May 1, 2025 Definitions: Non-GAAP Financial Measures Non-GAAP Financial Measures This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. ADJUSTED EPS OR DILUTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS We use diluted earnings per share excluding special items (adjusted EPS) as an underlying operational performance measure of the ...

Core Viewpoint - Norwegian Cruise Line Holdings Ltd. reported solid first quarter results for 2025, maintaining its profitability guidance for the full year despite macroeconomic challenges [2][4][10]. Financial Performance - Total revenue for the first quarter of 2025 was $2.1 billion, a decrease of approximately 3% compared to the first quarter of 2024 [6][7]. - The company reported a GAAP net loss of $40.3 million, with an EPS of ($0.09), reflecting a decline of $57.6 million compared to the same period in 2024 [6][7]. - Adjusted EBITDA was $453 million, slightly down by 2% from $464 million in 2024, but above the guidance of $435 million [6][7]. - Adjusted EPS was $0.07, slightly below guidance due to foreign exchange losses [6][7]. Operational Highlights - The company welcomed the delivery of Norwegian Aqua, its first Prima Plus Class vessel, and completed refurbishments on Norwegian Bliss and Norwegian Breakaway [4][6]. - Gross margin per Capacity Day increased by 5% on an as-reported basis and 7% on a Constant Currency basis compared to 2024 [7]. - Net Yield growth was approximately 0.6% on an as-reported basis, exceeding the guidance of 0.5% [7]. Debt and Liquidity - Total debt stood at $14.0 billion, with a net leverage ratio of 5.7x as of March 31, 2025, an increase of 0.4x from December 31, 2024 [8][12]. - The company had liquidity of $1.4 billion, including $184.4 million in cash and cash equivalents [13][12]. Future Guidance - The company maintained its full year 2025 Adjusted EBITDA guidance at approximately $2.72 billion, representing an 11% increase year-over-year [15]. - Full year 2025 Adjusted EPS guidance remains unchanged at $2.05, reflecting a 13% increase compared to 2024 [15]. - The company expects Net Yield to increase between 2.0% and 3.0% on a Constant Currency basis for 2025, slightly revised from previous guidance of ~3.0% [15]. Booking Environment - The company noted a softening in its 12-month forward booked position but remains within an optimal range, with occupancy at 101.5% for the first quarter of 2025 [11][10]. - Advance ticket sales balance at the end of the first quarter was $3.9 billion, up 2.6% year-over-year [11]. Capital Expenditures - The company reported newbuild-and-growth capital expenditures of $1.361 billion for the first quarter of 2025, with expectations of approximately $2.6 billion for the full year [28].

Financial Data and Key Metrics Changes - Adjusted EPS for the first quarter of 2025 was $1.39, reflecting a 7.5% core sales growth driven by Aerospace and Electronics and Process Flow Technologies [6][27] - Core orders increased by 16% in the quarter, primarily due to strength in Aerospace and Electronics [6][27] - Adjusted operating profit rose by 18%, supported by volumes, solid net pricing, and productivity [27] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales reached $249 million, a 10% increase, with a record backlog of $960 million, up 21% year-over-year [28][29] - Total aftermarket sales in Aerospace and Electronics increased by 20%, with commercial aftermarket sales up 19% and military aftermarket up 24% [28] - Process Flow Technologies delivered sales of $309 million, up 9%, with core sales growth of 5% and a 5% contribution from recent acquisitions [29] Market Data and Key Metrics Changes - The Aerospace market remains strong, with Boeing ramping up production and solid procurement spending in defense [16][27] - Core sales growth for Aerospace and Electronics is anticipated to be mid to high single digits for the year, leveraging a 35% to 40% margin [17] - In the Process Flow Technologies segment, notable wins included a $5.7 million project for a Saudi Arabian mining company [21] Company Strategy and Development Direction - The company aims to continue growing through adversity, focusing on strategic execution and innovation [6][10] - There is a strong emphasis on maintaining a robust balance sheet with over $1.5 billion in M&A capacity, indicating ongoing acquisition activity [22][23] - The company is committed to long-term core sales growth of 4% to 6% through cycles, supported by solid aftermarket and operating leverage [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger from current economic dislocations, despite uncertainties in the macroeconomic environment [7][8] - The company reaffirmed its full-year 2025 adjusted EPS outlook in the range of $5.3 to $5.6, reflecting current economic conditions [7][8] - Management highlighted the importance of adapting to changes in demand and maintaining focus on long-term goals [20][26] Other Important Information - The company has a robust pipeline of potential acquisitions and has not seen any slowdown in M&A activity [22][92] - Management noted that supply chain disruptions have stabilized since last year, with no significant changes expected [80] - The company is actively engaged in new product development and technology roadmaps to support growth initiatives [25][26] Q&A Session Summary Question: Can you provide clarity on updated guidance and the contribution of price to sales? - Management expects about 3% overall price contribution, more heavily weighted to Process Flow Technologies [37] Question: What is the growth split between volume and price in Aerospace and Electronics? - The growth was roughly 50% from volume and 50% from price [50] Question: Are there any major commercial OE long-term agreements that repriced this quarter? - No major repricing occurred this quarter [53] Question: How is the company managing supply chain risks? - Supply chain disruptions have returned to normal rates, with no significant changes expected [80] Question: What is the outlook for the chemical market within Process Flow Technologies? - The company anticipates some project activity in the Americas to shift to the right, with softening demand in Europe [102]