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Norwegian Reports 2026 Q1 Results

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Norwegian Reports 2026 Q1 Results

Norwegian Cruise Line Holdings today reported financial results for the first quarter ended March 31, 2026 and provided guidance for the second quarter and full year 2026.

Highlights

  • First quarter total revenue grew 10% to $2.3 billion. GAAP net income was $105 million, with EPS of $0.23.
  • Delivered Adjusted EBITDA of $533 million in first quarter 2026, exceeding guidance, and representing an increase of 18% compared to 2025. Adjusted Net Income more than doubled to $108 million. Adjusted EPS increased $0.13 to $0.23.
  • Company lowered full year 2026 guidance with Adjusted EPS expected to be $1.45 to $1.79.
  • Company took delivery of Norwegian Luna, featuring an exceptional collection of venues and experiences, including its latest in house production ELTON: A Celebration of Elton John™.
  • Announced Board refreshment with the appointment of five new independent directors effective March 31, 2026, further strengthening the Company’s governance and shareholder value focus.
  • Executed targeted initiatives to enhance its SG&A profile, generating approximately $125 million of expected annualized run-rate savings.

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We delivered strong first quarter results, and more importantly we have already begun taking decisive actions to strengthen execution and accountability across the company, which will enhance results over the longer term,” said John W. Chidsey, Chairperson and Chief Executive Officer of Norwegian Cruise Line Holdings.

“During the quarter, we acted with urgency to simplify, optimize, and streamline the organization, including executing SG&A savings initiatives totaling $125 million in expected run rate savings. These are long-term structural actions that we believe will help offset near-term pressures and position the business for stronger performance over time. As we move through the year, we will continue to manage costs and focus on revenue growth to align resources with the high-growth, high value areas of the business. I remain confident and encouraged that we are building a leaner, more effective and nimble organization that positions NCLH for sustainable long-term value creation.”

First Quarter 2026 Highlights

  • Generated total revenue of $2.3 billion, a 10% increase compared to the first quarter of 2025, driven by increased Capacity Days. GAAP net income was $104.7 million compared to $(40.3) million in the prior year, with EPS of $0.23.
  • Gross margin per Capacity Day increased 4.0% versus 2025 on an as reported basis and increased 2.6% on a Constant Currency basis. Net Yield decreased approximately 0.3% on an as reported basis and 1.0% on a Constant Currency basis, above our guidance of a decline of 1.6%.
  • Gross Cruise Costs per Capacity Day was approximately $287, compared to $297 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $169 on an as reported basis and $168 on a Constant Currency basis, and was down 0.2% on an as reported basis and 1.0% on a Constant Currency basis compared to $169 in 2025, better than guidance.
  • Adjusted EBITDA increased 18% to $533 million, compared to $453 million in 2025, exceeding guidance of ~$515 million. Adjusted EPS increased 121% to $0.23, exceeding guidance of ~$0.16.

2026 Full Year Outlook

The Company is experiencing headwinds related to disruptions in the Middle East, including higher fuel expense and signs of softer demand as consumers reevaluate travel plans, particularly to Europe. As previously noted, the Company entered 2026 behind its targeted booking curve, and these headwinds have hindered the Company’s ability to accelerate bookings and close that gap. These external pressures come as the Company continues to enhance its revenue management system and improve execution, resulting in additional pressure on the business and a reduction in its full year 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 3% to 5% versus 2025.
  • 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be approximately flat on a Constant Currency basis versus 2025, reflecting better-than-previously-guided performance driven by workforce optimization and other SG&A savings.
  • 2026 full year Adjusted EBITDA is expected to be approximately $2.48 billion to $2.64 billion.
  • Adjusted Operational EBITDA Margin for the full year 2026 is expected to be 32.9% to 34.3%.
  • Full year Adjusted Net Income is expected to be approximately $679 million to $838 million. Adjusted EPS is expected to be $1.45 to $1.79.

Q2 2026 Outlook

  • Q2 2026 Net Yield on a Constant Currency basis is expected to decline approximately 3.6% versus 2025.
  • Q2 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow approximately 1.0% on a Constant Currency basis versus 2025.
  • Q2 2026 Adjusted EBITDA is expected to be approximately $632 million and Adjusted Operational EBITDA Margin for the quarter is expected to be approximately 32.5%.

Booking Environment Update

The Company remains below its optimal booking range following certain execution missteps, exacerbated by softer demand related to heightened geopolitical uncertainty. Recent events related to the conflict in the Middle East have impacted bookings across all three brands, especially in Europe during the summer season. While the near-term environment remains challenging, the Company is taking targeted actions to better align commercial strategy, including marketing, with deployment and revenue management, with the benefits of these actions expected to materialize gradually over time.

Liquidity and Financial Position

The Company is committed to optimizing its balance sheet and reducing Net Leverage. As of March 31, 2026, the Company had total debt of $15.2 billion and Net Debt of $15.0 billion. Net Leverage ended the quarter at 5.3x.

As of March 31, 2026, liquidity was $1.6 billion including approximately $185.0 million of cash and cash equivalents and $1.4 billion of availability under our Revolving Loan Facility.

“During the quarter we delivered better-than-expected cost performance across the business,” said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd. “As we navigate a more uncertain macroeconomic and geopolitical environment, we are acting diligently to offset those pressures through targeted SG&A savings and broader efficiency initiatives. Based on the actions taken during the quarter, we now expect full year Adjusted Net Cruise Cost Excluding Fuel to be approximately flat to last year, which should help support margins as we continue to strengthen execution across the business.”

Outlook and Guidance

In addition to announcing the results for the first quarter of 2026, the Company also provided guidance for the second 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.

Jefferies Raises Viking Price Target, Keeps Hold on Norwegian

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Jefferies Raises Viking Price Target, Keeps Hold on Norwegian

Viking Vela, photo credit Spacejunkie2 – https://flic.kr/ps/GkiQt

Jefferies analyst David Katz updated his outlook on two major cruise operators this week following their fourth quarter and year end 2025 earnings, lifting his price target on Viking while maintaining a cautious stance on Norwegian Cruise Line Holdings.

Viking Impresses

In a note sent to investors, Katz raised his price target on Viking $91 from $80, reiterating a buy rating, after the company posted its fourth quarter and full year results.

Occupancy of 95.0%, against Katz’s 92.7% projection, led the outperformance, driven by particularly strong ocean segment results where occupancy improved 330 basis points year-over-year. Net yields rose 11.0% in the quarter, roughly double analyst expectations.

Looking ahead, Viking said fiscal 2026 is now 86% booked, up from more than 70% as of the third quarter.

“The clarity of growth is also critical support for the increasing valuation multiples we apply,” Katz wrote, adding that he expects Viking to “continue to outperform peers within cruise and across our coverage, largely irrespective of valuation levels.”

Katz also noted that Viking’s river operations are effectively fully fuel-hedged through forward purchase agreements, and that its only itineraries near the Iran conflict, a small percentage of 2026 capacity in Egypt, have not prompted guest concerns.

Norwegian: Hold, $20 Target

Katz was less upbeat on Norwegian Cruise Line Holdings reiterating a hold rating and maintaining his $20 price target.

Management said Norwegian is running slightly behind its optimal booking curve for 2026, he said, and plans to prioritize occupancy recovery, a strategy Katz acknowledged as “a necessary strategic move” but one that “likely comes with lower pricing in the near term.”

On the cost side, Katz said SG&A reductions are now the target for savings, with ship costs already reduced meaningfully. He expects those efforts to gain traction in the second half of 2026 and into 2027.

“Given guidance for leverage greater than 5.0x through YE26, we remain conservative on the shares,” he wrote.

Royal Caribbean Reports 2025 Q1 Results

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Jewel of the Seas visiting the Historic port of Liverpool, photo credit Spacejunkie2 Flickr

Royal Caribbean Group today reported first quarter Earnings per Share (“EPS”) of $2.70 and Adjusted EPS of $2.71, according to a press release.

These results were better than the company’s guidance due to stronger-than-expected pricing on close-in demand and lower costs, mainly due to timing. The company is increasing its full year 2025 Adjusted EPS guidance to $14.55 to $15.55. The increase in earnings expectations is driven by the better-than-expected revenue performance in the first quarter and the benefit of currency exchange rates and lower fuel costs for the remainder of the year.

“Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver,” said Jason Liberty, president and CEO, Royal Caribbean Group. “As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control — delivering the best vacation experiences, optimising revenue, and managing costs, while continuing to invest in our future and drive further differentiation. With our industry-leading brands, state-of-the-art ships, exclusive destinations, and a fortified balance sheet, we will continue dreaming and innovating to win a greater share of the growing $2 trillion global vacation market.”

First Quarter 2025:

  • Load factor in the first quarter was 109%.
  • Gross Margin Yields were up 13.9% as-reported. Net Yields were up 4.7% as-reported and 5.6% in Constant Currency.
  • Gross Cruise Costs per Available Passenger Cruise Days (“APCD”) decreased 1.1% as-reported. Net Cruise Costs (“NCC”), excluding Fuel, per APCD decreased 0.3% as-reported and increased 0.1% in Constant Currency.
  • Total revenues were $4.0 billion, Net Income was $0.7 billion or $2.70 per share, Adjusted Net Income was $0.7 billion or $2.71 per share, and Adjusted EBITDA was $1.4 billion.

Full Year 2025 Outlook:

  • Net Yields are expected to increase 2.5% to 4.5% as-reported (2.6% to 4.6% in Constant Currency).
  • NCC, excluding Fuel, per APCD are expected to be 0.1% to 1.1% as-reported and (0.1%) to 0.9% in Constant Currency.
  • Adjusted EPS is expected to grow approximately 28% year-over-year and be in the range of $14.55 to $15.55.

First Quarter 2025 Results

Net Income for the first quarter of 2025 was $0.7 billion or $2.70 per share, compared to Net Income of $0.4 billion or $1.35 per share for the same period in the prior year. Adjusted Net Income was $0.7 billion or $2.71 per share for the first quarter of 2025, compared to Adjusted Net Income of $0.5 billion or $1.77 per share for the same period in the prior year. The company also reported total revenues of $4.0 billion and Adjusted EBITDA of $1.4 billion.

Capacity for the first quarter was up 3% year over year, and the company delivered memorable vacations to 2.2 million guests, a 9% increase year over year. Gross Margin Yields increased 13.9% as-reported, and Net Yields increased 4.7% as-reported (5.6% in Constant Currency), when compared to the first quarter of 2024. Load factor for the quarter was 109%. Net Yield growth exceeded the company’s guidance mainly due to higher pricing across key products driven by strong close-in demand.

Gross Cruise Costs per APCD decreased 1.1%  as-reported, compared to the first quarter of 2024. NCC, excluding Fuel, per APCD decreased 0.3% as-reported (and increased 0.1% in Constant Currency), when compared to the first quarter of 2024.

Update on Bookings

During the first quarter, the company took record bookings during the WAVE season. Additionally, during April, the company’s bookings were greater than the same period last year, including continued strength in close-in bookings. Booked load factors remain in line with prior years and at higher rates. Guest spending onboard and pre-cruise purchases continue to exceed prior years, driven by greater participation at higher prices. To account for broader external factors, the company has expanded its guidance ranges in response to the complexity of the current macroeconomic landscape.

“Bookings for 2025 have remained on track, cancellation levels are normal, and we continue to see excellent close-in demand”, said Jason Liberty, president and CEO, Royal Caribbean Group. “This year continues our guest experience innovation with the debut of Star of the Seas, Celebrity Xcel, and the opening of Royal Beach Club Paradise Island by year-end – all of which continue to generate consumer excitement and strengthen our competitive moat.”

The cadence of yield growth throughout the year, as expected, is driven by the timing of new hardware entering service, with the arrival of Star of the Seas in late summer and the related ramp-up of load factors, as is typical for new ship launches.

Second Quarter 2025

Capacity in the quarter is expected to increase 6%, driven by lower dry dock days and a full year of Utopia of the Seas, compared to the second quarter 2024. Net Yields are expected to increase 4.4% to 4.9% as-reported and 4.3% to 4.8% in Constant Currency as compared to the same period in the prior year. The expected growth in yield is driven by healthy demand across all key products and onboard spend, both from new and like-for-like hardware.

NCC, excluding Fuel, per APCD, is expected to increase 4.1% to 4.6% as reported and 3.7% to 4.2% in Constant Currency compared to the same period in the prior year. Approximately 140 bps of cost growth is attributable to the timing shift from the first quarter.

Based on current fuel pricing, interest rates, currency exchange rates, and the factors detailed above, the company expects second quarter Adjusted EPS to be between $4.00 and $4.10.

Fuel Expense

Bunker pricing, net of hedging, for the first quarter was $655 per metric ton, and consumption was 423,000 metric tons.

The company does not forecast fuel prices, and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel prices, the company has included $286 million of fuel expense in its second quarter guidance at a forecasted consumption of 428,000 metric tons, which is 59% hedged via swaps. Forecasted consumption is 59%, 55%, 45%, and 15% hedged via swaps for 2025, 2026, 2027, and 2028, respectively. The annual average cost per metric ton of the hedge portfolio is approximately $487, $476, $393, and $426 for 2025, 2026, 2027, and 2028, respectively.