Norwegian Cruise Line (NCLH) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, with revenue of $9.5B, net yield, and adjusted EBITDA all surpassing guidance and historical benchmarks, driven by strong demand and optimal booking positions.

• Strategic initiatives under the Charting the Course strategy and a new strategic framework drove transformational achievements, including product enhancements, fleet expansion, and sustainability progress.

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

• Major investments in private island infrastructure and fleet-wide rollout of Starlink Wi-Fi supported guest experience and long-term growth.

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

Financial highlights

• Adjusted EBITDA reached $2.45B for 2024, up 32% year-over-year; Adjusted EPS was $1.82, up 161%.

• Net yield increased a record 10% year-over-year, exceeding guidance by 450 basis points.

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

• Adjusted ROIC improved to 10.9%, up 320 basis points from 2023.

• Operating cash flow exceeded $2B; advance ticket sales balance at year-end was $3.2B.

Outlook and guidance

• For 2025, net yield growth is projected at 3%, with 4.5% pricing increase and 7% capacity growth.

• Adjusted EBITDA expected at $2.72B and adjusted EPS at $2.05, with margins anticipated to reach 37%.

• Net leverage expected to improve to approximately 5x by year-end 2025, progressing toward mid-4x by 2026.

• 2026 targets include adjusted EPS of $2.45 and adjusted ROIC of ~12%.

• 2025 newbuild and growth capex expected at $2.5B gross ($1.0B net of financing); other capex at $590M.