Installed Base (service)Wide moat

ASML (ASML) — moat facet

Service tripled since 2018 and in early 2026 earned more per euro than the machines.

Installed Base Management is what ASML earns from machines it has already sold: service contracts, spare parts, upgrades and software. It brought in €8,193.0 million in 2025, 25.1% of total net sales.12

Gross margin, first half, IFRS (%)53.3%Service H1 202560.3%Service H1 202653.3%Systems H1 202547.0%Systems H1 2026ASML H1 2026 interim report; sales less cost of sales, over sales
In early 2026 service earned 13 points more per euro than the machines.

ASML attributes the 2025 growth to "the growing installed base of systems", higher tool use at certain customers and "more NXE field upgrades".3 The last is the distinctive part. An upgrade lets a customer buy more wafers an hour from a machine it already owns, and ASML is paid again for a machine it sold years ago. The moat pages under The Installed Base & Service Annuity cover why customers have no one else to call.

The history is steadier than the systems business but not smooth. Service sales were €2,684.9 million in 2018 and €2,823.8 million in 2019.4 They rose to €3,661.9 million in 2020 and €4,958.2 million in 2021.5 They reached €5,743.1 million in 2022 and then fell to €5,619.9 million in 2023, the year system sales grew 42%.6 From 2018 to 2025 the line grew about three times, roughly 17.3% a year.7

Service is the only line with a disclosed margin, and the margin has moved a long way. Gross margin on service was about 34.0% in 2019, 53.2% in 2021 and 41.8% in 2023, and 50.9% in 2025, on costs of €4,025.3 million.891011

The first half of 2026 was the strongest on the series. Service sales rose 28.1% to €5,249.2 million while system sales rose 13.3%.12 Service costs rose only 9.1%, to €2,084.9 million, so the service gross margin reached about 60.3% on the IFRS basis of the interim report, against 47.0% on systems.1314 Quarterly service sales were €2,488 million in the first quarter and €2,762 million in the second.15

Growth depends on two things ASML only partly controls: how many machines it adds to the fleet, and how hard customers run them. Lithography units fell from 449 in 2023 to 327 in 2025, which slows the first.16 High utilisation in AI-driven fabs supports the second.

The verdict is that this is the steadiest business in ASML, and in the first half of 2026 it was the most profitable per euro. The number that would change that is the service gross margin: a return to the low 40s, as in 2023, would show the fleet costing more to support than customers pay for it.

Moat trajectory: Widening

First-half 2026 service sales up 28.1% with costs up 9.1%, taking the service gross margin to about 60.3%.

The number that tests this moat
Moat Explorer calc
Service gross margin, first half (IFRS)
About 60.3% in H1 2026, from 53.3%

A return toward 2023's 41.8% would show the fleet costing more to support than customers pay.

How it's calculated: (5,249.2 - 2,084.9) / 5,249.2 in H1 2026; (4,096.7 - 1,911.5) / 4,096.7 in H1 2025.
Source: ASML H1 2026 interim report (Moat Explorer calc) ↗
References
  1. ReportedIt brought in €8,193.0 million in 2025, 25.1% of total net sales.
    ASML Holding N.V. Form 20-F FY2025 - net system sales per technology 2023-2025 (units, €m): NXE 53/9,124.0, 42/7,856.4, 44/10,445.8; EXE 2/465.0 (2024), 4/1,156.9 (2025); ArFi 125/9,017.4, 129/9,667.0, 131/10,311.4; ArF dry 32/780.2, 28/774.4, 16/427.0; KrF 184/2,202.5, 152/1,991.2, 78/1,001.3; I-line 55/278.4, 65/369.2, 54/307.3; Metrology & Inspection 151/536.1, 165/645.5, 208/824.6; net service and field option sales 5,619.9/6,494.2/8,193.0 with cost 3,271.4/3,364.0/4,025.3; total net sales 27,558.5/28,262.9/32,667.3; China sales 7,251.8/10,195.1/9,519.7; service growth attributed to the growing installed base of systems, higher tool use and more NXE field upgrades — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcIt brought in €8,193.0 million in 2025, 25.1% of total net sales.
    Moat Explorer calculation from ASML's Forms 20-F FY2019, FY2021, FY2023 and FY2025 and the H1 2026 interim report: line totals (EUV = NXE + EXE; DUV = ArF immersion + ArF dry + KrF + i-line), shares of sales, sales per system, growth rates and gross margins (sales less cost of sales, over sales) — 2017 to H1 2026 · publ. 2026-09-23 · source ↗
  3. ReportedASML attributes the 2025 growth to "the growing installed base of systems", higher tool use at certain customers and "more NXE field upgrades".
    ASML Holding N.V. Form 20-F FY2025 - net system sales per technology 2023-2025 (units, €m): NXE 53/9,124.0, 42/7,856.4, 44/10,445.8; EXE 2/465.0 (2024), 4/1,156.9 (2025); ArFi 125/9,017.4, 129/9,667.0, 131/10,311.4; ArF dry 32/780.2, 28/774.4, 16/427.0; KrF 184/2,202.5, 152/1,991.2, 78/1,001.3; I-line 55/278.4, 65/369.2, 54/307.3; Metrology & Inspection 151/536.1, 165/645.5, 208/824.6; net service and field option sales 5,619.9/6,494.2/8,193.0 with cost 3,271.4/3,364.0/4,025.3; total net sales 27,558.5/28,262.9/32,667.3; China sales 7,251.8/10,195.1/9,519.7; service growth attributed to the growing installed base of systems, higher tool use and more NXE field upgrades — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedService sales were €2,684.9 million in 2018 and €2,823.8 million in 2019.
    ASML Holding N.V. Form 20-F / integrated report FY2019 - net system sales per technology 2017-2019: EUV 11/€1,084.2m, 18/€1,880.1m, 26/€2,799.7m; ArFi 76/€4,028.7m, 86/€4,806.9m, 82/€4,707.7m; ArF dry 13/€186.4m; KrF 71/€743.5m; i-line 26/€99.7m; Metrology & Inspection 95/€281.9m, 114/€339.1m, 115/€274.4m; net service and field option sales €2,684.9m (2018), €2,823.8m (2019) — FY2017-FY2019 · publ. February 2020 · source ↗
  5. ReportedThey rose to €3,661.9 million in 2020 and €4,958.2 million in 2021.
    ASML Holding N.V. Form 20-F FY2021 - net system sales per technology 2019-2021: EUV 26/€2,799.7m, 31/€4,463.8m, 42/€6,284.0m; ArFi 82/€4,707.7m, 68/€3,917.0m, 81/€4,959.6m; ArF dry 22/€401.2m, 22/€427.0m, 22/€431.9m; KrF 65/€679.7m, 103/€1,012.3m, 131/€1,321.3m; I-line 34/€133.5m, 34/€146.4m, 33/€142.3m; Metrology & Inspection 115/€274.4m, 137/€350.1m, 196/€513.7m; net service and field option sales €2,823.8m/€3,661.9m/€4,958.2m, cost of service €1,864.0m/€2,012.0m/€2,319.1m — FY2019-FY2021 · publ. February 2022 · source ↗
  6. ReportedThey reached €5,743.1 million in 2022 and then fell to €5,619.9 million in 2023, the year system sales grew 42%.
    ASML Holding N.V. Form 20-F FY2023 - net system sales per technology 2021-2023: 2022 NXE 40/€7,045.3m, ArFi 81/€5,236.5m, ArF dry 28/€623.7m, KrF 151/€1,653.7m, I-line 45/€211.5m, Metrology & Inspection 216/€659.6m; 2023 NXE 53/€9,124.0m; net service and field option sales €4,958.2m/€5,743.1m/€5,619.9m, cost of service €2,319.1m/€2,891.0m/€3,271.4m — FY2021-FY2023 · publ. February 2024 · source ↗
  7. Moat Explorer calcFrom 2018 to 2025 the line grew about three times, roughly 17.3% a year.
    Moat Explorer calculation from ASML's Forms 20-F FY2019, FY2021, FY2023 and FY2025 and the H1 2026 interim report: line totals (EUV = NXE + EXE; DUV = ArF immersion + ArF dry + KrF + i-line), shares of sales, sales per system, growth rates and gross margins (sales less cost of sales, over sales) — 2017 to H1 2026 · publ. 2026-09-23 · source ↗
  8. ReportedGross margin on service was about 34.0% in 2019, 53.2% in 2021 and 41.8% in 2023, and 50.9% in 2025, on costs of €4,025.3 million.
    ASML Holding N.V. Form 20-F FY2021 - net system sales per technology 2019-2021: EUV 26/€2,799.7m, 31/€4,463.8m, 42/€6,284.0m; ArFi 82/€4,707.7m, 68/€3,917.0m, 81/€4,959.6m; ArF dry 22/€401.2m, 22/€427.0m, 22/€431.9m; KrF 65/€679.7m, 103/€1,012.3m, 131/€1,321.3m; I-line 34/€133.5m, 34/€146.4m, 33/€142.3m; Metrology & Inspection 115/€274.4m, 137/€350.1m, 196/€513.7m; net service and field option sales €2,823.8m/€3,661.9m/€4,958.2m, cost of service €1,864.0m/€2,012.0m/€2,319.1m — FY2019-FY2021 · publ. February 2022 · source ↗
  9. ReportedGross margin on service was about 34.0% in 2019, 53.2% in 2021 and 41.8% in 2023, and 50.9% in 2025, on costs of €4,025.3 million.
    ASML Holding N.V. Form 20-F FY2023 - net system sales per technology 2021-2023: 2022 NXE 40/€7,045.3m, ArFi 81/€5,236.5m, ArF dry 28/€623.7m, KrF 151/€1,653.7m, I-line 45/€211.5m, Metrology & Inspection 216/€659.6m; 2023 NXE 53/€9,124.0m; net service and field option sales €4,958.2m/€5,743.1m/€5,619.9m, cost of service €2,319.1m/€2,891.0m/€3,271.4m — FY2021-FY2023 · publ. February 2024 · source ↗
  10. ReportedGross margin on service was about 34.0% in 2019, 53.2% in 2021 and 41.8% in 2023, and 50.9% in 2025, on costs of €4,025.3 million.
    ASML Holding N.V. Form 20-F FY2025 - net system sales per technology 2023-2025 (units, €m): NXE 53/9,124.0, 42/7,856.4, 44/10,445.8; EXE 2/465.0 (2024), 4/1,156.9 (2025); ArFi 125/9,017.4, 129/9,667.0, 131/10,311.4; ArF dry 32/780.2, 28/774.4, 16/427.0; KrF 184/2,202.5, 152/1,991.2, 78/1,001.3; I-line 55/278.4, 65/369.2, 54/307.3; Metrology & Inspection 151/536.1, 165/645.5, 208/824.6; net service and field option sales 5,619.9/6,494.2/8,193.0 with cost 3,271.4/3,364.0/4,025.3; total net sales 27,558.5/28,262.9/32,667.3; China sales 7,251.8/10,195.1/9,519.7; service growth attributed to the growing installed base of systems, higher tool use and more NXE field upgrades — FY2023-FY2025 · publ. February 2026 · source ↗
  11. Moat Explorer calcGross margin on service was about 34.0% in 2019, 53.2% in 2021 and 41.8% in 2023, and 50.9% in 2025, on costs of €4,025.3 million.
    Moat Explorer calculation from ASML's Forms 20-F FY2019, FY2021, FY2023 and FY2025 and the H1 2026 interim report: line totals (EUV = NXE + EXE; DUV = ArF immersion + ArF dry + KrF + i-line), shares of sales, sales per system, growth rates and gross margins (sales less cost of sales, over sales) — 2017 to H1 2026 · publ. 2026-09-23 · source ↗
  12. ReportedService sales rose 28.1% to €5,249.2 million while system sales rose 13.3%.
    ASML statutory interim report H1 2026 (IFRS) - net system sales per technology, six months to June 2025 and June 2026 (units, €m): EXE 1/273.8 and 3/1,188.9; NXE 24/5,593.2 and 29/6,708.5; ArF immersion 56/4,301.7 and 40/3,331.7; ArF dry 7/193.3 and 13/367.3; KrF 38/495.6 and 65/772.6; I-line 27/158.0 and 20/113.1; Metrology & Inspection 88/320.9 and 104/362.1; net system sales 11,336.5 and 12,844.2 (+13.3%), net service and field option sales 4,096.7 and 5,249.2 (+28.1%); cost of system sales 5,298.3 and 6,803.1, cost of service 1,911.5 and 2,084.9 (+9.1%) — H1 2026 · publ. July 15, 2026 · source ↗
  13. ReportedService costs rose only 9.1%, to €2,084.9 million, so the service gross margin reached about 60.3% on the IFRS basis of the interim report, against 47.0% on systems.
    ASML statutory interim report H1 2026 (IFRS) - net system sales per technology, six months to June 2025 and June 2026 (units, €m): EXE 1/273.8 and 3/1,188.9; NXE 24/5,593.2 and 29/6,708.5; ArF immersion 56/4,301.7 and 40/3,331.7; ArF dry 7/193.3 and 13/367.3; KrF 38/495.6 and 65/772.6; I-line 27/158.0 and 20/113.1; Metrology & Inspection 88/320.9 and 104/362.1; net system sales 11,336.5 and 12,844.2 (+13.3%), net service and field option sales 4,096.7 and 5,249.2 (+28.1%); cost of system sales 5,298.3 and 6,803.1, cost of service 1,911.5 and 2,084.9 (+9.1%) — H1 2026 · publ. July 15, 2026 · source ↗
  14. Moat Explorer calcService costs rose only 9.1%, to €2,084.9 million, so the service gross margin reached about 60.3% on the IFRS basis of the interim report, against 47.0% on systems.
    Moat Explorer calculation from ASML's Forms 20-F FY2019, FY2021, FY2023 and FY2025 and the H1 2026 interim report: line totals (EUV = NXE + EXE; DUV = ArF immersion + ArF dry + KrF + i-line), shares of sales, sales per system, growth rates and gross margins (sales less cost of sales, over sales) — 2017 to H1 2026 · publ. 2026-09-23 · source ↗
  15. ReportedQuarterly service sales were €2,488 million in the first quarter and €2,762 million in the second.
    ASML Q2 2026 results press release - Installed Base Management sales €2,488m (Q1 2026) and €2,762m (Q2 2026); plans to add 30% to its 2026 low NA EUV capacity of around 65 for 2027 and 30% to its 2026 DUV immersion capacity of around 130 — Q2 2026 · publ. July 15, 2026 · source ↗
  16. Moat Explorer calcLithography units fell from 449 in 2023 to 327 in 2025, which slows the first.
    Moat Explorer calculation from ASML's Forms 20-F FY2019, FY2021, FY2023 and FY2025 and the H1 2026 interim report: line totals (EUV = NXE + EXE; DUV = ArF immersion + ArF dry + KrF + i-line), shares of sales, sales per system, growth rates and gross margins (sales less cost of sales, over sales) — 2017 to H1 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026