Norwegian Cruise Line Holdings (NYSE: NCLH) has reported its financial results for the first quarter ended March 31, 2025. The company generated total revenue of $2.1 billion, reflecting a 3% decrease compared to the first quarter of 2024 due to a 2% decline in capacity days and a strategic reduction in passenger air participation rates. The GAAP net loss was ($40.3) million, a decline of $57.6 million compared to the same period in 2024, driven by reduced capacity days and foreign exchange losses of $23 million.
On a positive note, the company's adjusted EBITDA of $453 million exceeded guidance and gross margin per capacity day increased by 5% versus 2024. Net yield growth also increased over the prior year by approximately 0.6% on an as-reported basis and 1.2% on a constant currency basis, exceeding the guidance of 0.5%. Gross cruise costs per capacity day were approximately $297 in the first quarter of 2025 compared to $300 in 2024, and adjusted net cruise cost excluding fuel per capacity day was approximately $169, up 2.9% on an as-reported basis and 3.0% on a constant currency basis compared to 2024, but better than the guidance of 3.9%.
The company's total debt was reported at $14.0 billion, and net leverage was 5.7x at the end of the quarter, reflecting a 0.4x increase from December 31, 2024, primarily due to the delivery of the Norwegian Aqua in March 2025. The company successfully refinanced the majority of its 2025 exchangeable notes and completed an equity offering, reducing diluted share count by approximately 15.5 million shares.
Looking ahead, Norwegian Cruise Line Holdings maintained its full-year 2025 adjusted EBITDA and adjusted EPS guidance. The company is updating its full-year 2025 net yield and adjusted net cruise cost excluding fuel guidance, with adjusted EBITDA margin guidance for the full year expected to be approximately 37%. The company remains committed to its charting the course 2026 financial targets.
The company's liquidity as of March 31, 2025, was reported at $1.4 billion, including approximately $184.4 million of cash and cash equivalents and $1.0 billion of availability under its revolving loan facility, and other commitments.
In terms of the outlook, the company has seen softening in its 12-month forward booked position but remains within the optimal range, even amid ongoing macroeconomic volatility. Occupancy for the first quarter of 2025 was 101.5%, in-line with guidance, and the company's advance ticket sales balance, including the long-term portion, ended the first quarter of 2025 at $3.9 billion, up 2.6% year-over-year.
The company is committed to prioritizing efforts to optimize its balance sheet and reduce net leverage, aiming to end the year with net leverage at approximately 5x. Additionally, the company has provided guidance for the second quarter and full year 2025, along with accompanying sensitivities, subject to changes in the broad macroeconomic environment.
Norwegian Cruise Line Holdings continues to invest in its fleet, with the debut of the Norwegian Aqua and significant milestones achieved in the development of new ships across its brands.
As a result of these announcements, the company's shares have moved -10.0% on the market, and are now trading at a price of $15.64. For the full picture, make sure to review Norwegian Cruise Line's 8-K report.
