Norwegian Cruise Line (NCLH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $2.4B, up 8% year-over-year, with GAAP net income of $163.4M and Adjusted EPS of $0.40, exceeding guidance.

• Adjusted EBITDA grew 14% to $587.7M, and Net Yield rose 6.3%, both surpassing guidance.

• Full-year 2024 guidance for Net Yield, Adjusted EBITDA, and Adjusted EPS was raised for the third time, citing robust demand and strong execution.

• Occupancy reached 105.9% in Q2, with advance ticket sales at a record $3.9B, up 11% year-over-year.

• Net Leverage improved to 5.9x, achieving the year-end goal six months early.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $587.7M, up 14% year-over-year; Adjusted Net Income was $203.7M.

• Adjusted EPS increased 33% to $0.40; Net Yield up 6.3% year-over-year.

• Gross margin per Capacity Day increased 7% year-over-year; Adjusted Net Cruise Cost Excluding Fuel per Capacity Day was $163, flat year-over-year excluding dry-dock impact.

• Record advance ticket sales reached $3.9B, up 11% year-over-year.

• Liquidity at quarter-end was $2.7B, including $594M cash and $1.2B undrawn revolver.

Outlook and guidance

• Full-year 2024 Net Yield guidance raised to 8.2% growth; Adjusted EBITDA guidance increased to $2.35B.

• Full-year Adjusted EPS guidance raised to $1.53, up 120% over 2023.

• Q3 2024 guidance: Occupancy ~108.2%, Net Yield growth ~6.4%, Adjusted EBITDA ~$870M.

• On track to achieve double-digit Adjusted ROIC by year-end and targeting 12% by 2026.

• Adjusted Net Cruise Cost Excluding Fuel per Capacity Day guidance unchanged at ~$159, flat year-over-year excluding dry-dock impact.