A month has gone by since the last earnings report for Norwegian Cruise Line (NCLH). Shares have added about 1.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Norwegian Cruise Line due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Norwegian Cruise Q3 Earnings Beat, Revenues Miss Estimates
Norwegian Cruise reported third-quarter 2025 results, with earnings beating the Zacks Consensus Estimate, but revenues missing the same.
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.
NCLH’s Q3 Earnings & Revenues
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.
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.
Expenses & Operating Results
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.
Balance Sheet
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.
Booking Update
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.
Q4 & 2025 Guidance by NCLH
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -5.76% due to these changes.
VGM Scores
Currently, Norwegian Cruise Line has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Norwegian Cruise Line has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Norwegian Cruise Line is part of the Zacks Leisure and Recreation Services industry. Over the past month, Royal Caribbean (RCL), a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended September 2025 more than a month ago.
Royal Caribbean reported revenues of $5.14 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $5.75 for the same period compares with $5.20 a year ago.
For the current quarter, Royal Caribbean is expected to post earnings of $2.80 per share, indicating a change of +71.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.
Royal Caribbean has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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