Norwegian Cruise Line (NCLH) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 10% year-over-year to $2.33 billion, with occupancy at 103.8%–104.2% and Adjusted EBITDA up 17.6% to $533 million, exceeding or meeting guidance.

• Net income was $104.7 million, reversing a prior-year loss, with Adjusted Net Income of $108 million and Adjusted EPS of $0.23, surpassing guidance.

• Leadership is focused on operational rigor, cost discipline, and cultural transformation, with $125 million in annualized SG&A savings targeted and board refreshment underway.

• External headwinds, including geopolitical disruptions and macroeconomic softness, are compounding internal challenges, especially in Europe and North America.

• Luxury brands are performing to expectations, while the core Norwegian brand is undergoing a turnaround with new leadership and strategic focus.

Financial highlights

• Gross margin per Capacity Day increased 4% year-over-year; Net Yield declined 0.3% but outperformed guidance.

• Adjusted Net Cruise Cost Excluding Fuel per Capacity Day was $168.92, down from $169.33 in Q1 2025.

• Adjusted EBITDA for Q1 was $533 million, exceeding guidance; Adjusted Net Income was $108 million.

• Operating income increased to $232.9 million; interest expense, net, decreased to $166 million.

• Liquidity at quarter-end was $1.6 billion, including $185 million in cash and $1.4 billion available under the Revolving Loan Facility.

Outlook and guidance

• Full-year 2026 Net Yield expected to decline 3–5% year-over-year, reflecting macro and internal execution pressures.

• Adjusted EBITDA guidance reduced to $2.48–$2.64 billion; Adjusted EPS guidance lowered to $1.45–$1.79.

• Q2 Net Yield expected to decline 3.6%, with Q3 projected to be significantly weaker due to high European exposure.

• Adjusted Net Cruise Cost ex-fuel expected to be flat for the year, with cost savings offset by war-related expenses.

• Booking environment remains below optimal range due to geopolitical uncertainty and softer demand, especially in Europe.