened high tariffs in April, stock markets plummeted. Critics claimed Trump was wrecking the economy, and analysts raised fears of a recession this year. Three months later, the Nasdaq and S&P 500 have set multiple record highs, job growth is strong and forecasters expect a healthy growth in gross domestic product when the second quarter number is released this week. I've heard few critics, save perhaps comedian Bill Maher, acknowledge that tariffs functioned as excellent leverage to persuade countries to agree to more favorable trade terms with the U.S. Many of those critics underestimated the president's negotiation skills. The Financial Times reported that one European ambassador remarked, 'Trump worked out exactly where our pain threshold is." Opinion: Nvidia CEO says Trump gives America an advantage. Hear that, progressives? Trump's EU deal will help blue-collar workers The decades-long push for young people to attend college rather than gain the skills needed to work in a trade has created a labor gap. A McKinsey study released in 2024 found that manufacturers and construction companies face a hiring crunch for carpenters, electricians, welders and plumbers. This EU deal might help change that as hundreds of billions of dollars are poured into the energy industry and other sectors. The financial incentives to work in the skilled trades could well be better than ever. Opinion: In-N-Out owner places order to go − out of California Mike Rowe, former host of the television show "Dirty Jobs," has become an ambassador for blue-collar employment via his foundation, which offers scholarships to help young people complete a trade program. On July 22, Rowe told Brian Kilmeade on his Fox News show that "paralegal, and anything creative, writing in general, coding … AI is going to come for those" jobs. But Rowe said there's never been a better time to become a skilled laborer: "We are entering the golden age of plumbing, steamfitting, pipefitting, welding, HVAC. Those jobs are not going to be impacted by' artificial intelligence. Critics can hate Trump's personality all they want, but the president's ability to forge trade deals that favor American workers shouldn't be discounted. I voted for this and would do so again. After months of economic wins, I'd like to know why you didn't? Nicole Russell is a columnist at USA TODAY and a mother of four who lives in Texas. Contact her at nrussell@ and follow her on X, formerly Twitter: @russell_nm. Sign up for her weekly newsletter, The Right Track, here.
Forbes
a minute ago
- Forbes
Buy or Sell META Stock Ahead of Its Upcoming Earnings?
CHONGQING, CHINA - JULY 28: In this photo illustration, a person holds a smartphone displaying the ... More logo of Meta Platforms Inc. (NASDAQ: META), the parent company of Facebook, Instagram, and WhatsApp, with the company's blue infinity loop symbol visible in the background, on July 28, 2025 in Chongqing, China. (Photo illustration by) Meta Platforms (NASDAQ:META) is set to publish its earnings report on Wednesday, July 30, 2025. For those trading based on events, analyzing Meta's historical stock behavior surrounding earnings can be vital, although the actual outcomes compared to expectations will predominantly influence the market. In the last five years, Meta's stock has portrayed a notably volatile yet evenly distributed reaction to earnings surprises. In 50% of the cases, the stock recorded a positive one-day return, yielding a notable median increase of 7.7% and a peak one-day rise of 23.3%. On the other hand, in the remaining 50% of situations, the stock faced a negative one-day return, with a median decrease of -4.7% and a peak one-day fall of -26.4%. This symmetrical but extreme historical behavior emphasizes the substantial risk and reward linked to trading Meta around earnings announcements. Considering this historical tendency, event-driven traders may choose between two main strategies: Currently, analysts forecast Meta to report earnings of $5.90 per share with revenues of $44.8 billion. These projections indicate growth compared to the same quarter last year, when Meta reported earnings of $5.16 per share on revenues of $39.07 billion. From a fundamental perspective, Meta Platforms holds a significant current market capitalization of $1.8 trillion. Over the past year, the company produced $170 billion in revenue, presenting strong operational profitability with $73 billion in operating profits and a net income of $67 billion. If you are looking for potential gains with lower volatility than individual stocks, the Trefis High Quality portfolio offers a viable alternative – having outperformed the S&P 500 with returns exceeding 91% since its launch. Additionally, check out – QuantumScape: QS Stock To $0? See earnings reaction history of all stocks Meta Platforms' Historical Odds Of Positive Post-Earnings Return Here are some insights on one-day (1D) returns following earnings announcements: Additional information for observed 5-Day (5D) and 21-Day (21D) returns following earnings is summarized along with the statistics in the table below. META 1D, 5D, and 21D Post Earnings Return Correlation Between 1D, 5D, and 21D Historical Returns A relatively less risky approach (though ineffective if the correlation is weak) is to comprehend the correlation between short-term and medium-term returns post earnings, identify a pair with the strongest correlation, and carry out the correct trade. For instance, if 1D and 5D reflect the highest correlation, a trader can take a 'long' position for the next 5 days if the 1D post-earnings return is positive. Here is some correlation information based on 5-year and 3-year (more recent) data. Note that the correlation 1D_5D denotes the relationship between 1D post-earnings returns and the subsequent 5D returns. META Correlation Between 1D, 5D, and 21D Historical Returns Is There Any Correlation With Peer Earnings? Occasionally, peer performance can affect stock reactions following earnings announcements. Indeed, the pricing-in may begin prior to the announcements. Below is some historical data regarding the past post-earnings performance of Meta Platforms stock compared to the stock behaviors of peers that released earnings shortly before Meta Platforms. For a fair assessment, the returns of peer stocks also signify post-earnings one-day (1D) returns. META Correlation With Peer Earnings Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors. Separately, if you desire upside with a smoother experience than a single stock like Meta Platforms, explore the High Quality portfolio, which has beaten the S&P and achieved >91% returns since its inception.
Associated Press
13 minutes ago
- Associated Press
Himax Subsidiary Liqxtal Proprietary Vision-Care Pro-Eye Monitor Named Finalist for Top Ten Age-Friendly Technology Product
TAINAN, Taiwan, July 29, 2025 (GLOBE NEWSWIRE) -- Liqxtal Technology Inc. ('Liqxtal'), a subsidiary of Himax Technologies, Inc. (Nasdaq: HIMX), and a pioneer in liquid crystal optical innovation, today announced that its flagship vision-care product, the Liqxtal® Pro-Eye Monitor, has been selected as a finalist in the 2025 Top Ten Age-Friendly Technology Product Awards, presented by the Taiwan Healthy Ageing Tech Show Committee. This prestigious recognition honors outstanding innovations that promote health, comfort, and quality of life for Taiwan's aging population. Built on Liqxtal's patented electrically tunable liquid crystal technology, the Pro-Eye monitor projects digital images to a virtual viewing distance of approximately 16 feet, dramatically farther than the typical 20 – 24 inches of conventional monitors. This design significantly eases ciliary muscle strain and reduces eye fatigue, offering a more natural and effortless viewing experience, especially for seniors experiencing dry eyes or blurred vision due to extended screen use. With Taiwan's senior population rapidly growing, technologies that support visual wellness are increasingly vital to long-term care and healthy aging. Since its debut, the Pro-Eye Monitor has garnered strong interest across healthcare, eldercare, and smart home industries for its potential to redefine visual comfort for older adults. Evaluated by a panel of experts from the Taiwan Ministry of Economic Affairs and academic institutions, its selection as a top ten finalist underscores Liqxtal's leadership in age-friendly innovation. Liqxtal Pro-Eye Monitor will be showcased at the 2025 Taiwan Healthy Ageing Tech Show, held August 8 – 10 at Taipei World Trade Center Hall 1. Purposefully engineered to address age-related visual challenges, the Pro-Eye represents Liqxtal's commitment to improving elderly eye health through advanced optical technology. During the event, Liqxtal will also exhibit other smart optical solutions, including the Liqxtal® Dim, which integrates Liqxtal's proprietary pixelated liquid crystal light valve with Himax's WiseEye™ ultralow power AI sensing technology, empowering an intelligent system that automatically adjusts light transmittance based on ambient conditions, enhancing both comfort and safety for seniors in varying lighting environments. 'Liqxtal has been dedicated to advancing liquid crystal optical technologies to deliver eye-care solutions that provide both comfort and functionality,' said Dr. Hung Shan Chen, President of Liqxtal. 'Being named a finalist for the top 10 Age-Friendly Technology Awards is a significant milestone that reinforces our commitment to extending this transformative technology to a broader range of aging-related applications, bringing us closer to our vision of a smarter, healthier lifestyle.' Liqxtal warmly invites media, healthcare professionals, and industry partners to visit Booth A805 at the Taiwan Healthy Ageing Tech Show during August 8 –10, to experience the Pro-Eye Monitor firsthand and explore how next-generation liquid crystal optics are shaping the future of visual wellness in senior care. About Liqxtal Technology Inc. Liqxtal Technology Inc. is a Taiwan based company that has been focused on exploring opportunities with liquid crystal ('LC') beyond just displays since the company's inception. With a distinguished track record in liquid crystal optics, Liqxtal has developed liquid crystal based optical components such as LC lens for ophthalmic application, LC diffuser for 3D sensing and LC retarder for light sensing. Additionally, Liqxtal designed and released LQ001, a high voltage & tunable frequency LC driver with a 1mm x 2mm footprint, which is particularly ideal for portable products. As a subsidiary of Himax Technologies, Liqxtal also integrates novel display solutions such as tunable backlight with local dimming capability powered by FPGA for niche applications. Lastly, Liqxtal is dedicated to novel vision eyewear technology and strives to innovate and advance useful optical solutions to the world. About Himax Technologies, Inc. Himax Technologies, Inc. (NASDAQ: HIMX) is a leading global fabless semiconductor solution provider dedicated to display imaging processing technologies. The Company's display driver ICs and timing controllers have been adopted at scale across multiple industries worldwide including TVs, PC monitors, laptops, mobile phones, tablets, automotive, ePaper devices, industrial displays, among others. As the global market share leader in automotive display technology, the Company offers innovative and comprehensive automotive IC solutions, including traditional driver ICs, advanced in-cell Touch and Display Driver Integration (TDDI), local dimming timing controllers (Local Dimming Tcon), Large Touch and Display Driver Integration (LTDI) and OLED display technologies. Himax is also a pioneer in tinyML visual-AI and optical technology related fields. The Company's industry-leading WiseEye™ Ultralow Power AI Sensing technology which incorporates Himax proprietary ultralow power AI processor, always-on CMOS image sensor, and CNN-based AI algorithm has been widely deployed in consumer electronics and AIoT related applications. Himax optics technologies, such as diffractive wafer level optics, LCoS microdisplays and 3D sensing solutions, are critical for facilitating emerging AR/VR/metaverse technologies. Additionally, Himax designs and provides touch controllers, OLED ICs, LED ICs, EPD ICs, power management ICs, and CMOS image sensors for diverse display application coverage. Founded in 2001 and headquartered in Tainan, Taiwan, Himax currently employs around 2,200 people from three Taiwan-based offices in Tainan, Hsinchu and Taipei and country offices in China, Korea, Japan, Germany, and the US. Himax has 2,609 patents granted and 370 patents pending approval worldwide as of June 30, 2025. Forward Looking Statements Factors that could cause actual events or results to differ materially from those described in this conference call include, but are not limited to, the effect of the Covid-19 pandemic on the Company's business; general business and economic conditions and the state of the semiconductor industry; market acceptance and competitiveness of the driver and non-driver products developed by the Company; demand for end-use applications products; reliance on a small group of principal customers; the uncertainty of continued success in technological innovations; our ability to develop and protect our intellectual property; pricing pressures including declines in average selling prices; changes in customer order patterns; changes in estimated full-year effective tax rate; shortage in supply of key components; changes in environmental laws and regulations; changes in export license regulated by Export Administration Regulations (EAR); exchange rate fluctuations; regulatory approvals for further investments in our subsidiaries; our ability to collect accounts receivable and manage inventory and other risks described from time to time in the Company's SEC filings, including those risks identified in the section entitled 'Risk Factors' in its Form 20-F for the year ended December 31, 2024 filed with the SEC, as may be amended. Liqxtal Contact: Henry Hung, Deputy Director of Market & Sales Division Liqxtal Technology Inc. Tel: +886-6-505-0880 Email: [email protected] Himax Contacts: Karen Tiao, Head of IR/PR Himax Technologies, Inc. Tel: +886-2-2370-3999 Fax: +886-2-2314-0877 Email: [email protected] Mark Schwalenberg, Director Investor Relations - US Representative MZ North America Tel: +1-312-261-6430 A photo accompanying this announcement is available at:
