ASML is a gem of a Dutch company that makes the machines they use in chip foundries. ASML Holding NV (ASML) has published its 2022 fourth-quarter and full-year results. The 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. "For ASML, 2022 was another strong year ending with total net sales for the year of €21.2 billion, gross margin of 50.5% and a record backlog at the end of 2022 of €40.4 billion.
"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.
"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 ASML President and Chief Executive Officer Peter Wennink.
- Q4 net sales of €6.4 billion, gross margin of 51.5%, net income of €1.8 billion
- Quarterly net bookings in Q4 of €6.3 billion of which €3.4 billion is EUV
- 2022 net sales of €21.2 billion, gross margin of 50.5%, net income of €5.6 billion
- ASML expects 2023 net sales to grow over 25% compared to 2022
- ASML expects Q1 2023 net sales between €6.1 billion and €6.5 billion and a gross margin between 49% and 50%
- 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
Update share buyback program and dividend proposal
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).
