Norwegian Cruise Line (NCLH) Q4 2025 earnings summary

Executive summary

• New CEO and leadership team focused on turnaround, operational rigor, and financial discipline, following prior missteps and a siloed culture.

• Achieved record occupancy of 103.5% for 2025, with net yield growth of 2.4% year-over-year, and adjusted EBITDA of $2.73 billion, all in line with or ahead of guidance.

• Portfolio of three brands (Norwegian, Oceania, Regent) considered core, with luxury brands performing well and Norwegian brand identified as the main area for improvement.

• Total revenue grew 3.7% to $9.8 billion in 2025, driven by higher Capacity Days.

• Guidance for 2026 anticipates continued high occupancy (105.7%) and adjusted EBITDA of $2.95 billion, with net yield growth expected to be flat year-over-year.

Financial highlights

• Q4 net yields grew 3.8% year-over-year; adjusted net cruise cost ex-fuel rose only 0.2%.

• 2025 revenue reached approximately $10 billion, with adjusted net income of $1.045 billion and adjusted EPS of $2.11.

• Q4 2025 adjusted EBITDA was $564 million, exceeding guidance; adjusted net income was $130 million, adjusted EPS $0.28.

• Adjusted operational EBITDA margin for 2025 was 37.1%.

• Adjusted net cruise cost excluding fuel per capacity day was $161.69 for 2025, reflecting sub-inflationary cost growth.

Outlook and guidance

• Full-year 2026 guidance projects occupancy at 105.7%, adjusted EBITDA of $2.95 billion, and adjusted net income of $1.12 billion.

• Net yield growth for 2026 is expected to be flat, with Q1 2026 guidance indicating a temporary decline of 1.6%.

• Adjusted net cruise cost ex-fuel per capacity day expected to rise to $163 in 2026, up 0.9%.

• Net leverage expected to remain flat at 5.2x in 2026, with further reduction as new ships contribute to EBITDA.

• Adjusted EPS for 2026 expected at $2.38.