Norwegian Cruise Line Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter total revenue was $2.9 billion, compared to $2.9 billion in the prior year.
• GAAP net income was $491 million, an increase from $419 million in the prior year, with EPS of $1.07.
• Adjusted EBITDA was $937 million, exceeding guidance of $874 million.
• Adjusted Net Income was $514 million, and Adjusted EPS was $1.12, exceeding guidance of $0.90.
• Gross margin per Capacity Day decreased 16.7% on an as-reported basis and 17.1% on a Constant Currency basis versus 2025.
• Net Yield decreased 6.5% on an as-reported basis and 6.7% on a Constant Currency basis versus 2025.
• Gross Cruise Cost per Capacity Day was approximately $301, compared to $302 in the prior year.
• Adjusted Net Cruise Cost excluding Fuel per Capacity Day was approximately $152, down 2.2% on an as-reported basis and 2.3% on a Constant Currency basis versus 2025.
• Fuel expense for the quarter was $196 million, with fuel price per metric ton (net of hedges) increasing to $819 from $744 in 2025.
• As of September 30, 2026, total debt was $15.1 billion and Net Debt was $14.8 billion.
• Net Leverage ended the quarter at 5.5x.

Guidance and Future Outlook:

• Raised full year 2026 Adjusted EBITDA guidance to approximately $2.55 billion.
• Raised full year 2026 Adjusted EPS guidance to approximately $1.70.
• Full year 2026 Adjusted Net Income is expected to be approximately $789 million.
• Full year 2026 Net Yield on a Constant Currency basis is expected to be down approximately 4.4% versus 2025.
• Full year 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be down approximately 0.4% on a Constant Currency basis versus 2025.
• Full year 2026 Adjusted Operational EBITDA Margin is expected to be 33.7%.
• Q4 2026 Adjusted EBITDA is expected to be $414 million with an Adjusted Operational EBITDA margin of 25.0%.
• Q4 2026 Net Yield on a Constant Currency basis is expected to decline approximately 6.5%.
• Q4 2026 Adjusted Net Cruise Cost excluding Fuel per Capacity Day is expected to be up 1.7% on a Constant Currency basis versus 2025.
• Company expects Net Yield growth of 1% to 2% in 2027, with meaningful acceleration in the back half of the year.
• Q4 2026 outlook reflects a modestly improved underlying Net Yield offset by unfavorable mix impact due to the delayed delivery of Seven Seas Prestige and cancellation of select Seven Seas Voyager voyages.

Business Segments and Product Lines:

• Opened Great Tides Waterpark in early September at Great Stirrup Cay, spanning nearly six acres with attractions for all ages.
• Norwegian Cruise Line opened for sale Norwegian Bella, the final ship in the Prima Class, with inaugural voyages beginning May 2028.
• Oceania Cruises floated out Oceania Sonata, the first ship in the new Sonata Class, expected to debut in August 2027.
• Announced additional run-rate savings of approximately $100 million related to guest and crew air optimization and tactical changes in promotional offerings, phasing in through 2028.
• Completed the sale of Oceania Sirena and entered into a charter agreement to continue operating the vessel through spring 2028.
• Entered into a memorandum of agreement to sell Oceania Insignia with expected delivery to the buyer in September 2027.

Market and Competitive Landscape:

• Booked position for the next 12 months has improved modestly but remains below the optimal range.
• Pricing for the first half of 2027 is ahead of levels at the same time last year, while the booked position remains below the comparable prior-year position.
• Pricing for the second half of 2027 is ahead with the booked position in line with the same time last year.
• The expanded offering at Great Stirrup Cay, new marketing platform, and base-loading strategy are expected to support stronger demand and a healthier booking curve over time.

Risks and Challenges:

• Net Yield and Net Cruise Cost metrics are subject to foreign exchange fluctuations and macroeconomic conditions.
• Q4 2026 performance is impacted by the delayed delivery of Seven Seas Prestige and cancellation of select voyages on Seven Seas Voyager.
• Fuel prices remain a variable cost, with spot rates used for guidance projections.
• The company faces risks related to debt maturities, though no significant debt maturities are due until 2029.

Management Commentary and Tone:

• John W. Chidsey, Chairperson and CEO, stated results came in above guidance while strengthening commercial capabilities and improving operating efficiency.
• Management is focused on sharpening brand positioning, improving marketing effectiveness, and taking a disciplined approach to revenue management and base-loading strategy.
• Mark A. Kempa, Executive Vice President and CFO, emphasized that reducing Net Leverage remains a top priority and that ongoing cash generation provides a clear path to fund the turnaround strategy.
• Management expects stronger earnings and cash flow to drive further deleveraging over time.

Other Key Points:

• Completed the issuance of $950 million of senior notes due 2031 on October 15, 2026.
• Upsized the Revolving Loan Facility from approximately $2.5 billion to approximately $2.8 billion in October 2026.
• Pro forma liquidity as of September 30, 2026, considering the debt issuance and facility upsizing, would have been $2.1 billion, including $257 million in cash and $1.8 billion in availability.
• As of October 15, 2026, the company had hedged approximately 48% of its total projected fuel consumption for 2026 and 42% for 2027.
• The company has a combined fleet of 33 ships and approximately 72,000 Berths, excluding two ships under long-term charter.
• NCLH expects to add 16 additional ships across its three brands through 2037, adding approximately 43,000 Berths.
• Third quarter 2026 occupancy was 106.5%, compared to 106.4% in the prior year.
• Nine months ended September 30, 2026, saw 2,750,963 passengers carried compared to 2,211,002 in the prior year.