Norwegian Cruise Line (NCLH) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $2.9 billion, up 4.7–5% year-over-year, with Adjusted EBITDA and EPS exceeding guidance, driven by strong demand, new ship deliveries, and a strategic focus on family and luxury segments.

• Net income for Q3 2025 was $419.3 million, with Adjusted Net Income of $595.8–$596 million and Adjusted EPS of $1.20, both above guidance.

• Booking pace and onboard revenue reached all-time highs, with robust demand for Caribbean itineraries and increased family participation.

• Strategic initiatives included a tri-brand loyalty program, capital market transactions reducing shares outstanding by over 7%, and enhancements to private island amenities.

• Full-year 2025 earnings outlook raised, with Adjusted EPS guidance increased to $2.10.

Financial highlights

• Q3 2025 Adjusted EBITDA reached $1.019–$1.19 billion, above guidance; Adjusted Net Income was $595.8–$596 million; Adjusted EPS was $1.20, $0.06 above guidance.

• Net Yield for Q3 2025 was $341.89, up 1.5% year-over-year; Gross margin per Capacity Day at $179.77.

• Occupancy for Q3 2025 was 106.4%, exceeding guidance.

• Adjusted Net Cruise Cost ex. Fuel per Capacity Day was $155.66–$156, up 0.5% year-over-year.

• Cash and liquidity at quarter-end totaled $1.8 billion, with total debt at $14.5–$14.9 billion and Net Leverage at 5.4x.

Outlook and guidance

• Full-year 2025 guidance: Net Yield growth of 2.4–2.5%, Adjusted EBITDA ~$2.72 billion, Adjusted EPS $2.10, and Net Leverage expected to end 2025 at ~5.3x.

• Q4 2025 guidance: Occupancy ~101.9%, Net Yield growth 3.5–4%, Adjusted EBITDA ~$555 million, Adjusted EPS ~$0.27.

• 2026 targets: Capacity to grow ~7%, Adjusted Operational EBITDA Margin ~39%, Adjusted EPS ~$2.45, Net Leverage mid-4x, and Adjusted ROIC ~12%.

• Strong booking environment and robust demand for 2025 and 2026, especially for Caribbean and luxury segments.

• Cost growth for 2025 expected at ~0.75%, below inflation.