Norwegian Cruise Q2 Earnings & Revenues Beat Estimates, Stock Down

NCLH’s Q2 Earnings & Revenues

Norwegian Cruise reported adjusted earnings per share of 48 cents, beating the Zacks Consensus Estimate of 39 cents by 23.1%. In the prior-year quarter, the company reported adjusted earnings of 51 cents per share.

Quarterly revenues of $2.64 billion surpassed the consensus mark of $2.63 billion by 0.5%. The metric increased 4.9% year over year.

Passenger ticket revenues were $1.73 billion, up 1.2% from $1.71 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.76 billion.

Onboard and other revenues increased 12.6% to $910.7 million from $808.5 million reported in the year-ago quarter. We expected onboard and other revenues to be $869.6 million.

Capacity Days rose 8.9% year over year to 6.59 million, while Passenger Cruise Days increased 7.3% to 6.75 million.

NCLH’s Q2 Expenses & Operating Results

Total cruise operating expenses in the second quarter increased 8.9% year over year to $1.59 billion. Our model anticipated total cruise operating expenses to be $1.57 billion.

Payroll and related expenses rose 14% year over year to $394.6 million. Fuel expense increased 39.4% year over year to $219.4 million.

During the second quarter, gross cruise costs per Capacity Day were approximately $304 compared with $306 reported in the prior-year period.

Net yield declined 2.1% year over year on a reported basis and 2.6% on a constant-currency basis. The constant-currency decline was better than the company’s guidance for a decrease of 3.6%.

Adjusted EBITDA declined 4.1% year over year to $665.5 million but exceeded management’s guidance of approximately $632 million. Adjusted operational EBITDA margin contracted to 33.9% from 37.7% in the prior-year quarter.

NCLH’s Balance Sheet

As of June 30, 2026, the company had cash and cash equivalents of $218.1 million, up 3.9% from $209.9 million at the end of 2025. Long-term debt, excluding the current portion, was $13.89 billion compared with $13.73 billion at 2025-end. 

Liquidity totaled $1.5 billion, including $1.3 billion of availability under the company’s revolving loan facility. Net leverage ended the quarter at 5.3 times.

For the first six months of 2026, net cash provided by operating activities increased 1.4% year over year to $1.41 billion. Additions to property and equipment totaled $1.89 billion compared with $1.86 billion in the prior-year period.

Booking Update of Norwegian Cruise

The company remained below its optimal booked position for the next 12 months. Management cited softer demand at the Norwegian Cruise Line brand related to company-specific execution challenges and the continuing conflict in the Middle East.

Second-quarter occupancy was 102.4% compared with 103.9% in the prior-year quarter. The result was broadly in line with management’s guidance of approximately 102.5%.

Advance ticket sales came in at $3.65 billion compared with $3.20 billion at the end of 2025.

Norwegian Cruise expects the opening of the full amenities at Great Stirrup Cay, including Great Tides Waterpark, to support demand for Caribbean itineraries over time.

NCLH’s Q3 & 2026 Guidance

For third-quarter 2026, NCLH anticipates occupancy of approximately 104% and Capacity Days of 6.8 million.

Constant-currency net yield is expected to decline 8.9% year over year. Adjusted net cruise costs excluding fuel per Capacity Day are projected to decrease 0.9% on a constant-currency basis.

Adjusted EBITDA is expected to be $874 million. Adjusted net income is projected at $414 million, while adjusted earnings are forecast at 90 cents per share.

For 2026, the company expects occupancy of approximately 102.3%. Capacity Days are anticipated to be approximately 26.25 million.

Full-year adjusted EBITDA is expected to be approximately $2.5 billion. Adjusted net income is projected at nearly $700 million, while adjusted earnings are anticipated at approximately $1.50 per share.

NCLH’s Zacks Rank & Key Picks

Norwegian Cruise currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Life Time Group Holdings, Inc. LTH, AMC Entertainment Holdings, Inc. AMC and The Marcus Corporation MCS.

Life Time Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Life Time Group delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 67.3% in the year-to-date period. The Zacks Consensus Estimate for LTH’s 2026 sales and EPS implies growth of 11.3% and 18.1%, respectively, from the year-ago levels.

AMC Entertainment presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 64.1% in the year-to-date period.

The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 13.3% and 77.1%, respectively, from the year-ago levels.

Marcus currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings miss of 40.4%, on average. The stock has gained 59.3% in the year-to-date period.

The Zacks Consensus Estimate for Marcus’ 2026 sales and EPS indicates growth of 6.2% and 211.8%, respectively, from the year-ago period’s levels.

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