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Norwegian Cruise Line Holdings Reports Second Quarter 2026 Financial Results

Norwegian Bliss photo credit Dave Jones / Spacejunkie – https://flic.kr/ps/GkiQt

Norwegian Cruise Line Holdings today reported financial results for the second quarter ended June 30, 2026 and provided guidance for the third quarter and full year 2026.

Highlights

Second quarter total revenue grew 4.9% to $2.6 billion. GAAP net income was $223 million with EPS of $0.48.
Delivered better-than-expected second quarter profitability, with Adjusted EBITDA1 of $666 million, Adjusted Net Income of $222 million and Adjusted EPS of $0.48, each exceeding guidance.
Company now expects full year 2026 Adjusted EPS to be approximately $1.50.
Advanced the Company’s global business sourcing strategy through the consolidation of technology vendors as well as other salary and benefit savings, generating an additional ~$100 million of expected annualized run-rate savings, primarily from capital expenditures and SG&A.
Announced the grand opening of Great Tides Waterpark on September 4, 2026, at the Company’s private island, Great Stirrup Cay. Spanning nearly six acres, Great Tides Waterpark will deliver a bold, family-friendly adventure across immersive attractions for all ages.
Entered into a memorandum of agreement in July 2026 for the sale of Oceania Sirena. Oceania Cruises expects to continue operating Oceania Sirena through spring 2028 pursuant to a charter agreement. The transactions are expected to close during the third quarter of 2026.
Prior to quarter-end, the Company elected to settle the 1.125% Exchangeable Senior Notes due 2027, and the 2.50% Exchangeable Senior Notes due 2027, in cash. The elections are expected to reduce the diluted weighted-average shares outstanding in full year 2026 by 4 million shares, relative to guidance previously issued on May 4, 2026.
“Norwegian Cruise Line Holdings delivered a solid second quarter with profitability ahead of guidance. At the same time, we continued to advance our strategic priorities to strengthen the business for the long term,” said John W. Chidsey, Chairperson and Chief Executive Officer of Norwegian Cruise Line Holdings.

“We are executing with urgency on our priorities including sharpening our brand positioning and marketing execution, strengthening our revenue management and pricing capabilities, driving meaningful cost efficiencies, including an additional $100 million of savings, and ensuring we have the right team in place to rebuild commercial momentum over time. 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. Our leadership team is united and focused on delivering sustainable growth and long-term value creation.”

Second Quarter 2026 Highlights

Generated total revenue of $2.6 billion, a 4.9% increase compared to the second quarter of 2025, driven by increased Capacity Days. GAAP net income was $223 million compared to $30 million in the prior year, with EPS of $0.48.
Gross margin per Capacity Day decreased 11.6% versus 2025 on an as reported basis and decreased 12.3% on a Constant Currency basis. Net Yield decreased approximately 2.1% on an as reported basis and 2.6% on a Constant Currency basis, better than guidance of a decline of 3.6%.
Gross Cruise Costs per Capacity Day were approximately $304, compared to $306 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $164 on an as reported basis and $163 on a Constant Currency basis. Compared to 2025, this metric was essentially flat on an as reported basis and decreased 0.5% on a Constant Currency basis, 150 basis points better than guidance.
Adjusted EBITDA declined 4.1% to $666 million, compared to $694 million in 2025, above guidance of $632 million. Adjusted EPS decreased 6.6% to $0.48, above guidance of $0.38.
2026 Full Year Outlook

The Company said it continues to execute on the cost front, identifying $100 million of annualized savings, in addition to the $125 million of annualized savings announced last quarter. The Company has also taken actions to strengthen its execution, including the addition of key leadership within marketing, revenue management and other key areas at Norwegian Cruise Line. The benefits of these changes are expected to be realized over time and will have a limited impact on 2026 financial results as the Company navigates through its execution challenges, which are impacting its demand generation and revenue outlook. As a result, the Company is updating its full year 2026 guidance. A summary of the updated full year guidance is provided below:

2026 full year Net Yield on a Constant Currency basis is expected to be down approximately 5% versus 2025.
2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be down approximately 0.25% on a Constant Currency basis versus 2025, reflecting better-than-previously-guided performance driven by ongoing savings.
2026 full year Adjusted EBITDA is expected to be approximately $2.5 billion.
Adjusted Operational EBITDA Margin for the full year 2026 is expected to be 33.2%.
Full year Adjusted Net Income is expected to be approximately $700 million. Adjusted EPS is expected to be approximately $1.50.
Q3 2026 Outlook

Q3 2026 Net Yield on a Constant Currency basis is expected to decline 8.9% versus 2025.
Q3 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to decline 0.9% on a Constant Currency basis versus 2025.
Q3 2026 Adjusted EBITDA is expected to be $874 million and Adjusted Operational EBITDA Margin for the quarter is expected to be 41.2%.

Booking Environment Update

The Company remains below its optimal booked position for the next 12 months, as it continues to experience pressure from softer demand at its Norwegian Cruise Line brand related to Company-specific execution challenges, as well as the ongoing conflict in the Middle East. As we look ahead, the full amenities at the Company’s private island, Great Stirrup Cay, will be open to the public beginning September 4, including the pier and the new Great Tides Waterpark, the Great Life Lagoon, and the nearby Splash Harbor, which we expect will improve demand to Caribbean itineraries over time.

Liquidity and Financial Position

The Company is committed to optimizing its balance sheet and reducing Net Leverage. As of June 30, 2026, the Company had total debt of $15.0 billion and Net Debt of $14.8 billion. Net Leverage ended the quarter at 5.3x.

As of June 30, 2026, liquidity was $1.5 billion, including approximately $218 million of cash and cash equivalents and $1.3 billion of availability under our Revolving Loan Facility.

“While the demand environment remains pressured at our Norwegian Cruise Line brand, we continue to execute on disciplined cost and sourcing initiatives, and have identified an additional $100 million of expected annualized run-rate savings primarily related to technology vendors,” said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd. “We remain disciplined in managing our cost structure and over the past three years we have identified over $500 million in savings. These actions will help support future margin expansion and strengthen our financial flexibility as we continue to position the Company for long-term profitable growth.”

Outlook and Guidance

In addition to announcing the results for the second quarter of 2026, the Company also provided guidance for the third quarter and full year 2026, along with accompanying sensitivities, subject to changes in the broad macroeconomic environment. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2026 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.

MSC Cruises and Chantiers de l’Atlantique today celebrated two significant new-build milestones for the construction of the line’s next generation of environmentally advanced vessels.

The new MSC World Europa was floated out, while the coin ceremony was held for the MSC Euribia. Of note, MSC also confirmed the World Europa will have a fuel cell on board.

The MSC World Europa and MSC Euribia will become the first LNG-powered vessels to join the MSC fleet next year representing an investment of €3 billion in Liquified Natural Gas (LNG) ships with the construction on MSC World Europa II due to commence in early 2023, according to a statement.

Pierfrancesco Vago, Executive Chairman, MSC Cruises, said: “Today is another important milestone in our journey towards net zero emissions by 2050 for our marine operations. Following billions of euros of investment, we are announcing significant construction developments in not just one but two of our next-generation LNG-powered vessels bringing us ever closer to our vision of the emissions-free cruise industry.

“We have a lot more to do but I am pleased that despite all that we have faced from the pandemic over the last two years, we have still been able to achieve with our partners at Chantiers de L’Atlantique the launch of these new LNG vessels – the first ever made in France that will also introduce potential new fuel cell technologies to make them even more efficient. We now need to take even bigger steps and we will need the continued support of our suppliers, partners and Governments to achieve this. We all need to work together to achieve our green future.”

Laurent Castaing, General Manager, Chantiers de l’Atlantique, added: “It is indeed a very special moment we are living today. This is not only because these ships are respectively the 15th and the 16th we are building for MSC Cruises- which shows the outstanding quality of the relationship we established between our two companies since the ’90s. This is not only because they will rank among the largest and the finest of the world’s cruise market. But it is also and especially because they represent a giant step towards what the cruise ships of the future will look like. At their delivery, they will have the best carbon footprint of the market, in terms of emissions per passenger and per day”

MSC Cruises and Chantiers de l’Atlantique also confirmed today the installation of a fuel cell pilot plant onboard the MSC World Europa known as Blue Horizon. The technology will use LNG to convert fuel into electricity at one of the highest efficiencies of any power solution available today, producing electricity and heat on the ship, the company said.

The fuel cell technology selected by Chantiers de l’Atlantique (CdA) and MSC Cruises is the SOFC (Solid Oxide Fuel Cell) developed by Bloom Energy.

The SOFC will reduce emissions of greenhouse gases (GHG) by about a further 30 per cent compared with a conventional LNG engine without producing emissions of nitrogen oxides, sulphur oxides or fine particles.

Anne Claire Juventin responsible for Quality Control from Chantiers de l’Atlantique, and Valentina Mancini, Brand Manager from MSC Cruises performed the traditional maritime ritual as godmothers representing the shipowner and the shipbuilder when they placed two coins under the keel as the historical sign of blessing and good fortune for the project, and the ship’s operational life at sea.

The float out of MSC World Europa, which will be the first LNG-powered vessel to join the MSC Cruises fleet took place at the shipyard in Saint-Nazaire where she will now be moved to a wet dock for work to continue on the ship until her delivery in November 2022.