Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) reported fourth-quarter 2025 results, with earnings meeting expectations but revenues falling short, reflecting a year-over-year increase in both metrics [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were 28 cents, consistent with the Zacks Consensus Estimate, compared to 19 cents in the prior-year quarter [3]. - Quarterly revenues reached $2.24 billion, missing the consensus estimate of $2.35 billion, but showing a 6.4% increase year over year [3]. - Passenger ticket revenues were $1.51 billion, up from $1.4 billion in the prior-year quarter, but below the anticipated $1.66 billion [4]. - Onboard and other revenues increased to $734.4 million from $700.6 million year over year, exceeding expectations of $674.8 million [4]. Expenses and Operating Results - Total cruise operating expenses rose 1.2% year over year to $1.32 billion, lower than the anticipated $1.41 billion [5]. - Gross cruise costs per Capacity Day were $272, down from $286 in the prior-year period, while adjusted net cruise costs (excluding fuel) per Capacity Day increased by 0.9% year over year to approximately $159 [5]. - Net interest expenses decreased to $170 million from $175.4 million in the previous year [6]. Balance Sheet - As of December 31, 2025, cash and cash equivalents stood at $209.9 million, an increase from $190.8 million at the end of 2024 [7]. - Long-term debt rose to $13.7 billion from $11.8 billion at the end of 2024 [7]. 2025 Highlights - Total revenues for 2025 were $9.83 billion, compared to $9.48 billion in 2024 [8]. - Adjusted EBITDA for 2025 was $2.73 billion, up from $2.45 billion in 2024 [8]. - Adjusted EPS for 2025 was $2.11, an increase from $1.77 in the previous year [8]. Booking and Demand Trends - The company is experiencing slightly below optimal booking trends due to execution gaps in aligning its commercial strategy with deployment plans [11]. - Fourth-quarter occupancy reached 101.8%, up 100 basis points year over year, indicating improved load factors [11]. - Demand remains strong in the luxury segment, with Oceania Cruises achieving record bookings for its new ship and Regent Seven Seas Cruises reporting its strongest booking month ever [12]. Guidance for 2026 - For Q1 2026, NCLH anticipates occupancy of approximately 104.2% and adjusted EPS of 16 cents [13]. - For the full year 2026, the company expects occupancy of about 105.7%, adjusted EPS of $2.38, and adjusted EBITDA of nearly $2.95 billion [14].