Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) shares fell Monday after the company reported fourth-quarter results that topped earnings expectations but missed on revenue and included a cut to its full-year 2026 adjusted profit outlook.
Fourth-Quarter Results
Fourth-quarter total revenue was $2.244 billion, up 6% from $2.109 billion a year earlier, but below the $2.347 billion analyst estimate. GAAP net income was $14.3 million, with GAAP EPS of 3 cents.
That compares with GAAP net income of $254.5 million and GAAP EPS of 52 cents in the prior-year quarter.
Adjusted EBITDA rose 20% to $564 million, exceeding company guidance of $555 million. Adjusted EPS increased to 28 cents from 19 cents and beat the 26-cent analyst estimate.
Full-Year 2025 Performance
For the full year, total revenue rose 3.7% to $9.8 billion. GAAP net income was $423.2 million, with GAAP EPS of 92 cents.
That compares with GAAP net income of $910.3 million in 2024.
Adjusted EBITDA increased 11% to $2.73 billion, exceeding guidance of $2.72 billion. Adjusted Net Income grew 15% to $1.045 billion, and Adjusted EPS increased 19% to $2.11, exceeding guidance of $2.10.
Operational Metrics
Passengers carried totaled 2,997,829 in 2025, compared with 2,926,794 in 2024. Passenger Cruise Days increased to 25,278,352 from 24,593,331, while Capacity Days rose to 24,433,624 from 23,445,397.
Occupancy was 103.5% in 2025, down from 104.9% in 2024. Fourth-quarter Occupancy reached 101.8%, up 100 basis points year over year.
Occupancy for 2026 is expected to reach 105.7%, up from 103.5% in 2025.
For 2025, Net Yield increased approximately 2.3% as reported and 2.4% on a Constant Currency basis. Gross margin per Capacity Day increased 6.3% as reported and 7.1% on a Constant Currency basis.
Gross Cruise Costs per Capacity Day were approximately $294, down from $304 in 2024. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $162 as reported and $161 on a Constant Currency basis, compared with $160 in 2024.
Balance Sheet and Cash Flow
The company ended 2025 with total debt of $14.6 billion and net debt of $14.4 billion. Net leverage was 5.3x.
Liquidity was $1.6 billion, including approximately $210 million of cash and cash equivalents and $1.4 billion available under its Revolving Loan Facility.
Operating cash flow was $2.09 billion in 2025.
“The addition of Norwegian Aqua and Oceania Allura to our fleet, coupled with solid demand across our portfolio and continued disciplined cost execution, resulted in strong earnings growth in 2025, with Adjusted EBITDA increasing 11% and Adjusted EPS increasing 19% over prior year,” commented Mark A. Kempa, Executive Vice President and Chief Financial Officer.
2026 Outlook
NCLH guided to full-year 2026 adjusted EPS of $2.38, down from prior guidance of $2.45 and below the $2.55 analyst estimate. It forecast full-year adjusted EBITDA of about $2.95 billion and said net leverage is expected to end the year at ~5.2x.
For the first quarter, it guided to adjusted EPS of about 16 cents, above the 13 cents analyst estimate, and adjusted EBITDA of about $515 million.
The company said the first quarter 2026 net yield on a constant currency basis is expected to decline approximately 1.6% versus 2025 primarily due to the challenges of absorbing the company’s 40% year-over-year increase in capacity in the Caribbean as a result of a misalignment with the company’s commercial strategy at the Norwegian brand and the timing of the opening of the full slate of amenities at Great Stirrup Cay.
NCLH Price Action: Norwegian Cruise Line shares were down 7.79% at $22.85 during premarket trading on Monday, according to Benzinga Pro data.
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