Norwegian Cruise Line Holdings Ltd. (NCLH), along with its subsidiary companies, operates as a major global cruise enterprise. Its operations span North ...
Norwegian Cruise Line Holdings Ltd. (NCLH) is a Bermuda-domiciled, US-based global cruise enterprise, headquartered in Miami, Florida. Founded in 1966, the company has evolved into one of the world's largest cruise operators, boasting a combined fleet of 33 ships across three distinct brands: Norwegian Cruise Line (contemporary), Oceania Cruises (upper-premium), ...Norwegian Cruise Line Holdings Ltd. (NCLH) is a Bermuda-domiciled, US-based global cruise enterprise, headquartered in Miami, Florida. Founded in 1966, the company has evolved into one of the world's largest cruise operators, boasting a combined fleet of 33 ships across three distinct brands: Norwegian Cruise Line (contemporary), Oceania Cruises (upper-premium), and Regent Seven Seas Cruises (luxury). Together, these brands offer itineraries ranging from three-day getaways to 180-day world cruises, covering destinations in Scandinavia, the Mediterranean, Alaska, the Caribbean, Asia, Australia, and beyond. NCLH's business model focuses on innovative hospitality, with features like freestyle cruising, and it sells through travel advisors, onboard direct sales, and charter services. Financially, the company generates significant revenue, with a market cap around $8.8 billion, but carries substantial debt due to capital-intensive shipbuilding. Key executives include CEO John W. Chidsey, who also chairs the board. The company employs approximately 44,500 people, reflecting its large-scale operations. Despite challenges like the pandemic, NCLH continues to expand its fleet and enhance guest experiences, aiming for sustainable growth and profitability.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$9.8B
+3.7%
+13.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$423.2M
-53.5%
+112.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+32.0%
-20.1%
-2.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+16.2%
+4.8%
+37.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.3%
-55.1%
+87.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-1.2B
-239.5%
+128.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-11.9%
-234.5%
+125.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
660.9%
-32.3%
-6.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.21x
+19.5%
-4.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to the Norwegian Cruise Line Holdings second quarter earnings conference call. My name is Samantha, and I will be your operator. [Operator Instructions] As a reminder to all participants, this conference call is being recorded. I would now like to turn the conference over to your host, Sarah Inmon, VP of Investor Relations. Ms. Inmon, please proceed.
Sarah Inmon: Thank you, and good morning, everyone. Thanks for joining us for our second quarter 2026 earnings call. I'm joined today by John Chidsey, CEO of Norwegian Cruise Line Holdings; and Mark Kempa, Executive Vice President and Chief Financial Officer. As a reminder, this conference call is being simultaneously webcast on the company's Investor Relations website. We will be referring to a slide presentation during the call, which can also be found on our website. Both the conference call and presentation will be available for replay for 30 days following today's call. Before we begin, I would like to cover a few items. Our press release with second quarter 2026 results were issued this morning and is also available on our Investor Relations site. This call includes forward-looking statements that involve risks and uncertainties that could cause our actual results to differ materially from such statements. These statements should be considered in conjunction with the cautionary statement contained in our earnings release. Our comments may also reference non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and presentation. Unless otherwise noted, all references to 2025 and 2026 net yield and adjusted net cruise cost excluding fuel per capacity day are on a constant currency basis and comparisons are to the same period in the prior year. With that, I'd like to turn the call over to John.
John Chidsey: Thanks, Sarah, and thanks, everyone, for joining the call. I'm joined today by Mark as we discuss our second quarter results. At a high level, we delivered solid second quarter results. Top line grew 5%, driven by increased capacity days, while we lowered unit cost 0.5%, leading to profitability ahead of guidance. At the same time, the team made substantial progress during the quarter to advance our turnaround priorities. I'm going to talk with you today about actions underway and why I am confident in our pathway to revenue recovery, which combined with our cost control capabilities, will drive meaningful growth and profitability and improve shareholder returns. Successful turnarounds are never linear and take time to demonstrate tangible performance improvements, which translates into financial success. Rest assured, our teams are moving with urgency and enhanced accountability across internal functions to continue executing on the initiatives we have underway and are building on our strong foundation. As you can see on Slide 4, during my …
