Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) posted record third-quarter results on Monday, but its shares fell 7% as revenue came in below market expectations despite strong profit growth.
The cruise operator reported revenue of $2.94 billion, up 5% year-over-year, but below analysts’ estimates of $3.03 billion. Adjusted earnings per share came in at $1.20, beating the consensus forecast of $1.16 and rising 17% from the same period last year. However, the earnings beat failed to offset investor disappointment over the revenue miss.
The company attributed part of the shortfall to “lower air program participation, which also reduced air-related costs, mainly due to changes in itinerary mix.”
“We delivered another record-breaking quarter, with strong performance across all brands. These results highlight the strength of our business, the broad appeal of our multi-brand portfolio, and the outstanding execution by our teams both shoreside and shipboard,” said Harry Sommer, President and Chief Executive Officer of Norwegian Cruise Line Holdings Ltd.
Third-quarter occupancy reached 106.4%, exceeding the company’s guidance of about 105.5%. Net yield rose 1.6% on a reported basis and 1.5% at constant currency, both consistent with forecasts.
Norwegian raised its full-year 2025 adjusted EPS guidance to $2.10 from $2.05, slightly above analyst expectations of $2.08, while maintaining its adjusted EBITDA outlook at approximately $2.72 billion.
For the fourth quarter, Norwegian anticipates adjusted EPS of around $0.27 and net yield growth of 3.8%–4.3% on a reported basis. The company cited robust demand for Caribbean itineraries and said forward bookings remain within its optimal range.
During the quarter, Norwegian also completed several capital market transactions, reducing its fully diluted share count by roughly 38.1 million shares, or 7.5%, while keeping net leverage stable at 5.4x.