ASML closed out 2024 with a record-setting fourth quarter, showcasing strong financial and operational performance fueled by high demand for advanced lithography technologies and robust customer adoption in AI and high-performance computing.

Q4 2024 net sales reached €9.3 billion, up sharply from prior quarters, with a gross margin of 51.7% and net income of €2.7 billion, representing 29.1% of sales. Basic earnings per share came in at €6.85, reflecting the continued strength of the company’s profitability. Operating margin stood at 36.2%, and ASML ended the quarter with a healthy €12.7 billion in cash and equivalents.

For the full year 2024, ASML generated €28.3 billion in net sales, with a gross margin of 51.3% and net income of €7.6 billion. Despite selling fewer lithography systems—418 units compared to 449 in 2023—the company delivered solid top-line growth, thanks in part to higher-value systems and strong service revenues. Installed Base Management sales rose 16% year-over-year to €6.5 billion, underscoring the increasing importance of service and upgrade demand.

EUV system sales totaled €8.3 billion for the year, down 9% YoY, but Q4 was notable for the revenue recognition of two High NA EUV systems and the shipment of a third—marking significant progress in next-generation lithography. Meanwhile, DUV system sales rose 4% YoY to €12.8 billion, led by strong demand for immersion tools. The Applications segment, including metrology and inspection systems, also performed well, growing 20% YoY to €646 million.

Geographically, sales remained concentrated in Taiwan (30%), China (29%), and South Korea (24%), though management noted that China’s share is expected to normalize to the low-20% range in future periods as the recent backlog clears.

On the technology front, ASML hit key milestones, including full system spec demonstration for the NXE:3800E, and strong customer feedback on High NA EUV systems, which are moving steadily toward high-volume manufacturing. The company also began recognizing revenue from its eScan1100 multi-beam inspection tools, highlighting the growing relevance of its applications portfolio.

Q4 2024 net bookings came in at €7.1 billion, with €3.0 billion in EUV orders. Though bookings were down year-over-year, management emphasized a move away from quarterly order disclosures due to their inherent volatility, opting instead to report annually going forward.

Looking ahead, 2025 guidance suggests continued momentum: ASML expects net sales between €30–35 billion and gross margins of 51–53%, with Q1 revenue projected at €7.5–8.0 billion and margins of 52–53%. Investment in R&D and SG&A will remain elevated to support its roadmap and customer alignment.

ASML views artificial intelligence as a key growth catalyst, with strong demand expected to benefit Logic segments in particular, while Memory demand remains robust, buoyed by high-bandwidth memory (HBM) applications. However, the company remains mindful of risks, including potential order pushouts and geopolitical tensions, particularly with respect to China and export controls.

ASML continues to invest in capacity expansion and supply chain resilience, aiming to reduce lead times and maintain flexibility. While no shares were repurchased in Q4, the company proposed a €6.40 dividend per share for 2024, up 4.9% year-over-year.

In summary, ASML concluded 2024 with record financial performance, strong product milestones, and a robust outlook for 2025, backed by its industry-leading position in lithography and deep alignment with AI and semiconductor innovation trends.