asml reports record-breaking order surge, eyes future growth
Veldhoven, Wednesday, 5 February 2025.
asml’s fourth-quarter earnings report impressed investors as the company revealed a staggering 169% increase in orders, amounting to 7.1 billion euros ($7.4 billion). This surge in demand comes amid concerns over Chinese trade restrictions and potential impacts on chip demand due to emerging technologies like DeepSeek. Despite geopolitical uncertainties, asml’s advanced euv technology remains in high demand, suggesting robust revenue growth. The company projects its q1 2025 revenue to land between 7.5 billion and 8 billion euros ($7.8 billion to $8.3 billion). Total revenue for 2025 is forecasted to reach up to 35 billion euros ($36.3 billion). By 2030, asml aims for a revenue mark between 44 billion and 60 billion euros ($45.7 billion to $62.3 billion), driven by ai chip demand. amid these developments, asml plans to stop quarterly order updates after 2025, opting for annual figures to better portray its long-term growth trajectory.
Market strength and technological advances
ASML demonstrated remarkable performance in Q4 2024 with revenue reaching 9.3 billion euros ($9.7 billion), exceeding guidance and marking a 29% year-over-year increase [1]. The company’s equipment sales grew by nearly 25% to 7.1 billion euros, while service revenue jumped 39% to 2.2 billion euros [1]. A significant milestone was achieved with the delivery of High NA EUV systems, with revenue recognition from two systems and a third being shipped to customers [4].
Strategic shift in reporting
In a notable change to its communication strategy, ASML announced it will discontinue quarterly order reporting after 2025 [7]. CFO Roger Dassen explained this decision stems from the quarterly figures’ tendency to fluctuate, making them less reliable indicators of business trends [7]. The company will maintain transparency through annual undelivered order reports [7], focusing on long-term growth patterns rather than short-term variations [1].
Future outlook and market positioning
ASML’s growth trajectory remains strong with 2025 revenue projected between 30 billion and 35 billion euros, accompanied by gross margins of 51% to 53% [1][3]. The company’s long-term outlook appears particularly robust, with 2030 revenue estimates ranging from 44 billion to 60 billion euros [1]. This growth is expected to be primarily driven by increasing AI chip demand and the continued need for advanced EUV technology [1].