Norwegian Cruise Line Holdings (NCLH) generated total revenue of $2.1 bill in the first quarter of this year.
However, the group suffered a GAAP net loss of $40.3 mill, with an EPS of minus $0.09.
Adjusted EBITDA of $453 mill was above the group’s guidance. Adjusted EPS was $0.07.
During the quarter, NCLH announced the execution of long-term charter agreements for four vessels across three brands and took delivery of ‘Norwegian Aqua’, the first vessel in Norwegian Cruise Line’s (NCL) ‘Prima Plus’ class.
Also announced were plans to expand the amenities at Great Stirrup Cay, the company’s private island destination in the Bahamas, which are expected to open later this year alongside the new multi-ship pier.
“We kicked off 2025 with solid first quarter results, demonstrating the continued momentum of our Charting the Course strategy in building a strong foundation for long-term success and delivering on our vision for guests to Vacation Better | Experience More,” said Harry Sommer, NCLH President and CEO (pictured).
“We welcomed ‘Norwegian Aqua’—NCL’s first ‘Prima Plus’ class vessel and completed impactful refurbishments on ‘Norwegian Bliss’ and ‘Norwegian Breakaway’.
“In addition, our recently announced new amenities at Great Stirrup Cay will further enhance the guest experience on our Caribbean voyages, which continue to grow as we expand our fleet.
“Looking ahead, our proven track record of long-term net yield growth, strong cost control, continued record guest satisfaction scores and guest repeat rates give us confidence about our future.
“Thus, as we remain mindful of the evolving macroeconomic environment and despite recent volatility, we are maintaining our full year 2025 adjusted EBITDA and adjusted EPS guidance.
“While we recognise there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives. Our focus remains on managing the business for the long term – balancing disciplined pricing and cost control with guest experience and strategic investments for the future,” he said.
The 1Q25 total revenue of $2.1 bill, about a 3% decrease, compared to first quarter 2024, was primarily due to a 2% decline in capacity days related to increased berths, due to larger ships, in drydock, and a strategic reduction in passenger air participation rates.
GAAP net loss was $40.3 mill, a $57.6 mill decline, compared to 1Q24, with EPS decreasing $0.13 to minus $0.09.
Results were driven by reduced capacity days during the quarter and foreign exchange losses of $23 mill or $0.05 in 2025, compared to foreign exchange gains of $13 mill or $0.03 in 2024.
Gross margin per capacity day was up 5%, versus 2024 on an as reported basis and up 7% on a constant currency basis. Net yield growth increased over the previous year by around 0.6% on an as reported and 1.2% on a constant currency basis, above the guidance of 0.5%.
Gross cruise costs per capacity day was about $297 in 1Q25, compared to $300 in 2024. Adjusted net cruise cost, excluding fuel per capacity day was around $169 on an as reported and constant currency basis, and was up 2.9% on an as reported and 3% on a constant currency basis, compared to $165 in 2024, and better than guidance of 3.9%.
Excluding an $8 impact from higher drydock days and related expenses, adjusted net cruise cost excluding fuel per capacity day was up about $2, or 1%, year-on-year, driven by costs associated with the delivery of ‘Norwegian Aqua’.
Adjusted EBITDA declined by 2% to $453 mill, compared to $464 mill in 2024, above the guidance of $435 mill. Adjusted EPS declined to $0.07, slightly below guidance, due to foreign exchange losses of $0.05.
Total debt was $14 bill. Net Leverage was 5.7x as at 31st March, 2025, a 0.4x increase from 31st December, 2024, primarily due to the delivery of ‘Norwegian Aqua’ in March, in line with guidance.
NCLH has updated its full year 2025 net yield and adjusted net cruise cost excluding fuel guidance to reflect recent booking trends and changes in the macroeconomic environment.
While the company expected some pressure on net yield, it plans to effectively offset this impact through additional cost savings measures. As a result, full year 2025 guidance for adjusted EBITDA and adjusted EPS remained unchanged.
Full year net yield guidance for 2025 on a constant currency basis is expected to increase between 2% and 3%, versus 2024, compared to previous guidance of circa 3%.
The adjusted net cruise cost, excluding fuel per capacity day is expected to grow between 0% and 1.25% on a constant currency basis, versus 2024, compared to previous guidance of about 1.25%.
The full year adjusted EBITDA guidance is unchanged and expected to be around $2.72 bill, or an 11% increase on 2024’s figure.
Adjusted operational EBITDA margin guidance for the full year was also unchanged and expected to be about 37%.
Full year adjusted net income guidance was expected to be around $1,045 mil. Adjusted EPS guidance was also unchanged and was expected to be $2.05, increasing by about 13% year-on-year.
Net Leverage guidance was expected to end the year at about 5x.
The company saw softening in its 12-month forward booked position but continued to remain within the optimal range, even amid ongoing macroeconomic volatility.
Occupancy was 101.5% for 1Q25, in-line with guidance, and down year-on-year, due to increased drydock capacity and repositioning days on large vessels.
The company’s advance ticket sales balance, including the long-term portion, ended the first quarter at $3.9 bill, up 2.6% year-on-year.
As of 31st March, 2025, NCLH had total debt of $14 bill and a net debt of $13.8 bill. Net leverage increased, as expected, by around 0.4x, compared to 31st December, 2024, ending the quarter at 5.7x, due to the delivery of ‘Norwegian Aqua’.
At quarter-end, liquidity was $1.4 bill, including about $184.4 mill of cash and cash equivalents, $1 bill of availability under the revolving loan facility, and other commitments.
“In April, we refinanced the majority of our 2025 exchangeable notes with new 2030 exchangeable notes in a shareholder-accretive transaction that reduced our diluted share count by approximately 15.5 mill shares without increasing our net leverage,” said Mark Kempa, Executive Vice President and CFO.
“Reducing net leverage remains our top priority and we expect to end the year with net leverage at approximately 5x. Furthermore, our cost savings initiatives continue to deliver tangible results, positioning us well to cushion potential macroeconomic pressures,” he said.
