MW Norwegian Cruise's bookings are still booming, and passengers are spending more

By Tomi Kilgore

Cruise operator swings to a quarterly profit that's well above expectations and the stock gains, but full-year guidance is muted

Shares of Norwegian Cruise Line Holdings Ltd. were heading higher in early trading Thursday, after the cruise operator swung to a fourth-quarter profit that beat expectations by a wide margin, as passengers spent more on the ships than anticipated.

Demand for future cruises remained strong, with bookings in an "optimal" position, but the company's guidance for full-year profitability showed some cracks in the armor.

The stock $(NCLH)$ rose 1.8% in premarket trading, but pared an earlier gain of as much as 5.7%.

"The company continues to experience strong consumer demand for its offerings across itineraries and brands throughout 2025 and into 2026," Norwegian said in a statement. "As a result, the company remains at its optimal booked position on a 12-month forward basis."

Net income for the quarter to Dec. 31 was $254.5 million, or 52 cents a share, after a loss of $106.5 million, or 25 cents a share, in the same period a year ago. Results were hurt last year by the conflict in Israel and the Red Sea.

Analysts surveyed by FactSet were expecting, on average, earnings per share of 11 cents.

Revenue grew 6.2% to $2.11 billion, just above the FactSet consensus of $2.10 billion.

Passenger-ticket revenue was up 5.7% to $1.41 billion, in line with the FactSet consensus. Onboard and other revenue increased 7.2% to $700.6 million, above expectations of $683.9 million.

Net yield, a measure of profitability per passenger cruise day, rose by 9%, including the impact of currency moves, to be the FactSet consensus of 5.3% growth.

For full-year 2025, Norwegian is guiding for EPS of approximately $2.05, which is below the FactSet consensus of $2.09. And net yield growth is seen at about 3%, while analysts are currently modeling for a rise of 4%.

Norwegian's stock has slipped 2.6% year to date through Wednesday, after running up 28.4% in 2024 and 63.7% in 2023. The S&P 500 index SPX has gained 1.3% so far this year after advancing 23.3% last year.

-Tomi Kilgore

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February 27, 2025 07:48 ET (12:48 GMT)

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