Norwegian Cruise Line Sails Past Q4 Expectations: EPS Soars, Margins Expand And Demand Stays Hot

Norwegian Cruise Line Holdings Ltd NCLH shares are trading higher in premarket on Thursday after the fourth-quarter earnings.

The company reported fourth-quarter revenue growth of 6% year-on-year to $2.109 billion, marginally beating the analyst consensus estimate of $2.105 billion.

Passenger ticket revenues rose 5.7% to $1.4 billion and Onboard revenue increased 7.2% to $700.6 million. Total cruise operating expenses declined 1% to $1.3 billion.

Adjusted EBITDA for the quarter was $468.15 million, a 30% jump. Adjusted EPS of 26 cents beat the consensus estimate of 11 cents.

Operating income jumped 72% to $214.7 million and the operating margin of 10.1% expanded 380 basis points.

Occupancy percentage for the quarter was 100.8%. The company held $190.76 million in cash and equivalents as of December 31, 2024.

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Operating cash flow for twelve months totaled $2.04 billion. As of December 31, 2024, the company had total debt of $13.1 billion and net debt of $12.9 billion.

“2024 was marked by strategic and transformative milestones for Norwegian Cruise Line Holdings. From launching our Charting the Course strategy, announcing an ambitious newbuild program and the construction of our Great Stirrup Cay pier, and successfully executing brand initiatives and new guest experiences across our entire portfolio, we have laid out a solid foundation for an exciting future,” said President and CEO Harry Sommer.

“Through disciplined cost management and by capitalizing on strong demand, we remain confident in achieving our 2026 Charting the Course targets.”

Outlook: Norwegian Cruise Line expects FY25 net yield on a constant currency basis to increase approximately 3.0% and occupancy of 103.4%.

Adjusted EBITDA is expected to be approximately $2.72 billion. The company anticipates FY25 adjusted EPS of $2.05 with an estimate of $2.08.

For the first quarter, Norwegian Cruise Line sees net yield of 0.5%. Adjusted EPS of ~$0.08 versus an estimate of $0.08. First-quarter occupancy is expected to be ~101.5%.

The company said it continues to experience strong consumer demand for its offerings across itineraries and brands throughout 2025 and into 2026.

Therefore, Norwegian Cruise Line remains at its optimal booked position on a 12-month forward basis. The company’s advance ticket sales balance, including the long-term portion, ended the fourth quarter of 2024 at $3.2 billion.

Price Action: NCLH shares are trading higher by 2.75% at $25.74 in premarket at last check Thursday.

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