Norwegian Cruise Line Holdings Ltd. (NCLH) Surged on Earnings Beat And Guidance Raise

Norwegian Cruise Line Holdings Ltd. (NCLH) shares surged on February 27, 2025, following the company's announcement of strong fourth quarter and full year 2024 results, as well as an upward revision of its 2025 guidance. The company's stock price closed at $27.20 on February 26, 2025, and opened at $28.35 on February 27, 2025, reflecting investor confidence in the company's performance and future prospects.

NCLH reported record total revenue of $9.5 billion for the full year 2024, an 11% increase compared to 2023, driven by a 3% capacity growth and strong demand. GAAP net income for the full year 2024 was $910.3 million, up 448% compared to 2023, with EPS increasing 386% to $1.89. Adjusted EBITDA grew 32% to a record high of $2.45 billion, compared to $1.86 billion in 2023, with Adjusted EPS of $1.82.

The company's strong performance was driven by robust revenue growth and effective cost management. Gross margin per Capacity Day was up 23% versus 2023 on an as reported and Constant Currency basis, while Net Yield growth reached record levels, increasing over prior year by approximately 9.9% on an as reported and Constant Currency basis. The Company's sustained focus on margin enhancement drove significant improvements in operating costs, with Adjusted Net Cruise Cost excluding Fuel per Capacity Day up only 3.9% as reported and 3.8% on a Constant Currency basis compared to $154 in 2023.

NCLH's 2025 guidance also impressed investors. The company expects Adjusted EBITDA to be ~$2.72 billion, or an 11.0% increase versus 2024, and Adjusted Net Income to be ~$1.07 billion, including headwinds from foreign exchange and fuel. Adjusted EPS is expected to be ~$2.05, further establishing a clear path towards its Charting the Course 2026 targets.

The company's strategic initiatives, including fleet expansion and sustainability efforts, have positioned it well for future growth. NCLH announced a transformative newbuild program, consisting of a total of eight state-of-the-art vessels, representing approximately 25,000 additional berths, and the construction of a multi-ship pier at Great Stirrup Cay. These initiatives, coupled with the company's strong financial performance, have bolstered investor confidence in NCLH's long-term prospects.




In conclusion, Norwegian Cruise Line Holdings Ltd. (NCLH) shares surged on February 27, 2025, following the company's strong earnings report and upward revision of its 2025 guidance. The company's robust revenue growth, effective cost management, and strategic initiatives have positioned it well for future growth and solidified investor confidence in its long-term prospects.