Norwegian Cruise Line Holdings Ltd
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did NCLH Beat Earnings? Q2 2025 Results
Norwegian Cruise Line Holdings delivered a record-breaking second quarter, posting revenue of $2.52 billion — a 6% year-over-year gain — while adjusted EPS of $0.51 met guidance even after absorbing an $0.08 foreign exchange headwind that weighed heavily on GAAP results. That FX drag, totaling $158.50 million in losses largely tied to non-cash mark-to-market movements on euro-denominated debt, caused GAAP net income to tumble to $29.99 million from $163.44 million a year earlier, obscuring an otherwise strong operational performance. Adjusted EBITDA climbed 18% to $694.05 million, ahead of the company's $670 million target, with occupancy running at 103.9% and the advance ticket sales balance reaching an all-time record of $4.00 billion. Booking momentum, which softened briefly in early April amid uncertainty over long-haul European itineraries, has since rebounded above historical norms — a contrast to the turbulence seen among <a href="https://247wallst.com/investing/2025/10/28/royal-caribbean-cruises-rcl-down-7-after-earnings/">other cruise operators lately</a>. Looking ahead, NCLH reiterated full-year adjusted EPS guidance of $2.05, representing 16% growth, with adjusted EBITDA expected at approximately $2.72 billion.
- Record second quarter revenue driven by strong consumer demand across all three brands
- Net Yield increased approximately 2.7% as reported and 3.1% on Constant Currency basis, exceeding guidance
- Adjusted Net Cruise Cost excluding Fuel per Capacity Day essentially flat year-over-year on Constant Currency, better than 1.0% guidance due to timing of cost savings initiatives
- Gross margin per Capacity Day increased 11% versus 2024 as reported and 12% on Constant Currency basis
- Continued strength in onboard spend
- Fuel price per metric ton decreased to $659 from $719 in 2024
“We delivered another record quarter, demonstrating once again the strong customer demand environment, the power of our brands, our outstanding onboard product, and the dedication of our team. Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend. This performance reflects the strength of our offerings across the fleet, along with our disciplined focus on driving both return on investment and return on experience.”
Norwegian Cruise Line CEO, on the earnings call
Forward Guidance & Outlook
NCLH reiterated all key full-year 2025 guidance metrics. Net Yield on a Constant Currency basis is expected to increase approximately 2.5% versus 2024. Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow approximately 0.6% on a Constant Currency basis. Full-year Adjusted EBITDA is expected to be approximately $2.72 billion, an 11% increase versus 2024. Adjusted Operational EBITDA Margin is expected to be approximately 37%, a 150 basis point increase. Adjusted Net Income is reiterated at approximately $1,045 million with Adjusted EPS of $2.05, a 16% increase. Net Leverage is expected to end the year at approximately 5.2x, slightly higher than prior ~5x guidance due to euro-denominated debt mark-to-market. For Q3 2025, the company guides Adjusted EBITDA of approximately $1.015 billion, Adjusted EPS of approximately $1.14, and occupancy of approximately 105.5%. The company remains committed to achieving its 2026 Charting the Course financial targets, including reducing Net Leverage to the mid-4x range.
NCLH YoY Financials
NCLH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.