Norwegian Cruise Line Holdings has reported financial results for the fourth quarter and full year ended December 31, 2025, and provided guidance for the first quarter and full year 2026.

Highlights

• Grew total revenue 3.7% to $9.8 billion in 2025. GAAP net income was $423.2 million, with EPS of $0.92.
• Delivered Adjusted EBITDA of $2.73 billion in 2025, exceeding guidance, and representing an increase of 11% compared to 2024. Adjusted Net Income grew 15% to $1.045 billion. Adjusted EPS grew 19% to $2.11.
• Company sets full year 2026 guidance with Adjusted EPS expected to be $2.38.
• Company completed first phase of enhancements to Great Stirrup Cay, the Company’s private island in the Bahamas, including a new pier, the Great Life Lagoon expansive pool area and Splash Harbor kid’s area.
• Company announced order for three new cruise ships, one for each of the Company’s brands, to be delivered in 2036 and 2037.
• John W. Chidsey, proven consumer brand executive leading companies through transformation and an NCLH Board director, appointed as President and Chief Executive Officer in February.

“The team delivered solid fourth quarter and full year 2025 results reflecting the strength of our award-winning brands, loyal guests and dedication of our team and crew members,” said John W. Chidsey, president and chief executive officer of Norwegian Cruise Line Holdings.

“As I step into this new role my initial assessment is that our strategy is sound, but execution and cross-functional alignment have fallen short. Our priority is to act urgently to address these gaps by improving coordination, reinforcing accountability, and strengthening financial discipline across the organization. The good news is that we have strong assets and have recently enhanced our leadership team with the right combination of new and tenured talent. Now, with a clear focus and necessary rigor, I am confident in our ability to create sustainable long-term value.”

Full Year 2025 Highlights

• Generated total revenue of $9.8 billion, a 3.7% increase compared to 2024, primarily driven by higher Capacity Days. GAAP net income was $423.2 million compared to $910.3 million in the prior year, with EPS of $0.92.
• Gross margin per Capacity Day increased 6.3% versus 2024 on an as reported basis and increased 7.1% on a Constant Currency basis. Net Yield increased approximately 2.3% on an as reported basis and 2.4% on a Constant Currency basis, in-line with guidance of 2.4-2.5%.
• Gross Cruise Costs per Capacity Day was approximately $294, compared to $304 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $162 on an as reported basis and $161 on a Constant Currency basis, and was up 1.0% on an as reported basis and was up 0.7% on a Constant Currency basis compared to $160 in 2024.
• Adjusted EBITDA increased 11% to $2.73 billion, compared to $2.45 billion in 2024, exceeding guidance of $2.72 billion. Adjusted EPS increased 19% to $2.11, exceeding guidance of $2.10
• Total Debt was $14.6 billion. Net Debt was $14.4 billion. Net Leverage was 5.3x at December 31, 2025.

Fourth Quarter 2025 Highlights

• Generated total revenue of $2.2 billion, a 6% increase compared to the fourth quarter of 2024, primarily driven by higher Capacity Days. GAAP net income was $14.3 million compared to $254.5 million in the prior year, with EPS of $0.03.
• Gross margin per Capacity Day increased 7.6% versus 2024 on an as reported basis and increased 8.1% on a Constant Currency basis. Net Yield increased approximately 4.0% on an as reported basis and 3.8% on a Constant Currency basis, in-line with guidance of 3.5-4.0%.
• Gross Cruise Costs per Capacity Day was approximately $272, compared to $286 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $159 on an as reported basis and $158 on a Constant Currency basis, and was up 0.9% on an as reported basis and 0.2% on a Constant Currency basis compared to $158 in 2024.
• Adjusted EBITDA increased 20% to $564 million, compared to $468 million in 2024, exceeding guidance of $555 million. Adjusted EPS increased 46% to $0.28, exceeding guidance of $0.27.

2026 Full Year Outlook

The Company’s leadership team is committed to disciplined execution, strengthening financial performance, and reducing Net Leverage. NCLH provided updated 2026 financial targets and outlook to replace the previously communicated long-term financial targets:

• 2026 full year Net Yield on a Constant Currency basis is expected to be approximately flat versus 2025 while the Company works to improve execution of its commercial strategy.
• 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow approximately 0.9% on a Constant Currency basis versus 2025, marking the third consecutive year of sub-inflationary unit cost performance.
• 2026 full year Adjusted EBITDA is expected to be approximately $2.95 billion.
• Adjusted Operational EBITDA Margin for the full year 2026 is expected to be approximately 37%.
• Full year Adjusted Net Income is expected to be approximately $1.12 billion. Adjusted EPS is expected to be $2.38.
• Net Leverage is expected to end the year at ~5.2x.

Q1 2026 Outlook

• Q1 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.
• Q1 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to decline approximately 0.8% on a Constant Currency basis versus 2025.
• Q1 2026 Adjusted EBITDA is expected to be approximately $515 million and Adjusted Operational EBITDA Margin for the quarter is expected to be approximately 29%.

Booking Environment Update

The Company enters 2026 against a “pressured backdrop” as it is slightly below the optimal booking range following certain execution missteps in aligning its commercial strategy with  deployment.

First-quarter performance reflects the absorption of a material increase in capacity in the Caribbean, while longer-term demand trends remain constructive, the company said.

The Company’s deployment shift is resulting in higher load factors, with fourth quarter Occupancy reaching 101.8%, representing a 100 basis point improvement versus 2024; and 2026 Occupancy is expected to reach 105.7% compared to 103.5% in 2025.

Demand has been particularly strong across the Company’s luxury brands which benefit from longer booking curves. Of note, Oceania Cruises generated record bookings following its opening for sale for its newest ship, Oceania Sonata, debuting in August 2027; and Regent Seven Seas Cruises recorded the strongest booking month in its history during January.

Liquidity and Financial Position

The Company is committed to optimizing its balance sheet and reducing Net Leverage. As of December 31, 2025, the Company had total debt of $14.6 billion and Net Debt of $14.4 billion. Net Leverage ended the year at 5.3x.At year-end, liquidity was $1.6 billion including approximately $210 million of cash and cash equivalents and $1.4 billion of availability under our Revolving Loan Facility.

“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,” said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd. “Our priorities in 2026 are centered around improving financial performance, overall execution and reducing Net Leverage.