Billionaire Activist Elliott Just Put Norwegian Cruise Line in Its Crosshairs

Core Insights - Elliott Investment Management has acquired a stake exceeding 10% in Norwegian Cruise Line Holdings (NCLH) and is demanding a board overhaul and operational reforms [1] - NCLH has underperformed significantly over the past five years, declining 9.68%, while competitors Royal Caribbean and Carnival have seen substantial gains of 335.85% and 41.66%, respectively [1] - The profit margin of NCLH stands at 6.85%, which is considerably lower than Royal Caribbean's 23.8% and Carnival's 10.4% [1] Company Performance - NCLH's stock has decreased by 9.68% over the last five years, contrasting sharply with Royal Caribbean's increase of 335.85% and Carnival's rise of 41.66% [1] - Elliott calculates that NCLH's performance represents approximately 400% underperformance compared to Royal Caribbean and over 60% compared to Carnival [1] Operational Metrics - NCLH's profit margin is 6.85%, significantly trailing behind Royal Caribbean's 23.8% and Carnival's 10.4% [1] - The return on equity for NCLH is 39.9%, which is lower than Royal Caribbean's 47.7% [1] - Elliott highlights issues such as rising unit costs, excessive corporate overhead, and a failed private island strategy despite owning Great Stirrup Cay [1] Management Changes - The campaign for change comes shortly after NCLH appointed John Chidsey as CEO on February 12, 2026, who lacks cruise industry experience [1] - Elliott proposes former Royal Caribbean executive Adam Goldstein for the board to enhance operational performance [1] Future Actions - Elliott has threatened a proxy fight at the upcoming annual meeting if NCLH management resists the proposed changes [1]