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Dec 31, 2025
Norwegian Cruise Line Q4 2025 Earnings Report
Norwegian Cruise Line Q4 2025 Earnings Report
Key Takeaways
Norwegian Cruise Line Holdings reported a solid fourth quarter with revenue growth of 6% and Adjusted EBITDA exceeding guidance, despite a significant drop in GAAP net income due to non-cash charges. The company is undergoing a leadership transition with new CEO John W. Chidsey focusing on improving execution and financial discipline to address recent commercial strategy misalignments.
Q4 Adjusted EPS of $0.28 exceeded guidance of $0.27, representing a 46% increase year-over-year.
Occupancy reached 101.8% in the fourth quarter, a 100 basis point improvement compared to the prior year.
The company recorded a $95.1 million non-cash write-off related to an internal-use software project in Q4.
Advance ticket sales ended the year at $3.2 billion, reflecting continued strong demand despite Caribbean capacity absorption challenges.
Revenue by Segment
Forward Guidance
For the full year 2026, the company expects Adjusted EPS of $2.38 and Adjusted EBITDA of approximately $2.95 billion, while Q1 2026 faces headwinds from Caribbean capacity increases.
Positive Outlook
- Full year 2026 Adjusted EPS expected to grow to $2.38.
- 2026 Occupancy expected to reach 105.7%.
- Record bookings for Oceania Cruises and Regent Seven Seas luxury brands.
- Third consecutive year of sub-inflationary unit cost performance expected.
- Net Leverage expected to reduce to approximately 5.2x by end of 2026.
Challenges Ahead
- Q1 2026 Net Yield expected to decline approximately 1.6% on constant currency.
- Challenges absorbing a 40% year-over-year capacity increase in the Caribbean.
- Misalignment of commercial strategy at the Norwegian brand.
- Timing of opening full amenities at Great Stirrup Cay impacting Q1.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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