Norwegian Cruise Line Holdings Ltd. (NCLH) reported solid fourth-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands and the effective execution by both shoreside and shipboard teams. A continued focus on marg ...

Debt and Interest Rates - As of December 31, 2024, 94% of the company's debt was fixed and 6% was variable, compared to 95% fixed and 5% variable as of December 31, 2023[381] - A one percentage point increase in annual Term SOFR interest rates would increase the company's annual interest expense by approximately $7.8 million, excluding the effects of capitalization of interest[381] - The company is exposed to market risks from changes in interest rates, foreign currency exchange rates, and fuel prices, which it attempts to mitigate through derivatives[380] Foreign Currency Exposure - The company had foreign currency payments not hedged aggregating €16.0 billion (approximately $16.6 billion) as of December 31, 2024, up from €5.4 billion (approximately $6.0 billion) as of December 31, 2023[382] Fuel Expenses - Fuel expense as a percentage of total cruise operating expense was 12.3% for the year ended December 31, 2024, down from 13.1% for the year ended December 31, 2023[385] - The company hedged approximately 56% and 21% of its projected metric tons of fuel purchases for 2025 and 2026, respectively, as of December 31, 2024[385] - A 10% increase in the weighted-average fuel price would increase anticipated 2025 fuel expense by $65.1 million, partially offset by an increase in the fair value of fuel swap agreements of $34.7 million[386] Newbuild Agreements - The company has eight new effective newbuild agreements, excluding two ships on order for Oceania Cruises scheduled for delivery in 2030 and 2031[382] Financial Metrics - The company’s adjusted EBITDA and adjusted net income metrics are defined in the annual report, reflecting the adjustments made for various income and expense items[15] Financing Activities - The company issued $862.5 million aggregate principal amount of exchangeable senior notes due 2024 on May 8, 2020[15]

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 ...

EXHIBIT 99.1 Norwegian Cruise Line Holdings Reports Strong Fourth Quarter and Full Year 2024 Financial Results Strong demand drives 2024 revenue up ~11% to full year record Company beats full year guidance across key metrics and announces 2025 full year guidance MIAMI, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) (together with NCL Corporation Ltd. ("NCLC"), "Norwegian Cruise Line Holdings", "Norwegian", "NCLH" or the "Company") today reported financial results for the ...

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].