Norwegian Cruise Line (NCLH) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $2.947B; GAAP net income was $491.5M and diluted EPS was $1.07, while Adjusted EBITDA was $936.8M and Adjusted EPS was $1.12.

• Results exceeded guidance on stronger close-in demand and onboard spending, with lower-than-expected unit costs; FY26 Adjusted EBITDA and EPS guidance increased.

• Turnaround priorities are revenue performance, operating efficiency and guest experience; more than $625M in run-rate savings has been identified.

• Meghan Montana will succeed Mark Kempa as CFO on January 1, 2027; Kempa will remain in an advisory role through June 2027.

Financial highlights

• Q3 revenue was $2.947B versus $2.938B YoY; ticket revenue fell to $1.946B from $2.050B, while onboard and other revenue rose to $1.001B from $888.2M.

• Net income was $491.5M versus $419.3M YoY, and diluted EPS was $1.07 versus $0.86; Adjusted Net Income was $513.8M and Adjusted EPS was $1.12.

• Adjusted EBITDA was $936.8M versus $1.019B YoY, but exceeded guidance of $874M by $63M; Adjusted EPS beat guidance by $0.22.

• Operating income was $624.3M versus $749.4M YoY; net interest expense fell to $171M from $329M.

• Q3 Net Yield declined 6.7% in constant currency, about 220 bps better than guidance; Adjusted Net Cruise Cost Excluding Fuel per Capacity Day declined 2.3%, about 140 bps better.

Outlook and guidance

• FY26 guidance: Net Yield down ~4.4%; Adjusted Net Cruise Cost Excluding Fuel per Capacity Day down ~0.4%; Adjusted EBITDA ~$2.55B; Adjusted EPS ~$1.70.

• Q4 guidance: Net Yield down ~6.5%, adjusted net cruise cost ex-fuel up ~1.7%, Adjusted EBITDA ~$414M and Adjusted EPS -$0.12.

• FY27 Net Yield growth of 1%-2% is expected, with meaningful acceleration in H2; H1 bookings trail the prior year at higher pricing, while H2 bookings are in line at higher pricing.

• Overall load factor is expected to increase in 2027; H2 yield improvement is expected from pricing, load and turnaround initiatives.

• Q4 yield outlook includes mix pressure from Seven Seas Prestige’s delayed late-December delivery and canceled Seven Seas Voyager Suez Canal sailings.