Norwegian Cruise Line Raises 2026 Profit Guidance

Norwegian Cruise Line Holdings raised its 2026 guidance after a third quarter that came in above its own forecast. Adjusted EBITDA for the year is now expected at about $2.55 billion, with adjusted EPS of about $1.70.

Third-quarter revenue was $2.9 billion. GAAP net income was $491 million, up from $419 million a year earlier, or $1.07 per share. Adjusted EBITDA was $937 million, adjusted net income $514 million and adjusted EPS $1.12. The company credited stronger-than-expected close-in demand and onboard spending, along with lower-than-expected unit costs.

Net Yield fell 6.5% as reported and 6.7% in constant currency, about 220 basis points better than the company's guidance of an 8.9% decline. Adjusted EBITDA beat the company's own guidance of $874 million by $63 million, and adjusted EPS beat guidance of $0.90 by $0.22. Gross Cruise Cost per Capacity Day was about $301, against $302 a year earlier.

Turnaround and fleet changes

"We are seeing the early signs of progress and expect Net Yield growth of 1% to 2% in 2027, with a meaningful acceleration in the back half of the year," said Chairperson and CEO John W. Chidsey. He said the next phase of the turnaround focuses on brand positioning, marketing effectiveness and more disciplined revenue management.

The company announced further run-rate savings of about $100 million from guest and crew air optimization and changes in promotional offerings, phasing in through 2028. The Great Tides Waterpark, spanning nearly six acres, opened in early September at its private island, Great Stirrup Cay.

Norwegian completed the sale of Oceania Sirena and chartered the vessel back to operate it through spring 2028. It also signed a memorandum of agreement to sell Oceania Insignia, with delivery to the buyer expected in September 2027.

Debt and outlook

On October 15 the company issued $950 million of 8.750% senior notes due 2031 and upsized its revolving loan facility. At the end of September total debt was $15.1 billion and net leverage was 5.5x. Pro forma liquidity was $2.1 billion.

For 2027, the company says first-half pricing is ahead of the same time last year while its booked position is below the prior-year level. In the second half, pricing is ahead and bookings are in line. For the full year 2026, Net Yield in constant currency is expected to be down about 4.4%.

For the fourth quarter, Norwegian expects Net Yield to decline about 6.5% and adjusted EBITDA of $414 million. The late-December delivery of Seven Seas Prestige and cancelled Seven Seas Voyager sailings through the Suez Canal weigh on mix. Its booked position for the next 12 months is modestly improved but remains below its optimal range.

Source: Norwegian Cruise Line Holdings