In This Article:
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Revenue: Record revenue achieved in 2024.
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Net Yield: Increased by a record 10% in 2024, surpassing initial guidance by 450 basis points.
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Adjusted EBITDA: Record adjusted EBITDA for 2024, exceeding $2.45 billion.
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Adjusted EPS: Grew by 161% to $1.82 in 2024.
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Net Leverage Ratio: Decreased by 2 full turns to 5.3 times by the end of 2024.
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Adjusted Operational EBITDA Margin: Expanded by nearly 500 basis points to 35.5% in 2024.
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Adjusted ROIC: Improved by 320 basis points to just under 11% in 2024.
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Operating Cash Flow: Exceeded $2 billion in 2024.
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2025 Net Yield Growth Projection: Expected to be approximately 3%.
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2025 Adjusted EBITDA Projection: Expected to be $2.72 billion.
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2025 Adjusted EPS Projection: Expected to be $2.05.
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2025 Adjusted Net Cruise Cost Ex Fuel Growth: Targeted at 1.25%.
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2025 Pricing Increase Projection: Projected at 4.5% for the full year.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) reported record financial performance in 2024, with significant top-line revenue and net yield growth.
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The company successfully rolled out Starlink Wi-Fi across its fleet, enhancing onboard internet speed and reliability.
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NCLH announced a historic fleet expansion program with 13 ships on order, including the debut of Norwegian Aqua and Oceania's Allura in 2025.
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The company achieved a record adjusted EBITDA margin expansion of nearly 500 basis points to 35.5%.
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NCLH's sustainability efforts were recognized with the ESG Leader Gold Award and an A rating from MSCI, highlighting its commitment to environmental and social impact.
Negative Points
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The company faces headwinds from a strong US dollar, which impacts foreign exchange rates and future earnings.
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NCLH's luxury brands are experiencing slower performance compared to its largest brand, indicating potential challenges in the luxury segment.
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The company anticipates a temporary moderation in growth in the first quarter of 2025 due to dry dock impacts and repositioning sailings.
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There is uncertainty regarding potential changes in US tax legislation that could affect the cruise industry.
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Occupancy rates are expected to be slightly lower in 2025 compared to 2024, partly due to repositioning cruises and changes in itinerary mix.
Q & A Highlights
Q: Can you provide more details on the booking trends across different brands and geographies? A: Harry Sommer, President and CEO, stated that they are pleased with the booking pace, particularly in Europe and Alaska, which have outperformed for the summer period. The luxury brands are slightly slower than expected, while the Norwegian Cruise Line brand is performing better. Overall, bookings are steady and where they need to be.