Norwegian Cruise Line Holdings today reported financial results for the second quarter ended June 30, 2025 and provided guidance for the third quarter and full year 2025.

Highlights

Generated record total revenue for second quarter of $2.5 billion, an increase of 6% versus second quarter of 2024. GAAP net income was $30.0 million, with EPS of $0.07.
Delivered Adjusted EBITDA of $694 million, exceeding guidance. Adjusted EPS¹ was $0.51, meeting guidance, despite an $0.08 impact from foreign exchange.
Reaffirmed full year 2025 guidance on all key metrics.
Announced expansion plans for Great Stirrup Cay, the Company’s private island destination in the Bahamas, including the nearly six-acre Great Tides Waterpark expected to open in summer 2026. This new waterpark is in addition to the previously announced two-ship pier, pool, family splash pad, welcome center and tram which are expected to open by year-end 2025.
Took delivery of Oceania Allura, the brand’s eighth luxury ship, and confirmed orders for two additional next-generation Sonata Class Ships.
Successfully upsized the Company’s senior secured Revolving Loan Facility from $1.7 billion to approximately $2.5 billion.
Published the 2024 “Sail and Sustain” report, highlighting continued progress on the Company’s sustainability initiatives.

“We delivered another record quarter, demonstrating once again the strong customer demand environment, the power of our brands, our outstanding onboard product, and the dedication of our team,” remarked Harry Sommer, president and chief executive officer of Norwegian Cruise Line Holdings Ltd. “Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend. This performance reflects the strength of our offerings across the fleet, along with our disciplined focus on driving both return on investment and return on experience.”

“We are also thrilled to unveil the next phase of the greatest private island experience in the Caribbean, Great Stirrup Cay. The addition of the nearly six-acre, 19-slide, Great Tides Waterpark which includes an 800-foot dynamic river, and a 9,000-square-foot kids splash zone, along with other new amenities, will further enhance the guest experience at one of our most popular destinations. Additionally, with the delivery of Oceania Allura and the confirmation of two additional next-generation Sonata Class Ships, we are reinforcing our commitment to measured growth and long-term value creation for our stakeholders,” continued Sommer.

Second Quarter 2025 Highlights

Generated second quarter record total revenue of $2.5 billion, a 6% increase compared to second quarter of 2024. GAAP net income was $30.0 million, a decline of $133.4 million year-over-year, with EPS of $0.07. Results were impacted by foreign exchange losses of $158.5 million primarily related to $121.9 million in non-cash losses related to the mark-to-market of euro-denominated debt and $36.6 million mainly related to the advance ticket sales balance.
Gross margin per Capacity Day increased 11% versus 2024 on an as-reported basis and increased 12% on a Constant Currency basis. Net Yield increased approximately 2.7% on an as reported and 3.1% in Constant Currency, above guidance of ~2.5%.
Gross Cruise Costs per Capacity Day was approximately $306, compared to $315 in the prior year. Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $164 on an as reported and $163 on a Constant Currency basis, and was up 0.2% on an as reported basis and was flat on a Constant Currency basis compared to $163 in 2024, and better than guidance of 1.0% primarily due to the timing of certain cost savings initiatives.
Adjusted EBITDA increased 18% to $694 million, compared to $588 million in 2024, exceeding guidance of $670 million. Adjusted EPS was $0.51, in line with guidance, despite foreign exchange losses of $0.08 mainly related to the revaluation of the advance ticket sales balance and other items. Total debt was $13.8 billion. Net Leverage was 5.3x at June 30, 2025, a ~ 0.4x decrease from March 31, 2025.

2025 Outlook

The Company is reiterating its full year 2025 guidance. 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 approximately 2.5% versus 2024, compared to previous guidance of between 2.0% and 3.0%.
2025 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to grow approximately 0.6% on a Constant Currency basis versus 2024, compared to previous guidance of between 0% and 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%, an 150 basis point increase versus 2024.
Full year Adjusted Net Income guidance is reiterated at approximately $1,045 million. Adjusted EPS guidance is reiterated at $2.05, a 16% increase versus 2024.
Net Leverage guidance is expected to end the year at approximately 5.2x compared to previous guidance of ~5x due to the mark-to-market of euro-denominated debt.
The Company remains committed to achieving its 2026 Charting the Course financial targets.

Booking Environment Update

The Company had strong bookings in the quarter with bookings now ahead of historical levels in recent months, reflecting a strong rebound in demand following early-April softness for third-quarter long-haul, extended European itineraries. As a result, the Company remains well positioned within its optimal range for its forward 12-month booked position. Occupancy for the second quarter of 2025 was 103.9%, in-line with guidance. The Company’s advance ticket sales balance, including the long-term portion, ended the second quarter of 2025 at an all-time record high of $4.0 billion.

Liquidity and Financial Position

The Company is committed to prioritizing efforts to optimize its balance sheet and reduce Net Leverage. As of June 30, 2025, the Company had total debt of $13.8 billion and Net Debt of $13.6 billion. The Company has €1.3 billion of euro-denominated debt on the balance sheet related to its newbuild program and has taken on an additional €570 million during the third quarter related to the delivery of Oceania Allura. Net Leverage decreased by approximately 0.4x compared to March 31, 2025, ending the quarter at 5.3x.

At quarter-end, liquidity was $2.4 billion including approximately $184.0 million of cash and cash equivalents, $2.0 billion of availability under our Revolving Loan Facility, and other commitments.

“We are pleased to have expanded our Revolving Loan Facility, further strengthening our liquidity position and enhancing financial flexibility,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd. “More importantly, we reduced Net Leverage to 5.3x in the second quarter, down from 5.7x in the first quarter. We have reduced our Net Leverage by 2 turns since 2023 and are firmly on track to reach our 2026 goal of reducing Net Leverage to the mid-4x range.”

Outlook and Guidance

In addition to announcing the results for the second quarter 2025, the Company also provided guidance for the third quarter and full year 2025, along with accompanying sensitivities, subject to changes in the broad macroeconomic environment. The Company does not provide certain estimated future results on a GAAP basis because the Company is unable to predict, with reasonable certainty, the future movement of foreign exchange rates or the future impact of certain gains and charges. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2025 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.