NCLH Q4 2024 Earnings

Call Details

• Call Title: Norwegian Cruise Line Q4 2024 Earnings Call
• Date: February 27, 2025 at 1:00 PM UTC
• Management Team:
  • Harry Sommer (President and Chief Executive Officer)
  • Mark Kempa (Executive Vice President and Chief Financial Officer)
  • Sarah Inman (Investor Relations)

Call Summary

Financial Performance

• Full year 2024 net yield increased 10% versus prior year on a constant currency basis.
• Fourth quarter 2024 net yield grew 9%, outperforming guidance by 210 basis points.
• Full year adjusted EBITDA was reported at just over $2.45B for 2024.
• Fourth quarter adjusted EBITDA was $468M, which exceeded guidance.
• Full year adjusted EPS was $1.82 and fourth quarter adjusted net income was $125M or $0.26 per share.
• Full year operating cash flow was just over $2.0B, contributing to a net leverage reduction of two turns to 5.3x.

Guidance

• Full year 2025 net yield growth is guided to approximately 3% on a constant currency basis.
• Company is projecting full year 2025 adjusted EBITDA of $2.72B and adjusted EPS of $2.05.
• Full year 2025 pricing is projected to increase 4.5% per Harry and net per diem growth of ~4.6% in the last three quarters per Mark.
• First quarter 2025 pricing is projected to increase 3.6% with net yield growth of 0.5% and occupancy expected down about 3% year over year to just over 101%.
• Full year 2025 adjusted net cruise cost ex-fuel is targeted to grow 1.25%, which management states is below expected inflation.
• First quarter 2025 adjusted net cruise cost ex-fuel is expected to increase 3.9%, which includes an $8 impact from increased dry dock capacity days.