NCL. Photo: Shutterstock Norwegian Cruise Line Holdings (NYSE: NCLH) released its financial results for the first quarter of the year yesterday (April 30, 2025), posting disappointing results that led to a roughly 7% drop in early trading of the company's stock.
The company reported revenues of $2.13 billion for the first quarter, down about 3% compared to the same period last year, and missing analyst forecasts that expected revenues of $2.15 billion. The adjusted net income stood at $0.07 per share, below the forecast of $0.09 per share.
The weak performance is attributed to a decline in demand for luxury cruises and experiences on private islands, against the backdrop of growing economic concerns, including fears of a recession and unclear tariff policies. The company also noted a decrease in future bookings, although they remain within the optimal range.
Despite the challenges, Norwegian Cruise Line maintains its annual profit forecast for 2025, with an adjusted profit of $2.05 per share, representing an increase of approximately 13% compared to the previous year. The company indicates that it will continue cost-saving efforts, including supply chain efficiency, to cope with revenue pressures.
During the quarter, the company received the ship Norwegian Aqua, the first in the Prima Plus series, and completed significant renovations on the Norwegian Bliss and Norwegian Breakaway ships. Additionally, plans were announced to expand facilities on the private island Great Stirrup Cay, expected to open later this year.
Despite the disappointing first quarter results, Norwegian Cruise Line continues to invest in future growth and customer experience improvement. The company faces economic challenges but maintains an optimistic profit forecast for the full year, focusing on efficiency and innovation.
