Dutch chip equipment maker ASML Holding NV (NASDAQ:ASML, ETR:ASME) said on Wednesday it is well positioned to navigate China’s new rare-earth export rules, as the company reported modest revenue growth and stronger-than-expected profits for the third quarter.
CFO Roger Dassen told Bloomberg the company had already secured sufficient rare-earth materials for the coming months, highlighting ASML’s long supply chain lead times.
“We make sure that we have the materials in that we need for the next couple of months,” he said.
ASML posted Q3 revenue of €7.52 billion, up 1% year-on-year but slightly below analysts’ estimate of €7.79 billion.
Earnings per share rose 4% to €5.49, beating the €5.37 forecast, while gross margin improved to 51.6% from 51.3% expected.
Net bookings surged 105% to €5.40 billion, slightly above the €5.36 billion estimate.
For the fourth quarter, ASML expects revenue of €9.2 billion to €9.8 billion and a gross margin of 51% to 53%. The company projected FY25 total net sales to rise roughly 15% year-on-year, with a gross margin around 52%, and said FY26 total net sales would not fall below 2025 levels.
Net income rose 2% to €2.13 billion, operating margin stood at 32.8%, and free cash flow was €244 million.
ASML shares rose 3.7% in early New York trading.