Norwegian Cruise Line Sees Record Advance Ticket Sales, Reaffirms Profit Outlook

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) on Thursday reported mixed results for its second quarter. Strong consumer demand continued to drive performance, largely meeting adjusted earnings expectations. The company also reaffirmed its full-year 2025 financial guidance.

The cruise operator reported record revenue of $2.52 billion for the quarter, a 6% increase year-over-year (YoY), which missed the average analyst estimate of $2.55 billion.

Norwegian Cruise Line Holdings reported GAAP net income of $30 million, or 7 cents per share. After adjusting for non-recurring costs, earnings were 51 cents per share, which is in line with the analyst estimate.

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The company’s second quarter saw a significant rebound from a softer first quarter, which was impacted by increased dry-dock capacity. Net Yield increased 3.1% in constant currency, exceeding guidance of 2.5%.

Adjusted EBITDA for the quarter reached $694 million (+18% YoY), surpassing the company’s guidance of $670 million.

As of June 30, Norwegian Cruise Line Holdings reported total debt of $13.8 billion and net debt of $13.6 billion. The company improved its net leverage to 5.3x from 5.7x at the end of the first quarter.

Liquidity stood at $2.4 billion, bolstered by the successful upsizing of its revolving loan facility to approximately $2.5 billion. Second-quarter occupancy was 103.9%, which is in line with guidance. Advance ticket sales hit a record high of $4.0 billion.

Operational efficiency improved, with Gross margin per Capacity Day increasing 11% (12% in constant currency) compared to the previous year. Gross Cruise Costs per Capacity Day decreased to $306 from $315 in the prior year.

Adjusted Net Cruise Cost excluding Fuel per Capacity Day remained flat in constant currency at approximately $163, outperforming guidance due to the timing of cost savings initiatives.

“Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend. This performance reflects the strength of our offerings across the fleet, along with our disciplined focus on driving both return on investment and return on experience,” commented Harry Sommer, president and chief executive officer.

Outlook

Norwegian Cruise Line expects its third-quarter adjusted earnings to be $1.14 per share, falling short of the $1.18 analyst estimate. The company projects third-quarter occupancy to be approximately 105.5%.

For the full year 2025, Norwegian Cruise Line Holdings reaffirmed its adjusted EPS guidance of $2.05, above the $2.03 analyst estimate.

The company expects full-year net yield on a constant currency basis to increase approximately 2.5%, with occupancy projected at 103.0%. Adjusted EBITDA for the full year is still expected to be roughly $2.72 billion.

The company is advancing several strategic initiatives, including the further expansion of Great Stirrup Cay, its private island in the Bahamas, featuring the nearly six-acre Great Tides Waterpark slated to open in summer 2026.

In terms of fleet modernization and growth, Norwegian took delivery of Oceania Allura, the eighth ship for the Oceania Cruises brand, and underscored its long-term growth strategy by confirming orders for two additional next-generation Sonata Class Ships, with deliveries scheduled for 2032 and 2035.

Price Action: NCLH shares are trading higher by 12% to $26.22 at last check Thursday.

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