Norwegian Cruise Line (NCLH) Q1 2025 earnings summary

Executive summary

• Q1 2025 results met or exceeded guidance, with Adjusted EBITDA of $453 million above expectations, driven by strong Net Yield, cost control, and robust onboard revenue, despite a 2.9% revenue decline to $2.13 billion due to lower Capacity Days.

• Net loss for Q1 2025 was $40.3 million (EPS: $(0.09)), while Adjusted Net Income was $31 million (Adjusted EPS: $0.07), impacted by FX and higher debt extinguishment costs.

• Strategic initiatives included the delivery of Norwegian Aqua, enhancements to Great Stirrup Cay, and long-term charters to optimize fleet age and efficiency.

• Booking trends showed some softness in Q3 Europe, but overall 2026 book position is ahead of historical averages at higher prices; advance ticket sales reached $3.9 billion.

• Focus remains on balancing ROI and ROX, with a multi-year plan to reduce leverage and drive long-term shareholder value.

Financial highlights

• Net Yield increased 1.2% above expectations, with Net Per Diem up 4.3% year-over-year; Net Yield was $279.51 in Q1 2025.

• Adjusted EBITDA was $453 million, above guidance, though down 2% year-over-year; Adjusted EPS was $0.07, slightly below guidance due to FX headwinds.

• Adjusted Net Cruise Cost excluding fuel per Capacity Day was $169, up from $164.57 year-over-year.

• Operating income was $200.9 million, down from $218.4 million in Q1 2024.

• Advance ticket sales reached $3.9 billion, up 2.6% year-over-year.

Outlook and guidance

• Full-year 2025 Net Yield growth outlook revised to 2%-3% (Constant Currency), reflecting some top-line pressure but assuming consumer environment stabilizes.

• Full-year Adjusted EBITDA guidance maintained at ~$2.72 billion and Adjusted EPS at $2.05; margin expansion expected to 37% for 2025.

• Adjusted Net Cruise Cost excluding fuel guidance improved to 0%-1.25% growth.

• Occupancy for 2025 expected to average 102.5%, with Q2 occupancy at 103.2%.

• Net leverage targeted to end 2025 at ~5x, with further organic reduction expected in 2026.