Norwegian Cruise Line Holdings Ltd. reported first-quarter 2025 financial results that missed analyst expectations, with revenue of $2.13 billion against estimates of $2.15 billion, and adjusted earnings per share of $0.07 versus a $0.09 expectation. Net income for the quarter was $29.99 million, significantly impacted by $68.4 million in losses from extinguishment of debt and debt modification costs.
The company noted some 'choppiness' in bookings for third-quarter long-haul European itineraries, indicating that American consumers are showing some hesitancy for far-from-home travel. Consequently, NCLH modified its net yield growth outlook to a range of 2% to 3%, down from its previous forecast of 3%.
Despite these top-line pressures and an increase in net leverage to 5.7x due to the delivery of Norwegian Aqua, the company maintained its full-year 2025 Adjusted EBITDA and Adjusted EPS guidance. Management expects cost savings, including more favorable foreign currency rates and lower fuel prices, to effectively offset potential revenue headwinds and support its long-term profitability targets.
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