ASML’s Q2 Financial Report: A Year of Transition and Growth

Recently, ASML released its financial report for the first quarter of 2024. ASML’s new Chief Executive Officer, Christophe Fouquet, stated that the net sales for the second quarter were at the upper end of expectations, with a gross margin exceeding the anticipated upper limit of 51%. However, market uncertainty persists, primarily due to macroeconomic factors. Fouquet anticipates continued industry recovery in the second half of the year, with overall semiconductor inventory levels improving as in previous quarters. He noted that 2024 is a transitional year, with ongoing investments in capacity enhancement and technological advancements.

The second-quarter financial report for 2024 reveals net sales of €6.2 billion, a gross margin of 51.5%, and a net profit of €1.6 billion. During this quarter, net bookings amounted to €5.6 billion, of which €2.5 billion were from EUV systems, marking a significant increase from the previous quarter’s €656 million. ASML repurchased approximately €96 million worth of shares under the current 2022-2025 stock buyback plan. Additionally, an interim dividend of €1.52 per ordinary share will be paid on August 7, 2024.

According to ASML’s presented materials, mainland China remains ASML’s largest customer, contributing 49% of net sales, consistent with the first quarter of 2024, marking the fourth consecutive quarter as ASML’s largest market. South Korea ranks second, accounting for 28% of net sales, followed by Taiwan at 11%.

ASML projects net sales for the third quarter of 2024 to be between €6.7 billion and €7.3 billion, with a gross margin between 50% and 51%. Research and development costs are expected to be around €1.1 billion, and SG&A costs approximately €295 million. Christophe Fouquet stated that ASML’s annual outlook remains unchanged, noting that the robust development of artificial intelligence (AI) is driving most of the industry’s recovery and growth, outpacing other market segments.