Norwegian Cruise Line Holdings (NCLH) generated 2024 full year record total revenue of $9.5 bill, an increase of about 11% over 2023 on 3% capacity growth.
GAAP net income was $910.3 mill, up 448% compared to 2023, with EPS increasing 386%, to $1.89.
Full year adjusted EBITDA grew 32% to a record $2.45 bill, compared to $1.86 bill in 2023 with an adjusted EPS of $1.82.
Total debt was $13.1 bill and net leverage was 5.3x as at 31st December, 2024, a two turn reduction from the previous year on net cash provided by operating activities of around $2 bill.
For this year, NCLH predicted adjusted EBITDA will be about $2.72 bill, an 11% increase on 2024.
Adjusted net income for this year is expected to be around $1.07 bill, taking into account headwinds from foreign exchange and fuel. Adjusted EPS is expected to be about $2.05, further establishing a clear path towards the group’s ‘Charting the Course 2026’ targets.
“2024 was marked by strategic and transformative milestones for Norwegian Cruise Line Holdings. From launching our ‘Charting the Course’ strategy, announcing an ambitious newbuild programme and the construction of our Great Stirrup Cay pier, and successfully executing brand initiatives and new guest experiences across our entire portfolio, we have laid out a solid foundation for an exciting future,” claimed Harry Sommer, NCLH President and CEO (pictured).
“These achievements, driven by the dedication of our over 41,000 team members both shoreside and shipboard, led to exceptional financial performance with record revenue, net yield growth, and adjusted EBITDA, enabling us to further strengthen our balance sheet and reduce our net leverage two full turns.
“Through disciplined cost management and by capitalising on strong demand, we remain confident in achieving our 2026 ‘Charting the Course’ targets,” he said.
Last year’s performance was driven by strong revenue growth and continued execution on cost reductions and efficiencies. In 2024, NCLH recorded a $162 mill or $0.31 per share benefit from a tax valuation allowance release related to US deferred tax assets and a $53 mill or $0.10 per share benefit from foreign exchange.
Gross margin per capacity day was up 23% versus 2023 on an as reported and constant currency basis. Net yield growth reached record levels, increasing over the previous year by around 9.9% on an as reported and constant currency basis, due to strong demand and pricing across the deployment.
NCLH’s sustained focus on margin enhancement drove significant improvements in operating costs. Gross cruise costs per capacity day was about $304 for the year.
During the year, the group announced a newbuilding programme involving eight vessels, representing about 25,000 additional berths, plus the construction of a multi-ship pier at Great Stirrup Cay.
NCLH also reported that during the fourth quarter of last year, record total revenue of $2.1 bill was generated, about a 6% increase, compared to 4Q23 on a 1% capacity decline. GAAP net income was $254.5 mill, a $361 mill increase, compared to 4Q23, with EPS increasing $0.77 to $0.52.
This was driven by strong revenue growth and continued execution on cost efficiencies.
The fourth quarter also included a $162 mill, or $0.31 per share, tax valuation allowance release related to US deferred tax assets and a $70 mill, or $0.13 per share, benefit from foreign exchange rates.
Gross margin per capacity day was up 29% versus 2023 on an as reported and constant currency basis. Net yield growth was about 9% on an as reported and constant currency basis, beating guidance by 210 basis points, due to strong on board spend.
NCLH said that its focus on margin enhancement continued to drive cost savings in the quarter. Gross cruise costs per capacity day was around $286 for the quarter.
Adjusted EBITDA grew 30% to $468.2 mill, a fourth quarter record high, compared to $359.6 mill in 4Q23 and above the guidance of about $445 mill. Adjusted EPS exceeded guidance of $0.09, and grew to $0.26, which includes a $0.15 benefit from foreign exchange during the quarter.
During the year, the group issued $1,800 mill of 6.75% senior unsecured notes, due 2032. The net proceeds, together with cash on hand, were used to redeem $1,200 mill aggregate principal amount of the 5.875% senior notes, due 2026 and $600 mill aggregate principal amount of 8.375% senior secured notes, due 2028.
NCLH also expanded its revolving credit facility from $1.2 bill to $1.7 bill, extending the tenor to five years with improved pricing.
The company also said that it continued to experience strong consumer demand for its offerings across itineraries and brands throughout 2025 and into 2026. As a result, it remained at its optimal booked position on a 12-month forward basis.
Occupancy was 100.8% for 4Q24 and for the full year, occupancy was around 104.9%. The advance ticket sales balance, including the long-term portion, ended 4Q24 at $3.2 bill.
As of 31st December, 2024, NCLH’s total debt was $13.1 bill and net debt was $12.9 bill. Net leverage improved by around two turns, compared to the end of 2023, ending 2024 at 5.3x.
At year-end, liquidity was $2 bill, including around $190.8 mill of cash and cash equivalents, $955 mill of availability under the revolving loan facility, a $650 mill undrawn backstop commitment and other commitments.
“We’ve made significant strides in strengthening our financial position during 2024, reducing our net leverage by two full turns to 5.3 times. This progress was recently recognised by S&P’s and Moody’s, which each upgraded our credit ratings with positive outlooks,” said Mark Kempa, Executive Vice President and CFO.
“We’ve started 2025 strong – recently refinancing $1.8 bill of debt, which included replacing $600 mill of secured debt with unsecured debt. We also upsized our revolving credit facility to $1.7 bill with improved terms.
“Through these strategic transactions, we have optimised our collateral utilisation and strengthened our capital structure, while supporting our growth trajectory.
“As we progress through 2025, I am confident we will continue to improve our net leverage to approximately 5x or better and strengthen our balance sheet, as we make strides towards our 2026 ‘Charting the Course’ financial targets,” he said.
In addition, NCLH brand, Norwegian Cruise Line, unveiled upgrades for the ‘Norwegian Bliss’ and ‘Norwegian Breakaway’, which are due to undergo significant refurbishments.
