Norwegian Cruise Line Holdings Ltd
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did NCLH Beat Earnings? Q1 2025 Results
Norwegian Cruise Line Holdings delivered a mixed first quarter in 2025, posting adjusted EPS of $0.07 — down from $0.16 a year ago — as total revenue slipped roughly 3% year-over-year to $2.13 billion, weighed down by reduced capacity from ships in dry-dock and a pullback in passenger air participation. The headline numbers masked a deeper GAAP net loss of $40.30 million, a sharp reversal from Q1 2024's $17.35 million profit, driven largely by $23.00 million in foreign exchange losses and $49.53 million in debt extinguishment costs tied to balance sheet activity. On the brighter side, adjusted EBITDA of $453.07 million cleared management's own guidance of $435.00 million. Still, the results landed against a backdrop of softening forward demand, prompting NCLH to trim its full-year Net Yield growth outlook to 2.0%–3.0% on a constant currency basis while holding firm on full-year adjusted EBITDA guidance of approximately $2.72 billion and adjusted EPS of $2.05 — a contrast to the more confident posture seen recently from <a href="https://247wallst.com/investing/2025/10/28/royal-caribbean-cruises-rcl-down-7-after-earnings/">rival cruise operators</a>.
- Gross margin per Capacity Day up 5% YoY as reported, 7% constant currency
- Net Yield growth of 0.6% as reported, 1.2% constant currency, above guidance of 0.5%
- Adjusted Net Cruise Cost excluding Fuel per Capacity Day up 2.9%, better than guidance of 3.9%
- Fuel price per metric ton net of hedges decreased to $687 from $735 in 2024
- Advance ticket sales balance of $3.9 billion, up 2.6% year-over-year
- Record guest satisfaction scores and guest repeat rates
“We kicked off 2025 with solid first quarter results, demonstrating the continued momentum of our Charting the Course strategy in building a strong foundation for long-term success and delivering on our vision for guests to Vacation Better | Experience More. We welcomed Norwegian Aqua—NCL's first Prima Plus Class vessel and completed impactful refurbishments on Norwegian Bliss and Norwegian Breakaway. In addition, our recently announced new amenities at Great Stirrup Cay will further enhance the guest experience on our Caribbean voyages, which continue to grow as we expand our fleet.”
Norwegian Cruise Line CEO, on the earnings call
Forward Guidance & Outlook
The company maintained full year 2025 Adjusted EBITDA guidance of approximately $2.72 billion (11% YoY increase) and Adjusted EPS guidance of $2.05 (13% YoY increase). However, full year Net Yield growth guidance on a constant currency basis was lowered to 2.0%-3.0% from the prior ~3.0% to reflect recent booking trends and macroeconomic conditions. Adjusted Net Cruise Cost Excluding Fuel per Capacity Day growth guidance was tightened to 0%-1.25% on a constant currency basis from ~1.25%, reflecting additional cost savings measures expected to offset potential top-line pressures. Q2 2025 guidance includes Adjusted EBITDA of ~$670 million, Adjusted EPS of ~$0.51, occupancy of ~103.2%, and Net Yield decline of ~2.5% on both as reported and constant currency basis. The company expects Net Leverage to end 2025 at approximately 5x and remains committed to Charting the Course 2026 financial targets. The company has seen softening in its 12-month forward booked position but continues to remain within the optimal range.
NCLH YoY Financials
NCLH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.