Norwegian Cruise Line (NCLH) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $2.5B, up 6.1% year-over-year, with Adjusted EBITDA of $694M, exceeding guidance, and Adjusted EPS of $0.51, despite FX headwinds.

• Net income for Q2 2025 was $30M, down from $163.4M in Q2 2024, due to FX and debt costs; operational metrics and bookings were ahead of historical levels.

• Strategic investments in fleet expansion, amenities, and technology, including delivery of Oceania Allura, new Sonata Class ships, and Great Stirrup Cay enhancements, support long-term growth.

• Sustainability initiatives advanced, highlighted by the 2024 Sail and Sustain report and industry-leading ESG awards.

• Focused on balancing return on investment, guest experience, and strengthening the balance sheet through cost control and deleveraging.

Financial highlights

• Q2 2025 Adjusted EBITDA was $694M, $24M above guidance; Adjusted Net Income was $257M, and Adjusted EPS was $0.51, in line with guidance despite $0.08 FX impact.

• Q2 revenue reached $2.5B, a 6% increase year-over-year; operating income was $423.8M, and gross margin per Capacity Day increased 11%.

• Net yield for Q2 2025 was $304.34, up 3.1% in constant currency, with pricing growth of 5.1%.

• Occupancy for Q2 was 105.3%, above guidance, and advance ticket sales reached a record $4.0B.

• Net leverage improved to 5.3x, better than guidance, with 94% of debt at fixed rates.

Outlook and guidance

• Full-year 2025 guidance reiterated: Net Yield growth ~2.5%, Adjusted EBITDA ~$2.72B, Adjusted EPS ~$2.05, and occupancy ~103%.

• Q3 2025 guidance: Adjusted EBITDA ~$1.015B, Adjusted EPS ~$1.14, and occupancy ~105.5%.

• 2026 targets include margin expansion to ~39%, Adjusted EPS ~$2.45–$2.50, and net leverage in the mid-4x range.

• Net leverage expected to end 2025 at ~5.2x, with further reduction targeted by 2026.

• Liquidity as of June 30, 2025, was $2.4B, including $184M cash and $2.0B available under the Revolving Loan Facility.