Core Viewpoint - Norwegian Cruise Line Holdings Ltd. has confirmed a newbuild order for a third vessel in the Prestige-Class series for its ultra-luxury brand, Regent Seven Seas Cruises, scheduled for delivery in 2033, indicating a strategic expansion in the luxury cruise segment [1][3]. Company Overview - Norwegian Cruise Line Holdings Ltd. operates three brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, with a combined fleet of 34 ships and over 71,000 berths, offering itineraries to approximately 700 destinations worldwide [4]. - The company plans to add 14 additional ships across its brands by 2036, which will increase its fleet capacity by over 39,200 berths [4]. New Vessel Details - The new Prestige-Class ship will be 40% larger than previous Regent ships, accommodating only 10% more guests, thus providing a high space-to-guest ratio [2][3]. - The ship will weigh 77,000 tons and carry 822 guests with 630 crew members, offering one of the highest space-to-guest and crew-to-guest ratios in the cruise industry [2][3]. - The new ship will feature beautifully appointed all-balcony suites across 12 categories, including the largest all-inclusive ultra-luxury cruise ship suite in history, the Skyview Regent Suite [2][3]. Culinary Experience - The Seven Seas Prestige will offer a curated culinary journey with 11 dining experiences, including a new Mediterranean concept called Azure and signature favorites like Chartreuse, Prime 7, and Pacific Rim [2][3]. Strategic Partnerships - The newbuild order reflects the company's confidence in the growing demand for luxury cruising and reaffirms its long-standing partnership with Fincantieri, emphasizing craftsmanship and innovation in shipbuilding [3].

Financial Data and Key Metrics Changes - The company reported record Q2 revenue, with net yield growing by 3.1%, driven by strong closing demand and onboard spending [9][28] - Adjusted EBITDA reached $694 million, exceeding guidance by $24 million, with a trailing twelve-month margin of 36.3%, reflecting a year-over-year improvement of over 300 basis points [9][35] - Adjusted EPS for the quarter was $0.51, in line with guidance despite an $0.08 headwind from foreign exchange losses [9][30] Business Line Data and Key Metrics Changes - The successful delivery of Oceana Cruises' Allura, the eighth vessel for the brand, and the confirmation of two additional Sonata class ships, bringing the total order book to four ships [8][16] - The company is enhancing its private island experience with the announcement of the Great Tides Waterpark, set to open in 2026, which is expected to drive incremental onboard revenue [10][12] Market Data and Key Metrics Changes - The company experienced record bookings over the last three months, indicating strong customer demand [7][31] - The advanced ticket sales (ATS) balance reached an all-time high of $4 billion, reflecting robust demand [31] Company Strategy and Development Direction - The company is focused on its "Charting the Course" strategy, balancing return on investment with return on experience to deliver exceptional vacations while driving strong financial results [7][8] - The strategy includes a measured expansion with 13 ships on order across three brands, ensuring investment in the unique strengths of each brand [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with expectations for net yield growth in the low to mid-single-digit range [22][24] - The company anticipates a positive demand driver from the Great Tides Waterpark, with expected benefits starting in 2026 [22][24] Other Important Information - The company has made significant progress on cost savings, expecting to deliver over $200 million in savings by year-end 2025 [23][35] - The company was recognized by Forbes as one of America's best large employers for 2025, highlighting the dedication of its team [27] Q&A Session Summary Question: Can you discuss the increase in demand across all three brands and changes for 2026? - Management noted a shift to shorter itineraries in Europe and a modest decrease in deployment, which reflects consumer demand [47][48] - The company is in an optimal booking position for 2026, with strong demand observed in Q3 [49][50] Question: What are the key drivers for 2026 yield and cost expectations? - Management expects tailwinds from Q3 2025 and a focus on fun and sun itineraries to improve load factors over time [53][54] Question: How does the company view the potential ROI yield benefit from Great Stirrup Cay? - Management emphasized that while Caribbean itineraries may not yield higher ticket prices, they optimize profitability and guest satisfaction [60][62] Question: Can you elaborate on the recent bookings momentum and promotional strategies? - The improvement in bookings was attributed to a better macroeconomic environment and a shift towards brand-oriented marketing [97][98]