Norwegian Cruise Line(US:NCLH)2025-11-04 16:53Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,938,142, representing an increase from $2,806,578 in the same period of 2024[39]. - Adjusted operating income for the three months ended September 30, 2025, was $768,420, compared to $712,567 for the same period in 2024, reflecting a year-over-year increase of approximately 7.8%[33]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.93, down from $1.08 in the same period of 2024[31]. - Net income was $419.3 million with diluted EPS of $0.86, down from $474.9 million and $0.95, respectively[141]. - Adjusted Gross Margin rose by 8.1% to $2.2 billion compared to $2.0 billion[141]. - Adjusted EBITDA improved by 9.5% to $1.0 billion compared to $931.0 million[141]. - Total revenue for the nine months ended September 30, 2025, was $7.6 billion, compared to $7.4 billion in the same period of 2024[153]. - Adjusted Net Income for Q3 2025 was $595.8 million, compared to $527.3 million in Q3 2024, reflecting a 12.9% increase[149]. - Adjusted EPS rose to $1.20 in Q3 2025 from $1.02 in Q3 2024, marking a 17.6% increase[149]. Revenue Sources - Revenue from North America for the three months ended September 30, 2025, was $1,463,030, an increase from $1,315,224 in 2024, while revenue from Europe decreased to $1,349,391 from $1,439,473[39]. - Revenue attributable to U.S.-sourced guests has approximated 84-85% of total revenue over the preceding three fiscal years[41]. Liquidity and Debt Management - As of September 30, 2025, the company had liquidity of approximately $1.8 billion, including cash and cash equivalents of $166.8 million and $1.6 billion available under its Revolving Loan Facility[27]. - The company expects to remain in compliance with its financial covenants for at least the next twelve months from the issuance of these financial statements[27]. - The company plans to optimize liquidity and refinance future debt maturities to reduce interest expenses[28]. - Scheduled principal repayments on long-term debt total $14.93 billion, with significant repayments due in 2026 ($871.5 million) and 2027 ($1.03 billion)[74]. - The fair value of the company's long-term debt was $14.1 billion, compared to $12.8 billion as of December 31, 2024, reflecting a decrease of $0.8 billion and $0.6 billion from carrying values[91]. Ship Orders and Deliveries - The company has orders for 13 additional ships to be delivered from 2026 through 2036, including three Prima Class Ships scheduled for delivery from 2026 through 2028[25][26]. - The combined contract prices for the 13 ships on order were approximately €18.4 billion, or $21.6 billion, as of September 30, 2025[97]. - The company has obtained export credit financing expected to fund approximately 80% of the contract price for ships on order, subject to certain conditions[97]. Operating Expenses - Total cruise operating expense increased by 1.0% in Q3 2025, primarily due to new ship deliveries, while total other operating expense rose by 10.0%[150]. - Interest expense, net was $328.8 million in Q3 2025, significantly higher than $175.2 million in Q3 2024, largely due to debt extinguishment and modification costs of $154.5 million[151]. Other Financial Metrics - The company recognized a foreign currency gain of $6.8 million for the three months ended September 30, 2025, compared to a loss of $32.1 million in the same period of 2024[34]. - The total amounts of income and expense line items in the consolidated statements of operations affected by cash flow hedges for the three months ended September 30, 2025, were $175,913 thousand, compared to $250,832 thousand for the same period in 2024[90]. - The company had approximately $2.9 billion in advance ticket sales as of September 30, 2025[104]. - Other income (expense), net was income of $13.0 million for the three months ended September 30, 2025[105]. Environmental and Sustainability Initiatives - The company expects significant expenses related to greenhouse gas emissions reduction initiatives[135]. - The company plans to enhance newbuilds for environmental sustainability and profitability, potentially affecting delivery dates[173].