Norwegian Cruise Line Holdings  reported financial results for the first quarter ended March 31, 2025 and provided guidance for the second quarter and full year 2025.

Highlights

• Generated total revenue of $2.1 billion. GAAP net loss was ($40.3) million, with EPS of ($0.09).
• Adjusted EBITDA of $453 million was above guidance. Adjusted EPS was $0.07.
• Company maintains full year 2025 Adjusted EBITDA and Adjusted EPS guidance.
• Announced the execution of long-term charter agreements for four vessels across our three brands.
• Took delivery of Norwegian Aqua, the first vessel in Norwegian Cruise Line’s cutting-edge Prima Plus Class.
• Announced plans to expand the amenities at Great Stirrup Cay, the Company’s private island destination in the Bahamas, which are expected to open later this year alongside the Company’s new multi-ship pier.

“We kicked off 2025 with solid first quarter results, demonstrating the continued momentum of our Charting the Course strategy in building a strong foundation for long-term success and delivering on our vision for guests to Vacation Better | Experience More,” said Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “We welcomed Norwegian Aqua—NCL’s first Prima Plus Class vessel and completed impactful refurbishments on Norwegian Bliss and Norwegian Breakaway. In addition, our recently announced new amenities at Great Stirrup Cay will further enhance the guest experience on our Caribbean voyages, which continue to grow as we expand our fleet.”

“Looking ahead, our proven track record of long-term Net Yield growth, strong cost control, continued record guest satisfaction scores and guest repeat rates give us confidence about our future. Thus, as we remain mindful of the evolving macroeconomic environment and despite recent volatility, we are maintaining our full year 2025 Adjusted EBITDA and Adjusted EPS guidance. While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives. Our focus remains on managing the business for the long term – balancing disciplined pricing and cost control with guest experience and strategic investments for the future.”

First Quarter 2025 Highlights

• Generated total revenue of $2.1 billion, a ~3% decrease compared to first quarter 2024 primarily due to a 2% decline in Capacity Days related to increased Berths, due to larger ships, in Dry-dock, and a strategic reduction in passenger air participation rates. GAAP net loss was ($40.3) million, a $57.6 million decline compared to first quarter 2024, with EPS decreasing $0.13 to ($0.09). Results were driven by reduced Capacity Days in the quarter and foreign exchange losses of $23 million or $0.05 in 2025 compared to foreign exchange gains of $13 million or $0.03 in 2024.
• Gross margin per Capacity Day was up 5% versus 2024 on an as reported basis and up 7% on a Constant Currency basis. Net Yield growth increased over prior year by approximately 0.6% on an as reported and 1.2% on a Constant Currency basis, above guidance of 0.5%.
• Gross Cruise Costs per Capacity Day was approximately $297 in the first quarter of 2025 compared to $300 in 2024. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $169 on an as reported and Constant Currency basis, and was up 2.9% on an as reported and 3.0% on a Constant Currency basis compared to $165 in 2024, and better than guidance of 3.9%. Excluding an $8 impact from higher Dry-dock days and related expenses, Adjusted Net Cruise Cost excluding Fuel per Capacity Day was up approximately $2, or 1%, year-over-year driven by costs associated with the delivery of Norwegian Aqua.
• Adjusted EBITDA declined 2% to $453 million compared to $464 million in 2024, above guidance of $435 million. Adjusted EPS declined to $0.07, slightly below guidance due to foreign exchange losses of $0.05.
• Total debt was $14.0 billion. Net Leverage was 5.7x at March 31, 2025, a 0.4x increase from December 31, 2024 primarily due to the delivery of Norwegian Aqua in March, in line with guidance.

Recent Highlights

• Successfully refinanced the majority of the 2025 Exchangeable Notes by exchanging $353.9 million of the 2025 Exchangeable Notes for $353.9 million of 0.875% 2030 Exchangeable Notes and a cash payment of $64.0 million, plus accrued and unpaid interest on the 2025 Exchangeable Notes that were exchanged to, but excluding, the closing date of the exchange. Additionally, the Company completed an equity offering of 3,358,098 ordinary shares to the holders at a price of $19.06 per share and used the net proceeds from the equity offering, together with cash on hand, to make the cash payment. This transaction was Net Leverage-neutral and reduced our diluted share count by approximately 15.5 million shares.
• Executed long-term charter agreements, each inclusive of purchase options, for four vessels across our three brands: Norwegian Sky and Norwegian Sun from Norwegian Cruise Line, Seven Seas Navigator from Regent Seven Seas Cruises and Insignia from Oceania Cruises.
• Announced development plans to expand the offerings at Great Stirrup Cay. Debuting later this year alongside the completion of a new multi-ship pier, guests can look forward to a new welcome center, a new extensive pool area with swim-up bar, family splash pad and poolside cabanas, and an island-wide tram system designed to support seamless exploration of the island. Several onboard premium concepts featured on Norwegian Cruise Line ships will also come to the island, including the adults-only Vibe Beach Club and Horizon Park, a recreation and lawn games area.

2025 Outlook

The Company is updating its full year 2025 Net Yield and Adjusted Net Cruise Cost Excluding Fuel guidance to reflect recent booking trends and changes in the macroeconomic environment. While the Company expects some pressure on Net Yield, it plans to effectively offset this impact through additional cost savings measures. As a result, full year 2025 guidance for Adjusted EBITDA and Adjusted EPS remains unchanged. A summary of the updated full year guidance is provided below:

• 2025 full year Net Yield guidance on a Constant Currency basis is expected to increase between 2.0% and 3.0% versus 2024, compared to previous guidance of ~3.0%.
• 2025 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow between 0% and 1.25% on a Constant Currency basis versus 2024, compared to previous guidance of ~1.25%.
• 2025 full year Adjusted EBITDA guidance is unchanged and expected to be approximately $2.72 billion, or an 11.0% increase versus 2024.
• Adjusted Operational EBITDA Margin guidance for the full year 2025 is unchanged and expected to be approximately 37%.
• Full year Adjusted Net Income guidance is expected to be approximately $1,045 million. Adjusted EPS guidance is unchanged and is expected to be $2.05, increasing approximately 13% year-over-year.
• Net Leverage guidance is expected to end the year at approximately 5x.
• Company remains committed to Charting the Course 2026 financial targets.

 

Booking Environment Update

The Company has seen softening in its 12-month forward booked position but continues to remain within the optimal range, even amid ongoing macroeconomic volatility. Occupancy was 101.5% for the first quarter of 2025, in-line with guidance, and down year-over-year due to increased Dry-dock capacity and repositioning days on large vessels. The Company’s advance ticket sales balance, including the long-term portion, ended the first quarter of 2025 at $3.9 billion, up 2.6% year-over-year.