Norwegian Cruise Line Holdings Ltd. Q4 FY2024 earnings call

Cultural Transformation: The introduction of value anchors set the foundation for behaviors, enabling success across business aspects. ### Brand Enhancements: Successfully rolled out 'Experience More' repositioning campaign for Norwegian Cruise Line, completed fleet-wide Starlink Wi-Fi rollout, expanded itineraries, enhanced dining/entertainment, and formed strategic partnerships. ### Long-Term Growth Platform: Announced historic fleet expansion program with 13 ships in order, set to enhance offerings and guest experiences. 2025 will see debut of Norwegian Aqua and Oceania's Allura, and investment in private island strategy. ### Sustainability: Sail & Sustain Program drives positive impact through five pillars. In 2024, received ESG recognition, nearly half of fleet tested with biodiesel blends, and continued shore power investments.

In 2024, Norwegian Cruise Line Holdings achieved record financial results. Net yield increased by a record 10%, surpassing initial guidance. Adjusted EBITDA was a record over 2.45 billion. Adjusted net cruise cost ex fuel per capacity day only increased $1 to $160 in 2024 when excluding dry dock impact. Operating cash flow was just over $2 billion, and net leverage ratio decreased two full turns to 5.3 times. The company's three brands all reported record guest satisfaction scores in 2024.

2025 Outlook: Net yield growth expected to be approximately 3%. First quarter net yield growth 0.5% with 3.6% pricing growth, driven by repositioning sailings. Last three quarters of 2025 expected net yield growth at 3.5% driven by 4.6% pricing growth and 7% capacity growth. Adjusted net cruise cost ex fuel expected to grow by 1.25%. Adjusted EBITDA expected to be $2.72 billion, adjusted EPS $2.05. First quarter adjusted EBITDA expected $435 million, adjusted EPS $0.08.

Geopolitical factors may impact bookings. ### Strong U.S. dollar带来外汇影响. ### Ship retirement and related strategic considerations as ships age.

Q: Lizzie Dove asked about booking color, different brands' performance, and cadence of 2Q through 4Q.

A: Harry J. Sommer said booking pace is reasonable, happy with Europe and Alaska, NCL brand performing better than luxury brands but nothing major.

Q: Brandt Montour asked about demand from U.S. into Europe, comps, and geopolitical media cycle impact.

A: Harry J. Sommer said Europe demand reflects good product and marketing, no particularly soft comps for 2024, and normal booking patterns since election with no extraordinary positive/negative.

Q: Steve Wieczynski asked about capacity growth and ship retirement.

A: Harry J. Sommer said oldest ships are from 1998 and 1999, still room before retirement, ships well maintained; Mark Kempa added on flexibility for ship disposal.

Q: Daniel Politzer asked about Europe vs Caribbean demand, FX impact, and tax on cruise industry.

A: Harry J. Sommer said Europe demand not related to strong dollar, positive on administration's peace efforts.

Q: James Hardiman asked about occupancy rate go-forward and Charting the Course targets.

A: Harry J. Sommer said mild tailwind expected in 2026, but premature to comment exactly, and algorithm of moderate capacity growth, low to mid-single-digit yield growth, sub-inflationary cost growth will achieve targets.

Q: Vince Ciepiel asked about Great Stirrup Cay passenger numbers and geopolitical impact on Middle East.

A: Harry J. Sommer said 1 million passengers expected in 2026, Middle East impact more likely in 2027.

Q: Conor Cunningham asked about inventory management and demographic changes.

A: Mark A. Kempa said continuous refinement of revenue management systems, and no sweeping change, just continuous improvement.

Q: Robin Farley asked about forward bookings and river cruise business.

A: Mark A. Kempa said focused on optimal book position, and company focused on core business with existing order book.