Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) reported second-quarter earnings that came in ahead of Wall Street expectations, but weaker full-year guidance disappointed investors and pushed the cruise operator’s shares lower in premarket trading.
The stock fell around 2% before Thursday’s opening bell following the release of the results.
Profit Tops Forecasts While Revenue Misses Expectations
The company posted adjusted earnings of $0.48 per share for the second quarter, comfortably above the analyst consensus estimate of $0.38 per share.
Revenue reached $2.6 billion, below the market forecast of $2.65 billion, although it still represented a 4.9% increase compared with the same period last year.
Full-Year Guidance Falls Below Market Expectations
Norwegian Cruise Line now expects adjusted earnings of approximately $1.50 per share for full-year 2026, below analysts’ consensus estimate of $1.67.
The company also forecast that net yield on a constant currency basis will decline by approximately 5% compared with 2025, citing continued operational challenges at its flagship Norwegian Cruise Line brand.
Management said softer booking trends were driven by execution-related issues within the brand, alongside the ongoing conflict in the Middle East.
“Norwegian Cruise Line Holdings delivered a solid second quarter with profitability ahead of guidance,” said John W. Chidsey, Chairperson and Chief Executive Officer. “While we are confident in the strength of our brands and the long-term benefits of the actions underway, we are still in the early stages of our turnaround.”
Third-Quarter Outlook and Cost Savings Plans
For the third quarter, Norwegian Cruise Line expects adjusted earnings per share of $0.90 and adjusted EBITDA of $874 million.
The company also projects an 8.9% decline in constant-currency net yield compared with the third quarter of last year.
In an effort to improve profitability, Norwegian announced an additional $100 million in annualised cost savings, primarily through lower capital expenditures and reduced selling, general and administrative expenses.
The savings are expected to come from initiatives including the consolidation of technology vendors and other efficiency measures.
The latest programme builds on the $125 million in annualised savings announced during the previous quarter.
Norwegian Cruise Line Holdings stock price
