Core Viewpoint - NCL Corporation Ltd. is proposing to raise a total of $3.25 billion through the issuance of senior notes and exchangeable senior notes to fund debt redemption and other financial obligations [1][3]. Group 1: Unsecured Notes Offering - NCL Corporation Ltd. plans to sell $1,025 million of senior notes due 2031 and $1,025 million of senior notes due 2033 in a private offering [1]. - The net proceeds from the Unsecured Notes Offering will be used to fund a concurrent tender offer for its 5.875% senior notes due 2026 and 2027, redeem the remaining 2026 and 2027 Notes, and redeem all of its 8.125% senior secured notes due 2029 [2]. Group 2: Exchangeable Notes Offering - NCL Corporation Ltd. is also proposing to sell $1,200 million of exchangeable senior notes due 2030 in a separate private offering [3]. - The initial purchasers of the Exchangeable Notes will have an option to purchase an additional $120 million during a specified period [4]. - The net proceeds from the Exchangeable Notes Offering will be used to repurchase a portion of its 1.125% and 2.50% Exchangeable Senior Notes due 2027 [5]. Group 3: Regulatory and Offering Details - Both the Unsecured Notes and Exchangeable Notes are being offered only to qualified institutional buyers and are exempt from the registration requirements of the Securities Act [6]. - The offerings are not conditioned on the consummation of each other, allowing for flexibility in execution [2][5]. Group 4: Company Overview - Norwegian Cruise Line Holdings Ltd. operates multiple cruise brands and has a fleet of 34 ships, with plans to add 13 more ships by 2036, increasing its capacity significantly [8].

Group 1 - Manika is a macroeconomist with over 20 years of experience in investment management, stock broking, and investment banking [1] - Manika runs the profile Long Term Tips (LTT), focusing on generational opportunities in the green economy [1] - The investing group Green Growth Giants delves deeper into opportunities presented by the green economy segment [1]

Core Viewpoint - The airline and cruise stocks experienced significant gains on Friday, indicating a positive market sentiment towards these sectors [1] Group 1: Airline Stocks - American Airlines (AAL.US) rose over 6% [1] - United Airlines (UAL.US) increased by more than 5.8% [1] - JetBlue Airways (JBLU.US) saw a nearly 7% rise [1] Group 2: Cruise Stocks - Carnival Corporation (CCL.US) gained more than 5.6% [1] - Norwegian Cruise Line Holdings (NCLH.US) increased by over 6.4% [1] - Royal Caribbean Cruises (RCL.US) rose by more than 4.7% [1]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends and earnings outlook [5] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to aid in portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making the selection process potentially overwhelming for investors [9] Investment Strategy Recommendations - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [10] - The direction of earnings estimate revisions is crucial when selecting stocks to invest in [11] Company Spotlight: Norwegian Cruise Line - Norwegian Cruise Line Holdings Ltd. is a leading cruise line operator with a Zacks Rank of 3 (Hold) and a VGM Score of A [12] - The company is projected to experience year-over-year earnings growth of 12.1% for the current fiscal year, with a Growth Style Score of B [13] - Recent upward revisions in earnings estimates and a strong average earnings surprise of +29.1% make NCLH a noteworthy consideration for growth investors [13]

Core Insights - Oceania Cruises is launching a new 129-day Around the World cruise in 2027, starting from Sydney and visiting various global destinations, including Asia, the Middle East, and Europe [1][2][3][4]. Itinerary Highlights - The cruise will begin along Australia's coast, then explore Asia for over two months, including Indonesia, Japan, and India, before moving to Dubai, Egypt, and concluding in London [2][3]. Onboard Experience - Oceania Vista, the ship for this cruise, will offer luxury accommodations with the largest standard staterooms at sea, exceptional dining options, and a high crew-to-guest ratio for personalized service [5]. - The ship features 11 dining venues, a spa, and numerous enrichment activities, including culinary classes and art sessions [5]. Pricing and Packages - The cruise starts at $54,999 per person and includes the Exclusive Prestige Package, which offers complimentary amenities such as unlimited beverages, shore excursion credits, and exclusive events [4]. Additional Itineraries - Oceania Cruises is also offering three other itineraries as part of the 2027 Around the World voyage, including a 180-day world journey and a 244-day Epic Global Adventure, marking the longest cruise option ever offered [6]. Company Overview - Oceania Cruises is recognized as a leading luxury cruise line focused on culinary experiences and destination-rich itineraries, operating small ships that visit over 600 ports globally [8].

```markdown PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Q2 2025 financials show revenue growth to $2.5 billion, but net income sharply declined due to non-operating expenses, despite asset expansion [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased to $2.52 billion, but net income significantly decreased to $30.0 million due to higher non-operating expenses, leading to lower EPS Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $2,517,497 | $2,372,492 | $4,645,050 | $4,563,707 | | **Operating Income** | $423,836 | $341,561 | $624,778 | $559,955 | | **Net Income (Loss)** | $29,992 | $163,436 | $(10,303) | $180,789 | | **Diluted EPS** | $0.07 | $0.35 | $(0.02) | $0.41 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets grew to $21.6 billion and liabilities to $20.0 billion, primarily due to increased property and long-term debt Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $184,015 | $190,765 | | **Total assets** | $21,595,817 | $19,969,811 | | **Advance ticket sales** | $3,833,775 | $3,105,964 | | **Long-term debt** | $12,633,183 | $11,776,721 | | **Total liabilities** | $20,026,247 | $18,544,372 | | **Total shareholders' equity** | $1,569,570 | $1,425,439 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow was $1.39 billion, slightly down, while investing cash outflow surged to $1.87 billion, and financing cash flow turned positive Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,394,072 | $1,478,064 | | **Net cash used in investing activities** | $(1,868,062) | $(620,872) | | **Net cash provided by (used in) financing activities** | $467,240 | $(665,509) | | **Net (decrease) increase in cash** | $(6,750) | $191,683 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail operations, $2.4 billion liquidity, and H1 2025 financing activities, including €18.4 billion in future ship commitments - As of June 30, 2025, the company operated **33 ships** and had orders for **13 additional ships** for delivery through 2036[25](index=25&type=chunk)[26](index=26&type=chunk) - Total liquidity was approximately **$2.4 billion** as of June 30, 2025, comprising **$184.0 million** in cash, **$2.0 billion** available under the Revolving Loan Facility, and a **€200 million** newbuild payment commitment[27](index=27&type=chunk) - In H1 2025, the company undertook significant debt restructuring, including issuing **$1.8 billion** in **6.750%** senior unsecured notes due 2032, exchanging **$353.9 million** of 2025 Exchangeable Notes for new 2030 notes, and increasing its revolving credit facility to **$2.5 billion**[50](index=50&type=chunk)[55](index=55&type=chunk)[60](index=60&type=chunk) - The combined contract price for **13 ships** on order is approximately **€18.4 billion ($21.7 billion)**. Total minimum payments for ship construction contracts are scheduled at **$21.4 billion** through 2036[89](index=89&type=chunk)[163](index=163&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports strong bookings, Q2 2025 revenue up 6.1% to $2.5 billion, but net income sharply declined, while Adjusted EBITDA improved to $694.0 million - The company experienced strong bookings in the quarter, with its forward **12-month** booked position remaining within its optimal range[121](index=121&type=chunk) - Announced a second phase of expansion for its private island, Great Stirrup Cay, including a new waterpark expected to open in summer **2026**[122](index=122&type=chunk) Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $2.5 billion | $2.4 billion | +6.1% | | **Net Income** | $30.0 million | $163.4 million | -81.6% | | **Adjusted EBITDA** | $694.0 million | $587.7 million | +18.1% | | **Diluted EPS** | $0.07 | $0.35 | -80.0% | - As of June 30, 2025, liquidity was approximately **$2.4 billion**, and management believes it is sufficient to satisfy obligations for at least the next **12 months**[146](index=146&type=chunk)[151](index=151&type=chunk) [Results of Operations](index=34&type=section&id=MD%26A%20Results%20of%20Operations) Q2 2025 revenue rose to $2.5 billion due to increased capacity, but higher interest expense and foreign currency losses impacted profitability - Q2 2025 revenue increased primarily due to a rise in Capacity Days following the delivery of Norwegian Aqua in March **2025**[137](index=137&type=chunk) - Q2 2025 interest expense of **$236.8 million** included **$68.4 million** in losses from debt extinguishment and modification[139](index=139&type=chunk) - Other expense of **$156.4 million** in Q2 2025 was driven by net losses from foreign currency remeasurements of euro-denominated debt, a significant swing from a **$1.9 million** gain in Q2 2024[140](index=140&type=chunk) Key Operating Statistics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Capacity Days** | 6,052,273 | 5,736,385 | | **Occupancy Percentage** | 103.9% | 105.9% | | **Net Yield** | $304.34 | $296.31 | | **Adjusted Net Cruise Cost Excl. Fuel per Capacity Day** | $163.67 | $163.36 | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained $2.4 billion liquidity, actively managing its capital structure through new debt issuances and facility increases, with advance ticket sales at $4.0 billion - In January 2025, NCLC issued **$1.8 billion** in senior unsecured notes due 2032 and used proceeds to redeem notes due in 2026 and 2028. The Revolving Loan Facility was increased to **$1.7 billion** and extended to **2030**[147](index=147&type=chunk) - In April 2025, **$353.9 million** of 2025 Exchangeable Notes were exchanged for new 2030 Exchangeable Notes and a **$64.0 million** cash payment[148](index=148&type=chunk) - In June 2025, the Revolving Loan Facility was further upsized from **$1.7 billion** to approximately **$2.5 billion**[149](index=149&type=chunk) - As of June 30, 2025, advance ticket sales stood at **$4.0 billion**[156](index=156&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign currency, and fuel prices, with 94% fixed-rate debt and significant unhedged euro exposure - **Interest Rate Risk:** **94%** of debt is fixed-rate. A **one percentage point** increase in annual variable rates would raise annual interest expense by approximately **$8.6 million**[174](index=174&type=chunk) - **Foreign Currency Risk:** The company has unhedged exposure on **€15.6 billion** in ship construction contracts. A **10%** change in the EUR/USD exchange rate would change the U.S. dollar value of these payments by **$1.8 billion**[175](index=175&type=chunk)[177](index=177&type=chunk) - **Fuel Price Risk:** The company has hedged **65%** of remaining 2025, **48%** of 2026, and **22%** of 2027 projected fuel purchases. A **10%** increase in average fuel price would increase anticipated 2025 fuel expense by **$34.7 million**[179](index=179&type=chunk)[180](index=180&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of June 30, **2025**[181](index=181&type=chunk) - No changes occurred in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[182](index=182&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is cooperating with ongoing investigations and successfully appealed a $112.9 million judgment in the Helms-Burton Act lawsuit - The company is cooperating with ongoing investigations by the Florida Attorney General and other agencies related to marketing during the COVID-19 pandemic[90](index=90&type=chunk) - In the Helms-Burton Act case (Havana Docks Matter), the Eleventh Circuit Court of Appeals reversed a lower court's judgment against the company and dismissed the claim in October **2024**[91](index=91&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, though macroeconomic conditions may heighten previously disclosed risks - There have been no material changes in risk factors from those disclosed in the company's Annual Report on Form 10-K[188](index=188&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, **2025**[189](index=189&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including key agreements related to recent financing activities and amendments to incentive plans - Key exhibits filed include the indenture for the new **0.875%** Exchangeable Senior Notes due 2030 and the Second Amendment to the Seventh Amended and Restated Credit Agreement[191](index=191&type=chunk) ```

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) reported Q2 results on July 31, showing revenues and EPS slightly below expectations, yet indicating surprisingly good performance signals [1] Financial Performance - The company reported revenues that were marginally below expectations, suggesting potential areas for improvement in future quarters [1] - Despite the slight miss in revenue and EPS, the quarter revealed positive indicators of Norwegian's operational performance [1] Investment Perspective - The investment philosophy focuses on identifying mispriced securities by understanding the financial drivers of a company, often revealed through DCF model valuation [1] - This approach allows for a comprehensive assessment of a stock's prospects, considering various investment styles beyond traditional value, dividend, or growth investing [1]

Business Performance - Norwegian Cruise Line Holdings experienced a stock surge following earnings, indicating positive market reaction [1][2] - The company faced a challenging April due to tariff announcements and macro uncertainties [2][3] - Booking pace and consumer demand have been strong, with record months in May, June, and July [3] Market Trends and Consumer Behavior - There's a shift in consumer demand towards shorter and closer-to-home itineraries [6] - The Caribbean is gaining popularity as a destination compared to Europe [5] - Cruising is considered a good value, approximately 30% less expensive than a typical hotel stay [9] Growth and Investment - The cruise industry's growth is limited to 5% per year due to shipyard capacity [12] - Norwegian Cruise Line Holdings has 13 ships on order over the next 10-11 years, representing about 4% annual growth [11][12] - Investments are being made in destinations like Great Stirrup Cay, including water parks and adult-only beach clubs, to enhance the customer experience [5][6][7]

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) reported second-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][3][9] Financial Performance - Adjusted earnings per share (EPS) for Q2 were 51 cents, slightly below the consensus estimate of 52 cents, compared to 39 cents in the prior-year quarter [3] - Quarterly revenues reached $2.52 billion, missing the consensus mark of $2.55 billion, but reflecting a 6.1% year-over-year increase [3] - Passenger ticket revenues were $1.7 billion, up from $1.6 billion in the prior-year quarter, while onboard and other revenues increased to $808.5 million from $770.4 million [4] Expenses and Operating Results - Total cruise operating expenses rose 0.1% year-over-year to $1.45 billion, below the anticipated $1.51 billion [5] - Gross cruise costs per Capacity Day were $305.65, slightly higher than $305.38 reported in the prior-year period [5] - Net interest expenses were $236.8 million, an increase from $178.5 million in the year-ago quarter [6] Balance Sheet - As of June 30, 2025, cash and cash equivalents stood at $184 million, down from $190.8 million at the end of 2024, while long-term debt increased to $12.6 billion from $11.8 billion [7] Booking Trends - The company reported strong booking trends for third-quarter long-haul and extended European itineraries, with booking volumes surpassing historical levels [2][8] - Second-quarter 2025 occupancy was 103.9%, consistent with guidance, and advance ticket sales reached $4 billion compared to $3.9 billion in the prior-year quarter [8] Guidance - For Q3 2025, NCLH anticipates occupancy of approximately 105.5% and adjusted EPS of nearly $1.14, with expected adjusted EBITDA of about $1 billion [10] - For the full year 2025, the company expects occupancy of approximately 103%, with adjusted EPS projected at $2.05 and adjusted EBITDA expected to be nearly $2.72 billion [11]

Core Insights - Norwegian Cruise Line (NCLH) reported revenue of $2.52 billion for the quarter ended June 2025, reflecting a 6.1% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.51, up from $0.40 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $2.56 billion, resulting in a surprise of -1.55% [1] - EPS also missed the consensus estimate of $0.52, with a surprise of -1.92% [1] Performance Metrics - Passenger Cruise Days totaled 6,288.80 KDays, exceeding the average estimate of 6,253.23 KDays [4] - Capacity Days were reported at 6,052.27 KDays, slightly below the average estimate of 6,059.58 KDays [4] - Net Yield was $304.34, marginally above the average estimate of $304.22 [4] - Occupancy percentage reached 103.9%, surpassing the estimated 103.2% [4] - Fuel price per metric ton was $659.00, lower than the estimated $676.24 [4] - Net Cruise Cost per Capacity Day was $194.04, better than the average estimate of $197.17 [4] - Total Passengers carried amounted to 738,635, exceeding the average estimate of 729,271 [4] - Revenue from onboard and other sources was $808.51 million, below the average estimate of $838.93 million, but showed a year-over-year increase of 4.9% [4] - Revenue from passenger tickets was $1.71 billion, slightly below the average estimate of $1.72 billion, with a year-over-year increase of 6.7% [4] Stock Performance - Shares of Norwegian Cruise Line have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]