Core Thesis - Norwegian Cruise Line Holdings Ltd. (NCLH) is viewed positively due to its strong financial performance and growth potential, despite current share prices being approximately 30% below their 52-week high [2]. Financial Performance - NCLH reported record revenue and EBITDA, generating approximately $2.7 billion in annual EBITDA, with a clear path to mid-4x leverage by the end of 2026 [2][5]. - In Q3 2025, NCLH achieved adjusted EBITDA of $1.02 billion and EPS of $1.20, exceeding guidance, with occupancy rates above 106% and flat unit costs despite inflation [3]. Market Position and Industry Dynamics - The cruise industry is experiencing favorable trends as consumers prioritize experiences over goods, with cruising gaining market share against land-based vacations due to better value amid rising hotel and airfare costs [4]. - NCLH is strategically positioned within an oligopolistic industry, benefiting from scale efficiencies and operational agility, while its multi-brand portfolio enhances customer lifetime value [4]. Valuation and Growth Potential - NCLH's current valuation at roughly 8x forward earnings contrasts sharply with historical and peer multiples, which are in the double digits, indicating a significant undervaluation [5]. - The company is on a trajectory of deleveraging and margin expansion, with a disciplined cost program targeting $300 million in savings, suggesting potential for substantial equity value creation [5].