ASML Shareholders to Vote on Leadership and Payouts Amid Record Performance

ASML holds pivotal AGM to approve board changes, final dividend, and buybacks after a record Q1. The company raises its 2024 revenue outlook to €40 billion.

ASML Holding NV faces a pivotal shareholder meeting this Wednesday, where investors will cast votes on a significant leadership reshuffle and a final dividend payment. The gathering in Veldhoven comes on the heels of a record-breaking first quarter that saw the Dutch chip equipment maker raise its full-year outlook.

The company’s financial performance provides a strong backdrop for the annual meeting. First-quarter net sales reached €8.8 billion, comfortably surpassing market expectations, while net income came in at €2.8 billion. Buoyed by this strength, management has lifted its revenue forecast for the year to as much as €40 billion.

A key item on the agenda is the distribution of cash to shareholders. ASML plans a total dividend of €7.50 per share for the past year, marking a 17% increase. Following three interim payments, shareholders are set to approve a final dividend of €2.70. Concurrently, the company is aggressively buying back its own stock, repurchasing shares worth approximately €1.1 billion in Q1 alone. A recent regulatory filing showed an additional €84 million spent over four trading days in mid-April.

Significant changes are underway in the boardroom. The supervisory board will seek approval to appoint Marco Pieters as Chief Technology Officer for a four-year term. CFO Roger Dassen and Chief Operations Officer Frédéric Schneider-Maunoury are up for reappointment, which would bring the total executive board membership to six. There is also movement in the supervisory body, with Alexander Everke stepping down. The company has nominated Benjamin Loh, former CEO of ASM International, as his successor, bringing three decades of industry experience.

Operational plans are also in focus. The company is ramping up production capacity for its cutting-edge EUV machines. Finance chief Dassen outlined targets to deliver 60 low-NA systems in 2026, with capacity rising to 80 units the following year. Some analysts, including those at Barclays, expressed mild disappointment, having hoped for more ambitious targets.

Geopolitical tensions are leaving a clear mark on ASML’s business mix. Revenue from China accounted for 19% of sales last quarter, a sharp drop from 36% at the end of the previous year. Dassen noted that expected growth is now primarily coming from other regions. This shift occurs as a bipartisan group of U.S. politicians calls for stricter export controls on older DUV lithography systems. CEO Christophe Fouquet has stated the company’s broad revenue forecast already factors in potential tightening of U.S. export rules.

A notable change in the company’s reporting has caught the market's attention. For the first time, ASML’s quarterly report did not disclose a specific order intake figure. Analyst Ben Barringer of Quilter Cheviot identified this as a disruption to which investors must adapt. Fouquet offered verbal assurance that order intake remains "very strong."

Ahead of the meeting, ASML shares traded around €1,224, maintaining a robust position above the 50-day moving average near €1,198 and holding close to record highs. The stock has gained nearly 24% since the start of the year.