Norwegian Cruise Line Holdings Reports Third Quarter 2026 Financial Results

Norwegian Cruise Line Holdings has reported financial results for the third quarter ended September 30, 2026 and provided guidance for the fourth quarter and full year 2026.

Highlights

• Third quarter total revenue was $2.9 billion. GAAP net income was $491 million with EPS of $1.07.
• Delivered third quarter results above guidance, with Adjusted EBITDA¹ of $937 million, Adjusted Net Income of $514 million and Adjusted EPS of $1.12.
• Raised full year 2026 guidance, with 2026 Adjusted EBITDA now expected to be approximately $2.55 billion and Adjusted EPS of approximately $1.70.
• Opened Great Tides Waterpark in early September at the Company's private island, Great Stirrup Cay. Spanning nearly six acres, the waterpark expands the island's offerings with attractions for guests of all ages.
• Announced additional run-rate savings of ~$100 million related to guest and crew air optimization and other tactical changes in promotional offerings that will phase in through 2028.
• Completed the issuance of $950 million of senior notes due 2031 on October 15, which together with the upsizing of the Revolving Loan Facility, enhanced the Company's liquidity position.
• Completed the sale of Oceania Sirena and entered into a charter agreement to continue operating the vessel through spring 2028.
• Entered into a memorandum of agreement to sell Oceania Insignia with an expected delivery to the buyer in September 2027.

"We delivered third quarter results that came in above guidance, all while continuing to strengthen our commercial capabilities, improve operating efficiency and enhance the guest experience," said John W. Chidsey, Chairperson and Chief Executive Officer of Norwegian Cruise Line Holdings Ltd.

"As we implement the next phase of our turnaround, we are focused on sharpening Norwegian Cruise Line's brand positioning, improving marketing effectiveness and taking a more disciplined approach to revenue management as well as a prudent base-loading strategy. We are seeing the early signs of progress and expect Net Yield growth of 1% to 2% in 2027, with a meaningful acceleration in the back half of the year."

Third Quarter 2026 Highlights

The Company delivered third quarter results above guidance, driven primarily by stronger-than-expected close-in demand and onboard spend. Continued cost discipline also contributed to lower-than-expected unit costs, further supporting the quarter's profitability.

• Generated total revenue of $2.9 billion. GAAP net income was $491 million compared to $419 million in the prior year, with EPS of $1.07.
• Gross margin per Capacity Day decreased 16.7% versus 2025 on an as reported basis and decreased 17.1% on a Constant Currency basis. Net Yield decreased 6.5% on an as reported basis and 6.7% on a Constant Currency basis, ~220 basis points better than guidance of an 8.9% decline.
• Gross Cruise Cost per Capacity Day was approximately $301, compared to $302 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $152 on an as reported basis and on a Constant Currency basis. Compared to 2025, this metric was down 2.2% on an as reported basis and decreased 2.3% on a Constant Currency basis, ~140 basis points better than guidance of down 0.9%.
• Adjusted EBITDA was $937 million, exceeding guidance of $874 million by $63 million. Adjusted EPS was $1.12, exceeding guidance of $0.90 by $0.22.

2026 Full Year Outlook

Reflecting its stronger-than-expected third quarter performance, the Company is raising its full year 2026 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 4.4% versus 2025.
• 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be down approximately 0.4% on a Constant Currency basis versus 2025, reflecting better-than-previously-guided performance driven by ongoing savings.
• 2026 full year Adjusted EBITDA is expected to be approximately $2.55 billion.
• Adjusted Operational EBITDA Margin for the full year 2026 is expected to be 33.7%.
• Full year Adjusted Net Income is expected to be approximately $789 million. Adjusted EPS is expected to be approximately $1.70.

Q4 2026 Outlook

• Q4 2026 Net Yield on a Constant Currency basis remains unchanged from prior guidance, declining ~6.5%. The outlook reflects a modestly improved underlying Net Yield performance, offset by an unfavorable mix impact due to the delayed delivery of Seven Seas Prestige to late December and the cancellation of select voyages on Seven Seas Voyager transiting the Suez Canal.
• Q4 2026 Adjusted Net Cruise Cost excluding fuel per Capacity Day is expected to be up 1.7% on a Constant Currency basis versus 2025.
• Q4 2026 Adjusted EBITDA is expected to be $414 million and Adjusted Operational EBITDA margin for the quarter is expected to be 25.0%.

Booking Environment Update

The Company's booked position for the next 12 months has improved modestly since the last earnings release but remains below its optimal range. The expanded offering at Great Stirrup Cay, including the recently opened Great Tides Waterpark, together with the upcoming rollout of a new marketing platform and improvements to revenue management capabilities, including the implementation of the base-loading strategy across 2027 and 2028 sailings, is expected to support stronger demand and a healthier booking curve over time.

Looking ahead to 2027, the Company's pricing for the first half is ahead of levels at the same time last year, while its booked position remains below the comparable prior-year position. For the second half, pricing is ahead with the booked position in line with the same time last year. These trends, together with the expected benefits of the Company's commercial initiatives, support the Company's expectation for full year Net Yield growth of 1% to 2%, with a meaningful acceleration in the second half.

Liquidity and Financial Position

The Company is committed to optimizing its balance sheet and reducing Net Leverage. As of September 30, 2026, the Company had total debt of $15.1 billion and Net Debt of $14.8 billion. Net Leverage ended the quarter at 5.5x.

On a pro forma basis, considering the recent debt issuance and upsizing of the Revolving Loan Facility, liquidity as of September 30, 2026 would have been $2.1 billion, including approximately $257 million of cash and cash equivalents and $1.8 billion of availability under the Revolving Loan Facility.

"Subsequent to quarter-end, we completed the issuance of $950 million of 8.750% senior notes due 2031 and upsized our Revolving Loan Facility, strengthening our liquidity position. With no significant debt maturities until 2029, we believe our existing financial resources and ongoing cash generation provide a clear path to fund our turnaround strategy and strengthen our balance sheet over time," said Mark A. Kempa, Executive Vice President and Chief Financial Officer of Norwegian Cruise Line Holdings Ltd.

"Reducing Net Leverage remains a top priority. We continue to center our focus on cost discipline and cash generation as we work to restore Net Yield growth, with stronger earnings and cash flow expected to drive further deleveraging."