Dutch ASML books record sales over 2022 and expects an even better 2023

The Dutch chipmaker factory ASML (Veldhoven, Netherlands) looks back on a very successful 2022, with a net result of €5,6 billion. Despite a lot of uncertainties in the market, the company expects an even better 2023 with a net sales to grow over 25 percent compared to 2022.

“For ASML, 2022 was another strong year ending with total net sales for the year of €21.2 billion, gross margin of 50.5 percent and a record backlog at the end of 2022 of €40.4 billion,” says ASML President and Chief Executive Officer Peter Wennink in a press release.

In Q4 2022 the company achieved net sales of €6.4 billion, a gross margin of 51.5 percent and a net income of €1.8 billion. ASML expects Q1 2023 net sales between €6.1 billion and €6.5 billion and a gross margin between 49 and 50 percent.

The value of fast shipments in 2022 leading to delayed revenue recognition into 2023 is around €3.1 billion. ASML intends to declare a total dividend for the year 2022 of €5.80 per ordinary share; a 5.5% increase compared to 2021.

“Our fourth-quarter net sales came in around the midpoint of our guidance at €6.4 billion. The gross margin of 51.5% was above our guidance due to additional upgrades and insurance settlement for last year’s ASML Berlin fire,” so Peter Wennink. 

Demand remains strong

“We continue to see uncertainty in the market caused by inflation, rising interest rates, risk of recession and geopolitical developments related to export controls. However, our customers indicate that they expect the market to rebound in the second half of the year. Considering our order lead times and the strategic nature of lithography investments, demand for our systems, therefore, remains strong. 

ASML has been prevented from exporting its advanced lithography machines to China since 2019. This is due to the US government imposing export restrictions on high-tech products, citing national security concerns. The Biden administration fears that the ASML machines will help China gain a technological advantage. The move has significantly impacted Chinese chipmakers, who rely heavily on these tools for production.

“For 2023, ASML expects continued strong growth with a net sales increase of more than 25% and a slight improvement in gross margin, relative to 2022. We expect first-quarter net sales between €6.1 billion and €6.5 billion with a gross margin between 49% and 50%. ASML expects R&D costs of around €965 million and SG&A costs of around €285 million,” said Wennink.

ASML is booming, and so is the region

The RepTrak Company investigates the reputation of companies in over sixty countries. In the Netherlands there are four companies from the Brainport region in the top ten.

Dividend

In the fourth quarter we purchased around €300 million worth of shares under the previous, completed share buyback program and the current 2022-2025 program. 

ASML intends to declare a total dividend for the year 2022 of €5.80 per ordinary share, which is a 5.5% increase compared to 2021. An interim dividend of €1.37 per ordinary share will be made payable on February 15, 2023.

Recognizing this interim dividend and the two interim dividends of €1.37 per ordinary share paid in 2022, this leads to a final dividend proposal to the General Meeting of €1.69 per ordinary share.

Details of the share buyback program as well as transactions pursuant thereto, and details of the dividend proposal are published on ASML’s website (www.asml.com/investors).