Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q2 2025 Earnings Presentation
38 slides from Norwegian Cruise Line's earnings presentation, Jul 31, 2025
Slide 1: Q2 2025 Earnings Conference Call
Q2 2025 Earnings Conference Call - July 31, 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Some of the statements, estimates or projections contained in this presentation are “forward-looking statements” within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation R
Slide 3: NCLH at a Glance
NCLH AT A GLANCE 20 Ships | ~60,000 Berths 8 Ships | ~7,500 Berths 6 Ships | ~4,100 Berths 7 Ships on order1 4 Ships on order1 2 Ships on order ~85% of Capacity Days ~10% Capacity Days ~5% of Capacity Days ~$10B 3M 34 13 2025 EXPECTED 2025 EXPECTED CURRENT SHIPS CURRENT SHIPS REVENUE GUESTS CARRIED
Slide 4: Q2 2025 Highlights
Q2 2025 HIGHLIGHTS NET YIELD1 3.1% COMPARED TO 2024 ABOVE GUIDANCE BY 60 BPS ADJUSTED EBITDA MARGIN ADJUSTED NCC EX FUEL PER CAPACITY DAY 1 $694M 36.3% Above guidance of LTM Adjusted Operational Net Leverage ended ~$670M EBITDA Margin, up 330bps vs Q2 2024 $163 the quarter at Flat vs 2024 5.3x ADJUS
Slide 5: The Greatest Private Island in the Caribbean
EXPANDED THE GREATEST PRIVATE ISLAND IN THE CARIBBEAN AMENITIES YEAR-END 2025 • 2-ship Pier • Great Life Lagoon Heated Pool Great Life Lagoon Heated Pool with Swim-up Bars • Swim-up Bars • Splash Harbor – Kids Splash Pad • Welcome Center • Tram Service SPRING 2026 • Vibe Beach Club • Hammock Bay • H
Slide 6: Signature Cocktails
Signature Cocktails Jacques Restaurant • Reprised signature French restaurant, Jacques, based on tremendous consumer demand. • Introduced new Nikkei menus to Red Ginger, our acclaimed Asian restaurant. Allura Library • Debuted a new Creperie culinary offering. • Oceania Allura will kick off the bran
Slide 7: Measured Growth to Top & Bottom-Line Results Expected
MEASURED GROWTH TO TOP & BOTTOM-LINE RESULTS EXPECTED Ships on Order Gross Capacity Growth (M)1 7 New Ships1 ~31,250 Berths 4% Net CAGR 4% Net CAGR Gross Gross 29.7 Gross 26.4 28.1 4 New Ships1 Net ~5,560 Berths Net Net 27.9 27.1 24.5 26.2 23.4 22.7 2 New Ships ~1,650 Berths 2023 2024 2025E 2026E 20
Slide 8: Pricing and Net Yield Drivers
PRICING AND NET YIELD DRIVERS 5 4 Maximize spend 3 Rigorous throughout 2 ROI centric customer Enhanced revenue journey 1 marketing strategy Optimized management deployment Newbuild design with richer cabin mix E 2024 2025-2026 Multiple levers in motion to generate sustainable Pricing and Net Yields
Slide 9: Targeted Investments to Drive the Top-Line
TARGETED INVESTMENTS TO DRIVE THE TOP -LINE Maximize Spend Newbuild Design with Optimized Enhanced Revenue Rigorous ROI Centric Throughout Richer Cabin Mix Deployment Management Marketing Strategy Customer Journey STATEROOM ITINERARIES & INVESTING IN POSITIONING & TECHNOLOGY & MIX DURATION SYSTEMS T
Slide 10: Delivering Sub-Inflationary Cost Growth
DELIVERING SUB-INFLATIONARY COST GROWTH Adjusted Net Cruise Cost ex. Fuel per Capacity Day1,2 +~0.6% $160 $161 Targeting Sub- $154 Inflationary Cost Growth 2024 2025E 2026E Expect to deliver ~$200M+ in cumulative total savings by end of 2025; High confidence in delivering $300M+ target through 2026
Slide 11: Executing on Our Strategy
EXECUTING ON OUR STRATEGY PEOPLE GUEST-CENTRIC LONG-TERM EXCEPTIONAL EXCELLENCE PRODUCT OFFERING GROWTH PLATFORM PERFORMANCE STRONG 2026 FINANCIAL TARGETS Adj. Operational Adj. EPS Net Leverage Adj. ROIC EBITDA Margin ~39% ~$2.45 Mid 4x 12% Approaching >30% CAGR Strengthening the Record levels histo
Slide 12: Delivering on Our Return Algorithm
DELIVERING ON OUR RETURN ALGORITHM 2023-2025E PROGRESS Low to Mid-single Sub-inflationary Adj. Operational Digit Net Yield Growth Cost EBITDA Margin +630 bps Adj. Operational EBITDA Margin Improvement Measured Capacity Growth +8.2% Capacity Growth Strong Adj. EPS Growth Disciplined Capital Allocatio
Slide 13: Sustainability Disclosure, Safe Operations, Community Support
SUSTAINABILITY DISCLOSURE SAFE OPERATIONS COMMUNITY SUPPORT Received “B” score for climate change 100% of public health Donated ~$1.8M and water in latest inspections passed, through our charitable CDP submission, with over 93% of CDC- giving programs in cash, surpassing the Marine evaluated ships s
Slide 14: Q2 2025 Results Overview
Q2 2025 RESULTS OVERVIEW Q2 2025 ACTUALS VS GUIDANCE GUIDANCE Occupancy ~103.2% 103.9% ✓ Net Yield1 Growth ~2.5% 3.1% ✓ Adjusted Net Cruise Cost ex. Fuel per Capacity Day1 ~1.0% 0.0% ✓ Adjusted EBITDA ~$670 million $694 million ✓ $257 million Adjusted Net Income ~$257 million Net of a $37M FX impact
Slide 15: Q3 & FY 2025 Guidance Overview
Q3 & FY 2025 GUIDANCE OVERVIEW Q3 2025 Q4 2025 FULL YEAR 2025 GUIDANCE IMPLIED GUIDANCE GUIDANCE Occupancy ~105.5% ~100.9% ~103.0% Net Yield1 Growth ~1.5% ~4.2% ~2.5% Adjusted Net Cruise Cost ex. Fuel per Capacity Day1,2 ~Flat ~Flat ~0.6% Adjusted EBITDA ~$1.015 billion ~$2.72 billion Adjusted Net I
Slide 16: Consistent Margin Improvement
CONSISTENT MARGIN1 IMPROVEMENT Adj. Operational EBITDA Margin1 + 560bps vs 2023 ~39% ~37% 36.3% Right- 35.5% sized Net Costs Yield Growth 33.0% 30.7% 2023 LTM 2024 LTM 2025E 2026E Q2 2024 Q2 2025 E Adj. Operational EBITDA Margin up 560 bps since year-end 2023 1. Adjusted Operational EBITDA Margin re
Slide 17: Debt Maturity Profile
DEBT MATURITY PROFILE As of 6/30/2025 ($ billions) $3.4 $2.0 $1.2 $1.0 $0.5 2025 2026 2027 2028 2029 ECA Loans, Capital Leases & Other Senior Secured Notes Exchangeable Notes Senior Unsecured Notes Debt portfolio is 94% fixed rate, at a weighted average interest rate of ~4.3% Note: All future repaym
Slide 18: Focused on De-risking and Reducing Leverage
FOCUSED ON DE-RISKING AND REDUCING LEVERAGE Net Leverage Reduction1 Q2 2025 Net Leverage decreased to 5.3x Net Leverage expected to 7.3x end 2025 at ~5.2x Delivery of Norwegian Aqua Delivery of Expect continued organic 6.3x Oceania Allura reduction in Net Leverage 5.9x 5.6x 5.7x from current levels
Slide 19: Clear Path to Charting the Course Targets
CLEAR PATH TO CHARTING THE COURSE TARGETS ADJUSTED EBITDA ADJUSTED EPS 1 NET LEVERAGE ADJUSTED ROIC OPERATING MARGIN +~830 ~52% ~3x +~430 bps CAGR 7.3x decline bps ~12% ~39% ~$2.45 ~$2.05 10.9% ~37% 5.3x 2 $1.77 ~5.2x Mid 4x 35.5% $0.70 7.7% 30.7% 2023 2024 2025E 2026E 2023 2024 2025E 2026E 2023 202
Slide 20: Appendix
APPENDIX ~ 20
Slide 21: Cash Generation Engine Fueled by Advance Ticket Sales
CASH GENERATION ENGINE FUELED BY ADVANCE TICKET SALES Total Advance Ticket Sales ($B) $4.0B ATS Growth Drivers $4.0 + Robust pricing $3.5 + Dynamic deployment $3.0 mix $2.5 + Enhanced pre-sold $2.0 onboard revenue $1.5 + Capacity growth $1.0 $0.5 $0.0 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 24 Q2 25 Advanc
Slide 22: Outlook
OUTLOOK $ Millions unless otherwise noted Q3 2025 FY 2025 Depreciation & Amortization ~$252M ~$985M Interest Expense, net1 ~$180M ~$700M Other Capital Expenditures ~$136M ~$590M Fuel Consumption (metric tons) ~250,000 ~1,010,000 Fuel Price Per Metric Ton (net of hedges) ~$725 ~$690 Fuel - Hedge prog
Slide 23: Illustrative Diluted Share Count Modeling
ILLUSTRATIVE DILUTED SHARE COUNT MODELING Q3 2025 FULL YEAR 2025 Shares (m)1 Interest Shares (m)1 Interest GAAP Net GAAP Net Expense Expense Income (Loss) Income (Loss) Reduction2 Reduction2 ($m) Basic Diluted ($m) Basic Diluted ($m) ($m) Net Loss ~450 ~450 $0 Net Loss ~448 ~448 $0 Up to $61 ~450 ~4
Slide 24: Fleet Expansion Details
FLEET EXPANSION DETAILS YEAR BRAND DETAIL GROSS TONS 1 BERTHS 1 Q1 2026 Norwegian Cruise Line Norwegian Luna ~156,000 ~3,565 Q4 2026 Regent Seven Seas Seven Seas Prestige ~77,000 ~822 2027 Norwegian Cruise Line Next Generation “Methanol-Ready” Norwegian Prima Class2 ~169,000 ~3,840 2027 Oceania Crui
Slide 25: NCLH Deployment Mix - 2025
NCLH DEPLOYMENT MIX - 2025 2025 Deployment Mix Variance vs 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Alaska 0% 19% 23% 3% 11% Alaska 0% 2% 2% (1%) 1% Asia/Africa/Pacific 18% 11% 6% 9% 11% Asia/Africa/Pacific 2% 6% 3% (3%) 2% Bermuda 0% 8% 8% 0% 4% Bermuda (1%) (1%) 2% (3%) (1%) Caribbean1 53% 18% 9% 40% 30
Slide 26: NCLH Deployment Mix - 2026
NCLH DEPLOYMENT MIX - 2026 2026 Deployment Mix Variance vs 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Alaska 0% 14% 23% 1% 10% Alaska 0% (5%) 1% (2%) (2%) Asia/Africa/Pacific 12% 8% 2% 10% 8% Asia/Africa/Pacific (6%) (3%) (5%) 1% (3%) Bermuda 1% 12% 10% 3% 6% Bermuda 0% 4% 2% 2% 2% Caribbean 67% 26% 18% 50%
Slide 27: Definitions and Non-GAAP Information and Reconciliation
DEFINITIONS AND NON-GAAP INFORMATION AND RECONCILIATION 27
Slide 28: Non-GAAP financial measures should not be used as a substitute
Non-GAAP financial measures should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing operating performance, financial position or cash flows. The Company does not provide certain estimated future results on a GAAP basis because the Comp
Slide 29: Definitions
DEFINITIONS Adjusted EBITDA. EBITDA adjusted for other income (expense), net and other Capacity Days. Berths available for sale multiplied by the number of cruise days for the supplemental adjustments. period for ships in service excluding Norwegian Sky and Seven Seas Navigator when their charters b
Slide 30: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted EPS was calculated as follows Three Months Ended Three Months Ended (in thousands, except share and per share data): June 30, 2025 June 30, 2024 Net income (loss) $29,992 $163,436 Effect of dilutive securities - exchangeable notes - $16,017 Net i
Slide 31: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) (1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense and other income (expense), net. (2) Non-cash share-based compensation expenses related to equity award
Slide 32: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) (1) Non-cash deferred compensation expenses related to the crew pension plan and other crew expenses, which are included in payroll and related expense and other income (expense), net. (2) Non-cash share-based compensation expenses related to equity award
Slide 33: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) 33
Slide 34: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Twelve Months Ended, Adjusted EBITDA is calculated as follows December 31, 2023 June 30, 2024 December 31, 2024 June 30,2025 (in thousands): Net income (loss) $166,178 $420,172 $910,257 $719,165 Interest expense, net 727,531 775,231 747,223 805,228 Income
Slide 35: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as Three Months Ended Constant Currency Three Months Ended follows June 30, 2025 compared to 2024 June 30, 2024 (in thousands, except Passenger Cruise Days and Net Per Diem Data): Total re
Slide 36: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Gross Cruise Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted Three Months Ended Constant Currency Three Months Ended Net Cruise Cost Excluding Fuel were calculated as follows June 30, 2025 compared to 2024 June 30, 2024 (in thousands, e
Slide 37: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) 37
Slide 38: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Twelve Months Ended, Net Debt and Net Leverage were calculated as December 31, 2023 March 31,2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 follows Long-term debt $12,314,147 $12,005,296 $11,913,073 $11,751,743 $11,77
Norwegian Cruise Line Holdings — Q2 2025 Earnings Presentation on 6ix