Despite 'Deep-Sea Concerns'... ASML Exceeds Earnings Expectations and Sees Surge in Order Volume

Both Net Sales and Net Profit in Q4 Last Year Surpassed Expectations
Order Amount Up 169% Compared to Previous Quarter
CNBC: "Demand for AI Chip Production Equipment Remains Strong"

Dutch semiconductor equipment company ASML announced on the 29th that it recorded net sales of 9.3 billion euros (approximately 14 trillion KRW) and net profit of 2.7 billion euros (approximately 4.1 trillion KRW) in the fourth quarter of last year.

Roger Dassen, ASML Chief Financial Officer (CFO), and Christophe Fouquet, ASML Chief Executive Officer (CEO). Photo by Hoffman Agency

Both the fourth-quarter sales and net profit exceeded the figures predicted by market research firm LSEG (net sales of 9.07 billion euros, net profit of 2.64 billion euros). The gross profit margin was 51.7%. The order amount in the fourth quarter was 7.09 billion euros (approximately 10.7 trillion KRW), a 169% increase compared to the previous quarter.

CNBC analyzed the increase in ASML's fourth-quarter orders, stating, "Although concerns about the AI market are growing due to China's AI chatbot 'DeepSeek,' it indicates strong demand for advanced AI chip production equipment."

ASML's annual net sales last year totaled 28.3 billion euros, with a net profit of 7.6 billion euros. The gross profit margin was 51.3%.

ASML is the sole producer of extreme ultraviolet (EUV) lithography equipment necessary for semiconductor fine processes. The price of EUV equipment is around 200 to 300 billion KRW per unit, with an annual production volume of about 50 units. Of the fourth-quarter order amount, 3 billion euros were for EUV equipment.

Christopher Fuche, ASML's Chief Executive Officer (CEO), explained, "The fourth-quarter results include sales of two High Numerical Aperture (NA) EUV machines," adding, "ASML shipped the third High NA EUV machine to a customer in the fourth quarter."

ASML forecasted first-quarter net sales of 7.5 to 8 billion euros and a gross profit margin of 52 to 53%. For the full year, it expects net sales of 30 to 35 billion euros and a gross profit margin of 51 to 53%, anticipating an improvement in the semiconductor market compared to last year.

CEO Fuche stated, "The growth of AI is driving the growth of the semiconductor industry," but also noted, "The changes in market dynamics brought by AI are not positive for all of ASML's customers, and the resulting opportunities and risks are reflected in ASML's sales outlook for this year."