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]

Financial Data and Key Metrics Changes - The company reported record Q2 revenue, with net yield growing by 3.1%, driven by strong closing demand and onboard spending [9][28] - Adjusted EBITDA reached $694 million, exceeding guidance by $24 million, with a trailing twelve-month margin of 36.3%, reflecting a year-over-year improvement of over 300 basis points [9][35] - Adjusted EPS for the quarter was $0.51, in line with guidance despite an $0.08 headwind from foreign exchange losses [9][30] Business Line Data and Key Metrics Changes - The successful delivery of Oceana Cruises' Allura, the eighth vessel for the brand, and the confirmation of two additional Sonata class ships, bringing the total order book to four ships [8][16] - The company is enhancing its private island experience with the announcement of the Great Tides Waterpark, set to open in 2026, which is expected to drive incremental onboard revenue [10][12] Market Data and Key Metrics Changes - The company experienced record bookings over the last three months, indicating strong customer demand [7][31] - The advanced ticket sales (ATS) balance reached an all-time high of $4 billion, reflecting robust demand [31] Company Strategy and Development Direction - The company is focused on its "Charting the Course" strategy, balancing return on investment with return on experience to deliver exceptional vacations while driving strong financial results [7][8] - The strategy includes a measured expansion with 13 ships on order across three brands, ensuring investment in the unique strengths of each brand [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with expectations for net yield growth in the low to mid-single-digit range [22][24] - The company anticipates a positive demand driver from the Great Tides Waterpark, with expected benefits starting in 2026 [22][24] Other Important Information - The company has made significant progress on cost savings, expecting to deliver over $200 million in savings by year-end 2025 [23][35] - The company was recognized by Forbes as one of America's best large employers for 2025, highlighting the dedication of its team [27] Q&A Session Summary Question: Can you discuss the increase in demand across all three brands and changes for 2026? - Management noted a shift to shorter itineraries in Europe and a modest decrease in deployment, which reflects consumer demand [47][48] - The company is in an optimal booking position for 2026, with strong demand observed in Q3 [49][50] Question: What are the key drivers for 2026 yield and cost expectations? - Management expects tailwinds from Q3 2025 and a focus on fun and sun itineraries to improve load factors over time [53][54] Question: How does the company view the potential ROI yield benefit from Great Stirrup Cay? - Management emphasized that while Caribbean itineraries may not yield higher ticket prices, they optimize profitability and guest satisfaction [60][62] Question: Can you elaborate on the recent bookings momentum and promotional strategies? - The improvement in bookings was attributed to a better macroeconomic environment and a shift towards brand-oriented marketing [97][98]

Financial Data and Key Metrics Changes - The company reported record Q2 revenue, with net yield growing by 3.1% due to strong closing demand and onboard spending, exceeding expectations [8][29] - Adjusted EBITDA for the quarter was $694 million, which was $24 million above guidance, resulting in a trailing twelve-month margin of 36.3%, an improvement of over 300 basis points year-over-year [8][29] - Adjusted EPS was in line with guidance at $0.51, despite an $0.08 headwind from foreign exchange losses [29] Business Line Data and Key Metrics Changes - The successful delivery of Oceana Cruises' Allura, the brand's eighth vessel, and the confirmation of two additional Sonata class ships for Oceana Cruises were highlighted as significant milestones [7][15] - The company is focusing on enhancing the guest experience at Great Stirrup Cay with the introduction of the Great Tides Waterpark, expected to open in 2026, which aims to attract approximately 1 million guests [10][12] Market Data and Key Metrics Changes - The company experienced record bookings over the last three months, indicating strong customer demand [6][28] - The advanced ticket sales (ATS) balance reached an all-time high of $4 billion, reflecting robust demand [31] Company Strategy and Development Direction - The company is committed to its "Charting the Course" strategy, balancing return on investment with return on experience to deliver exceptional vacations while driving strong financial results [6][7] - The focus remains on long-term value creation through disciplined execution and strategic investments in new ships and enhanced guest experiences [6][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong customer demand and a favorable macroeconomic environment [6][28] - The company anticipates net yield growth in the low to mid-single-digit range for 2026, supported by the opening of the Great Tides Waterpark [21][40] Other Important Information - The company has made significant progress in cost management, expecting to deliver over $200 million in savings by year-end 2025 [22][34] - The company was recognized by Forbes as one of America's best large employers for 2025, reflecting the dedication of its team [27] Q&A Session Summary Question: Demand increase across brands and changes for 2026 - Management noted a shift to slightly shorter itineraries in Europe for 2026 and a modest decrease in deployment, which they believe better reflects consumer demand [46][47] Question: Yield and cost considerations for 2026 - Management expects tailwinds from the Q3 dip in 2025 and anticipates a return to historical load factors as they pivot to more Caribbean itineraries [52][53] Question: Early indications of demand for Great Stirrup Cay - Management reported a material increase in website visits and leads following the announcement of the Great Tides Waterpark, indicating positive early signs [83] Question: Booking momentum and tactical tools used - Management attributed the rebound in bookings to an improved macroeconomic environment and a shift towards more brand-oriented marketing efforts [91] Question: Competitive positioning of Great Stirrup Cay - Management emphasized their goal to create the greatest island experience in the Caribbean, focusing on amenities that appeal to their demographic [95][96]

Financial Performance - Norwegian Cruise Line (NCLH) reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share, but showing an increase from $0.40 per share a year ago [1] - The company posted revenues of $2.52 billion for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 1.55%, and an increase from $2.37 billion year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Norwegian Cruise Line shares have declined approximately 9.1% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $3.02 billion, and for the current fiscal year, it is $2.02 on revenues of $10.07 billion [7] - The outlook for the Leisure and Recreation Services industry, where Norwegian Cruise Line operates, is currently in the bottom 29% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance Highlights - Q2 2025 Adjusted EBITDA reached $694 million, exceeding guidance of approximately $670 million[7] - Q2 2025 Adjusted EPS was $051, meeting guidance despite an $008 impact from foreign exchange[7] - Net Yield increased by 31% compared to 2024, surpassing guidance by 60 bps[7] - Adjusted Net Cruise Cost Excluding Fuel per Capacity Day was $163, flat compared to 2024 and better than the guidance of $165[7] - The company expects to deliver over $200 million in cumulative total savings by the end of 2025 and is confident in achieving a $300 million+ target through 2026[30] Growth and Capacity - The company anticipates a net capacity growth with a 4% CAGR[22] - The company has 7 new ships on order, representing approximately 31,250 berths[22] - Oceania Cruises has 4 new ships on order, representing approximately 5,560 berths[22] - Regent Seven Seas has 2 new ships on order, representing approximately 1,650 berths[22] Financial Targets and Leverage - The company targets an Adjusted Operational EBITDA Margin of approximately 39% and Adjusted EPS of approximately $245 for 2026[35] - The company aims to reduce Net Leverage to the mid-4x range[35] - Q2 2025 Net Leverage decreased to 53x and is expected to end 2025 at approximately 52x[7,68] Sustainability - The company aims for a 10% reduction in GHG intensity from the 2019 baseline[36] - By the end of 2024, 59% of the company's fleet was equipped with shore power technology[45] - 47% of the company's fleet was tested with biofuel blends, exceeding the 40% goal by 2024[52]

EXHIBIT 99.1 Norwegian Cruise Line Holdings Reports Second Quarter 2025 Financial Results Company delivers record second quarter revenue, meets or exceeds all guidance metrics Reiterates full year 2025 key guidance on strength in consumer demand MIAMI, July 31, 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 second quarter en ...

Core Insights - The company reported record total revenue of $2.5 billion for the second quarter of 2025, a 6% increase compared to the same period in 2024, and reaffirmed its full-year guidance for 2025 [6][7][9] - Strong consumer demand has led to bookings exceeding historical levels, with a notable increase in onboard spending [3][9] - The company is expanding its private island destination, Great Stirrup Cay, with the addition of a new waterpark and other amenities expected to enhance guest experience [3][6][34] Financial Performance - GAAP net income for the second quarter was $30 million, with earnings per share (EPS) of $0.07, reflecting a decline of $133.4 million year-over-year [6][7] - Adjusted EBITDA reached $694 million, an 18% increase from $588 million in 2024, exceeding guidance of $670 million [8][14] - Adjusted EPS was $0.51, in line with guidance, despite a negative impact of $0.08 from foreign exchange losses [8][14] Operational Metrics - Gross margin per Capacity Day increased by 11% on an as-reported basis and 12% on a Constant Currency basis [7] - Net Yield increased approximately 2.7% on an as-reported basis, surpassing the guidance of around 2.5% [7][14] - Occupancy for the second quarter was 103.9%, consistent with guidance, and the advance ticket sales balance reached a record high of $4 billion [9][10] Liquidity and Debt Management - The company successfully upsized its senior secured Revolving Loan Facility from $1.7 billion to approximately $2.5 billion, enhancing its liquidity position [6][12] - Total debt stood at $13.8 billion, with Net Leverage decreasing to 5.3x, down from 5.7x in the previous quarter [10][12] - Liquidity at quarter-end was $2.4 billion, including $184 million in cash and cash equivalents [11][12] Future Outlook - The company reiterated its full-year 2025 guidance, expecting a 2.5% increase in Net Yield and a 0.6% growth in Adjusted Net Cruise Cost excluding Fuel per Capacity Day [14][16] - Full-year Adjusted EBITDA is projected to be approximately $2.72 billion, reflecting an 11% increase compared to 2024 [14][16] - The company remains committed to achieving its 2026 financial targets, including reducing Net Leverage to the mid-4x range [12][14]