ASML Delivers Despite Tariff Uncertainty

Image: ASML Holding’s shares have been choppy during the past couple years.

By Brian Nelson, CFA

ASML Holding NV (ASML) recently reported mixed first quarter results with net sales missing the consensus forecast, but GAAP earnings per share coming in better than expected. First quarter total net sales were €7.7 billion on a gross margin of 54%. Net income came in at €2.4 billion, while total quarterly net bookings were a healthy €3.9 billion. Management had the following to say about the quarterly performance:

Our first-quarter total net sales came in at €7.7 billion, in line with our guidance. The gross margin was 54.0%, above guidance, driven by a favorable EUV product mix and the achievement of performance milestones. In the first quarter, we shipped our fifth High NA system, and we now have these systems at three customers.

Our conversations so far with customers support our expectation that 2025 and 2026 will be growth years. However, the recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while. As previously shared, artificial intelligence continues to be the primary growth driver in our industry. It has created a shift in the market dynamics that benefits some customers more than others, contributing to both upside potential and downside risks as reflected in our 2025 revenue range.

Looking to the second quarter of 2025, ASML expects “total net sales between €7.2 billion and €7.7 billion, with a gross margin between 50% and 53%.” The firm expects “R&D costs of around €1.2 billion and SG&A costs of around €300 million.” Looking to the full year, ASML expects “total net sales for the year between €30 billion and €35 billion, with a gross margin between 51% and 53%, subject to the uncertainties mentioned earlier.” Though tariffs remain an area of uncertainty, we continue to like ASML as a holding in the ESG Newsletter portfolio.

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