Norwegian Cruise Line Holdings Ltd. · NYSE:NCLH
Norwegian Cruise Line — Q1 2025 Earnings Presentation
35 slides from Norwegian Cruise Line's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 Earnings Conference Call - April 30, 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 7 Ships | ~6,300 Berths 6 Ships | ~4,100 Berths 7 Ships on order 3 Ships on order1 2 Ships on order ~85% of annual bed days ~10% of annual bed days ~5% of annual bed days ~$10B 3M 33 12 2025 EXPECTED 2025 EXPECTED CURRENT SHIPS CURRENT SHIPS REVENUE GUESTS
Slide 4: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS NET YIELD1 1.2% COMPARED TO 2024 BEAT GUIDANCE BY 70 BPS ADJUSTED EBITDA MARGIN ADJUSTED NCC EX FUEL PER CAPACITY DAY 1 $453M 35.5% above guidance of LTM Adjusted Operational ~$435M EBITDA Margin, up from 32.7% in Q1 2024 $169 Net Leverage ended the quarter at ADJUSTED EPS +1.2% v
Slide 5: Setting new standards & delivering brand-new guest experiences
Setting new standards & delivering brand-new guest experiences First ship in the Prima Plus class with multiple enhancements over the Prima class including: • 10% size and capacity increase • Increased fuel efficiencies • More cabins with a richer stateroom mix • Higher margin profile • Enhanced rev
Slide 6: ...and MORE to come!
▪ TWO-SHIP PIER ▪ WELCOME CENTER ▪ TRAM SERVICE ▪ EXPANSIVE POOL ▪ WATER FOUNTAINS & FEATURES ▪ SWIM-UP BAR ENHANCEMENTS ▪ VIBE BEACH CLUB ▪ HORIZON PARK …and MORE to come! 6
Slide 7: Fleet Management Set to Drive Competitive Improvement
FLEET MANAGEMENT SET TO DRIVE COMPETITIVE IMPROVEMENT Capacity Growth (M)1,2 Fleet Management Strategy • Announced four long-term charters with a purchase option for a nominal value at the end of the lease period 3% Net CAGR ✓ Decreases average fleet age 4% Net CAGR Gross ✓ Improves brand consistenc
Slide 8: Booking & Net Yield Update
BOOKING & NET YIELD UPDATE Net Yield Growth1 Booking Trends • Company has seen softening in forward booked position, but remains within optimal range ~1.7% to ~3.6% • Q2 effectively locked in ~2.0% to Net Yield Update1 ~3.0% ~2.5% • Beat Q1 2025 Net Yield guidance by 70 bps, growing 1.2% • Strong on
Slide 9: Cash Generation Engine Fueled by Advance Ticket Sales
CASH GENERATION ENGINE FUELED BY ADVANCE TICKET SALES Total Advance Ticket Sales ($B) ATS Growth Drivers $4.0 $3.9B + 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 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Advanc
Slide 10: Q1 2025 Results Overview
Q1 2025 RESULTS OVERVIEW Q1 2025 ACTUALS VS GUIDANCE GUIDANCE Occupancy ~101.5% 101.5% ✓ Net Yield1 Growth ~0.5% 1.2% ✓ ~3.9% 3.0% Adjusted Net Cruise Cost ex. Fuel per Capacity Day1 ~2.1% excluding Dry-dock ~$171 1.2% excluding Dry-dock $169 ✓ Including ~$8 Dry-dock Including $8 Dry-dock Adjusted E
Slide 11: Q2 & FY 2025 Guidance Overview
Q2 & FY 2025 GUIDANCE OVERVIEW Q2 2025 H2 2025 FULL YEAR 2025 GUIDANCE IMPLIED GUIDANCE GUIDANCE Occupancy ~103.2% ~102.5% ~102.5% Net Yield1 Growth ~2.5% ~1.7% to ~3.6% ~2.0% to ~3.0% Adjusted Net Cruise Cost ex. Fuel per Capacity Day1,2 ~1.0% ~(1.7%) to ~0.7% ~0% to ~1.25% Adjusted EBITDA ~$670 mi
Slide 12: Adj. Operational EBITDA Margin Improvement
ADJ. OPERATIONAL EBITDA MARGIN IMPROVEMENT Adj. Operational EBITDA Margin1 • Q1 LTM Adj. Operational EBITDA Margin improvement to 35.5% • Full year 2025 Adj. Operational EBITDA +~150 ~37% Margin expected to improve ~150bps to +~280 bps bps ~37% versus prior year 35.5% 35.5% • Continued margin improv
Slide 13: Pro Forma Debt Maturity Profile
PRO FORMA DEBT MATURITY PROFILE1 As of 3/31/2025 ($ billions) $3.4 $2.0 $1.2 $1.0 $0.7 2025 2026 2027 2028 2029 ECA Loans, Capital Leases & Other Senior Secured Notes Exchangeable Notes Senior Unsecured Notes Debt portfolio is 93% fixed rate, at a weighted average interest rate of ~4.4% (1) All amou
Slide 14: Focused on De-Risking and Reducing Leverage
FOCUSED ON DE-RISKING AND REDUCING LEVERAGE Net Leverage Reduction1 Q1 2025 Net Leverage increased to 5.7x given delivery of Norwegian Aqua 7.3x Delivery of Norwegian Aqua Net Leverage expected to 6.3x end 2025 at ~5x 5.9x 5.6x 5.7x Expect continued organic ~5.4x 5.3x reduction in Net Leverage ~5x f
Slide 15: Well Positioned for the Future Cruise Industry
WELL POSITIONED FOR THE FUTURE CRUISE INDUSTRY Large Growth Potential Clearly Defined Brands & Strategy Upscale Guest Demographic Compelling Value Proposition Strong Growth Profile Unique Experience Advantage Proven Model & Algorithm Long Booking Curves Transformational Efficiency-Driven Culture Ris
Slide 16: Appendix
APPENDIX 16
Slide 17: 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 18: Outlook
OUTLOOK $ Millions unless otherwise noted Q2 2025 FY 2025 Depreciation & Amortization ~$245M ~$985M Interest Expense, net1 ~$175M ~$700M Other Capital Expenditures ~$130M ~$590M Fuel Consumption (metric tons) ~245,000 ~1,010,000 Fuel Price Per Metric Ton (net of hedges) ~$680 ~$687 Fuel - Hedge prog
Slide 19: Illustrative Diluted Share Count Modeling
ILLUSTRATIVE DILUTED SHARE COUNT MODELING Q2 2025 FULL YEAR 2025 Shares (m)1 Interest Shares (m)1 Interest GAAP Net GAAP Net Expense Expense Income (Loss) Income (Loss) Reduction2 Reduction2 ($m) Basic Diluted ($m) Basic Diluted ($m) ($m) Net Loss ~447 ~447 $0 Net Loss ~448 ~448 $0 Up to $61 ~447 ~4
Slide 20: Fleet Expansion Details
FLEET EXPANSION DETAILS YEAR BRAND DETAIL GROSS TONS 1 BERTHS 1 Q3 2025 Oceania Cruises Allura ~68,000 ~1,200 Q1 2026 Norwegian Cruise Line Norwegian Luna ~156,000 ~3,550 Q4 2026 Regent Seven Seas Seven Seas Prestige2 ~77,000 ~850 2027 Norwegian Cruise Line Next Generation “Methanol-Ready” Norwegian
Slide 21: Long-Term Charter Details
LONG-TERM CHARTER DETAILS START BRAND DETAIL GROSS TONS BERTHS DATE Q4 2026 Norwegian Cruise Line Norwegian Sky ~77,000 ~1,950 Q4 2026 Regent Seven Seas Seven Seas Navigator ~29,000 ~500 Q4 2027 Norwegian Cruise Line Norwegian Sun ~78,000 ~1,900 Norwegian Sky Q4 2027 Oceania Cruises Insignia ~30,000
Slide 22: NCLH Deployment Mix - 2025
NCLH DEPLOYMENT MIX - 2025 2025 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% Caribbean (4%
Slide 23: Definitions and Non-GAAP Information and Reconciliation
DEFINITIONS AND NON-GAAP INFORMATION AND RECONCILIATION 23
Slide 24: Non-GAAP financial measures notice
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 25: 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 26: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted EPS was calculated as follows Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended (in thousands, except share and per share data): March 31, 2025 March 31, 2024 December 31, 2024 December 31, 2023 Net income (loss) ($40,
Slide 27: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted EBITDA is calculated as follows Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended (in thousands): March 31, 2025 March 31, 2024 December 31, 2024 December 31, 2023 Net income (loss) ($40,295) $17,353 $910,257 $166,178
Slide 28: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows Three Months Ended Constant Currency Three Months Ended (in thousands, except Passenger Cruise Days and Net Per Diem Data): March 31, 2025 compared to 2024 March 31, 2024 Total
Slide 29: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as Twelve Months Ended Twelve Months Ended follows December 31, 2024 December 31, 2023 (in thousands, except Passenger Cruise Days and Net Per Diem Data): Total revenue $9,479,651 $8,549,9
Slide 30: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows Three Months Ended Three Months Ended (in thousands, except Passenger Cruise Days and Net Per Diem Data): December 31, 2024 December 31, 2023 Total revenue $2,109,366 $1,986,456
Slide 31: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows Three Months Ended Three Months Ended (in thousands, except Passenger Cruise Days and Net Per Diem Data): September 30, 2024 September 30, 2023 Total revenue $2,806,578 $2,536,0
Slide 32: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows Three Months Ended Three Months Ended (in thousands, except Passenger Cruise Days and Net Per Diem Data): June 30, 2024 June 30, 2023 Total revenue $2,372,492 $2,205,492 Less: T
Slide 33: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Adjusted Gross Margin, Net Per Diem, and Net Yield were calculated as follows Three Months Ended Three Months Ended (in thousands, except Passenger Cruise Days and Net Per Diem Data): Mar. 31, 2024 Mar. 31, 2023 Total revenue $2,191,215 $1,821,939 Less: T
Slide 34: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Gross Cruise Cost, Net Cruise Cost, Net Cruise Cost Excluding Fuel and Adjusted Net Three Months Ended Constant Currency Three Months Ended Cruise Cost Excluding Fuel were calculated as follows March 31, 2025 compared to 2024 March 31, 2024 (in thousands,
Slide 35: Non-GAAP Reconciling Information
NON-GAAP RECONCILING INFORMATION (UNAUDITED) Twelve Months Ended, Net Debt and Net Leverage were calculated as follows December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 (in thousands): Long-term debt $12,314,147 $12,005,296 $11,913,073 $11,751,743 $11
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