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Norwegian Cruise Line Holdings Ltd. NCLH reported third-quarter 2025 results, with earnings beating the Zacks Consensus Estimate, but revenues missing the same. Following the results, the company’s shares declined 9% in the pre-market trading session.
Norwegian Cruise Line’s third-quarter 2025 results benefited from robust demand across all three brands and strong execution both onboard and shoreside. Its diversified portfolio attracted a wide range of travelers, supporting record revenues and occupancy levels. Operational efficiency and effective pricing also contributed to the quarter’s strong performance.
In fourth-quarter 2025, the company is expected to gain from its strategic focus on Caribbean itineraries, which are drawing more families. Load factors are projected to exceed 2024 levels as momentum continues into 2026. Additionally, strong luxury demand for Oceania and Regent brands will further support growth.
Norwegian Cruise reported an adjusted earnings per share (EPS) of $1.20, beating the Zacks Consensus Estimate of $1.16. In the prior-year quarter, the company reported an adjusted earnings per share of $1.02.
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Quarterly revenues of $2.94 billion missed the consensus mark of $3.02 billion. The metric increased 4.7% year over year.
Passenger ticket revenues were $2.05 billion compared with $1.94 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $2.03 billion.
Onboard and other revenues increased to $888.2 million from $861.7 million reported in the prior-year quarter. We expected onboard and other revenues to be $981.7 million.
Total cruise operating expenses in the third quarter increased 1% year over year to $1.6 billion. Our model anticipated total cruise operating expenses to be $1.6 billion.
During the third quarter, gross cruise costs per Capacity Day were $302 compared with $314.4 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $156 up 0.5% year over year.
Net interest expenses were $328.8 million, up from $175.2 million reported in the year-ago quarter.
As of Sept. 30, 2025, the company had cash and cash equivalents of $166.8 million, down from $190.8 million at the end of 2024. Long-term debt was $13.6 billion compared with $11.8 billion as of 2024-end.
Norwegian Cruise Line continues to see strong booking trends across all three of its brands, reflecting sustained consumer appetite for cruising through the rest of 2025 and 2026. The company achieved record booking levels during the third quarter, driven largely by solid demand for its Caribbean itineraries. This momentum has placed NCLH comfortably within the targeted range for bookings over the next 12 months, underscoring the strength of its forward visibility. Occupancy for the third quarter reached 106.4%, surpassing management’s expectations of around 105.5%, further highlighting the company’s robust demand environment and healthy pricing power.
For fourth-quarter 2025, NCLH anticipates occupancy to be approximately 101.9% and Capacity Days to be about 6.28 million. For the quarter, interest expenses are expected to be approximately $179 million, while depreciation and amortization are anticipated to be about $259 million. Adjusted EBITDA is expected to be about $555 million. Adjusted EPS is predicted to be nearly 27 cents.
For 2025, the company anticipates occupancy to be approximately 103.5% compared with the prior guidance of 103% and Capacity Days to be about 24.45 million. During the year, interest expenses are expected to be approximately $690 million. Depreciation and amortization are anticipated at nearly $985 million. Adjusted EBITDA during the year is expected to be nearly $2.72 billion. For 2025, NCLH expects adjusted EPS of $2.10, up from the prior estimate of $2.05.
Norwegian Cruise currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Consumer Discretionary sector are Atour Lifestyle Holdings Limited ATAT, Carnival Corporation & plc CCL and Life Time Group Holdings, Inc. LTH.
Atour Lifestyle Holdings flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of 4.6%, on average. ATAT stock has surged 56.9% in the past year. The Zacks Consensus Estimate for Atour Lifestyle Holdings’ 2025 sales and EPS indicate growth of 33.6% and 23.3%, respectively, from the year-ago period’s levels.
Carnival sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 169.8%, on average. Carnival stock has gained 31% in the past year.
The Zacks Consensus Estimate for Carnival’s fiscal 2025 sales and EPS indicates growth of 6.5% and 51.4%, respectively, from the prior-year levels.
Life Time Group has a Zacks Rank of 2 (Buy) at present. LTH stock has gained 10.2% in the past year.
The Zacks Consensus Estimate for Life Time Group’s 2025 sales and EPS indicates growth of 13.6% and 49.5%, respectively, from the prior-year levels.
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This article originally published on Zacks Investment Research (zacks.com).
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