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Introduction & Market Context
ASML Holding NV (NASDAQ:ASML) reported robust second-quarter 2025 results on July 16, 2025, highlighting continued strength in the semiconductor equipment market amid growing demand for advanced chip technologies. The Dutch lithography giant delivered €7.7 billion in total net sales and €2.3 billion in net income, positioning itself to capitalize on the semiconductor industry’s projected expansion beyond $1 trillion by 2030.
The company’s presentation emphasized the critical role of AI in driving industry growth while acknowledging the challenges of power consumption and cost that will require major technological innovations. ASML’s lithography solutions remain central to addressing these challenges as chipmakers push for more advanced logic and memory capabilities.
Quarterly Performance Highlights
ASML’s Q2 2025 financial performance demonstrated the company’s continued market leadership and operational efficiency. The company achieved €7.7 billion in total net sales, with €5.6 billion from system sales and €2.1 billion from Installed Base Management.
The quarter’s results reflected strong profitability metrics, with a gross margin of 53.7% and an operating margin of 34.6%. Net income represented 29.8% of total net sales, resulting in basic earnings per share of €5.90. Net bookings for the quarter reached €5.5 billion, including €2.3 billion in EUV bookings.
As shown in the following comprehensive financial summary:
Technology Leadership and Product Developments
A significant milestone in Q2 was the shipment of ASML’s first EXE:5200B system, representing the company’s continued innovation in extreme ultraviolet (EUV) lithography technology. This advanced system features improved productivity and overlay performance, with throughput of ≥175 wafers per hour at 50mJ/cm² and resolution of 8 nm.
The EXE:5200B incorporates several technological advancements, including enhanced lens and illuminator components, 1µm pre-pulse EUV Source technology, and improved wafer handling capabilities. These innovations enable semiconductor manufacturers to produce increasingly complex and miniaturized chip designs required for AI and other advanced computing applications.
The following image details the specifications and key components of this groundbreaking system:
Sales Analysis by Segment
ASML’s Q2 2025 system sales showed a diverse mix across technologies, end-uses, and regions. EUV systems accounted for 48% of net system sales, followed by ArFi at 43%, with other technologies making up the remainder. By end-use, Logic represented 69% of sales, with Memory accounting for 31%.
Geographically, Taiwan led with 35% of net system sales, followed by China at 27% and South Korea at 19%. The company delivered 11 EUV systems, 31 ArFi systems, and various other lithography units during the quarter.
This detailed breakdown of system sales provides insight into ASML’s market penetration across different technologies and regions:
Looking at longer-term trends, ASML’s total net sales by end-use from 2021 through Q2 2025 show consistent growth, with increasing contributions from both Logic and Memory segments. The company’s 2025 performance through Q2 (€15.43 billion) already represents more than half of its full-year 2024 sales (€28.26 billion), indicating strong momentum.
Net bookings for Q2 2025 totaled €5.54 billion, showing a significant shift toward Logic at 84% compared to 16% for Memory. This represents a change from Q1 2025, when Logic accounted for 60% of bookings versus 40% for Memory, potentially reflecting increased demand for advanced logic chips driven by AI applications.
Shareholder Returns
ASML continued its commitment to returning cash to shareholders in Q2 2025. The company paid a final dividend of €1.84 per ordinary share, bringing the total dividend for 2024 to €6.40. Looking ahead, the first quarterly interim dividend for 2025 will be €1.60 per share.
The company also maintained its share repurchase program, buying back approximately 2.3 million shares for a total of €1.4 billion during Q2. This reflects ASML’s strong cash generation capabilities and commitment to shareholder returns.
As illustrated in the following chart, ASML has demonstrated consistent dividend growth from 2015 through 2025, alongside substantial cumulative cash returns through both dividends and share buybacks:
Forward-Looking Statements
For Q3 2025, ASML projects total net sales between €7.4 billion and €7.9 billion, with Installed Base Management sales of around €2.0 billion. The company expects a gross margin between 50% and 52%, with R&D costs of approximately €1.2 billion and SG&A costs of around €310 million.
For the full year 2025, ASML forecasts total net sales growth of around 15% compared to 2024, with a gross margin of approximately 52%. The company anticipates an annualized effective tax rate of around 17%.
The detailed financial outlook for both Q3 and full-year 2025 is presented below:
Looking further ahead, ASML’s investor key messages highlighted a 2030 annual revenue opportunity between €44 billion and €60 billion, with gross margin projected between 56% and 60%. This long-term outlook is supported by the company’s technological leadership, strong industry partnerships, and the growing demand for advanced semiconductor manufacturing capabilities driven by AI and other emerging technologies.
Conclusion
ASML’s Q2 2025 results demonstrate the company’s continued dominance in the semiconductor equipment market, particularly in advanced lithography systems critical for cutting-edge chip production. With strong financial performance, technological advancements like the EXE:5200B system, and a positive outlook for both near-term and long-term growth, ASML appears well-positioned to capitalize on the semiconductor industry’s expansion.
The company’s focus on addressing the technological challenges of AI through lithography innovation, coupled with its commitment to shareholder returns, reinforces its status as a key enabler of the semiconductor industry’s future growth. As the industry moves toward the $1 trillion milestone by 2030, ASML’s lithography solutions will likely remain essential to enabling the next generation of computing capabilities.
Full presentation:
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