Norwegian Cruise Line Reports $2.13 Billion Revenue and $40.3 Million Net Loss for Q1 2025

Norwegian Cruise Line Holdings Ltd. reported a total revenue of $2.13 billion for the three months ended March 31, 2025, a decrease of 2.9% compared to $2.19 billion in the same period of 2024. The decline in revenue was primarily attributed to a reduction in capacity days, which was influenced by an increase in the number of larger ships undergoing dry-dock during the quarter. The company experienced a net loss of $40.3 million, or $(0.09) per diluted share, contrasting with a net income of $17.4 million, or $0.04 per diluted share, in the prior year.

Operating income for the quarter was $200.9 million, down from $218.4 million in the previous year. Despite the decrease in operating income, gross margin increased by 2.5% to $610.9 million, driven by a reduction in total cruise operating expenses, which fell by 6% to $1.30 billion. The company reported adjusted EBITDA of $453.1 million, a slight decrease of 2.4% from $464.0 million in the prior year. The adjusted net income for the quarter was $30.5 million, down from $69.5 million in 2024, reflecting adjustments primarily related to losses on extinguishment and modification of debt.

In terms of operational metrics, Norwegian Cruise Line carried 669,099 passengers during the quarter, a decrease from 736,559 passengers in the same period last year. The occupancy percentage also declined to 101.5% from 104.6%. The company reported an increase in advance ticket sales, which rose to $3.9 billion, reflecting strong demand for future voyages. The company’s liquidity position remained robust, with approximately $1.4 billion available, including cash and cash equivalents of $184.4 million and $1.0 billion under its revolving loan facility.

Strategically, Norwegian Cruise Line is focused on expanding its fleet, with plans to add 12 new ships from 2025 through 2036. The company has three Prima Class ships on order for delivery between 2026 and 2028, and one Allura Class ship scheduled for delivery in 2025. Additionally, the company has secured export credit financing to cover approximately 80% of the contract price for these new builds. The company is also actively managing its debt profile, having issued $1.8 billion in senior unsecured notes due in 2032 and increased its revolving loan facility to $1.7 billion.

Looking ahead, Norwegian Cruise Line anticipates continued challenges due to macroeconomic conditions, including inflation and fluctuating fuel prices. However, the company remains optimistic about its ability to manage costs and maintain operational efficiency. The management is committed to balancing disciplined pricing with guest experience and strategic investments, while also addressing the impacts of climate change and regulatory requirements on future capital expenditures.