Q2 2025 ASML Holding NV Earnings Call - Pre-Recorded

July 16, 2025

Hello, and welcome to Asml's Q2, 2025 video.

Can I start with you by asking you to give US a summary of our Q2 2025 results absolutely revenue came in at 7.7 billion euros are part of that was also the revenue recognition for one <unk> Hiney tool, India in the quarter and included in the 7.7 $2 1 billion of our installed base revenue.

Hello, and welcome to ASML's Q2 2025 video.

Jim Kavanagh: Hello and welcome to ASML's Q2 2025 video. Roger, can I start with you by asking you to give us a summary of our Q2 2025 results?

Roger, can I start with you by asking you to give us a summary of our Q2 2025 results? Absolutely. Revenue came in at 7.7 billion euros. Part of that was also the revenue recognition for one high-end tool in the quarter and included in the 7.7, 2.1 billion of install-based revenue. Growth margin came in at 53.7 percent. That was above guidance. The 7.7 was at the high end of the guidance. 53.7 at the above guidance.

[Company Representative] (ASML Holding): Absolutely. Revenue came in at EUR 7.7 billion. A part of that was also the revenue recognition for one High-NA tool in the quarter. Included in the EUR 7.7 billion, EUR 2.1 billion of install base revenue. Gross margin came in at 53.7%. That was above guidance. The EUR 7.7 billion was at the high end of the guidance, 53.7% at the above guidance. What are the reasons why it was higher? A couple of reasons. First off, there was a install base revenue in their upgrades. As we said before, we're upgrading some of the 3800s that we shipped before. We're upgrading them in the field. That leads to, you know, to upgrade revenue.

Roger Dassen: Absolutely. Revenue came in at EUR 7.7 billion. A part of that was also the revenue recognition for one High-NA tool in the quarter. Included in the EUR 7.7 billion, EUR 2.1 billion of install base revenue. Gross margin came in at 53.7%. That was above guidance. The EUR 7.7 billion was at the high end of the guidance, 53.7% at the above guidance. What are the reasons why it was higher? A couple of reasons. First off, there was a install base revenue in their upgrades. As we said before, we're upgrading some of the 3800s that we shipped before. We're upgrading them in the field. That leads to, you know, to upgrade revenue.

Our gross margin came in at 53.7% that was above guidance. The 7.7 was at the high end of the of the guidance.

$53 seven at the above guidance what are the reasons why it was why it was higher a couple of reasons first off there was a installed base revenue in their upgrades as we said before we're upgrading some of the 38 hundreds that we said before we're upgrading them in the field.

What are the reasons why it was higher? A couple of reasons. First off, there was install-based revenue in their upgrades. As we said before, we're upgrading some of the 3800s that we shipped before. We're upgrading them in the field and that leads to upgrade revenue and that has a positive impact on the gross margin.

And that leads to a 222 upgrades our revenue and that has a positive impact on the on the gross margin.

Secondly, we had some one off cost benefits, India in the quarter, a 30 actually the terrorists.

[Company Representative] (ASML Holding): That has a positive impact on the gross margin. Secondly, we had some one-off cost benefits in the quarter. Thirdly, actually the tariffs, you know, panned out to be a bit less negative than we anticipated. Those are the positives. On the negative side, we had as I mentioned before, we had one High-NA tool that we recognized for revenue in the quarter that still has a dilutive effect on the gross margin. All in all, that led to, you know, strong gross margin 53.7%.

Roger Dassen: That has a positive impact on the gross margin. Secondly, we had some one-off cost benefits in the quarter. Thirdly, actually the tariffs, you know, panned out to be a bit less negative than we anticipated. Those are the positives. On the negative side, we had as I mentioned before, we had one High-NA tool that we recognized for revenue in the quarter that still has a dilutive effect on the gross margin. All in all, that led to, you know, strong gross margin 53.7%.

Panned out to be a bit less negative than we than we anticipated.

Secondly, we had some one-off cost benefits in the quarter. Thirdly, the tariffs panned out to be a bit less negative than we anticipated. Those are the positives.

So those are the positives on the negative side.

We had as I mentioned before we had one hi, any tool that we recognized for revenue in the quarter that still has a dilutive effect on the gross margin, but all in all that led to two strong gross margin was $53 seven 7% and order intake.

On the negative side, as I mentioned before, we had one high-end tool that we recognized for revenue in the quarter. That still has a dilutive effect on the gross margin, but that led to a strong margin of 53.7 percent.

Five 5 billion for the for the quarter included and there are $2 3 billion for FY <unk> net income for the quarter came in at $2 3 billion.

Order intake, 5.5 billion for the quarter included in there, 2.3 billion for EUV. Net income for the quarter came in at 2.3 billion.

Jim Kavanagh: Yeah.

[Company Representative] (ASML Holding): Order intake, EUR 5.5 billion for the quarter included in their EUR 2.3 billion for EUV. Net income for the quarter came in at EUR 2.3 billion.

Roger Dassen: Order intake, EUR 5.5 billion for the quarter included in their EUR 2.3 billion for EUV. Net income for the quarter came in at EUR 2.3 billion.

And as a follow on question can you also provide some guidance on the Q3 quarter. Please for Q3, we expect revenue of between 7.4 billion and $7 9 billion, we expect a gross margin.

And as a follow-on question, can you also provide some guidance on the Q3 quarter, please? For Q3, we expect revenue between $7.4 billion and $7.9 billion. We expect a gross margin between 50% and 52%. $2 billion approximately install base revenue is what we're expecting for the quarter.

Jim Kavanagh: As a follow-on question, can you also provide some guidance on the Q3 quarter, please?

<unk> 50 and 52%.

[Company Representative] (ASML Holding): For Q3, we expect revenue between EUR 7.4 billion and EUR 7.9 billion. We expect a gross margin between 50 and 52%. EUR 2 billion approximately install base revenue is what we're expecting for the quarter.

Roger Dassen: For Q3, we expect revenue between EUR 7.4 billion and EUR 7.9 billion. We expect a gross margin between 50 and 52%. EUR 2 billion approximately install base revenue is what we're expecting for the quarter.

Two 2 billion approximately installed base of revenue is what we're expecting for the year for the quarter.

Speaker Change: Christophe can turn to you and ask can you give us a view on how you're seeing the short term market dynamics as they are today, yes.

Christophe: Yeah. So I think as we have said in the previous quarters. Our artificial intelligence is currently the main driver for growth for both logic and memory if.

Christophe, I'm going to turn to you and ask, can you give us a view on how you're seeing the short-term market dynamics as they are today? Yes, so I think, as we have said in the previous quarters, artificial intelligence is currently the main driver for growth for both logic and memory. If we look at logic, we expect logic to grow compared to 2024 because our customers are adding capacity in the most advanced nodes. Memory remains very strong because they also, our customers, are investing in their latest HBM and DDR products. When we look at China, we expect China revenue to be over 25%, which is in line with our backlog.

Jim Kavanagh: Christophe, I've come turn to you and ask, can you give us a view on how you're seeing the short-term market dynamics as they are today?

[Company Representative] (ASML Holding): Yes, I think as we have said in the previous quarters, artificial intelligence is currently the main driver for growth for both logic and memory. If we look at logic, we expect logic to grow compared to 2024 because our customer are adding capacity in the most advanced node. Memory remains very strong because they also, our customer are investing in their latest HBM and DDR product. When we look at China, we expect China revenue to be over 25%, which is in line with our backlog. Going into 2026, there the fundamentals of our AI customer remain strong, and we are still preparing for growth. However, as we discussed last time, the level of uncertainty is increasing, mostly due to macroeconomic geopolitical consideration. That includes, of course, tariff.

Roger Dassen: Yes, I think as we have said in the previous quarters, artificial intelligence is currently the main driver for growth for both logic and memory. If we look at logic, we expect logic to grow compared to 2024 because our customer are adding capacity in the most advanced node. Memory remains very strong because they also, our customer are investing in their latest HBM and DDR product. When we look at China, we expect China revenue to be over 25%, which is in line with our backlog. Going into 2026, there the fundamentals of our AI customer remain strong, and we are still preparing for growth. However, as we discussed last time, the level of uncertainty is increasing, mostly due to macroeconomic geopolitical consideration. That includes, of course, tariff.

Christophe: If we look at logic, we expect logic to grow compared to 2024, because our customers are adding capacity in the most advanced node.

Christophe: Memory remains very strong because they are so our customers are investing in their latest HBM and DDI product.

Christophe: When you look at China, We expect China revenue to be over 25%, which is in line with our backlog.

Christophe: Going into 2026, a day on the fundamentals of our AI customer remains strong and we are still preparing for growth all.

Going into 2026, there the fundamentals of our AI customer remain strong and we are still preparing for growth. However, as we discussed last time, the level of uncertainty is increasing, mostly due to macroeconomic and geopolitics considerations. That includes, of course, tariffs.

Christophe: However, as we discussed last time the level of uncertainty is increasing mostly due to macroeconomic and geopolitical considerations that include of course Terry.

Christophe: And with those insights Rajiv can you give us some more color then on how you see 2025 for ASML in our business.

And with those insights, Roger, can you give us some more color then on how you see 2025 for ASML in our business? Yeah, so if you look at the different components and the different technologies, so if we start with EUV, I think as Christophe already mentioned, obviously, AI is largely driving the latest nodes, both on logic and on DRAM. And of course, that is a big driver for EUV, because EUV is more significant, if you like, on those leading nodes. For instance, if you look at DRAM, we do see that customers are, you know, more and more shifting towards EUV and have more and more layers on the latest node, but also on future nodes for DRAM.

Jim Kavanagh: With those insights, Roger, can you give us some more color then on how you see 2025 for ASML and our business?

Christophe: So if you look at the difference at the different components and the different technology. So if we start with their with UV I think is as Christophe already mentioned, obviously, a ice is largely driving the driving the latest at the latest nodes both on both on them on logic and on DRAM.

[Company Representative] (ASML Holding): Yeah. If you look at the different components and the different technologies, if we start with EUV, I think as Christophe already mentioned, obviously AI is largely, you know, driving the latest nodes, both on logic and on DRAM. Of course, that is a big driver for EUV because EUV is more, you know, more and more significant if you like, on those leading nodes. For instance, if you look at DRAM, we do see that customers are, you know, more and more shifting towards EUV and have more and more layers on the latest node, but also on future nodes for DRAM. That's of course a positive for EUV.

Roger Dassen: Yeah. If you look at the different components and the different technologies, if we start with EUV, I think as Christophe already mentioned, obviously AI is largely, you know, driving the latest nodes, both on logic and on DRAM. Of course, that is a big driver for EUV because EUV is more, you know, more and more significant if you like, on those leading nodes. For instance, if you look at DRAM, we do see that customers are, you know, more and more shifting towards EUV and have more and more layers on the latest node, but also on future nodes for DRAM. That's of course a positive for EUV.

Christophe: And of course that is a big driver for UV because E V. As you know is.

Christophe: As more and more significant if you like on those on those leading notes for instance, if you look at if you look at DRAM, we do see that the customers are.

Christophe: More and more shifting towards U V and have more and more layers on the latest no but also on future nodes for for DRAM. So that's of course, a positive four four for easy if you look at the total capacity expansion that our customers are looking for when it comes to when it comes to this the euro King.

So that's, of course, a positive for EUV. If you then look at the total capacity expansion that our customers are looking for, when it comes to this, you know, you're looking for EUV, you're looking at approximately 30% extra capacity that they are looking for. Of course, as you know, the 3800 tool that we have has significantly improved throughput in comparison to its predecessor. So we're actually able to accommodate that 30% increase of capacity that customers are asking for. We're actually able to accommodate that with, you know, about the same number of tools for EUV low and A as we had it last year.

Christophe: For <unk>, you're looking at approximately 30% extra capacity that they are looking for.

[Company Representative] (ASML Holding): If you look at the total capacity expansion that our customers are looking for, when it comes to this, you know, you're looking for EUV. You're looking at approximately 30% extra capacity that they are looking for. Of course, as you know, the 3800 tool that we have has significantly improved throughput in comparison to its predecessor. We're actually able to accommodate that 30% increase of capacity that customers are asking for. We're actually able to accommodate that with, you know, about the same number of tools for EUV Low-NA as we had it last year.

Roger Dassen: If you look at the total capacity expansion that our customers are looking for, when it comes to this, you know, you're looking for EUV. You're looking at approximately 30% extra capacity that they are looking for. Of course, as you know, the 3800 tool that we have has significantly improved throughput in comparison to its predecessor. We're actually able to accommodate that 30% increase of capacity that customers are asking for. We're actually able to accommodate that with, you know, about the same number of tools for EUV Low-NA as we had it last year.

Christophe: Of course as you know the 3800 tool that we have has significantly improved our throughput in comparison to its set to its predecessor.

Christophe: So we're actually able to accommodate the 30% increase of capacity that customers are asking for or actually able to accommodate that with about the same number of tools for UV low in a as we had it to as we had it last it last year.

Christophe: And then if you look at the full picture than four for EV, So with that so as deep with the with that number of tools with higher with higher throughput and you add to that the number of the high need tools that recognizing revenue. This said this year than you were looking at approximately a 30% increase of the easy business.

And then if you, you know, look at the full picture then for EUV, so with that number of tools with higher throughput, and you add to that the number of high NA tools that were recognized in revenue this year, then you're looking at approximately a 30% increase of the EUV base.

[Company Representative] (ASML Holding): If you know, look at the full picture then for EUV, so with that, you know, with that number of tools with higher throughput, and you add to that the number of High-NA tools that we're recognizing revenue this year, then you're looking at approximately a 30% increase of the EUV business. DUV and application business, about the same. About the same as we had last year. Install base business, we talked quite a bit about that previous quarter and also this quarter.

Roger Dassen: If you know, look at the full picture then for EUV, so with that, you know, with that number of tools with higher throughput, and you add to that the number of High-NA tools that we're recognizing revenue this year, then you're looking at approximately a 30% increase of the EUV business. DUV and application business, about the same. About the same as we had last year. Install base business, we talked quite a bit about that previous quarter and also this quarter.

Christophe: Deep UV, and then and application business about the same so about the same as we had as we had last year.

Christophe: Installed base business, we talked quite a bit about that previous quarter and also this quarter. So on the one hand, we have the upgrade business, which is that which is strong, particularly I would say in the first half as a result of what I mentioned before the upgrades that we do on the on the 30th hundreds in the in the field.

DPV and and application business about the same. So about the same as we had as we had last year.

Insole-based business, we talked quite a bit about that previous quarter and also this quarter. So on the one hand, we have the upgrade business, which is strong, particularly, I would say, in the first half, as a result of what I mentioned before, the upgrades that we do on the 3800 in the field. That was a big boost, I would say, in the first half. In the second half, you will see a sustained improvement of our service business, you know, tools coming out of warranty, particularly the EUV tools coming out of warranty, and therefore the service on those tools really, you know, adding to the service revenue.

[Company Representative] (ASML Holding): On the one hand, we have the upgrade business, which is strong, particularly I would say in the first half as a result of what I mentioned before, the upgrades that we do on the 3,800 in the field. That was a big boost, I would say, in the first half. In the second half, you will see a sustained improvement of our service business, you know, tools coming out of warranty, particularly the EUV tools coming out of warranty, and therefore the service on those tools really, you know, adding to the service revenue.

Roger Dassen: On the one hand, we have the upgrade business, which is strong, particularly I would say in the first half as a result of what I mentioned before, the upgrades that we do on the 3,800 in the field. That was a big boost, I would say, in the first half. In the second half, you will see a sustained improvement of our service business, you know, tools coming out of warranty, particularly the EUV tools coming out of warranty, and therefore the service on those tools really, you know, adding to the service revenue.

Christophe: That will boost I would say in the in the first half and.

Christophe: In the second half you will see a sustained.

Christophe: Improvement of our surface business tools coming out of warranty, particularly the UV tools coming out of warranty and therefore the service on the on those tools really adding to the surface revenue. If you take that altogether have done on the installed base business looking at approximately 20% to increase.

Christophe: If you piece it all together for four four for total ASML, we're looking at approximately 15% increase for 2025 in terms of revenue over over last that last year, we expect the gross margin.

If you take that all together, then on the insole-based business, you're looking at approximately 20% increase. If you piece it all together for total ASML, we're looking at approximately 15% increase for 2025 in terms of revenue over last year. We expect a growth margin of approximately 52% for the full year. In terms of revenue, final comment there, you will see, obviously, as we mentioned before, that the second half of the year is bigger in terms of revenue than the first half. And within that second half year, you will see that revenue, based on our current shipment plan, is very much also skewed towards the last quarter.

[Company Representative] (ASML Holding): If you take that all together then on the install base business, you're looking at approximately 20% increase. If you piece it all together, for, you know, for total ASML, we're looking at approximately 15% increase for 2025 in terms of revenue over last year. We expect a gross margin of approximately 52% for the full year. In terms of revenue, final comment there, you will see, obviously, as we mentioned before, that the second half of the year is bigger in terms of revenue than the first half. Within that second half year, you will see that revenue, based on our current shipment plan, is very much also skewed towards the last Q4.

Roger Dassen: If you take that all together then on the install base business, you're looking at approximately 20% increase. If you piece it all together, for, you know, for total ASML, we're looking at approximately 15% increase for 2025 in terms of revenue over last year. We expect a gross margin of approximately 52% for the full year. In terms of revenue, final comment there, you will see, obviously, as we mentioned before, that the second half of the year is bigger in terms of revenue than the first half. Within that second half year, you will see that revenue, based on our current shipment plan, is very much also skewed towards the last Q4.

Of the approximately 52% for the full for the full year.

Christophe: Revenue final commentary you will see obviously as we mentioned before that the second half of the year is bigger in terms of revenue than the first half and within that said that second half year, you will see that revenue based on our current shipment plan is very much also skewed towards the last quarter.

Christophe: And if we dive a little bit into the gross margins I think last quarter. You said that you would expect the second half of the year to be a little lower than the first half can you remind us again on what some of the drivers are for that.

And if we dive a little bit into the gross margins, I think last quarter you said that you would expect the second half of the year to be a little lower than the first half. Can you remind us again on what some of the drivers are for that? That's right. So if you look at a few data points, so as I mentioned before, gross margin for the quarter 53.7%. If you look at the gross margin for the first half 53.8%. As I mentioned, we expect for the full year approximately 52% and as I mentioned before, we're looking at 50 to 52% for the third quarter.

Jim Kavanagh: If we dive a little bit into the gross margins, I think last Q you said that you would expect the second half of the year to be a little lower than the first half. Can you remind us again on what some of the drivers are for that?

Christophe: That's right. So if you look at a few data points. So as I mentioned before gross margin for the quarter of 53, 7%. If you look at the gross margin for the first half 53, 8%.

[Company Representative] (ASML Holding): That's right. If you look at a few data points, as I mentioned before, gross margin for Q2, 53.7%. If you look at the gross margin for H1, 53.8%. As I mentioned, we expect for the full year approximately 50% to 52%. As I mentioned before, we're looking at 50% to 52% for Q3. Why 52% for the full year? Why is it going down a bit in H2? A couple of reasons. First off, as I mentioned before, the upgrade business on the 3800, we expect that to decline a bit, and that is a big driver of gross margin.

Roger Dassen: That's right. If you look at a few data points, as I mentioned before, gross margin for Q2, 53.7%. If you look at the gross margin for H1, 53.8%. As I mentioned, we expect for the full year approximately 50% to 52%. As I mentioned before, we're looking at 50% to 52% for Q3. Why 52% for the full year? Why is it going down a bit in H2? A couple of reasons. First off, as I mentioned before, the upgrade business on the 3800, we expect that to decline a bit, and that is a big driver of gross margin.

Christophe: As I mentioned, we expect for the full year of approximately 50% to 52% and as I mentioned before we're.

Christophe: We're looking to see to 52% for a portfolio of 30 for the third quarter why 52% for them for the full for the full year. So why is it going down and the second in the second half a couple of reasons first off as I mentioned before the upgrade business under 3800, we expect that to decline a bit and that is a big driver of growth.

Why 52% for the full year? So why is it going down a bit in the second half? So that all brings you to approximately 52% for the full year. Of course, a little bit dependent on what's going to happen on the tariff.

Christophe: Arjun.

Christophe: Secondly, we had some one off cost effects that will that will then that will we expect not to not to be there and we will have a bit more dilutive effect of the the high need tools that we talked about then we will have more installs.

[Company Representative] (ASML Holding): Secondly, we have some one-off cost effects that will. You know, we expect not to be there. We will have a bit more dilutive effect of the High-NA tools that we talked about. You know, we'll have more High-NA tools recognized in revenue in the second half than we have in the first half. That all brings you to approximately 52% for the full year. Of course, a little bit, you know, dependent on what's gonna happen on the tariffs.

Roger Dassen: Secondly, we have some one-off cost effects that will. You know, we expect not to be there. We will have a bit more dilutive effect of the High-NA tools that we talked about. You know, we'll have more High-NA tools recognized in revenue in the second half than we have in the first half. That all brings you to approximately 52% for the full year. Of course, a little bit, you know, dependent on what's gonna happen on the tariffs.

Christophe: Revenue in the second half than we have in the in the first half so that old brings you to approximately 52% for the full for the full year of course, the little bits.

Christophe: Handle on whats going to happen on the tariffs.

Christophe: I think you spent a bit of time last quarter talking about the effects of tariffs can you remind us again in short how you see that progressing and the potential impacts there. So a terrorist asked last quarter, we talked about direct effect on indirect effect. If you look at the direct effect of of terrorists. The things we mentioned at that point in time.

I think you spent a bit of time last quarter talking about the effects of tariffs.

Jim Kavanagh: I think you spent a bit of time last quarter talking about the effects of tariffs. Can you remind us again, in short, how you see that progressing?

Can you remind us again, in short, how you see that progressing and the potential impacts there? So tariffs, last quarter, we talked about direct effect and indirect effect. If you look at the direct effect of tariffs, the things we mentioned at that point in time, first off, obviously, you know, when we send new systems to our customers in the United States, there could be tariffs on that. So that's the first one. The second is if we send parts for manufacturing in the United States. So that's the second component. The third component is if we send, you know, parts for service in the field operations in the United States.

[Company Representative] (ASML Holding): Yeah.

Roger Dassen: Yeah.

Jim Kavanagh: The potential impacts there?

Christophe: First off obviously, you know when we sent a new systems to our customers in the United States there could be there could be terrorists on that so that's the first one the.

[Company Representative] (ASML Holding): Tariffs, last quarter, we talked about direct effect and indirect effect. If you look at the direct effect of tariffs, the things we mentioned at that point in time. First off, obviously, you know, when we send new systems to our customers in the United States, there could be tariffs on that. That's the first one. The second is, if we send parts for manufacturing in the United States, that's the second, the second component. The third component is if we send, you know, parts for service in the field operations in the United States.

Roger Dassen: Tariffs, last quarter, we talked about direct effect and indirect effect. If you look at the direct effect of tariffs, the things we mentioned at that point in time. First off, obviously, you know, when we send new systems to our customers in the United States, there could be tariffs on that. That's the first one. The second is, if we send parts for manufacturing in the United States, that's the second, the second component. The third component is if we send, you know, parts for service in the field operations in the United States.

Christophe: The second is if we send parts for manufacturing in the United States. So that's a second the second component. The third component is if we send.

Christophe: You know parts for service in the field operations in the United States and the fourth one to the extent that other countries would be putting tariffs on parts of our modules that would get out of the United States into for instance, the EU that could be that could be a fourth a fourth category.

And the fourth one, you know, to the extent that other countries would be putting tariffs on, you know, parts or modules that get out of the United States into, for instance, the EU, that could be a fourth category. You know, we're looking at all of those. We're looking at, you know, the effect for the entire ecosystem, you know, on all four of those accounts.

[Company Representative] (ASML Holding): The fourth one, you know, to the extent that other countries would be putting tariffs on, you know, parts or modules that get out of the United States into, for instance, the EU, that could be a fourth category. You know, we're looking at all of those. We're trying to mitigate, you know, the effect for the entire ecosystem, you know, on all four of those counts. Last time we spoke, we spoke about free trade zones that we're looking into to mitigate some of the dynamic. We are working with the supply chain and with our customers to at least make sure that the impact for ASML is as limited as possible.

Roger Dassen: The fourth one, you know, to the extent that other countries would be putting tariffs on, you know, parts or modules that get out of the United States into, for instance, the EU, that could be a fourth category. You know, we're looking at all of those. We're trying to mitigate, you know, the effect for the entire ecosystem, you know, on all four of those counts. Last time we spoke, we spoke about free trade zones that we're looking into to mitigate some of the dynamic. We are working with the supply chain and with our customers to at least make sure that the impact for ASML is as limited as possible.

Christophe: We're looking at all of those we're trying to mitigate.

Christophe: The the effect for the entire ecosystem on all four of those on all four of those accounts last time, we spoke and we spoke about free trade zones that we're looking into to mitigate some of the some of the dynamic.

Christophe: And we are working with the supply chain customers to at least make sure that the impact for ASML is as limited as possible.

Last time, we spoke about free trade zones that we're looking into to mitigate some of the dynamic. And we are working with the supply chain and with our customers to at least make sure that the impact for ASML is as limited as possible.

Christophe: And then obviously there is the indirect impact you know to what extent could terrorists could what kind of impact would it have on the overall macroeconomic situation quite frankly, Jim It is all very uncertain, but both the direct and the indirect impact are still very uncertain. So we just have to navigate that asbestos we can.

And then, obviously, there is the indirect impact, you know, to what extent could tariffs – what kind of impact could it have on the overall macroeconomic situation? But frankly, Jim, it's all very uncertain. You know, both the direct and the indirect impact are still very uncertain.

[Company Representative] (ASML Holding): Obviously, there is the indirect impact, you know, to what extent could tariffs? What kind of impact could it have on the overall macroeconomic situation? Quite frankly, Jim, it's all very uncertain. You know, both the direct and the indirect impact are still very uncertain. We just have to navigate that as best as we can.

Roger Dassen: Obviously, there is the indirect impact, you know, to what extent could tariffs? What kind of impact could it have on the overall macroeconomic situation? Quite frankly, Jim, it's all very uncertain. You know, both the direct and the indirect impact are still very uncertain. We just have to navigate that as best as we can.

Christophe: Christophe if I can turn to you and maybe if you can give us an update on where we are in our roadmap from a technology point of view and some of the highlights perhaps from the quarter.

So we just have to navigate that as best Christophe, if I can turn to you and maybe if you can give us an update on where we are on our roadmap from a technology point of view and some of the highlights perhaps from the quarter. Yes, so let me start with EUV, of course, I think we continue to make very good progress on both low NA and high NA. And this really allow us to build a portfolio that will address our customer needs when it comes to technology roadmap, but also optimization of their costs of technology.

Jim Kavanagh: Christophe, if I can turn to you, and maybe if you can give us an update on where we are on our roadmap, from a technology point of view, and some of the highlights perhaps from the quarter.

Christophe: Yes, So let me start with the U V of course, I think we continue to make very good progress on both low N N I N E and this really allow us to build a portfolio that will address our customer needs. When it comes to technology on map.

[Company Representative] (ASML Holding): Yeah. Let me start with EUV, of course. I think we continue to make very good progress on both Low-NA and High-NA. This really allow us to build a portfolio that will address our customer needs when it comes to technology roadmap, but also optimization of their cost of technology. On the TWINSCAN NXE:3800E, we now ship all our system in final specification, 220 wafer per hours, which is 37% more than what we had on the TWINSCAN NXE:3600D, so a major boost of productivity. We have done also a lot of upgrades to 220 wafer per hours on the install base, and we are in track basically to complete all those upgrades by the end of the year.

Christophe Fouquet: Yeah. Let me start with EUV, of course. I think we continue to make very good progress on both Low-NA and High-NA. This really allow us to build a portfolio that will address our customer needs when it comes to technology roadmap, but also optimization of their cost of technology. On the TWINSCAN NXE:3800E, we now ship all our system in final specification, 220 wafer per hours, which is 37% more than what we had on the TWINSCAN NXE:3600D, so a major boost of productivity. We have done also a lot of upgrades to 220 wafer per hours on the install base, and we are in track basically to complete all those upgrades by the end of the year.

Christophe: But also optimization of their cost of technology.

Christophe: On the Nx E 3800, we now ship all our systems and final specification toilet 'twenty with a per ounce, which is a 37% more than what we had on the Nx E 36 onwards, so a major boost of productivity.

On the NXE3800, we now ship all our systems in final specification, 220 WPH, which is 37% more than what we had on the NXE3600, so a major boost of productivity. We have also done a lot of upgrades to 220 WPH on the installed base, and we are in track, basically, to complete all those upgrades by the end of the year. Now, I think we explained that already a few times, this tool, thanks to the higher productivity, really allows customers to shift more multi-patterning layers to single expose. So this basically allows customers to reduce complexity, reduce yield loss, improve cycle time.

Christophe: We have with all of those so a lot of upgrades to 'twenty to 'twenty with the browse on the installed base.

Christophe: And we are in track basically to complete all those upgrades by the end of the year.

Christophe: Now I think we expand that already a few times. This tool thanks to the higher productivity really allow customer to shift more multi patterning layer to senior expose so this basically allow a customer to reduce complexity reduce the yield loss improved cycle time.

[Company Representative] (ASML Holding): I think we explained that already a few times. This tool, thanks to the higher productivity, really allow customer to shift more multi-patterning layer to single exposure. This basically allow a customer to reduce complexity, reduce yield loss, improve cycle time. We have seen that happening quite a bit in the last few months with DRAM, where for the last nodes we really see a shift basically towards more EUV layer. This is of course, in our case, a nice increase in litho intensity. High-NA, we are continuing to mature the platform with our TWINSCAN EXE:5000 system, which is at several customers. This is basically the work we do with our R&D customer to prepare the technology for high-volume manufacturing.

Christophe Fouquet: I think we explained that already a few times. This tool, thanks to the higher productivity, really allow customer to shift more multi-patterning layer to single exposure. This basically allow a customer to reduce complexity, reduce yield loss, improve cycle time. We have seen that happening quite a bit in the last few months with DRAM, where for the last nodes we really see a shift basically towards more EUV layer. This is of course, in our case, a nice increase in litho intensity. High-NA, we are continuing to mature the platform with our TWINSCAN EXE:5000 system, which is at several customers. This is basically the work we do with our R&D customer to prepare the technology for high-volume manufacturing.

Christophe: And we have seen that happening quite a bit in the last few months with DRAM, where for the last nodes, we really see a shift basically two worlds more EV layer and this is of course in our case, a nice increase in litho intensity.

And we have seen that happening quite a bit in the last few months with DRAM, where for the last nodes, we really see a shift basically towards more EUV layer. And this is, of course, in our case, a nice increase in litho intensity. INA, we are continuing to mature the platform with our EXE 5000 system, which is at several customers. So this is basically the work we do with our R&D customer to prepare the technology for high volume manufacturing. And for that, we have shipped our first EXE 5200, which is the tool that is going to be used in high volume manufacturing.

Christophe: We are continuing to mature the platform with our E X E 5000 system, which is at several customer. So this is basically the work we do with our R&D customer to prepare the technology for high volume manufacturing.

And for that we have shipped our first E X E 52 onwards, which is the tool that is going to be used in high volume manufacturing the tourism to install and as a reminder, this will provide our customer with 60% productivity improvement compared to the 5000. So we're talking about 175 with the corrupt so now.

[Company Representative] (ASML Holding): For that, we have shipped our first EXE 5200, which is the tool that is going to be used in high-volume manufacturing. The tool is under install. As a reminder, this will provide our customer with 60% productivity improvement compared to the 5000. We're talking about 175 wafer per hour. Now, you know, we are starting also to prepare insertion in high-volume manufacturing. All of that, of course, as I mentioned on Low-NA, will help us over time as Low-NA EUV gets into multi-patterning, will allow us basically to also shift again some more layer to single expose High-NA to continue this trend. Short word about DUV as well. As our customer move to more advanced node, they also need better DUV machine.

Christophe Fouquet: For that, we have shipped our first EXE 5200, which is the tool that is going to be used in high-volume manufacturing. The tool is under install. As a reminder, this will provide our customer with 60% productivity improvement compared to the 5000. We're talking about 175 wafer per hour. Now, you know, we are starting also to prepare insertion in high-volume manufacturing. All of that, of course, as I mentioned on Low-NA, will help us over time as Low-NA EUV gets into multi-patterning, will allow us basically to also shift again some more layer to single expose High-NA to continue this trend. Short word about DUV as well. As our customer move to more advanced node, they also need better DUV machine.

The tool is under install. And as a reminder, this will provide our customer with 60% productivity improvement compared to the 5000. So we're talking about 175 weather per hour. So now, you know, we are starting also to prepare insertion in high volume manufacturing.

Christophe: <unk>.

Christophe: We are starting also to prepare.

Christophe: Insertion in high volume manufacturing.

Christophe: All of that of course, as I mentioned on low and they will help us overtime as ILUVIEN, a UV gets into multi patterning will allow us basically to us was shift against some multiyear two senior would expose iron neck to continue this trend.

All of that, of course, as I mentioned on low NA, will help us over time as low NA EUV gets into multi patterning, will allow us basically to also shift again some more layer to single exposed INA to continue this this A short word about DeepUV as well, as our customers move to more advanced nodes, they also need better DeepUV machines. That's true for Immersion, that's true for KRF, and also our latest product, the NXT2100, our latest Immersion tool, the NXT870, our latest KRF tool, seeing good adoption and good performance of our customers to respond basically to this.

Christophe: Sure toward about B as well as our customers move to more advanced nodes. They also need better deep UV machine, that's true for immersion that through for care RF and are also our latest product. The NXT 21 onward, our latest immersion tool.

[Company Representative] (ASML Holding): That's true for immersion, that's true for KrF, and also our latest product, the NXT:2100i, our latest immersion tool, the NXT:870, our latest KrF tool, are seeing good adoption and good performance our customer to response basically to this need. Overall, I would say great progress on technology. I think we are validating that better cost of technology allow us to translate more multi-patterning layer into single exposure, and I think we have done good progress on our litho intensity.

Christophe Fouquet: That's true for immersion, that's true for KrF, and also our latest product, the NXT:2100i, our latest immersion tool, the NXT:870, our latest KrF tool, are seeing good adoption and good performance our customer to response basically to this need. Overall, I would say great progress on technology. I think we are validating that better cost of technology allow us to translate more multi-patterning layer into single exposure, and I think we have done good progress on our litho intensity.

Christophe: NXT age 70, our latest Caraeff tool see are seeing good adoption and good performance our customer responds basically two D. SNP. So overall I would say great progress on technology.

Christophe: We are validating that better cost of technology.

Christophe: Allow us to translate more multi patterning layer thing are exposed and I think we have done good progress on our litho intensity.

So overall, I would say great progress on technology. I think we are validating that better cost of technology allow us to translate more multi-patterning layer into single expose.

Christophe: If I switch again back to your roget and talk a little bit about our cash. So we ended last year with a quite a good position. There can you expand a little bit then on what our plans are in terms of managing the cash towards shareholders.

And I think we have done good progress on our little intent.

If I switch again back to you, Roger, and talk a little bit about our cash. So we ended last year with quite a good position there.

Jim Kavanagh: If I switch again back to you, Roger, and talk a little bit about our cash. We ended last year with quite a good position there. Can you expand a little bit then on what our plans are in terms of managing the cash towards shareholders?

Christophe: So capital allocation. Some some comments there. So we did quite some nice share buyback. This said this year in the last quarter. We did we did for a $1 4 billion worth of shares we purchased that we purchased back from there from them.

Can you expand a little bit then on what our plans are in terms of managing the cash towards shareholders? Well, so capital allocation, some some comments there. So we did quite some share buyback this this year. In the last quarter, we did, we did for 1.4 billion worth of shares we purchased that we purchased back from the from the market. In terms of dividends, in Q2, we paid the the final dividends of, you know, for for last fiscal year, at an amount of 1.84 euros, and that got the total dividend for 2024 to 6.4 euros.

[Company Representative] (ASML Holding): Well, capital allocation, some comments there. We did quite some share buyback this year. In the last quarter, we did for EUR 1.4 billion worth of shares we purchased back from the market. In terms of dividends, in Q2, we paid the final dividends of, you know, for last fiscal year at an amount of 1.84 EUR, and that got the total dividend for 2024 to 6.40 EUR. For Q3, we expect to, you know, pay our first interim dividends at an amount of 1.60 EUR, and we expect that to be payable by 6 August.

Roger Dassen: Well, capital allocation, some comments there. We did quite some share buyback this year. In the last quarter, we did for EUR 1.4 billion worth of shares we purchased back from the market. In terms of dividends, in Q2, we paid the final dividends of, you know, for last fiscal year at an amount of 1.84 EUR, and that got the total dividend for 2024 to 6.40 EUR. For Q3, we expect to, you know, pay our first interim dividends at an amount of 1.60 EUR, and we expect that to be payable by 6 August.

Christophe: In terms of dividends in Q2, we paid the <unk>. The final end of for a fourth at last fiscal year at an amount of $1 84 euros and that got the total dividend for 2024 to six points 40 euros.

Christophe: For Q3, we expect to pay or or first interim dividends at an amount of $1 60.

For Q3, we expect to, you know, pay our, our first interim dividends at an amount of 1.60 euros.

Christophe: And we expect that to be payable by August six.

Christophe: Ben to finish up Christophe can you give us an overview again of where you see maybe more longer term the market and what that means for ASML in our business and the long term.

Thank you.

and we expect that to be payable by August the 6th.

Then to finish up, Christophe, can you give us an overview again of where you see maybe more longer term the market and what that means for ASML and our business in the long term? Yes, I think long term, the semiconductor market remains very strong. And I think a lot of people say that AI is really a great opportunity. And we have seen, again, the fundamentals around AI to be very, very strong.

Jim Kavanagh: To finish up, Christophe, can you give us an overview again of where you see maybe more longer term the market and what that means for ASML and our business in the long term?

Christophe: So I think long term the semiconductor market remains very strong and they seek.

Christophe: A lot of people say that AI is really a great opportunity and we have seen again the fundamentals around AI to be very very strong now.

[Company Representative] (ASML Holding): Yes, I think long term, the semiconductor market remains very strong, and I think a lot of people say that AI is really a great opportunity, and we have seen again the fundamentals around AI to be very, very strong. Now, of course, short term, Roger talked about it, some uncertainty. There's a lot happening, discussion around tariff, export control, and macroeconomic uncertainties. All of that is also part of the things we have to manage. As we discussed in the Capital Markets Day, the shift of our customer towards more advanced logic, advanced memory, will also drive the need for most advanced lithography, and this will basically be a good thing for litho intensity.

Roger Dassen: Yes, I think long term, the semiconductor market remains very strong, and I think a lot of people say that AI is really a great opportunity, and we have seen again the fundamentals around AI to be very, very strong. Now, of course, short term, Roger talked about it, some uncertainty. There's a lot happening, discussion around tariff, export control, and macroeconomic uncertainties. All of that is also part of the things we have to manage. As we discussed in the Capital Markets Day, the shift of our customer towards more advanced logic, advanced memory, will also drive the need for most advanced lithography, and this will basically be a good thing for litho intensity.

Christophe: Now of course short term or as you talked about it some uncertainty there's a lot happening discussion around tariff export control macroeconomic uncertainties. All of that is also part of the sinks we have to manage.

Now, of course, short term, Roger talked about it. Some uncertainty, a lot happening. Discussion around tariff, export control, microeconomic uncertainties. All of that is also part of the things we have to manage.

Christophe: As we discussed in the capital market day, the shift of our customer towards more advanced logic advanced Mimo. He will also drive the need for most advanced lithography and this will basically be a good thing for litho intensity.

As we discussed in the capital market day, the shift of our customer towards more advanced logic, advanced memory will also drive the need for more advanced lithography. And this will basically be a good thing for lithointensive. The progress we make on our EUV roadmap with low INA providing the right cost of technology will continue to allow us basically to convert more multi-patterning layer to single-exposed. And we will see that happening in the course of the next few years.

Christophe: Deposit rates, we make out on our E V on map with low in a I N E. Providing the right cost of technology will continue to allow us basically to convert more multi patterning layer to senior exposed and we wouldn't see that happening in the course of the next few years. So in terms of long term forecast remain consistent with what we.

[Company Representative] (ASML Holding): The progress we make on our EUV roadmap with Low-NA, High-NA, providing the right cost of technology, will continue to allow us basically to convert more multi-patterning layer to single exposure, and we will see that happening in the course of the next few years. In term of long-term forecast, we remain consistent with what we have said in our Capital Markets Day. We see an opportunity for 2030 of a total revenue between 44 and 60 billion EUR and a gross margin between 56% and 60%.

Roger Dassen: The progress we make on our EUV roadmap with Low-NA, High-NA, providing the right cost of technology, will continue to allow us basically to convert more multi-patterning layer to single exposure, and we will see that happening in the course of the next few years. In term of long-term forecast, we remain consistent with what we have said in our Capital Markets Day. We see an opportunity for 2030 of a total revenue between 44 and 60 billion EUR and a gross margin between 56% and 60%.

Christophe: Said, you know capital market day, we see an opportunity for 2030 of the total revenue between 44, and <unk> 60 billion Euro and a gross margin between 56 and 60% great with that thank you Christophe. Thank you Roger.

So in terms of long-term forecast, we remain consistent with what we have said in our capital market day. We see an opportunity for 2030 of a total revenue between 44 and 60 billion euros and a gross margin between 56 and 60%.

Speaker Change: Thank you.

Speaker Change: [music].

Jim Kavanagh: Great. With that, thank you, Christophe. Thank you, Roger.

With that, thank you, Christophe.

Thank you, Roger.

[Company Representative] (ASML Holding): Pleasure.

Roger Dassen: Pleasure.

Pleasure.

[Company Representative] (ASML Holding): Thank you.

Roger Dassen: Thank you.

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