Norwegian Cruise Line Holdings Ltd
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.54%.
Did NCLH Beat Earnings? Q4 2025 Results
Norwegian Cruise Line Holdings delivered a mixed but ultimately beat-driven Q4 2025, posting adjusted EPS of $0.28 against a consensus estimate of $0.262 — a 6.87% beat — even as reported revenue of $2.24 billion fell 4.26% short of the $2.34 billion Wall Street had expected, despite rising 6.4% year-over-year. The headline numbers masked sharply contrasting stories beneath: GAAP net income cratered to just $14.25 million, weighed down by a $95.10 million IT asset write-off and $272.46 million in debt extinguishment costs, while adjusted EBITDA surged 20% to $563.85 million. New CEO John Chidsey, who took the helm in February 2026, offered a candid acknowledgment that <a href="https://247wallst.com/investing/2026/02/17/billionaire-activist-elliott-just-put-norwegian-cruise-line-in-its-crosshairs/">scrutiny on the company</a> is warranted, citing execution missteps in Caribbean deployment that are pressuring early 2026 bookings. Shares fell more than 10% on the report as investors focused on a cautious 2026 outlook, which guides for approximately flat net yields and adjusted EPS of $2.38 — a recovery story weighted heavily toward the back half of the year.
- Higher Capacity Days driving revenue growth
- Gross margin per Capacity Day increased 7.6% in Q4 year-over-year
- Net Yield increased approximately 4.0% in Q4 on as reported basis
- Disciplined cost management with sub-inflationary unit cost growth
- Strong demand across luxury brands Oceania Cruises and Regent Seven Seas Cruises
- Q4 Occupancy reached 101.8%, a 100 basis point improvement versus 2024
“The team delivered solid fourth quarter and full year 2025 results reflecting the strength of our award-winning brands, loyal guests and dedication of our team and crew members. As I step into this new role my initial assessment is that our strategy is sound, but execution and cross-functional alignment have fallen short. Our priority is to act urgently to address these gaps by improving coordination, reinforcing accountability, and strengthening financial discipline across the organization. The good news is that we have strong assets and have recently enhanced our leadership team with the right combination of new and tenured talent. Now, with a clear focus and necessary rigor, I am confident in our ability to create sustainable long-term value.”
Norwegian Cruise Line CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, NCLH expects Adjusted EBITDA of approximately $2.95 billion, Adjusted Net Income of approximately $1.116 billion, and Adjusted EPS of $2.38. Net Yield on a Constant Currency basis is expected to be approximately flat versus 2025. Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow approximately 0.9% on a Constant Currency basis, marking the third consecutive year of sub-inflationary unit cost performance. Net Leverage is expected to end 2026 at approximately 5.2x. For Q1 2026, Net Yield on a Constant Currency basis is expected to decline approximately 1.6% due to challenges absorbing a 40% year-over-year increase in Caribbean capacity. Q1 2026 Adjusted EBITDA is expected to be approximately $515 million with Adjusted EPS of approximately $0.16. Occupancy is expected to reach 105.7% in 2026 compared to 103.5% in 2025.
NCLH YoY Financials
NCLH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.