Norwegian Cruise Line Q1 Results Lower Outlook

Norwegian Cruise Line Q1 results showed a first-quarter profit but led the company to lower its full-year outlook in a May 4, 2026 press release. The revision cited disruptions in the Middle East and rising fuel costs that weakened bookings, especially in Europe.

Quarter Results and Guidance

Norwegian Cruise Line Holdings Ltd. (NCLH) reported first-quarter revenue of $2.33 billion, up 10% year over year but below analyst estimates of $2.36 billion. GAAP net income was $105 million, or $0.23 a share, reversing a loss from the prior year. Adjusted EBITDA rose 18% to $533 million, exceeding the company’s prior guidance of about $515 million. Adjusted earnings per share of $0.23 also surpassed earlier expectations of roughly $0.16.

The company lowered its full-year 2026 guidance, forecasting adjusted EPS between $1.45 and $1.79 and adjusted EBITDA of $2.48 billion to $2.64 billion. It projected net yield on a constant-currency basis down 3% to 5% compared with 2025, an adjusted operational EBITDA margin of 32.9% to 34.3%, and adjusted net income of $679 million to $838 million. Adjusted net cruise cost excluding fuel per capacity day was expected to remain roughly flat in constant currency. Management attributed the revision to Middle East disruptions, higher fuel costs, softer demand—particularly in Europe—and bookings that started the year behind the company’s targeted curve.

Costs, Demand, and Capital

For the second quarter, Norwegian Cruise Line guided adjusted EBITDA of about $632 million, net yield down roughly 3.6% on a constant-currency basis, and adjusted net cruise cost excluding fuel per capacity day rising about 1.0% in constant currency. The company projected an adjusted operational EBITDA margin near 32.5% and occupancy around 102.5%.

Management said the company entered 2026 behind its targeted booking curve, which has slowed the pace of bookings. Mark A. Kempa, executive vice president and chief financial officer, said, "As we navigate a more uncertain macroeconomic and geopolitical environment, we are acting diligently to offset those pressures through targeted SG&A savings and broader efficiency initiatives."

As of March 31, 2026, total debt stood at $15.2 billion with net debt of $15.0 billion and net leverage of 5.3 times. Liquidity was $1.6 billion. The company plans about $2.9 billion in capital expenditures across 2026 and 2027 for new ships and growth. It also refreshed its board with five new independent directors effective March 31 and took delivery of a new vessel, Norwegian Luna.

The combination of softer yields, higher fuel expenses, and heavy capital commitments makes near-term performance dependent on bookings, revenue management, and the company’s ability to deliver on cost and efficiency initiatives. This outlook will focus investor attention on upcoming booking trends.