Financial Data and Key Metrics Changes - The company reported record revenue and net yield growth, with net yield increasing by 10% in 2024, the highest in its history, surpassing initial guidance by 450 basis points [25][37]. - Adjusted EBITDA reached over $2.45 billion, and adjusted EPS was $1.82, reflecting a 161% increase year-over-year [40][61]. - The adjusted operational EBITDA margin improved by nearly 500 basis points to 35.5%, and net leverage ratio decreased to 5.3 times [28][58]. Business Line Data and Key Metrics Changes - The company achieved significant brand enhancements, particularly for Norwegian Cruise Line, which rolled out a repositioning campaign emphasizing "Experience More" [14][16]. - The fleet-wide rollout of Starlink Wi-Fi improved onboard internet services, enhancing guest experience [15]. - The company is set to introduce two new vessels, Norwegian Aqua and Oceania's Allura, in 2025, which are expected to enhance offerings and guest experiences [18][20]. Market Data and Key Metrics Changes - Strong demand was noted in Europe and Alaska, with bookings performing well for the summer period [67][68]. - The company anticipates a 4.5% pricing increase for 2025, driving net yield growth of 3% [32]. - The company is shifting its deployment strategy to increase Caribbean offerings, expecting to welcome over 1 million guests to its private island in 2026 [22][110]. Company Strategy and Development Direction - The "Charting the Course" strategy focuses on enhancing guest experiences and achieving long-term financial targets, including a historic fleet expansion program [10][11]. - The company aims to maintain disciplined cost management while enhancing guest satisfaction, with record scores reported across all brands [28][76]. - Sustainability initiatives are integral to the corporate strategy, with significant progress in reducing environmental impact and enhancing community engagement [29][30]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, with expectations for continued strong performance in 2025 despite potential headwinds from currency fluctuations and dry dock schedules [31][32]. - The company is optimistic about achieving its 2026 financial targets, supported by strong operational execution and market demand [61][63]. - Management highlighted the importance of guest experience as a driver of financial performance, emphasizing that satisfied guests lead to better financial outcomes [76]. Other Important Information - The company received recognition for its sustainability efforts, including the ESG Leader Gold Award and an A rating from MSCI [29]. - Significant investments are being made in the private island strategy, with plans to enhance guest experiences and financial returns [21][22]. - The company has successfully refinanced debt, improving its capital structure and credit ratings [56][58]. Q&A Session Summary Question: Can you provide more detail on bookings by brand and geography? - Management noted that bookings are steady, with strong performance in Europe and Alaska, while luxury brands are slightly lagging [67][68]. Question: How much of the 2024 results are due to pull forward versus actual overachievement? - Management indicated that cost savings came in quicker than expected, with continued opportunities for efficiency improvements in 2025 and 2026 [70][73]. Question: What is the outlook for occupancy rates in 2025 and beyond? - Management expects a mild tailwind for occupancy in 2026, with a shift towards more Caribbean deployments [123]. Question: How does the company view the impact of the strong U.S. dollar on demand? - Management believes strong demand in Europe is not significantly impacted by the dollar's strength, attributing it to product quality and marketing [108][111]. Question: What are the company's thoughts on potential ship retirements? - Management stated that while they monitor the fleet's age, there are no immediate plans for retirements as the oldest ships are well-maintained [100][102].

For the quarter ended December 2024, Norwegian Cruise Line (NCLH) reported revenue of $2.11 billion, up 6.2% over the same period last year. EPS came in at $0.26, compared to -$0.18 in the year-ago quarter.The reported revenue represents a surprise of +0.96% over the Zacks Consensus Estimate of $2.09 billion. With the consensus EPS estimate being $0.11, the EPS surprise was +136.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Norwegian Cruise Line (NCLH) Q4 2024 Earnings Call February 27, 2025 08:00 AM ET Company Participants Sarah Inmon - Head of Investor Relations & Corporate CommunicationsHarry Sommer - President and CEO, Norwegian Cruise LineMark Kempa - EVP & CFOLizzie Dove - Vice President Equity ResearchSteven Wieczynski - Managing DirectorRobin Farley - Managing Director Conference Call Participants Brandt Montour - AnalystDaniel Politzer - AnalystJames Hardiman - Director - Leisure and Travel AnalystVince Ciepiel - Seni ...

Norwegian Cruise Line (NCLH) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 136.36%. A quarter ago, it was expected that this cruise operator would post earnings of $0.95 per share when it actually produced earnings of $0.99, delivering a surprise of 4.21%.Over the last four quarters, th ...

Q4 and Full Year 2024 Earnings Conference Call - February 27, 2025 F O R W A R D L O O K I N G S T A T E M E N T S Some of the statements, estimates or projections contained in this presentation are "forward-looking statements" within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained, or incorporated by reference, in this ...

Executive Summary & Highlights [CEO Statement & Strategic Milestones](index=1&type=section&id=CEO%20Statement%20%26%20Strategic%20Milestones) Norwegian Cruise Line Holdings achieved strategic and transformative milestones in 2024, including launching the Charting the Course strategy, announcing a newbuild program, and constructing the Great Stirrup Cay pier - Launched 'Charting the Course' strategy and announced an ambitious newbuild program, including eight state-of-the-art vessels and a multi-ship pier at Great Stirrup Cay[3](index=3&type=chunk)[12](index=12&type=chunk) - Achieved record revenue, Net Yield growth, and Adjusted EBITDA, enabling balance sheet strengthening and a two-turn reduction in Net Leverage[3](index=3&type=chunk)[5](index=5&type=chunk) [Full Year 2024 Performance Summary](index=1&type=section&id=Full%20Year%202024%20Performance%20Summary) For the full year 2024, the Company reported record total revenue and Adjusted EBITDA, significantly improving GAAP net income and EPS Full Year 2024 Key Financial Metrics | Metric | 2024 Value | Change vs. 2023 | Source Chunk | | :-------------------------------- | :----------- | :---------------- | :----------- | | Total Revenue | $9.5 billion | +11% | 5, 6 | | GAAP Net Income | $910.3 million | +448% | 5, 6 | | EPS | $1.89 | +386% | 5, 6 | | Adjusted EBITDA | $2.45 billion | +32% | 5, 6 | | Adjusted EPS | $1.82 | - | 5, 6 | | Total Debt (as of Dec 31, 2024) | $13.1 billion | - | 5, 12 | | Net Leverage (as of Dec 31, 2024) | 5.3x | 2-turn reduction | 5, 12 | | Net Yield Growth (as reported & Constant Currency) | ~9.9% | - | 6 | | Adjusted ROIC | 10.9% | +320 bps | 12 | | Occupancy | 104.9% | - | 15 | - Performance was bolstered by a **$162 million tax valuation allowance release** and a **$53 million foreign exchange benefit**[6](index=6&type=chunk) [Fourth Quarter 2024 Performance Summary](index=2&type=section&id=Fourth%20Quarter%202024%20Performance%20Summary) The fourth quarter of 2024 saw record total revenue and Adjusted EBITDA, with significant increases in GAAP net income and EPS, despite a slight capacity decline Fourth Quarter 2024 Key Financial Metrics | Metric | 2024 Q4 Value | Change vs. 2023 Q4 | Source Chunk | | :-------------------------------- | :------------ | :------------------- | :----------- | | Total Revenue | $2.1 billion | +6% | 13 | | GAAP Net Income | $254.5 million | +$361.0 million | 13 | | EPS | $0.52 | +$0.77 | 13 | | Adjusted EBITDA | $468.2 million | +30% | 13 | | Adjusted EPS | $0.26 | - | 13 | | Capacity | 1% decline | - | 13 | | Net Yield Growth (as reported & Constant Currency) | ~9.0% | - | 13 | | Occupancy | 100.8% | - | 15 | - The quarter included a **$162 million tax valuation allowance release** and a **$70 million foreign exchange benefit**[13](index=13&type=chunk) [Recent Strategic Achievements](index=2&type=section&id=Recent%20Strategic%20Achievements) Norwegian Cruise Line Holdings made significant progress towards its 'Charting the Course 2026' targets, announced a transformative newbuild program, and secured credit rating upgrades from S&P and Moody's - On track to achieve 'Charting the Course 2026' targets announced at May 2024 Investor Day[12](index=12&type=chunk) - Announced a newbuild program of eight state-of-the-art vessels, adding approximately **25,000 berths**, and construction of a multi-ship pier at Great Stirrup Cay[12](index=12&type=chunk) - S&P upgraded unsecured notes to **B+ with a positive outlook**; Moody's upgraded corporate rating to **B1 with a positive outlook**[13](index=13&type=chunk) [Booking Environment Update](index=3&type=section&id=Booking%20Environment%20Update) The Company continues to experience robust consumer demand for its cruise offerings through 2025 and into 2026, maintaining an optimal booked position - Strong consumer demand across itineraries and brands for 2025 and 2026[15](index=15&type=chunk) - Maintained optimal booked position on a 12-month forward basis[15](index=15&type=chunk) Booking Metrics | Metric | Value | Source Chunk | | :-------------------------- | :------ | :----------- | | Q4 2024 Occupancy | 100.8% | 15 | | Full Year 2024 Occupancy | 104.9% | 15 | | Advance Ticket Sales (Q4 2024) | $3.2 billion | 15 | Financial Position & Liquidity [Debt and Leverage](index=3&type=section&id=Debt%20and%20Leverage) The Company significantly improved its financial position in 2024 by reducing Net Leverage by two full turns to 5.3x, demonstrating a commitment to optimizing its balance sheet Debt and Leverage Metrics (as of Dec 31, 2024) | Metric | Value | Change vs. Dec 31, 2023 | Source Chunk | | :---------------- | :------------ | :------------------------ | :----------- | | Total Debt | $13.1 billion | - | 16 | | Net Debt | $12.9 billion | - | 16 | | Net Leverage | 5.3x | 2-turn reduction | 16 | | Liquidity | $2.0 billion | - | 17 | - Net Leverage is expected to improve to approximately **5x or better** by the end of 2025[18](index=18&type=chunk)[21](index=21&type=chunk) [Credit Ratings and Refinancing Activities](index=2&type=section&id=Credit%20Ratings%20and%20Refinancing%20Activities) Recent credit rating upgrades from S&P and Moody's reflect the Company's strengthened financial position - S&P upgraded unsecured notes to **B+ with a positive outlook**; Moody's upgraded corporate rating to **B1 with a positive outlook**[13](index=13&type=chunk)[18](index=18&type=chunk) - Successfully issued **$1.8 billion of 6.750% Senior Unsecured Notes due 2032**, using proceeds to redeem **$1.2 billion of 5.875% Senior Notes due 2026** and **$600 million of 8.375% Senior Secured Notes due 2028**[13](index=13&type=chunk)[18](index=18&type=chunk) - Upsized revolving credit facility from **$1.2 billion to $1.7 billion**, extending tenor to 5 years with improved pricing[13](index=13&type=chunk)[18](index=18&type=chunk) Outlook and Guidance [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) For the full year 2025, Norwegian Cruise Line Holdings anticipates continued growth in Net Yield and Adjusted EBITDA, with an expected increase in Adjusted Operational EBITDA Margin Full Year 2025 Guidance | Metric | Guidance | Change vs. 2024 | Source Chunk | | :------------------------------------------ | :------------- | :---------------- | :----------- | | Net Yield (Constant Currency) | ~3.0% increase | - | 13, 22 | | Adjusted EBITDA | ~$2.72 billion | +11.0% | 13, 22 | | Adjusted Operational EBITDA Margin | ~37% | - | 13 | | Adjusted Net Cruise Cost excluding Fuel per Capacity Day (Constant Currency) | +1.25% | - | 13, 22 | | Adjusted Net Income | ~$1,065 million | - | 13, 22 | | Adjusted EPS | ~$2.05 | +13% | 13, 22 | | Capacity Days | ~24.55 million | - | 22 | | Occupancy | ~103.4% | - | 22 | | Diluted Weighted-Average Shares Outstanding | ~520 million | - | 22 | | Net Leverage (year-end) | ~5x or better | - | 21 | - Guidance includes approximately **$70 million of headwinds** from foreign exchange and fuel since the third quarter earnings report[13](index=13&type=chunk) [First Quarter 2025 Guidance](index=3&type=section&id=First%20Quarter%202025%20Guidance) For the first quarter of 2025, the Company expects a modest increase in Net Yield on a Constant Currency basis, building on strong prior-year growth First Quarter 2025 Guidance | Metric | Guidance | Source Chunk | | :------------------------------------------ | :------------- | :----------- | | Net Yield (Constant Currency) | ~0.5% increase | 21, 22 | | Adjusted Net Cruise Cost excluding Fuel per Capacity Day (Constant Currency) | +3.9% | 21, 22 | | Adjusted EBITDA | ~$435 million | 22 | | Adjusted Net Income | ~$37 million | 22 | | Adjusted EPS | ~$0.08 | 22 | | Capacity Days | ~5.71 million | 22 | | Occupancy | ~101.5% | 22 | | Diluted Weighted-Average Shares Outstanding | ~441 million | 22 | | Net Leverage | ~5.7x | 21 | - Adjusted Net Cruise Cost excluding Fuel per Capacity Day growth includes a **180 basis points impact** from increased Dry-dock days and related costs[21](index=21&type=chunk)[22](index=22&type=chunk) - Net Leverage is expected to slightly increase to **~5.7x** versus year-end 2024 due to the delivery of Norwegian Aqua in March[21](index=21&type=chunk) [Fuel Outlook](index=5&type=section&id=Fuel%20Outlook) The Company provides its fuel consumption and pricing expectations for 2025, with a significant portion of projected consumption hedged to mitigate price volatility Fuel Expectations and Hedging | Metric | Q1 2025 | Full Year 2025 | Source Chunk | | :------------------------------------------ | :-------- | :------------- | :----------- | | Fuel Consumption (metric tons) | 255,000 | 990,000 | 28 | | Fuel Price per Metric Ton (net of hedges) | $690 | $722 | 28 | | Effect on Adjusted EPS of 10% change in fuel prices | $0.01 | $0.06 | 28 | | % of 2025 Consumption Hedged | - | 56% | 29, 30 | | % of 2026 Consumption Hedged | - | 21% | 29, 30 | | Blended HFO and MGO Hedge Price / Metric Ton (2025) | - | $597 | 30 | | Blended HFO and MGO Hedge Price / Metric Ton (2026) | - | $526 | 30 | [Capital Expenditures Outlook](index=5&type=section&id=Capital%20Expenditures%20Outlook) The Company outlines its planned capital expenditures for newbuilds, growth initiatives, and other investments through 2027, with a significant portion of newbuild-and-growth expenditures offset by export credit financing Newbuild-and-Growth Capital Expenditures (Gross) | Period | Amount (billions) | Source Chunk | | :------------- | :---------------- | :----------- | | Q1 2025 | ~$1.295 | 31 | | Full Year 2025 | ~$2.5 | 31 | | Full Year 2026 | ~$2.4 | 31 | | Full Year 2027 | ~$2.5 | 31 | Newbuild-and-Growth Capital Expenditures (Net of Financing) | Period | Amount (millions) | Source Chunk | | :------------- | :---------------- | :----------- | | Q1 2025 | ~$445 | 33 | | Full Year 2025 | ~$1.0 billion | 33 | | Full Year 2026 | ~$1.0 billion | 33 | | Full Year 2027 | ~$0.7 billion | 33 | Other Capital Expenditures | Period | Amount (millions) | Source Chunk | | :------------- | :---------------- | :----------- | | Q1 2025 | ~$130 | 34 | | Full Year 2025 | ~$590 | 34 | Company & Brand Updates [Leadership Appointments](index=6&type=section&id=Leadership%20Appointments) Norwegian Cruise Line Holdings appointed Jason Montague as Chief Luxury Officer, overseeing Regent Seven Seas Cruises and Oceania Cruises and their fleet expansion - Jason Montague appointed Chief Luxury Officer for NCLH, leading Regent Seven Seas Cruises and Oceania Cruises and their multibillion-dollar fleet expansion[35](index=35&type=chunk) [Fleet and Brand Enhancements](index=6&type=section&id=Fleet%20and%20Brand%20Enhancements) The Company announced new brand ambassadors, completed Starlink installation across its fleet, and unveiled expanded guest experiences on Norwegian Bliss and Breakaway, enhancing its offerings and guest connectivity - Eric Stonestreet named Norwegian Cruise Line's new brand ambassador and godfather of the new vessel, Norwegian Aqua[39](index=39&type=chunk) - Starlink installation completed across the entire fleet of Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises[39](index=39&type=chunk) - Norwegian Bliss and Norwegian Breakaway to undergo significant updates, including a new cinema and dining experience (Silver Screen Bistro), an outdoor recreational concept (Horizon Park), extended dining venues, and expanded accommodations[39](index=39&type=chunk) Consolidated Financial Statements [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show a significant increase in total revenue and net income for both the fourth quarter and full year 2024 compared to 2023, driven by higher passenger ticket and onboard revenue, alongside improved operating income Consolidated Statements of Operations (Selected Data, in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :----------- | | Total Revenue | $2,109,366 | $1,986,456 | $9,479,651 | $8,549,924 | 58 | | Total Cruise Operating Expense | $1,307,579 | $1,321,813 | $5,688,696 | $5,468,587 | 58 | | Operating Income | $214,741 | $124,330 | $1,465,906 | $930,911 | 58 | | Net Income (Loss) | $254,536 | $(106,485) | $910,257 | $166,178 | 58 | | Diluted EPS | $0.52 | $(0.25) | $1.89 | $0.39 | 59 | [Consolidated Statements of Comprehensive Income](index=11&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The Consolidated Statements of Comprehensive Income reflect the net income (loss) adjusted for other comprehensive income (loss) items, such as changes in the Shipboard Retirement Plan and cash flow hedges, resulting in positive total comprehensive income for 2024 Consolidated Statements of Comprehensive Income (Selected Data, in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :----------- | | Net Income (Loss) | $254,536 | $(106,485) | $910,257 | $166,178 | 60 | | Total Other Comprehensive Income (Loss) | $12,637 | $(52,493) | $1,399 | $(31,359) | 60 | | Total Comprehensive Income (Loss) | $267,173 | $(158,978) | $911,656 | $134,819 | 60 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets show an increase in total assets and a significant improvement in total shareholders' equity from December 31, 2023, to December 31, 2024, while total liabilities decreased Consolidated Balance Sheets (Selected Data, in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | Source Chunk | | :-------------------------- | :----------- | :----------- | :----------- | | Total Assets | $19,969,811 | $19,492,990 | 62 | | Total Liabilities | $18,544,372 | $19,192,183 | 63 | | Total Shareholders' Equity | $1,425,439 | $300,807 | 63 | | Cash and Cash Equivalents | $190,765 | $402,415 | 62 | | Advance Ticket Sales | $3,105,964 | $3,060,666 | 63 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows indicate strong net cash provided by operating activities in 2024, which helped offset significant cash used in investing activities (primarily property and equipment additions) and financing activities (debt repayments) Consolidated Statements of Cash Flows (Selected Data, in thousands) | Metric | FY 2024 | FY 2023 | Source Chunk | | :------------------------------------ | :-------- | :-------- | :----------- | | Net Cash Provided by Operating Activities | $2,049,823 | $2,005,714 | 65 | | Net Cash Used in Investing Activities | $(1,229,388) | $(2,897,143) | 66 | | Net Cash Provided by (Used in) Financing Activities | $(1,032,085) | $346,857 | 66 | | Net Decrease in Cash and Cash Equivalents | $(211,650) | $(544,572) | 66 | | Cash and Cash Equivalents at End of Period | $190,765 | $402,415 | 66 | Non-GAAP Financial Measures & Reconciliations [Terminology](index=7&type=section&id=Terminology) This section provides definitions for key financial and operational terms used throughout the report, including various GAAP and non-GAAP measures, to ensure clarity and consistent understanding - Definitions are provided for terms such as Adjusted EBITDA, Adjusted EPS, Net Yield, Capacity Days, Occupancy Percentage, and Net Leverage[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Explanation of Non-GAAP Financial Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The Company utilizes various non-GAAP financial measures to analyze performance, manage the business, and assess operating efficiency, believing they provide a more comprehensive view of trends by excluding certain non-recurring or non-cash items and foreign currency fluctuations - Non-GAAP measures like Adjusted Gross Margin, Net Yield, Adjusted EBITDA, and Adjusted EPS are used to assess operating performance, control costs, and evaluate capital use[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Constant Currency calculations are used to eliminate the effects of foreign exchange fluctuations, providing a clearer view of business trends[49](index=49&type=chunk) - Adjusted Net Income (Loss) and Adjusted EPS exclude certain amounts to supplement GAAP measures, facilitating internal comparisons and future period analysis[51](index=51&type=chunk) [Non-GAAP Reconciling Information](index=13&type=section&id=Non-GAAP%20Reconciling%20Information) This section provides detailed reconciliations of various non-GAAP financial measures to their most comparable GAAP measures, along with selected statistical information, offering transparency into the adjustments made for performance analysis [Adjusted Gross Margin, Net Per Diem, and Net Yield](index=13&type=section&id=Adjusted%20Gross%20Margin%2C%20Net%20Per%20Diem%2C%20and%20Net%20Yield) Selected Statistical Information | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :------------------ | :------ | :------ | :------ | :------ | :----------- | | Passengers Carried | 665,788 | 648,893 | 2,926,794 | 2,716,546 | 68 | | Passenger Cruise Days | 5,881,777 | 5,856,413 | 24,593,331 | 23,311,672 | 68 | | Capacity Days | 5,834,290 | 5,903,305 | 23,445,397 | 22,652,588 | 68 | | Occupancy Percentage | 100.8% | 99.2% | 104.9% | 102.9% | 68 | Adjusted Gross Margin and Net Yield (in thousands, except per Capacity Day data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | :----------- | | Adjusted Gross Margin | $1,547,729 | $1,436,109 | $6,900,655 | $6,066,741 | 69 | | Net Yield | $265.28 | $243.27 | $294.33 | $267.82 | 69 | [Gross Cruise Cost, Net Cruise Cost, and Adjusted Net Cruise Cost Excluding Fuel](index=14&type=section&id=Gross%20Cruise%20Cost%2C%20Net%20Cruise%20Cost%2C%20and%20Adjusted%20Net%20Cruise%20Cost%20Excluding%20Fuel) Cruise Costs (in thousands, except per Capacity Day data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | :----------- | | Gross Cruise Cost | $1,668,145 | $1,650,071 | $7,123,503 | $6,810,445 | 71 | | Net Cruise Cost | $1,106,508 | $1,099,724 | $4,544,507 | $4,327,262 | 71 | | Net Cruise Cost Excluding Fuel | $946,090 | $912,894 | $3,846,457 | $3,610,429 | 72 | | Adjusted Net Cruise Cost Excluding Fuel | $919,160 | $889,630 | $3,751,801 | $3,489,177 | 72 | | Gross Cruise Cost per Capacity Day | $285.92 | $279.52 | $303.83 | $300.65 | 72 | | Adjusted Net Cruise Cost Excluding Fuel per Capacity Day | $157.54 | $150.70 | $160.02 | $154.03 | 72 | [Adjusted Net Income and Adjusted EPS](index=15&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20EPS) Adjusted Net Income and Adjusted EPS (in thousands, except per share data) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :----------- | | Net Income (Loss) | $254,536 | $(106,485) | $910,257 | $166,178 | 76 | | Adjusted Net Income (Loss) | $124,729 | $(77,120) | $937,525 | $297,979 | 76 | | Diluted EPS | $0.52 | $(0.25) | $1.89 | $0.39 | 76 | | Adjusted EPS | $0.26 | $(0.18) | $1.82 | $0.70 | 76 | - Adjustments include non-cash deferred compensation, share-based compensation, extinguishment/modification of debt, and reversal of U.S. deferred tax asset valuation allowance[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [EBITDA and Adjusted EBITDA](index=16&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) EBITDA and Adjusted EBITDA (in thousands) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | Source Chunk | | :-------------- | :-------- | :-------- | :-------- | :-------- | :----------- | | Net Income (Loss) | $254,536 | $(106,485) | $910,257 | $166,178 | 80 | | EBITDA | $509,558 | $301,119 | $2,410,372 | $1,699,275 | 82 | | Adjusted EBITDA | $468,151 | $359,649 | $2,450,804 | $1,860,731 | 82 | [Net Debt and Net Leverage](index=17&type=section&id=Net%20Debt%20and%20Net%20Leverage) Net Debt and Net Leverage (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | Source Chunk | | :------------------------------------ | :----------- | :----------- | :----------- | | Total Debt | $13,100,490 | $14,058,925 | 83 | | Net Debt | $12,909,725 | $13,656,510 | 83 | | Adjusted EBITDA for the twelve months ended | $2,450,804 | $1,860,731 | 83 | | Net Leverage | 5.27x | 7.34x | 83 | [Adjusted ROIC and Capital Expenditures](index=17&type=section&id=Adjusted%20ROIC%20and%20Capital%20Expenditures) Adjusted Return on Invested Capital (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | Source Chunk | | :-------------------------- | :----------- | :----------- | :----------- | | Adjusted EBITDA | $2,450,804 | $1,860,731 | 85 | | Less: Depreciation and Amortization | $890,242 | $808,568 | 85 | | Total | $1,560,562 | $1,052,163 | 85 | | Plus: Total long-term debt plus shareholders equity | $14,333,899 | $13,705,994 | 85 | | Adjusted Return on Invested Capital | 10.9% | 7.7% | 85 | Capital Expenditures (in millions) | Category | Q4 2024 | FY 2024 | Source Chunk | | :------------------------------------------ | :------ | :------ | :----------- | | Newbuild-Related Capital Expenditures, Pre-Financing | $79 | $619 | 87 | | Export Credit Financing for Newbuild-Related Capital Expenditures | $43 | $355 | 87 | | Newbuild-Related Capital Expenditures, Net of Financing | $36 | $264 | 87 | | Non-Newbuild Capital Expenditures | $149 | $583 | 87 | Additional Information [Cautionary Statement Concerning Forward-Looking Statements](index=9&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) This section advises readers that the report contains forward-looking statements subject to various risks, uncertainties, and factors that could cause actual results to differ materially from projections - Statements regarding future results, financial position, capital expenditures, liquidity, debt, fleet additions, macroeconomic conditions, and sustainability efforts are forward-looking[55](index=55&type=chunk) - Risks include adverse economic factors, indebtedness, availability of financing, fuel price volatility, regulatory changes, security of travel, and public health crises[55](index=55&type=chunk) - The Company disclaims any obligation to update or revise forward-looking statements, except as required by law[56](index=56&type=chunk) [Investor Relations & Media Contacts](index=10&type=section&id=Investor%20Relations%20%26%20Media%20Contacts) Contact information is provided for investor relations and media inquiries - Contact Sarah Inmon for Investor Relations at (786) 812-3233 or InvestorRelations@nclcorp.com[57](index=57&type=chunk)

Core Insights - Norwegian Cruise Line Holdings reported a record total revenue of $9.5 billion for 2024, marking an approximate 11% increase compared to 2023, driven by a 3% growth in capacity [5][6] - The company achieved a GAAP net income of $910.3 million, a significant increase of 448% from 2023, with earnings per share (EPS) rising 386% to $1.89 [5][6] - Adjusted EBITDA for 2024 grew by 32% to a record $2.45 billion, compared to $1.86 billion in 2023, with adjusted EPS reaching $1.82 [5][6] Financial Performance - The company generated a record fourth quarter total revenue of $2.1 billion, a ~6% increase compared to Q4 2023, despite a 1% decline in capacity [13] - GAAP net income for Q4 2024 was $254.5 million, a $361 million increase from Q4 2023, with EPS increasing to $0.52 [13] - Full year 2024 Adjusted EBITDA was $2.45 billion, with a gross margin per Capacity Day up 23% compared to 2023 [6][13] Debt and Leverage - Total debt at the end of 2024 was $13.1 billion, with net leverage improving to 5.3x, a two-turn reduction from the previous year [5][16] - The company successfully refinanced $1.8 billion of debt and upsized its revolving credit facility from $1.2 billion to $1.7 billion [13][18] 2025 Guidance - For 2025, the company expects Adjusted EBITDA to be approximately $2.72 billion, an 11% increase from 2024, with adjusted net income projected at $1.07 billion [5][11] - Full year 2025 Adjusted EPS is expected to be around $2.05, reflecting a 13% year-over-year increase [11][21] - The company anticipates a 3% increase in net yield on a constant currency basis for 2025 [11][21] Strategic Initiatives - Norwegian Cruise Line Holdings launched a transformative newbuild program, planning to add eight new vessels, which will provide approximately 25,000 additional berths [6][11] - The company is committed to its "Charting the Course" strategy, aiming to achieve specific financial targets by 2026 [3][11] Booking Environment - The company continues to experience strong consumer demand, with a full year 2024 occupancy rate of approximately 104.9% and a fourth quarter occupancy of 100.8% [15] - Advance ticket sales balance at the end of Q4 2024 was $3.2 billion, indicating robust future bookings [15]

Core Viewpoint - Norwegian Cruise Line Holdings Ltd. (NCLH) is set to report its fourth-quarter 2024 results on February 27, with expectations of strong earnings growth driven by consumer demand and onboard spending increases [1][5]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter adjusted earnings is 11 cents per share, reflecting a year-over-year increase of 161.1% [2]. - Revenue estimates are pegged at $2.09 billion, indicating a 5.2% year-over-year growth [2]. Earnings Prediction Model - The model indicates a negative Earnings ESP of -1.28%, suggesting uncertainty regarding an earnings beat this quarter [3]. - NCLH currently holds a Zacks Rank of 3 (Hold) [4]. Factors Influencing Q4 Results - Strong consumer demand and a solid booking environment are expected to positively impact NCLH's fourth-quarter performance [5]. - Increased onboard spending, particularly from shore excursions and enhanced communication services via Starlink, are anticipated to contribute to revenue growth [5][6]. Revenue Breakdown - Passenger ticket revenues are projected to rise by 1.9% to $1,359 million, while onboard and other revenues are expected to increase by 6.6% to $696.4 million year-over-year [7]. - The number of passengers carried is predicted to grow by 13.4% compared to the previous year [7]. Profitability Outlook - The bottom line is expected to improve due to ongoing cost reduction efforts and margin enhancement initiatives, with adjusted EBITA projected to grow by 27% to $456.7 million [8]. Challenges and Headwinds - NCLH faces challenges such as rising expenses related to commissions and onboard services, inflation, global supply chain disruptions, and geopolitical risks that may impact profitability [9]. Stock Performance and Valuation - NCLH shares have increased by 28.8% over the past year, outperforming the Zacks Leisure and Recreation Services industry and the S&P 500, but lagging behind major competitors like Carnival Corporation and Royal Caribbean [10]. - The company is trading at a forward 12-month price-to-earnings ratio of 12.87X, which is below the industry average, indicating a relatively attractive valuation [14]. Long-term Outlook - NCLH's strong demand, increased onboard spending, and revenue growth from fleet expansion and digital investments support a positive long-term outlook [16]. - However, persistent challenges such as higher expenses and competitive pressures suggest limited near-term upside for the stock [16].

Core Viewpoint - Norwegian Cruise Line Holdings Ltd. (NCLH) is currently undervalued with a forward 12-month price-to-earnings (P/E) multiple of 11.23X, significantly lower than the industry average of 19.08X and competitors like Royal Caribbean Cruises Ltd. (RCL) at 15.32X, Carnival Corporation & plc (CCL) at 12.58X, and OneSpaWorld Holdings Limited (OSW) at 18.86X [1][2] Demand and Financial Performance - The cruise industry is experiencing strong consumer demand, with NCLH reporting a 9% year-over-year growth in net yield for Q3 2024, driven by solid demand across regions, particularly in Alaska, Canada, and New England [4] - NCLH has seen a surge in onboard revenues, especially from shore excursions and enhanced communication services via Starlink high-speed Internet, with forward bookings for 2025 remaining strong and advanced ticket sales growing by 6% year-over-year [5] - The company has strategically extended its booking window, allowing better pricing management and demand optimization, which supports top-line growth and provides visibility into future earnings [6] Strategic Growth Initiatives - NCLH's long-term growth strategy, "Charting the Course," focuses on enhancing guest experiences and driving financial returns through four key pillars: people, product, growth platform, and performance [7] - Upcoming fleet expansions, including ships like Norwegian Aqua and Norwegian Luna, are expected to attract a broader customer base with unique features [8] - Strategic partnerships, such as becoming the official cruise line of the National Hockey League, are enhancing brand visibility and driving bookings [9] Cost Management and Margins - NCLH is on track to achieve $100 million in cost savings by 2024 and a total of $300 million by 2026, which is improving margins [11] - The adjusted operational EBITDA margin rose by approximately 900 basis points to 34.5% over the 12 months ending in Q3 2024, with expectations to close 2024 at 35.3% and target a 39% margin by 2026 [12] Challenges and Market Sentiment - NCLH faces rising operational costs, with total cruise operating expenses increasing to $1.54 billion in Q3 2024, up from $1.48 billion the previous year, due to higher commissions, transportation, and onboard services [13] - Geopolitical risks have led to itinerary adjustments affecting about 10% of Q4 deployment, which could impact demand and revenue [14] - The Zacks Consensus Estimate for NCLH's 2025 EPS has been revised downward by 1% over the past 60 days, indicating market caution [15]

Core Insights - Oceania Cruises has expanded its Culinary Discovery Tours with 12 new gourmet excursions for 2025, bringing the total to 46 tours available on its larger ships [1][2] Group 1: Culinary Discovery Tours - The new tours are located in diverse regions including Europe, Asia, and North America, featuring destinations such as Amsterdam, Belfast, Kobe, and Halifax [1][2] - Each tour is limited to 18 guests and led by expert Chef Instructors, providing access to local markets, acclaimed restaurants, and hands-on cooking classes [3] - The tours aim to offer an immersive experience that connects travelers with local culture through food [4][6] Group 2: Specific Tour Highlights - In Kobe, guests will learn about traditional Japanese knife-making and enjoy a teppanyaki meal [7] - The Busan tour includes visits to local markets, such as Jagalchi Fish Market, to gather ingredients for traditional Korean dishes [8][9] - The Belfast tour features local chef Paul Cunningham and includes sampling seafood and learning about local ingredients [10] - In Halifax, guests will explore the "chowder trail" and artisanal cider trends, tasting various hard ciders and local dishes [11] - The Invergordon tour focuses on traditional Scottish chowder preparation, including shopping for ingredients and a hands-on cooking class [12] - The Valletta tour introduces guests to Maltese cuisine through artisanal food sampling in a unique grotto setting [13] Group 3: Company Overview - Oceania Cruises is recognized as the world's leading culinary- and destination-focused cruise line, operating eight luxurious ships with a maximum capacity of 1,250 guests [18] - The company offers destination-rich itineraries that span over 600 ports in more than 100 countries [18] - Oceania Cruises is a wholly owned subsidiary of Norwegian Cruise Line Holdings Ltd. [18]