NCLH · Norwegian Cruise Line Holdings Ltd.

Norwegian Cruise Line Holdings delivered strong Q1 2026 results, with total revenue reaching $2.3 billion, a 10% increase year-over-year driven by higher Capacity Days. GAAP net income flipped to $104.7 million from a $40.3 million loss in Q1 2025, while Adjusted EBITDA rose 18% to $533 million, surpassing guidance of ~$515 million. Key drivers included a 4.0% increase in gross margin per Capacity Day on an as-reported basis and better-than-expected cost control, with Adjusted Net Cruise Cost excluding Fuel per Capacity Day down 0.2% to ~$169. Net Yield declined mildly by 0.3% as reported, outperforming guidance. Management highlighted SG&A optimization yielding $125 million in expected annualized savings, alongside workforce adjustments to offset pressures. However, the company lowered full-year guidance citing Middle East disruptions, higher fuel costs, and softer Europe demand, with Net Yield now expected down 3-5% on a constant currency basis and Adjusted EPS narrowed to $1.45-$1.79. Q2 outlook shows Net Yield down 3.6% and Adjusted EBITDA at ~$632 million. Balance sheet remains pressured with Net Leverage at 5.3x and $15.0 billion Net Debt, but liquidity stands at $1.6 billion. Strategic moves include delivery of Norwegian Luna and board refreshment with five new independent directors effective March 31, 2026, aiming to enhance governance and long-term value amid a challenging booking environment.