Norwegian Cruise Line Holdings

Norwegian Cruise Line delivered a first quarter that beat its own guidance, with net yield down 1%, Adjusted Net Cruise Cost Ex Fuel of $168 declining 1%, and Adjusted EBITDA of $533 million all ahead of plan, yet the story was the sharply lowered full-year outlook: net yields now expected to decline 3%-5% and adjusted EPS cut to $1.45-$1.79 from roughly $2.38. New CEO John Chidsey attributed the revision to internal marketing and revenue-management missteps that left the company behind its booking curve, compounded by Middle East-related pressure on European sailings (about 26% of Q2 and 38% of Q3 deployment) and softer domestic demand. Management moved decisively on cost, identifying $125 million of annualized SG&A savings and bringing cumulative savings toward $400 million, while framing the revenue fix as a multi-quarter rebuild that should show green shoots in 2027. With CAPEX set to decline by nearly $1 billion per year and no major debt maturities until 2030, the company emphasized a path to deleveraging even as year-end net leverage sits in the high fives.