Norwegian Cruise Line Holdings Ltd. Q3 FY2025 earnings call

• Record third quarter results with met or exceeded guidance across metrics, reiterating full-year adjusted EBITDA guidance and raising adjusted EPS guidance.
• Solid customer demand drove load factors higher, with Norwegian Cruise Line benefiting from family demand. Costs were essentially flat, leading to adjusted EBITDA milestone.
• Launched new tri-branded loyalty recognition program. Enhanced website for Norwegian Cruise Line delivering results. Sustainability agreement with Repsol for renewable marine fuels in Barcelona.
• Strategic strategies for brands: Norwegian Cruise Line focusing on enhancing family appeal, Oceania positioning in luxury, Regent maintaining ultra-luxury. Enhancements at Great Stirrup Cay on track, including new amenities and upcoming water park.

In the third quarter, Norwegian Cruise Line Holdings achieved a record quarter with highest quarterly revenue. Norwegian Cruise Line saw load factor at 106.4% driven by family demand, net yield growth of 1.5%, and adjusted EBITDA of approximately $1 billion. Oceania Cruises and Regent Seven Seas Cruises are part of the luxury portfolio, with Oceania positioned in the luxury sector and Regent as the pinnacle of ultra-luxury. Revenue contribution details: Norwegian Cruise Line was the driver of the record revenue, with Oceania and Regent contributing to the luxury segment growth.

Reiterated full-year adjusted EBITDA guidance at $2.72 billion and raised adjusted EPS guidance to $2.10. Expected Q4 occupancy ~101.9%, net yield growth 3.5%-4% in Q4, full-year net yield 2.4%-2.5%. 2026 capacity set to grow ~7% with new vessels, expecting continued strength across brands.

• Potential impacts from macro factors like government shutdown and weather. Competition in the Caribbean and promotional landscape could pose challenges.

Q: Heard about '26 high-level targets. With mix shift in Q4, how does it affect yields?

A: Mark Kempa said they aim for low-mid single-digit yield growth, families bring slightly lower pricing but core customer pricing is growing meaningfully, so expect low-mid single-digit yield growth in line with strategy.

Q: Bookings up 20% in quarter. Square with release commentary on being within optimal range?

A: Harry Sommer said bookings were up 20% for the quarter across all brands, broad-based growth, with growth in October too, and growth in all brands including luxury which isn't Caribbean-related.

Q: Progress on finding new Brand President for Norwegian Cruise Line?

A: Harry Sommer said they're conducting an extensive search, deep into it, no immediate announcement but expecting to see someone soon.

Q: Update on selling strategy for Oceania brand?

A: Harry Sommer said it was a relatively modest change, aligned with providing guests value they're willing to pay for, and bookings and consistency on Oceania have been encouraging.