ASML Q1 2025 Earnings Report (April 18, 2025)

Two quarters ago, it was also weak net bookings that derailed ASML—and, by extension, the entire semiconductor sector. This time, however, revenue and profitability were both exceptionally strong, and the company reaffirmed its full-year guidance—yet net bookings fell short of expectations, causing the stock to close down 7%. Assuming the low end of guidance: ASML’s full-year revenue of €30 billion, applied with a 51% gross margin, yields €15.3 billion in gross profit. Assuming quarterly operating expenses of €1.5 billion, €1.5 billion, €1.6 billion, and €1.7 billion respectively, full-year operating profit would total €9.0 billion. Applying a 17% tax rate yields an estimated net profit of approximately €7.5 billion. At the current market capitalization, this implies a P/E ratio of 35—indeed quite low. If revenue reaches the high end of guidance (€35 billion), and gross margin remains at 51% (despite tariff impacts), with all else unchanged, the implied P/E ratio drops to 27—suddenly far less alarming. So did Q1’s disappointing net bookings simply expose the potential reality behind that seemingly lofty P/E of 35??

Earnings 'Bombshell': This Dutch Company Is Left in Tears—Losing the Chinese Market Means Losing Half Its Lifeline

On Tuesday U.S. time, Dutch lithography equipment maker ASML reported earnings that triggered a 'bombshell' reaction—its stock plunged 16.26%, marking its largest single-day decline in nearly 26 years. Dragged down by ASML, U.S. chip stocks tumbled collectively; the Philadelphia Semiconductor Index fell 5.28%. Just how loud was ASML’s 'bombshell'? The answer lies plainly in its reported third-quarter results: sales and gross margin met expectations—but new orders dropped 53% quarter-on-quarter, falling well below even half of market expectations. With no alternative, the company was forced to lower its sales target for next year. The cause of the 'bombshell' is now clear—but why did order volume collapse so dramatically? The answer lies with the Dutch government: Why did it impose restrictions on exporting lithography machines to China? After all, ASML is not just any Dutch company—it is the nation’s flagship enterprise, arguably its 'national treasure.' Yet instead of actively supporting this crown jewel, the Dutch government has severed one of its most vital export channels. Is the Dutch government truly prepared to jeopardize ASML’s future? To be fair, the Dutch government never intended to block ASML’s sales of lithography machines to China. The Chinese market is neither trivial nor temporary—it is massive and enduring. Yet the spineless Dutch government stands no chance against the invisible 'hand' pulling the strings from behind—the United States. To suppress China’s high-tech advancement and stifle Chinese enterprises, the U.S. pressured the Netherlands to force ASML to restrict exports of lithography machines to China. Thus, all the pressure landed squarely on ASML’s shoulders. How could ASML—a company of modest scale—possibly withstand such coercion from a hegemonic power like the U.S.? ASML thus became the true 'scapegoat.' Being made a scapegoat may be tolerable—but corporate performance cannot bear the cost. Without the Chinese market, it’s no surprise that ASML’s order volume collapsed sharply. Put plainly: It’s easy for governments to raise the white flag—but for companies, raising that same flag directly translates into lost revenue—not only now, but cumulatively over time. It is foreseeable that ASML’s loss of market share in China will extend far beyond the portion explicitly restricted by Dutch export controls. Even the unrestricted segments will likely erode over time. China’s domestic alternatives are steadily multiplying. Once China’s substitution rate reaches a critical threshold, ASML could be entirely phased out of the Chinese market.

Aperam posts earnings miss on weak seasonal demand in Europe

16 hours ago

European stainless steel producer Aperam missed third-quarter earnings forecasts with €105 million in core profit, citing weak seasonal demand and low steel prices. Shares dropped 3% in 2026 as peers warn of a prolonged market recovery into early 2027.

reuters

2026-11-05

Aperam posts earnings miss on weak seasonal demand in Europe

Aperam posts earnings miss on weak seasonal demand in Europe

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