ASML’s 2023 Results: Impressive €27.6B Net Sales and €7.8B Net Income

ASML Holding NV, a leading semiconductor equipment manufacturer, has just released its fourth quarter and full-year results for 2023. The company reported impressive figures, with Q4 net sales reaching €7.2 billion and a gross margin of 51.4%. Net income for the quarter amounted to €2.0 billion. ASML also achieved strong net bookings in Q4, totaling €9.2 billion, with €5.6 billion coming from its Extreme Ultraviolet (EUV) technology.

For the full year, ASML recorded net sales of €27.6 billion, with a gross margin of 51.3% and net income of €7.8 billion. These results reflect a remarkable 30% growth compared to the previous year. Additionally, the company ended 2023 with a backlog of €39 billion, highlighting its strong position in the market.

ASML’s CEO, Peter Wennink, expressed satisfaction with the company’s performance. He stated, “Our fourth-quarter net sales exceeded expectations, reaching €7.2 billion, along with a gross margin of 51.4%. We also successfully delivered the first modules of our High NA EUV system, EXE:5000, to a customer before the year’s end.”

Regarding the semiconductor industry as a whole, Wennink acknowledged that it is still recovering from a downturn. However, he noted some positive signs, such as improving industry end-market inventory levels and increasing litho tool utilization. ASML’s robust order intake in Q4 supports the anticipation of future demand.

Looking ahead, ASML expects Q1 2024 net sales to range between €5.0 billion and €5.5 billion, with a gross margin between 48% and 49%. The company estimates R&D costs of approximately €1,070 million and SG&A costs of around €300 million for the quarter. While there are positive indications, ASML remains cautious and predicts that 2024 revenue will be similar to that of 2023. Furthermore, the company views 2024 as a crucial year for preparing for significant growth anticipated in 2025.

In addition to the financial results, ASML announced its dividend and share buyback program. The company intends to declare a total dividend of €6.10 per ordinary share for 2023, representing a 5.2% increase from the previous year. An interim dividend of €1.45 per ordinary share will be paid on February 14, 2024. Taking into account the interim dividends paid in 2023, ASML proposes a final dividend of €1.75 per ordinary share at the General Meeting.

ASML did not make any share purchases under its current 2022-2025 share buyback program during the fourth quarter. More information about the share buyback program and dividend details can be found on ASML’s website.

Background Information

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About ASML:

ASML is an innovation leader in the global semiconductor industry. ASML provide chipmakers with hardware, software and services to mass produce patterns on silicon through lithography. Their lithography systems use ultraviolet light to create billions of tiny structures on silicon that together make up a microchip. Founded in 1984 in the Netherlands with just a handful of employees, ASML hass now grown to over 40,000 employees, 143 nationalities and more than 60 locations around the world.

  

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Technology Explained

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EUV: Extreme Ultraviolet Lithography (EUV or EUVL) is an advanced semiconductor manufacturing technique that employs extremely short wavelengths of light in the extreme ultraviolet spectrum to create intricate patterns on silicon wafers. Utilizing a wavelength around 13.5 nanometers, significantly shorter than traditional lithography methods, EUVL enables the production of smaller and more densely packed integrated circuits, enhancing the performance and efficiency of modern microprocessors and memory chips.

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