Norwegian Cruise Line Holdings (NCLH) generated record total revenue for the second quarter of $2.5 bill, an increase of 6% versus 2Q24.
GAAP net income was $30 mill, with an EPS of $0.07.
Adjusted EBITDA was $694 mill, exceeding the group’s guidance. Adjusted EPS was $0.51, meeting the guidance, despite an $0.082 impact from foreign exchange.
During the quarter, NCLH announced expansion plans for Great Stirrup Cay, the company’s Bahamas private island destination, including the previously announced two ship pier.
In 2Q25, the group took delivery of the ‘Allura’, Oceania’s eighth luxury ship, and confirmed orders for two additional ‘Sonata’ class ships.
In addition, NCLH increased its senior secured revolving loan facility from $1.7 bill to around $2.5 bill.
NCLH also published its 2024 ‘Sail and Sustain’ report, highlighting continued progress on its sustainability initiatives.
“We delivered another record quarter, demonstrating once again the strong customer demand environment, the power of our brands, our outstanding on board product, and the dedication of our team,” claimed Harry Sommer, NCLH’s President and CEO (pictured).
“Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in on board 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.
“We are also thrilled to unveil the next phase of the greatest private island experience in the Caribbean, Great Stirrup Cay. The addition of the nearly six-acre, 19-slide, Great Tides Waterpark which includes an 800 ft dynamic river, and a 9,000 sq ft kids splash zone, along with other new amenities, will further enhance the guest experience at one of our most popular destinations.
“Additionally, with the delivery of Oceania ‘Allura’ and the confirmation of two additional next-generation ‘Sonata’ class ships, we are reinforcing our commitment to measured growth and long-term value creation for our stakeholders,” he said.
NCLH’s 2Q25 revenue was a 6% increase, compared to second quarter of 2024. GAAP net income declined by $133.4 mill year-on-year, with an EPS of $0.07.
The results were impacted by foreign exchange losses of $158.5 mill, primarily related to $121.9 mill in non-cash losses related to the mark-to-market of euro-denominated debt and $36.6 mill, mainly related to the advance ticket sales balance.
Gross margin per capacity day increased 11% versus 2024 on an as-reported basis and increased 12% on a constant currency basis. Net yield increased by about 2.7% on an as reported and 3.1% in constant currency, above guidance of circa 2.5%.
Gross cruise costs per capacity day was around $306, compared to $315 in the previous year. Adjusted net cruise cost, excluding fuel per capacity day was about $164 on an as reported and $163 on a constant currency basis, and was up 0.2% on an as reported basis but was flat on a constant currency basis, compared to $163 in 2024, and better than guidance of 1%, primarily due to the timing of certain cost savings initiatives.
Adjusted EBITDA increased 18% to $694 mill, compared to $588 mill in 2024, exceeding guidance of $670 mill. Adjusted EPS was $0.51, in line with guidance, despite foreign exchange losses of $0.08, mainly related to the revaluation of the advance ticket sales balance and other items.
Total debt was $13.8 bill at the end of the quarter.
NCLH has reiterated its full year 2025 guidance, which is expected to increase, on a constant currency basis, by about 2.5%, versus 2024, compared to previous guidance of between 2% and 3%.
Adjusted net cruise cost, excluding fuel per capacity day is expected to grow by around 0.6% on a constant currency basis, versus 2024, compared to previous guidance of between 0% and 1.25%.
Full year adjusted EBITDA guidance is unchanged at around $2.72 bill, or an 11% increase, versus 2024.
Adjusted operational EBITDA margin guidance for 2025 is also unchanged and expected to be about 37%, an 150 basis point increase, versus 2024.
Full year adjusted net income guidance is reiterated at about $1,045 mill. Adjusted EPS guidance is $2.05, a 16% increase, versus 2024.
At quarter end, NCLH’s liquidity was $2.4 bill, including around $184 mill of cash and cash equivalents, $2 bill of availability under the revolving loan facility, and other commitments.
“We are pleased to have expanded our revolving loan facility, further strengthening our liquidity position and enhancing financial flexibility,” said Mark Kempa, NCLH Executive Vice President and CFO.
“More importantly, we reduced net leverage to 5.3x in the second quarter, down from 5.7x in the first quarter. We have reduced our net leverage by 2 turns since 2023 and are firmly on track to reach our 2026 goal of reducing net leverage to the mid-4x range,” he said.
During the quarter, Norwegian Cruise Line (NCL) announced upgrades to ‘Norwegian Epic’ and ‘Pride of America’, following extensive drydockings.
These new enhancements range from a re-imagined water park for children, the expansion of the adults-only Vibe Beach Club, additional accommodation, expanded activities and more.
Speaking at the earnings call, Sommer explained that Oceania Cruises was being rebranded.
“The Oceania Cruises brand is getting an upgrade to the luxury market, as Norwegian Cruise Line Holdings has new branding coming.
“Oceania Cruises is focused on positioning itself firmly within the luxury space with new branding coming in the near future that better communicates the brand’s extraordinary value proposition,” he said.
Sommer pointed out Jason Montague, who is back at Oceania and Regent as Chief Luxury Officer, had been working on redefining both brands to make them more relevant for consumers.
Oceania will see its fleet undergo a dramatic transformation in the near future.
The ‘Insignia’ will leave in 2027 for newcomer Crescent Seas, while the new ‘Allura’ will be followed by four more newbuildings, including the ‘Sonata’, which will mark the first of the new class of vessels when she enters service from Fincantieri in 2027.
A trio of 1,390-guest sisterships will follow from the Italian shipbuilder with deliveries scheduled in 2029, 2032 and 2035.
