ASML shares drop 5% on soft bookings despite steady 2025 outlook

Published 16/04/2025, 06:36
Updated 16/04/2025, 08:52
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Investing.com -- Shares of ASML (AS:ASML) fell over 5% its first-quarter 2025 results, as slightly softer-than-expected bookings and a cautious near-term outlook overshadowed otherwise solid quarterly performance and unchanged full-year guidance.

ASML reported total net sales of €7.74 billion in Q1, which was broadly in line with both company guidance and analyst expectations. 

Gross margin stood at 54%, coming in ahead of consensus, helped by a favorable product mix, including a higher-than-expected number of NXE:3800 EUV systems and richer configurations.

Net income for the quarter came in at €2.36 billion, with earnings per share at €6. The company’s quarterly net bookings totaled €3.94 billion, which was 17% lower than consensus expectations of €4.74 billion. 

Of the total bookings, €1.2 billion was attributed to EUV systems, including both low and high numerical aperture models.

The cyclicality of the semiconductor equipment market is evident in the decline of net sales from €9.26 billion in Q4 2024.

The company shipped 73 new lithography systems in Q1, down from 119 in Q4, and only four used systems versus 13 in the prior quarter.

For the second quarter of 2025, ASML guided for revenue between €7.2 billion and €7.7 billion, with the midpoint of €7.45 billion falling short of consensus forecasts of €7.8 billion. 

The projected gross margin range of 50–53% is also slightly lower than market expectations, with the midpoint (51.5%) coming in below the Jefferies estimate of 52.5%.

Despite the shortfall in bookings and a softer Q2 revenue outlook, ASML reiterated its full-year 2025 guidance of total net sales between €30 billion and €35 billion and gross margin in the 51–53% range. 

These figures remain consistent with previous commentary issued alongside Q4 2024 results. The company also reaffirmed its expectation that 2026 will be a growth year.

ASML stated it is working to limit the financial impact of recently announced tariffs on its shipments to the US and other markets. 

“However, the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while,” chief executive Christophe Fouquet said in a statement.

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