Norwegian Cruise Q2 2025 Earnings Revenue Up 6.1%, Net Income Drops 81.6%

Norwegian Cruise Line Holdings Ltd. (NCLH) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company delivered a record second-quarter revenue of $2.52 billion, marking a 6.1% increase compared to the same period in 2024. However, earnings per share (EPS) fell significantly to $0.07, missing expectations due to foreign exchange losses. The company maintained its full-year guidance, projecting an adjusted EPS of $2.05, reflecting a 16% increase year-over-year. Despite challenges, NCLH remains optimistic about its ongoing strategic initiatives.

Revenue
Norwegian Cruise Line saw an increase in total revenue for Q2 2025, reaching $2.52 billion, up from $2.37 billion in Q2 2024. Passenger ticket sales contributed $1.71 billion to this total, while onboard and other revenue generated an additional $808.51 million, driving the company’s positive performance for the quarter.

Earnings/Net Income
Norwegian Cruise's EPS declined 81.6% to $0.07 in 2025 Q2 from $0.38 in 2024 Q2. Meanwhile, the company's net income fell to $29.99 million in 2025 Q2, down 81.6% from $163.44 million reported in 2024 Q2. The significant drop in EPS indicates a challenging quarter for the company.

Price Action
The stock price of Norwegian Cruise has edged down 2.13% during the latest trading day, has jumped 8.77% during the most recent full trading week, and has surged 26.04% month-to-date.

Post-Earnings Price Action Review
Norwegian Cruise Line's strategy of purchasing shares when earnings exceed expectations and holding them for 30 days yielded moderate returns, yet it fell short of the benchmark. The approach resulted in a 44.72% return, while the benchmark achieved 85.57%. The Sharpe ratio stood at 0.13, signifying a reasonable risk-adjusted return. Despite avoiding losses with a maximum drawdown of 0%, the strategy did not capitalize on wider market gains, reflecting its underperformance compared to broader market trends.

CEO Commentary
Harry Sommer, President and CEO of Norwegian Cruise Line Holdings Ltd., expressed optimism regarding the company’s strong performance, highlighting record Q2 revenue of $2.52 billion driven by robust consumer demand and record bookings. Sommer noted the successful delivery of the Oceania Allura and the strategic expansion of Great Stirrup Cay, emphasizing that these initiatives enhance guest experiences and drive incremental revenue. He acknowledged challenges from occupancy expectations on longer European itineraries and foreign exchange impacts but maintained a positive outlook, citing ongoing strength in onboard spending and the disciplined focus on return on investment and experience.

Guidance
For Q3 2025, Norwegian Cruise Line expects net yield growth of approximately 1.9% and adjusted EBITDA of around $1.015 billion. Full-year 2025 guidance includes a reaffirmed adjusted EPS target of $2.05, reflecting a 16% increase year-over-year, with total revenue anticipated to reach approximately $10.30 billion. The company aims to maintain occupancy at approximately 103.0%, with adjusted net cruise cost excluding fuel expected to grow about 0.6% on a constant currency basis.

Additional News
Norwegian Cruise Line Holdings Ltd. (NCLH) has recently expanded its Revolving Loan Facility from $1.7 billion to $2.5 billion, enhancing its liquidity position. The company also celebrated the delivery of Oceania Allura, marking the addition of a new luxury vessel to its fleet. Furthermore, NCLH announced plans for a new water park at Great Stirrup Cay, which is expected to open in 2026 to enrich the guest experience at its private island destination in the Bahamas. These strategic developments underscore Norwegian’s commitment to growth and enhancing customer experiences.