ASML (ASML) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached €6.2 billion, with net income of €1.6 billion and gross margin of 51.5%, both at or above guidance, driven by strong demand in semiconductor end markets and increased lithography intensity.

• Bookings momentum remains strong, with Q2 net system bookings at €5.6 billion, including €2.5 billion in EUV, and backlog at €39 billion.

• AI-driven demand is accelerating industry recovery, especially in Logic and Memory, with Memory revenue expected to grow in 2024.

• High-NA EUV systems are progressing well, with customer engagement, initial shipments, and qualification wafers underway.

• Product portfolio aligns with customer roadmaps, covering both leading edge and mature nodes.

Financial highlights

• Net system sales: €4.8 billion (EUV: €1.5 billion, non-EUV: €3.3 billion); Logic accounted for 54%, Memory 46%.

• Installed Base Management sales: €1.5 billion in Q2 2024.

• Gross margin for Q2 2024 was 51.5%; operating margin at 29.4%; net income margin 25.3%.

• Free cash flow for Q2 2024 was €386 million; cash and equivalents at quarter-end were €4.8–5.0 billion.

• Basic EPS for Q2 2024 was €4.01.

Outlook and guidance

• Q3 2024 net sales expected between €6.7–7.3 billion; Installed Base Management sales around €1.4 billion.

• Q3 gross margin expected at 50–51%; full-year 2024 margin slightly lower than 2023 due to High-NA costs.

• 2024 revenue expected to be similar to 2023, with a stronger second half anticipated, driven by AI demand.

• 2025 revenue guidance reaffirmed at €30–40 billion, with more specific guidance to be provided at November’s Capital Markets Day.

• Estimated annualized effective tax rate for 2024 is between 16% and 17%.