asml's q1 sales strong, but bookings disappoint amid tariff worries

2025-04-16 asml

Veldhoven, Wednesday, 16 April 2025.
asml, a critical firm in chip manufacturing, reported q1 2025 net sales of €7.7 billion and a net income of €2.4 billion. Bookings, however, missed estimates at €3.94 billion versus the €4.89 billion expected. This shortfall sent asml shares down 5% today. asml cautions that tariffs are creating uncertainty for 2025 and 2026. Despite the bookings miss, the company reaffirmed its full-year revenue guidance of between €30 billion and €35 billion. The u.s. commerce department launched a national security investigation into semiconductor imports.

Financial performance details

ASML’s Q1 2025 earnings per share (EPS) reached €6.85, with net sales hitting €7.74 billion [6]. These figures compare to Q1 2024, when EPS was €6 and net sales were €9.26 billion [6]. The company’s gross margins also saw expansion, increasing to 54% from 51.7% in the same quarter last year [6]. Despite the year-over-year decline in net sales, ASML’s gross margin exceeded expectations, driven by a favorable EUV product mix and the achievement of performance milestones [3].

Bookings slump and market reaction

The company’s Q1 2025 bookings amounted to €3.94 billion, including €1.2 billion from EUV lithography systems [3]. This represents a significant decrease from the €7.08 billion in bookings reported in Q1 2024 [6]. The lower-than-expected bookings figure has sparked concerns among investors, leading to a 5% drop in ASML’s share price [2][7]. Some market watchers anticipate a potential ‘major’ market correction due to the weak orders and growing uncertainty [6].

Tariff concerns and future outlook

CEO Christophe Fouquet acknowledged that recent tariff announcements have amplified uncertainty in the macro environment [6]. He noted that these tariffs could disproportionately affect certain customers, creating both upside potential and downside risks for ASML’s 2025 revenue [6][7]. Despite these concerns, ASML reaffirmed its expectation for 2025 net sales to fall between €30 billion and €35 billion, with a gross margin of 51% to 53% [6][3]. The company anticipates 2025 and 2026 will be growth years, driven by strong demand for AI [1][7].

Strategic considerations and analyst perspectives

ASML intends to declare a total dividend for 2024 of €6.40 per ordinary share, representing a 5.09 ≈ 4.9 percent increase compared to 2023 [3][7]. The final dividend proposal is subject to approval at the Annual General Meeting [7]. Despite the current headwinds, some analysts remain optimistic. Nick Rossolillo of Concinnus Financial views the unchanged 2025 financial guidance as positive, especially given fears that guidance might be eliminated entirely [7]. ASML’s CFO, Roger Dassen, emphasized the need for a fair allocation of tariff burdens, suggesting that U.S. entities should bear the majority of the cost [7].

Bronnen

financial results net bookings