Norwegian Cruise Line (NCLH) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered solid results with 4.9% revenue growth to $2.6 billion, net income of $223 million, and EPS of $0.48, all exceeding guidance.

• Leadership changes, new commercial capabilities, and a refreshed board were implemented to drive turnaround and operational discipline.

• Strategic initiatives and cost controls identified over $225 million in annualized savings in the past two quarters, supporting margin expansion.

• Focused on rebuilding demand, improving booking curves, optimizing pricing and yield, and enhancing guest experience with new attractions like Great Tides Water Park.

• Product satisfaction and guest loyalty improved, with higher guest satisfaction scores and a growing percentage of returning guests.

Financial highlights

• Q2 2026 Adjusted EBITDA was $666 million, exceeding guidance by $34 million; Adjusted Net Income was $222 million and Adjusted EPS $0.48.

• Net Yield declined 2.6% year-over-year, 100 bps above expectations; occupancy was 102.4%.

• Adjusted Net Cruise Cost ex. Fuel per Capacity Day was $163.82, down 0.5% on a constant currency basis.

• Adjusted EBITDA margin for Q2 2026 was 25.2%, with Adjusted Operational EBITDA margin at 33.9%.

• Liquidity at quarter-end was $1.5 billion, including $218 million in cash and $1.3 billion available under the revolving loan facility.

Outlook and guidance

• Full-year 2026 guidance: Adjusted EBITDA ~$2.5 billion, Adjusted Net Income ~$700 million, Adjusted EPS ~$1.50, Net Yield expected to decline ~5% year-over-year.

• Q3 2026 guidance: Occupancy 104%, Net Yield down 8.9%, Adjusted EBITDA $874 million, Adjusted Net Income $414 million, Adjusted EPS $0.90.

• Adjusted Net Cruise Cost ex. Fuel per Capacity Day for 2026 expected to decrease 0.25%.

• First half of 2027 expected to remain pressured, with improvement anticipated in the second half as new strategies take effect.

• Booking environment remains below optimal, with demand pressure at the Norwegian brand due to execution challenges and external events.