Norwegian Cruise Line falls on weak guidance despite Q4 beat

Investing.com -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) reported fourth quarter results that beat earnings expectations but missed on revenue, while issuing fiscal 2026 guidance that fell short of analyst estimates, sending shares down 7.8% in premarket trading.

The cruise operator posted adjusted earnings per share of $0.28 for the fourth quarter, topping the analyst consensus of $0.26. However, revenue of $2.2 billion missed expectations of $2.34 billion, though it represented a 6% increase from the same quarter last year. For fiscal 2026, the company guided to adjusted EPS of $2.38, below the analyst consensus of $2.60. The company expects full year adjusted EBITDA of approximately $2.95 billion and adjusted net income of roughly $1.12 billion.

"The team delivered solid fourth quarter and full year 2025 results reflecting the strength of our award-winning brands, loyal guests and dedication of our team and crew members," said John W. Chidsey, president and chief executive officer. "As I step into this new role my initial assessment is that our strategy is sound, but execution and cross-functional alignment have fallen short."

For the first quarter of 2026, Norwegian expects adjusted EPS of approximately $0.16 and adjusted EBITDA of around $515 million. The company projects net yield on a constant currency basis to decline approximately 1.6% versus 2025, primarily due to challenges absorbing a 40% YoY increase in Caribbean capacity resulting from misalignment with the company's commercial strategy at the Norwegian brand.

Full year 2026 net yield on a constant currency basis is expected to be approximately flat versus 2025. The company anticipates adjusted net cruise cost excluding fuel per capacity day to grow approximately 0.9% on a constant currency basis, marking the third consecutive year of sub-inflationary unit cost performance.

For full year 2025, Norwegian generated total revenue of $9.8 billion, up 3.7% YoY. Adjusted EPS increased 19% to $2.11, exceeding guidance of $2.10.

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