$NCLH earnings report

Norwegian Cruise Line delivered third-quarter total revenue of $ 2,946,763 (in thousands), compared with $ 2,938,142 (in thousands) in the prior year. Passenger ticket revenue was $ 1,945,639 (in thousands), below $ 2,049,959 (in thousands), while onboard and other revenue increased to $ 1,001,124 (in thousands) from $ 888,183 (in thousands). Management attributed the outperformance against its outlook primarily to stronger-than-expected close-in demand and onboard spend.

Profitability exceeded the Company’s third-quarter guidance despite year-over-year pressure in yield measures. Adjusted EBITDA was $ 936,772 (in thousands), above guidance of $874 million, and Adjusted EPS was $ 1.12, above guidance of $0.90. GAAP net income rose to $ 491,465 (in thousands) from $ 419,295 (in thousands), and diluted EPS was $ 1.07 versus $ 0.86. Cost discipline supported performance: Adjusted Net Cruise Cost Excluding Fuel per Capacity Day was $ 152.28, down 2.2% on an as reported basis, while Gross Cruise Cost per Capacity Day was $ 300.72 compared with $ 301.95.

The demand and mix picture remains uneven. Net Yield was $ 319.65 and decreased 6.5% on an as reported basis, while gross margin per Capacity Day decreased 16.7%. The booked position for the next 12 months improved modestly but remains below the Company’s optimal range. Pricing for the first half of 2027 is ahead of levels at the same time last year, but booked position is below the comparable prior-year position; second-half pricing is ahead and booked position is in line with the same time last year.

Management raised full-year 2026 guidance to approximately $2.55 billion of Adjusted EBITDA and approximately $1.70 of Adjusted EPS. Fourth-quarter outlook calls for ~$414 million of Adjusted EBITDA, ~($55) million of Adjusted Net Income and ~($0.12) of Adjusted EPS, with Net Yield expected to decline ~(6.5%) on a Constant Currency basis. The Company cited a delayed Seven Seas Prestige delivery and canceled Seven Seas Voyager voyages transiting the Suez Canal as mix headwinds.

Balance-sheet management remains central. Total Debt was $ 15,086,503 (in thousands), Net Debt was $ 14,829,995 (in thousands), and Net Leverage was 5.5x as of September 30, 2026. Nine-month operating cash flow was $ 1,706,360 (in thousands), while additions to property and equipment were ($ 2,292,043) (in thousands). Subsequent to quarter-end, the Company issued $950 million of 8.750% senior notes due 2031 and upsized its Revolving Loan Facility, producing pro forma liquidity of $2.1 billion as of September 30, 2026.

Norwegian Cruise Line Holdings reported second-quarter total revenue of $2.6 billion, up 4.9% compared with the second quarter of 2025, driven by increased Capacity Days. GAAP net income was $223 million versus $30 million in the prior year, and GAAP EPS was $0.48. The quarter exceeded the Company’s profitability guidance, with Adjusted EBITDA of $666 million versus guidance of $632 million and Adjusted EPS of $0.48 versus guidance of $0.38. However, Adjusted EBITDA declined 4.1% from $694 million in 2025 and Adjusted EPS decreased 6.6%.

Demand and pricing remain the central constraint. Net Yield decreased approximately 2.1% as reported and 2.6% on a Constant Currency basis, although the Constant Currency result was better than guidance for a 3.6% decline. The Company remains below its optimal booked position for the next 12 months, citing softer demand at Norwegian Cruise Line associated with Company-specific execution challenges and the ongoing conflict in the Middle East. Gross margin per Capacity Day fell 11.6% as reported and 12.3% on a Constant Currency basis.

Cost performance provided partial offset. Gross Cruise Costs per Capacity Day were approximately $304 compared with $306 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $164 as reported and $163 on a Constant Currency basis. The Constant Currency measure declined 0.5% year over year and was 150 basis points better than guidance. Fuel remained a pressure point, with fuel expense of $219 million and fuel price per metric ton, net of hedges, increasing to $888 from $659 in 2025.

Management identified an additional ~$100 million of expected annualized run-rate savings, primarily from technology vendors, capital expenditures and SG&A, in addition to the $125 million of annualized savings announced last quarter. The Company also cited leadership additions in marketing, revenue management and other key areas, while stating that the benefits will be realized over time and have limited impact on 2026 results. Great Stirrup Cay’s full amenities, including Great Tides Waterpark, Great Life Lagoon, Splash Harbor and the pier, are scheduled to open to the public beginning September 4 and are expected to improve demand to Caribbean itineraries over time.

The updated outlook reflects the weaker revenue environment despite better cost execution. Full-year 2026 Net Yield on a Constant Currency basis is expected to be down approximately 5% versus 2025, while Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be down approximately 0.25%. Full-year Adjusted EBITDA is expected to be approximately $2.5 billion, Adjusted Net Income approximately $700 million and Adjusted EPS approximately $1.50. The balance sheet showed $15.0 billion of total debt, $14.8 billion of Net Debt, Net Leverage of 5.3x and $1.5 billion of liquidity as of June 30, 2026. The cash settlement elections for the 2027 Exchangeable Senior Notes are expected to reduce full-year diluted weighted-average shares outstanding by 4 million shares relative to guidance issued on May 4, 2026.