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Norwegian Cruise Q3 Earnings & Revenues Beat Estimates, Stock Up
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Key Takeaways
Norwegian Cruise's Q3 earnings beat estimates at $1.12 per share, while revenues rose 0.3% to $2.95 billion.
NCLH's onboard revenues grew 12.7%, while adjusted cruise costs excluding fuel per Capacity Day fell 2.2%.
NCLH raised its 2026 adjusted EPS outlook to $1.7 and EBITDA guidance to $2.55 billion.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top line increased while the bottom line fell from the prior-year quarter’s figure.
Following the results, the company’s shares gained approximately 8% in the pre-market trading session. The positive investor sentiment likely reflected growing confidence in Norwegian Cruise’s turnaround strategy, underscored by better-than-expected quarterly performance and continued improvements in operating efficiency. Moreover, management’s focus on strengthening brand positioning, enhancing marketing effectiveness and implementing disciplined revenue management strategies is expected to support its long-term growth prospects.
NCLH’s Q3 Earnings & Revenues
Norwegian Cruise reported adjusted earnings per share of $1.12, beating the Zacks Consensus Estimate of 93 cents. In the prior-year quarter, the company reported adjusted earnings of $1.2 per share.
Quarterly revenues of $2.95 billion surpassed the consensus mark of $2.88 billion. The metric increased 0.3% year over year.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Passenger ticket revenues were $1.95 billion, down 5.1% from $2.05 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $2.05 billion.
Onboard and other revenues increased 12.7% to $1 billion from $888.2 million reported in the year-ago quarter. We expected onboard and other revenues to be $834.6 million.
Capacity Days rose 5.4% year over year to 6.77 million, while Passenger Cruise Days increased 5.5% to 7.20 million.
NCLH’s Q3 Expenses & Operating Results
Total cruise operating expenses in the third quarter increased 7.3% year over year to $1.67 billion. Our model anticipated total cruise operating expenses to be $1.61 billion.
Payroll and related expenses rose 9.8% year over year to $390.3 million. Fuel expense increased 11.3% year over year to $195.7 million.
During the third quarter, gross cruise costs per Capacity Day were approximately $301 compared with $302 reported in the prior-year period. Adjusted net cruise costs excluding fuel per Capacity Day declined 2.2% year over year to $152.28.
Gross margin per Capacity Day declined 16.7% year over year to $149.67. Net Yield declined 6.5% on a reported basis and 6.7% on a constant-currency basis. The constant-currency decline was better than management's guidance for a decrease of 8.9%.
Adjusted EBITDA declined 8.1% year over year to $936.8 million but exceeded management's guidance of approximately $874 million. Operating income declined 16.7% year over year to $624.3 million.
Net interest expenses declined to $170.5 million from $328.8 million reported in the prior-year quarter.
NCLH’s Balance Sheet
As of Sept. 30, 2026, the company had cash and cash equivalents of $256.5 million, up 22.2% from $209.9 million at the end of 2025. Long-term debt, excluding the current portion, was $13.95 billion compared with $13.73 billion at 2025-end.
Net debt totaled $14.83 billion, while net leverage ended the quarter at 5.5 times.
Following quarter-end, the company issued $950 million of senior notes due 2031 and expanded its revolving loan facility. Pro forma liquidity as of Sept. 30, 2026, totaled approximately $2.1 billion, including $1.8 billion of availability under the revolving loan facility.
For the first nine months of 2026, net cash provided by operating activities increased 4.6% year over year to $1.71 billion. Additions to property and equipment totaled $2.29 billion compared with $2.82 billion in the prior-year period.
Booking Update
The company's booked position for the next 12 months improved modestly since the previous earnings release but remained below its optimal range.
Third-quarter occupancy came in at 106.5% compared with 106.4% in the prior-year quarter.
Advance ticket sales stood at $3.14 billion as of Sept. 30, 2026, compared with $3.2 billion at the end of 2025.
For the first half of 2027, pricing is ahead of year-ago levels, although the booked position remains below the comparable prior-year level. For the second half, pricing is ahead, while the booked position is in line with the year-ago period.
Norwegian Cruise expects the recently opened Great Tides Waterpark at Great Stirrup Cay, improved marketing initiatives and revenue management capabilities to support demand and strengthen booking trends.
NCLH’s Q4 & 2026 Guidance
For fourth-quarter 2026, NCLH anticipates occupancy of approximately 100% and Capacity Days of 6.43 million.
Constant-currency Net Yield is expected to decline 6.5% year over year. Adjusted net cruise costs excluding fuel per Capacity Day are projected to increase 1.7% on a constant-currency basis.
Adjusted EBITDA is expected to be $414 million. Adjusted net loss is projected at $55 million, while adjusted loss is forecast at 12 cents per share.
For 2026, the company expects occupancy of approximately 103.2%. Capacity Days are anticipated to be approximately 26.18 million.
Full-year constant-currency Net Yield is expected to decline approximately 4.4%, while adjusted net cruise costs excluding fuel per Capacity Day are projected to decline 0.4%.
Management raised its full-year adjusted EBITDA guidance to approximately $2.55 billion from the prior expectation of $2.5 billion. Adjusted net income is projected at nearly $789 million, while adjusted earnings are anticipated at approximately $1.7 per share, up from the previous outlook of $1.5.
Looking ahead to 2027, Norwegian Cruise expects Net Yield growth of 1-2%, with meaningful acceleration anticipated in the second half of the year.
NCLH’s Zacks Rank & Key Picks
Norwegian Cruise currently has a Zacks Rank #3 (Hold).
Cinemark presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Cinemark delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 67.9% in the year-to-date period. The Zacks Consensus Estimate for CNK’s 2026 sales and EPS implies growth of 17.7% and 155.8%, respectively, from the year-ago levels.
AMC Entertainment presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 91.7% in the year-to-date period.
The Zacks Consensus Estimate for AMC’s 2026 sales and EPS indicates an increase of 18.8% and 91.7%, respectively, from the year-ago levels.
Marriott currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings beat of 2.5%, on average. The stock has gained 27.1% in the year-to-date period.
The Zacks Consensus Estimate for MAR’s 2026 sales and EPS indicates growth of 6.6% and 17.2%, respectively, from the year-ago period’s levels.
View the Zacks #1 Rank List
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Norwegian Cruise Q3 Earnings & Revenues Beat Estimates, Stock Up
Key Takeaways
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top line increased while the bottom line fell from the prior-year quarter’s figure.
Following the results, the company’s shares gained approximately 8% in the pre-market trading session. The positive investor sentiment likely reflected growing confidence in Norwegian Cruise’s turnaround strategy, underscored by better-than-expected quarterly performance and continued improvements in operating efficiency. Moreover, management’s focus on strengthening brand positioning, enhancing marketing effectiveness and implementing disciplined revenue management strategies is expected to support its long-term growth prospects.
NCLH’s Q3 Earnings & Revenues
Norwegian Cruise reported adjusted earnings per share of $1.12, beating the Zacks Consensus Estimate of 93 cents. In the prior-year quarter, the company reported adjusted earnings of $1.2 per share.
Quarterly revenues of $2.95 billion surpassed the consensus mark of $2.88 billion. The metric increased 0.3% year over year.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Passenger ticket revenues were $1.95 billion, down 5.1% from $2.05 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $2.05 billion.
Onboard and other revenues increased 12.7% to $1 billion from $888.2 million reported in the year-ago quarter. We expected onboard and other revenues to be $834.6 million.
Capacity Days rose 5.4% year over year to 6.77 million, while Passenger Cruise Days increased 5.5% to 7.20 million.
NCLH’s Q3 Expenses & Operating Results
Total cruise operating expenses in the third quarter increased 7.3% year over year to $1.67 billion. Our model anticipated total cruise operating expenses to be $1.61 billion.
Payroll and related expenses rose 9.8% year over year to $390.3 million. Fuel expense increased 11.3% year over year to $195.7 million.
During the third quarter, gross cruise costs per Capacity Day were approximately $301 compared with $302 reported in the prior-year period. Adjusted net cruise costs excluding fuel per Capacity Day declined 2.2% year over year to $152.28.
Gross margin per Capacity Day declined 16.7% year over year to $149.67. Net Yield declined 6.5% on a reported basis and 6.7% on a constant-currency basis. The constant-currency decline was better than management's guidance for a decrease of 8.9%.
Adjusted EBITDA declined 8.1% year over year to $936.8 million but exceeded management's guidance of approximately $874 million. Operating income declined 16.7% year over year to $624.3 million.
Net interest expenses declined to $170.5 million from $328.8 million reported in the prior-year quarter.
NCLH’s Balance Sheet
As of Sept. 30, 2026, the company had cash and cash equivalents of $256.5 million, up 22.2% from $209.9 million at the end of 2025. Long-term debt, excluding the current portion, was $13.95 billion compared with $13.73 billion at 2025-end.
Net debt totaled $14.83 billion, while net leverage ended the quarter at 5.5 times.
Following quarter-end, the company issued $950 million of senior notes due 2031 and expanded its revolving loan facility. Pro forma liquidity as of Sept. 30, 2026, totaled approximately $2.1 billion, including $1.8 billion of availability under the revolving loan facility.
For the first nine months of 2026, net cash provided by operating activities increased 4.6% year over year to $1.71 billion. Additions to property and equipment totaled $2.29 billion compared with $2.82 billion in the prior-year period.
Booking Update
The company's booked position for the next 12 months improved modestly since the previous earnings release but remained below its optimal range.
Third-quarter occupancy came in at 106.5% compared with 106.4% in the prior-year quarter.
Advance ticket sales stood at $3.14 billion as of Sept. 30, 2026, compared with $3.2 billion at the end of 2025.
For the first half of 2027, pricing is ahead of year-ago levels, although the booked position remains below the comparable prior-year level. For the second half, pricing is ahead, while the booked position is in line with the year-ago period.
Norwegian Cruise expects the recently opened Great Tides Waterpark at Great Stirrup Cay, improved marketing initiatives and revenue management capabilities to support demand and strengthen booking trends.
NCLH’s Q4 & 2026 Guidance
For fourth-quarter 2026, NCLH anticipates occupancy of approximately 100% and Capacity Days of 6.43 million.
Constant-currency Net Yield is expected to decline 6.5% year over year. Adjusted net cruise costs excluding fuel per Capacity Day are projected to increase 1.7% on a constant-currency basis.
Adjusted EBITDA is expected to be $414 million. Adjusted net loss is projected at $55 million, while adjusted loss is forecast at 12 cents per share.
For 2026, the company expects occupancy of approximately 103.2%. Capacity Days are anticipated to be approximately 26.18 million.
Full-year constant-currency Net Yield is expected to decline approximately 4.4%, while adjusted net cruise costs excluding fuel per Capacity Day are projected to decline 0.4%.
Management raised its full-year adjusted EBITDA guidance to approximately $2.55 billion from the prior expectation of $2.5 billion. Adjusted net income is projected at nearly $789 million, while adjusted earnings are anticipated at approximately $1.7 per share, up from the previous outlook of $1.5.
Looking ahead to 2027, Norwegian Cruise expects Net Yield growth of 1-2%, with meaningful acceleration anticipated in the second half of the year.
NCLH’s Zacks Rank & Key Picks
Norwegian Cruise currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Cinemark Holdings, Inc. (CNK - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and Marriott International, Inc. (MAR - Free Report) .
Cinemark presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Cinemark delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 67.9% in the year-to-date period. The Zacks Consensus Estimate for CNK’s 2026 sales and EPS implies growth of 17.7% and 155.8%, respectively, from the year-ago levels.
AMC Entertainment presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 91.7% in the year-to-date period.
The Zacks Consensus Estimate for AMC’s 2026 sales and EPS indicates an increase of 18.8% and 91.7%, respectively, from the year-ago levels.
Marriott currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings beat of 2.5%, on average. The stock has gained 27.1% in the year-to-date period.
The Zacks Consensus Estimate for MAR’s 2026 sales and EPS indicates growth of 6.6% and 17.2%, respectively, from the year-ago period’s levels.