ASML Posts Record Year, Announces Major Restructuring

Dutch Chip Giant ASML Reports Historic 2025 Results

ASML Holding NV, the world's leading semiconductor equipment manufacturer, has announced its best financial year ever in 2025, with record-breaking profits and revenue. The Veldhoven-based company reported a net profit of €9.6 billion on sales of €32.7 billion, representing a remarkable 16% annual growth. Despite this stellar performance, ASML is simultaneously launching a significant organizational restructuring that will affect its workforce.

Strong Demand Driven by AI Boom

The company's success is largely attributed to the artificial intelligence revolution that has created unprecedented demand for advanced chips. In the fourth quarter alone, ASML received orders worth €13.2 billion - nearly double the same period in 2024. 'The AI-driven demand from our customers is creating significant opportunities across the semiconductor supply chain,' said CEO Christophe Fouquet during the earnings presentation.

ASML's extreme ultraviolet (EUV) lithography machines, which are essential for manufacturing the most advanced chips, have become increasingly critical as companies like TSMC, Samsung, and Intel race to produce AI accelerators. The company ended 2025 with a massive backlog of €38.8 billion, ensuring strong visibility for future revenue.

Restructuring Despite Record Performance

In a surprising move, ASML announced plans to streamline its Technology and IT organizations, which will result in layoffs affecting approximately 1,700 positions, primarily in the Netherlands. The company stated it needs to 'strengthen focus on engineering and innovation' by optimizing its operations.

This restructuring comes at a time when ASML is projecting even stronger performance for 2026, with sales expected to reach between €34-39 billion. The company also announced a generous €12 billion share buyback program to be executed by December 2028 and increased its dividend by 17% to €7.50 per share for 2025.

Geopolitical Challenges and Market Outlook

While the AI boom continues to drive demand, ASML faces challenges from geopolitical tensions, particularly regarding its business in China. The company expects China sales to decline to about 20% of total revenue in 2026, down from 33% in 2025, due to ongoing export restrictions.

'We cannot confirm growth in 2026,' CEO Fouquet had previously cautioned in July 2025, though the company now provides more optimistic guidance. The semiconductor equipment maker remains cautiously optimistic about the long-term outlook, citing continued investment in AI infrastructure by major technology companies.

ASML's market capitalization of approximately $527 billion makes it Europe's largest technology company and a critical player in the global semiconductor ecosystem. The company's unique position as the sole supplier of EUV machines gives it significant pricing power and strategic importance in the technology supply chain.

For more detailed financial information, visit ASML's official press release.