Norwegian Cruise Line (NCLH) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, with revenue of $9.5B, all-time highs in net yield, adjusted EBITDA of $2.45B, and adjusted EPS of $1.82, surpassing guidance and initial projections.

• Strategic focus on guest experience, disciplined cost control, and cultural transformation drove margin expansion and guest satisfaction to record levels.

• Major fleet expansion underway, with 13 ships on order, including Norwegian Aqua and Oceania Allura debuting in 2025, and newbuild programs extending through 2036.

• Investments in private island infrastructure, partnerships, and sustainability initiatives enhanced brand value and guest offerings.

• Received external recognition for sustainability, diversity, and workplace excellence.

Financial highlights

• Net yield increased a record 9.9% year-over-year in 2024, beating initial guidance by 450 basis points; Q4 net yield up 9%.

• Adjusted EBITDA reached $2.45B for the year, up 32% year-over-year; adjusted EPS was $1.82, up 161%.

• Adjusted operational EBITDA margin expanded nearly 500 basis points to 35.5%.

• Net leverage ratio reduced by two full turns to 5.3x at year-end 2024.

• Adjusted ROIC improved 320 basis points to 10.9%.

Outlook and guidance

• For 2025, projecting net yield growth of 3% and adjusted EBITDA of $2.72B; adjusted EPS expected at $2.05, with margin expansion to 37%.

• Net leverage targeted to decline to approximately 5x by year-end 2025, with further organic reduction targeted for 2026.

• 2026 targets include adjusted EPS of $2.45, adjusted ROIC of 12%, and net leverage in the mid-4x range.

• Q1 2025 guidance reflects temporary impacts from dry docks and repositioning, with normalized growth expected in subsequent quarters.