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Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines decreased on a year-over-year basis. Following the results, the company’s shares declined 8.5% in today’s pre-market trading session.
Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates.
NCLH’s Q1 Earnings & Revenues
Norwegian Cruise reported an adjusted earnings per share of 7 cents, missing the Zacks Consensus Estimate of 9 cents. In the prior-year quarter, the company reported an adjusted earnings per share of 16 cents.
Quarterly revenues of $2,127.6 million missed the consensus mark of $2,148 million. The metric also declined 3% year over year. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Passenger ticket revenues were $1.41 billion compared with $1.46 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.40 billion.
Onboard and other revenues decreased to $708.9 million from $731.4 million reported in the prior-year quarter. We expected onboard and other revenues to be $755.6 million.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
NCLH’s Expenses & Operating Results
Total cruise operating expenses decreased 6% year over year to $1.30 billion, due to lower commissions, transportation and other costs, as well as fuel and food costs. However, this was partially offset by higher onboard and other costs.
During the first quarter, gross cruise costs per Capacity Day were $297.39 compared with $298.11 reported in the prior year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $169.33 compared with $169.45 reported in the prior-year period.
Net interest expenses were $217.9 million, down from $218.2 million reported in the year-ago quarter.
NCLH’s Balance Sheet
As of March 31, 2025, the company had cash and cash equivalents of $184.4 million, down from $190.8 million at the end of 2024. Long-term debt was $12.9 billion compared with $11.8 billion as of 2024-end.
Booking Update of NCLH
Despite some softening in its 12-month forward booking trends, the company has maintained its position within the desired booking range, even as broader macroeconomic challenges persist. First-quarter 2025 occupancy was 101.5%, which was in line with the company’s guidance but slightly lower than the previous year, primarily due to more dry-dock activity and repositioning of larger ships. Meanwhile, advance ticket sales, including long-term bookings, rose 2.6% year over year, reaching $3.9 billion by the end of the quarter.