[Company Representative 1] (ASML): full year 2025 results video. Roger, if I can start with you, and ask you to give us a summary of both Q4 2025 and the full year's results.
With you and ask you to give us a summary of both Q4 'twenty five and the full years results. So Q4 net revenue came in at a 9.7 billion euros that included the recognition of revenue for two heinie systems.
Roger Dassen: So Q4 net revenue came in at EUR 9.7 billion. That included the recognition of revenue for two High-NA systems. For the full year, revenue came in at EUR 32.7 billion, which was a 16% increase compared to 2024. Installed base business came in for the quarter at EUR 2.1 billion. If you take the full year, EUR 8.2 billion, quite strong. Quite strong, you know, first on the basis of the service revenue for EUV. Obviously, with the expansion of the installed base for EUV, you see the service revenue increasing there. But also there was quite some appetite for upgrades business. So that led to, you know, quite a strong revenue for the installed base business.
For the full year revenue came in at 32.7 billion euros, which was a 16% increase compare to the 'twenty 'twenty four.
Installed base business.
I'm in for the quarter at 2.1 billion. If you take the full year 8.2 billion quite strong quite strong you know first on the on the basis of the service revenue for UV, obviously with the <unk>.
Expansion of the installed base for UV, you see to surface revenue, increasing there, but also there was quite some appetite for for upgrade to a business that has led to quite a strong revenue for our for the installed base of business.
Gross margin for the quarter, 52.2%. If you take it for the full year, that was 52.8%. Net income, again, for the quarter, EUR 2.8 billion, for the full year, EUR 9.6 billion. In terms of net bookings, net bookings came in at EUR 13.2 billion. Included in there, EUR 7.4 billion for EUV. If you look at the backlog that we had at the end of last year, the end of 2025, EUR 38.8 billion total backlog, of which EUR 25.5 billion for EUV.
Gross margin for the quarter and 50% to 52.2%.
If you take a take it for the full year that was 52, 8%.
Net income again for the quarter, a 2.8 billion for the full year at $9 6 billion euros.
In terms of in terms of net bookings net bookings came in at 13.2 billion euros included in their 7.4 billion euros four four at UV Qdoba D. D add to the backlog that we had at the end of last year at the end of 2020 538 8 billion.
Total backlog.
Of which 25.5 billion, Florida for UV.
[Company Representative 1] (ASML): Yeah. And then can you give us some color on what you saw in terms of the business, in Q4 specifically?
And then can you give us some color on what you saw in terms of the business in Q4, specifically clearly was a strong quarter right a strong quarter. It was a record quarter in terms of our revenue was a record quarter in terms of order intake. It was a record quarter in terms of the free cash flow generation from from that vantage point clearly very strong.
Roger Dassen: Clearly, it was a strong quarter, right? A strong quarter. It was a record quarter in terms of revenue. It was a record quarter in terms of order intake. It was a record quarter in terms of free cash flow generation. So from that vantage point, clearly a very strong quarter. If you listen to our customers, both what they say publicly, but also what they told us, you know, it's pretty clear that customers over the past couple of months have actually become more positive in their assessment of the medium-term market perspectives as they see it. I think it's primarily on the basis of the more robust view that they have when it comes to to demand for AI, which, you know, seems to be more sustainable from their vantage point.
Quarter, if you listened to our customers both what they say publicly but also what they told US you know, it's pretty clear that customers over the past couple of months have actually become more positive and their assessment of the medium term market perspective, as they as they see it.
It's primarily on the basis of the the more robust few that they have when it comes to to demand for AI, which seems to be more sustainable from their vantage point and without recognition has let you know as some of our customers to really invest in capacity and to gear up there Ed.
That recognition has led, you know, some of our customers to really invest in capacity and gear up their plans for medium-term capacity expansion. So that's been clearly the case, and that perspective has obviously also led to a strong order intake for us.
There are plans for medium term at capacity expansion. So that's been clearly the case in depth perspective is obviously also led to a strong order intake for our for us.
[Company Representative 1] (ASML): Yeah.
Roger Dassen: And finally, I would say, important for Q4 is also that we were actually able to demonstrate our ability to gear up our output, which, again, is going to be important also in light of the expectations that we have for 2026.
And finally I would say important for Q4 is also that we were actually able to demonstrate our ability to to gear up our output, which again is going to be important also in light of the expectations that we have for 26.
[Company Representative 1] (ASML): Then moving to 2026, how do you, you know, how are you guiding both Q1 and the full year?
Then moving to 26, how do you are you know.
How are you guiding both Q1 and the full year.
Roger Dassen: So Q1, we're looking at an expectation. We expect net revenue to be somewhere between EUR 8.2 and 8.9 billion. That's the expectation for the quarter in terms of revenue. We expect a gross margin between 51% and 53%. When it comes to the installed base revenue, we expect around EUR 2.4 billion in Q1. For the total year, we're looking at total net revenue expected between EUR 34 and 39 billion, with a gross margin between 51% and 53%.
So Q1, we're looking at are at a it's an expert we expect our net to net revenue to be somewhere between 8.2 and $8 9 billion. That's the expectation for the quarter in terms of in terms of revenue, we expect a gross margin between 51 and 53%.
When it comes to to the installed base revenue, we expect around two 4 billion in Q1 for the total year. We're looking at our total net revenue is expected between 30, 34, and 39 1 billion euros with a gross margin between 51 and 53%.
Christophe in terms of the market outlook that supports roget's commentary there can you give us a little bit of color on how you're seeing things, where I think that Jose already mentioned very clearly that the market outlook as notably improved in the last few months and this is especially true when it comes to the buildup of.
[Company Representative 1] (ASML): Christophe, in terms of the market outlook that supports Roger's commentary there, can you give us a little bit of color on how you're seeing things?
Christophe Fouquet: Well, I think that Roger already mentioned very clearly that the market outlook has notably improved in the last few months. And this is especially true when it comes to the buildup of the capacity for AI application, being data server or other infrastructure. Now, we start to see that this buildup is also translating into need for capacity at our advanced customers. This is true for logic, this is true for DRAM. And this start to translate also into orders for our most advanced technology, especially EUV. So in the last few months, we have seen our DRAM customer, our logic customer, starting to accelerate their planning capacity and having this discussion with us.
The capacity for AI application being data server or other infrastructure.
Now we start to see the diesel buildup diesel so translating into need for capacity at our advanced customer. So this is true for logic. This is true for DRAM and these start to translate also into orders for our most advanced technology specialty UV.
So in the last few months, we have seen all DRAM customer or a logic customer starting to accelerate their planning capacity and having this discussion with us.
If I look at Logic first, so there, I think we see our customers starting to be more comfortable about the sustainability of the long-term AI demand, and this means that they are more willing to accelerate their capacity planning. They are transitioning also from 4-nanometer technology to 3-nanometer technology, which is going to be more demanding in terms of advanced technology. And finally, of course, the ramp of 2-nanometer is going on, and I will say is accelerating in order to fulfill the future need of mobile and HPC application. When I look at DRAM, there also the demand is very strong for HBM, of course, but also for DDR, and this mostly will lead to a very tight supply, at least in 2026, and most probably beyond that.
If I look at logic first so there I think we see our customer are starting to be more comfortable about the sustainability of the long term AI demand and this means that they are more willing to accelerate their capacity planning.
We are transitioning or so from four nanometer technology to free no major technology, which is going to be more demanding in terms of advanced technology.
And finally of course, the ramp of 10 nanometer is going on and I would say is accelerating.
To fulfill the future need of mobile and HBC application.
When I look at the DRAM there were so the demand is very strong for etch be able of course, but also for DDR and this mostly will lead to a very tight supply at least in 2026 and most of them beyond that.
Christophe Fouquet: So we see our customer ramping 1B, 1C node, which are going to be critical for that demand. And on those nodes, we see them increasing basically the amount of EUV layers. So we have talked about that in the past. I think we see that happening very strongly right now. So altogether, we see a very positive dynamic. I think a strong belief that the AI demand is real and a preparation for that with, on the short term, a major addition of capacity. This will start in 2026, and will last beyond that.
So we see our customer ramping one be once he note, which are going to be critical for their demand.
And on those nodes, we see them, increasing basically the amount of UV layers, we've talked about that in the past I think we see that happening very strongly right now.
So altogether, we see a very positive dynamic and seek a strong belief that the AI demand is real and the preparation for that with the short term a major addition of capacity.
This will start in 2026 and will last beyond that turning back to Euro Jay how do you see that then translating into a S. A metals business.
[Company Representative 1] (ASML): Turning back to you, Roger, how do you see that then translating into ASML's business?
Roger Dassen: So if we start with the EUV business, I think you know, against the backdrop of the demand and the developments that Christophe was describing, we expect the EUV business to increase significantly. So EUV revenue to significantly go up in comparison to 2025. When it comes to the non-EUV system business, in total, we expect that to be kind of flattish in comparison to 2025, but with you know, different moving parts in there. If you look at advanced logic, if you look at memory, we actually expect the demand also on the non-EUV business to go up there. On the China business, we expect the China business, for us, to come in at approximately the percentage that China also has in our backlog, which is around 20%.
So if we start with the year was the <unk> business I think.
As a backdrop buffer of them the demand and the developments that are that Christophe was describing we expect the EV business due to increased significantly so easy revenue to significantly go up in comparison to 2025 when it comes to the non EV system business.
In total we expect that to be kind of flattish in comparison to 220 25, but with different moving parts in there. If you look at advanced logic. If you look at memory, we actually expect the demand also on the non UV business to go up there on the China business.
We expect the China business for us to come in at approximately the percentage of China also has in our backlog, which is around 20% of.
Of our backlog, and therefore, 20% of our revenue is what we expect the China business to come in at. And then I would say on the very clearly also in the non-EUV business, it's pretty clear that the metrology and inspection business is quite strong. There is a lot of demand for process control, so therefore, we expect that business to go up, as well. So those are the different moving parts, but all in all, we expect the non-EUV business to be sort of flattish, the non-EUV system business. And then the installed base business, I already told you that we expect the installed base business in 2025 was quite strong. And we actually expect the same dynamics to also go into 2026.
The backlog in there for 20% of our revenue is what we expect the China business due to come in at.
And then I would say on the very clearly also on a non <unk> business is pretty clear that the.
The metrology and inspection business is quite strong there is a lot of demand for process control. So therefore, we expect that business to go up as well. So those are the different moving parts, but all in all we expect the non easy business to be sort of a sort of flattish on EV system business.
And then the installed base business I already told you that we expect the installed base business in 2025 was quite strong.
And we actually expect the same dynamics to also go into 'twenty twenty-six, who actually expect that business to go up as well so growth in installed base on the back of again the growth of the installed base business for EV.
We actually expect that business to go up as well, so growth in installed base. On the back of, again, the growth of the installed base business for EUV, and also in the current climate, significant appetite, we think, for upgrades and upgrade business, because frankly, that's the easiest and fastest way for customers to get additional output capacity.
And also in the current climate a significant appetite, we think four for upgrades and for upgrade business, because frankly, that's the easiest and fastest way for customers to get additional output capacity.
[Company Representative 1] (ASML): Then if, Christophe, if I can ask you to give us, you know, an update on how you're seeing the technology roadmap development, for ASML?
Then if christophe if I can ask you to give us an update on how you're seeing the technology roadmap development for ASML.
Christophe Fouquet: Well, first, I'd like to say that the appetite for technology from our customer for those advanced node is very, very high, and that's true for almost all the product in ASML. If I start with Low-NA, 2025 has been a critical but also a good year to ramp our NXE:3800E. This tool is now extremely important for our customer. They're going to rely on it for the next advanced DRAM logic nodes. And we have been able to mature the product, reach the final throughput of 220 wafers per hour, but even demonstrate at some customer that we could go on this tool up to 230 wafers per hour. And Roger said it, upgrades, when, you know, you need capacity, upgrades become very, very important, so this will be good for the 3800.
First I'd like to say that the appetite for technology from our customer a full dose of advanced node is a very very high and that's true for almost all the product nicely mill.
If I start with law and a 2025 has been a critical but also goodyear to ramp of our NXT <unk> 38 on road. This tool is now extremely important for our customer they're going to rely on it for the next advanced DRAM logic nodes.
And we have been able to mature the product reached a final throughput of 220 with the boroughs, but even demonstrate at some customer that we could go on this tool up to $2 30, with a per hours and or as you said it upgrades. When you know you need capacity upgrades become very very important. So this would be good for the 30th downward but were also.
But we're also providing on EUV more upgrades for the installed base so that we help our customer on the very short term with capacity. We also expect Low-NA EUV to continue to see more utilization moving forward. We talked a lot about litho intensity. When we look at, for example, the transition from 6S square to 4S square on DRAM, we also expect both immersion and Low-NA to be used even more. So there also we expect good dynamic on litho intensity. Looking at High-NA, customers continue to make good progress on the qualification. I talked about the three phases in the past. A lot of customers are finalizing their R&D phases with the 5000. Intel has reported that they have accepted their first 5200, which means basically they have the first tool that will be used in high-volume manufacturing.
Providing on the UV more grades for the installed base. So that we help our customer on a very short term with capacity.
We also expect.
<unk> continued to see more utilization moving forward, we've talked a lot about litho intensity.
When we look at for example, the transition from six ish swear to Fowey square on DRAM. We also expect bowls immersion and law and a to be used even more so they are so we expect good dynamic on litho intensity.
Looking at IAA customer could continue to make good progress on the qualification I talked about the three phases in the past a lot of customer are finalizing their R&D phases with a 5000 Intel as reported that they have accepted the first 52 onward, which means basically to have the first tool that we.
Can be used in high volume manufacturing.
And other customer are going to also get the tool in their hands very, very quickly. So the qualification of the tool is going well. Imaging, performance, overall performance, everything is looking good for our customer right now. Inspection, metrology, Roger touched on that. Almost 30% growth this year, which is significant. It means that both the need for those product is high, but also the product we're offering are basically meeting our customer need, both on optical overlay metrology, but also E-beam inspection. And on E-beam inspection, multi-beam is becoming more and more critical. 2025 was also a good year for this product, allowing us to mature the technology, demonstrate initial value with our customer, and we expect also that product, I will say, to have more traction in 2026.
And other customer are going to also get the tuning their hands very very quickly. So the qualification of the tool is going well imaging performance over our performance everything is looking good for our customer right now.
Inspection metrology, who as you touch on that.
Almost 30% growth this year.
Which is significant it means that bull's the need for those product is high but also the product. We're offering are basically meeting a customer need Bosch on optical overlay metrology, but also E beam inspection.
And how do you mean inspection multi beam is becoming more and more critical 2025 was also a good year for this product, allowing us to mature the technology demonstrate initial value with our customer and we expect also that product I would say to to have more traction in 2026, so overhaul.
Christophe Fouquet: So overall, huge appetite for technology, lot of project in ASML. Some of the key product should become, I will say, production worthy in the coming months.
Huge appetite for technology lots of project Eni's ml some of the key product should become I will see production, we'll see in the coming months.
And back to your Roget would you be able to give us an update on dividend and buybacks, what we're doing in that front. Yeah. So this quarter, we will pay an interim dividend of one point 60.
[Company Representative 1] (ASML): Back to you, Roger. Would you be able to give us an update on dividend and buybacks, what we're doing on that front?
Roger Dassen: Yeah. So this quarter, we'll pay an interim dividend of EUR 1.60 per ordinary share. We're going to actually propose to the AGM to have a final payment as it pertains to last year, of EUR 2.70 per ordinary share. If you combine that with the interim dividends that would have been made at that point in time, then the total dividend as it relates to 2025, it would be at EUR 7.50 per ordinary share, which would actually be a 17% increase over the dividend over 2024. In terms of a share buyback, the previous program ran until December. We didn't complete that, so we bought back shares for an amount of EUR 7.6 billion. You know, the maximum amount was EUR 12 billion.
Euros per ordinary share.
We'll go into actually proposed to the AGM to have a final payment as it pertains to last year of two point 70 euros per ordinary share and if you combine that with the interim dividend that would have been made at that point in time, then the total dividends as it relates to 2025 it would be at seven point 50 euros per ordinary share, which would actually be a seventh.
<unk> percent increase over the dividend over 2024.
In terms of share buyback.
The previous program ran until December we didn't complete that and so we bought back shares for an amount of 7.6 billion euros. You know the maximum amount was it was 12 billion.
We're announcing... Actually, we announced today, a new program, a new program for, again, a three-year period, so it ends December 2028, and for an amount up to EUR 12 billion.
Were announcing actually we announced today a new program a new program for again, a three year period. So it ends December 2028.
And for an amount up to 12 billion euros.
Christophe to finish if you could give US a reminder, on how you're seeing the you know maybe the longer term demand and what that means for various well I think one of the key point, we made at our capital market day in November 2024 was that AI application will require more advanced technology.
[Company Representative 1] (ASML): Christophe, to finish, if you could give us a reminder on how you're seeing the, you know, maybe the longer term demand and what that means for ASML?
Christophe Fouquet: Well, I think one of the key points we made at our capital market day in November 2024, was that AI application will require more advanced technology in DRAM and logic, and will drive basically some of our most advanced product. And I think that this is being confirmed as we speak. The last few months have pointed basically exactly to that dynamic. We also see that the progress we continue to make on our cost of technology with EUV is driving for more litho intensity, and that's, again, something that has been confirmed in the last few months. So if we look in, to the long term, in line to what we said in November 2024, for 2030, we expect a revenue between EUR 44 and 60 billion, and a gross margin between 56% and 60%.
In DRAM and logic and will drive physically some of our most advanced product and I think that this is being confirmed as we speak the last few months have pointed basically exactly to that dynamic.
We also see that the Pago waste, we continue to make on our cost of technology with UV is driving for more litho intensity and that's again something that has been confirmed in the last few months. So if we look in to the long term in line to what we said in November 2024 for 2030, we expect revenue between.
<unk> 44, and <unk> 60 billion Euro and a gross margin between 56 and 60%.
[Company Representative 1] (ASML): Very clear. Thank you both, very much.
