Key financial results

  • Net yield: Third quarter net yield declined 6.7% on a constant currency basis, beating guidance by approximately 220 basis points due to stronger-than-expected close-in demand and onboard spending.Net yield declined 6.7% approximately 220 basis points better than guidance
  • Costs: Adjusted net cruise cost excluding fuel per capacity day declined 2.3% year-over-year, which was 140 basis points better than guidance because of savings and expense timing shifts into the fourth quarter.unit costs declining 2.3% year-over-year, 140 basis points better than guidance
  • EBITDA: Adjusted EBITDA reached $937 million, exceeding guidance by $63 million.
  • EPS: Adjusted EPS came in at $1.12 per share, surpassing guidance by $0.22.adjusted EPS of $1.12, $0.22 above guidance
  • Occupancy: Occupancy reached 106.5%, exceeding the 104% expectation by approximately 250 basis points.lifted occupancy to 106.5%, approximately 250 basis points above our expectation of 104%

Business segment results

  • Great Stirrup Cay: Great Tides Waterpark and a new two-berth pier officially opened at Great Stirrup Cay on September 4, featuring 19 water slides and a high-energy river.we celebrated the official opening of Great Tides Waterpark and our new two-berth pier at Great Stirrup Cay
  • Great Stirrup Cay: Early financial and operational results for Great Stirrup Cay met expectations, with 90% of surveyed guests stating they would recommend the waterpark.90% of guests surveyed visiting Great Tides say they would recommend Great Tide's Waterpark
  • Great Stirrup Cay: Social media content for the Great Stirrup Cay opening generated over 275 million views from approximately 100 creators.generated more than 275 million views to date
  • Regent: Seven Seas Prestige for Regent will welcome guests in December as the brand's first new ship class in a decade, offering more space per guest and suites starting at $25,000 per night.preparing to welcome Seven Seas Prestige to Regent this December, which will mark the brand's first new ship class in a decade
  • Regent: Launch day bookings for Seven Seas Prestige exceeded the previous new ship record set by Seven Seas Splendor by 26%, with the SkyView Regent Suite already booked on over 70% of 2027 sailings.launch day bookings exceeded region's previous new ship record set by Seven Seas Splendor by 26%

Capital allocation

  • CapEx: Gross new build capital expenditures will decline by about $1 billion each year in 2028 and 2029 as growth capital expenditures remain elevated through 2027.gross new build capital expenditures declined by about $1 billion each year
  • Fleet transactions: The company completed the sale of Oceania Sirena with a charter agreement to operate it until spring 2028, and entered a memorandum of agreement to sell Oceania Insignia for delivery in September 2027.
  • Liquidity: Subsequent to the quarter end, the company issued $950 million of senior notes due 2031 and upsized its revolving loan facility to $2.8 billion in a leverage-neutral transaction.completed the issuance of $950 million of senior notes due 2031 and upsized our revolving loan facility to $2.8 billion
  • Demand trends: Management noted extraordinary close-in demand from consumers who deferred summer vacations and booked closer to departure.extraordinary close-in demand by consumers who deferred summer vacations and ultimately book closer to departure
  • Target audience: The company identified a target audience of approximately 30 million premium families and seasoned travelers from households earning over $100,000 annually, the majority of whom do not cruise.premium families and seasoned travelers. Our research sizes these audiences at approximately 30 million vacationers

Competitive landscape

  • Brand positioning: Management noted that the product itself requires minimal changes, with the primary opportunity lying in enhancing brand communication and differentiation against competitors.more of an opportunity to enhance our brand communication as opposed to the product itself
  • Brand positioning: The new positioning centers on 'cruise without compromise' focusing on freedom, choice, and hospitality to address perceived experiential gaps in cruising.Our new positioning centers around the idea of crews without compromise

Macroeconomic environment

  • The call did not discuss broader macroeconomic indicators outside of travel demand and consumer booking patterns.

Growth opportunities and strategies

  • Turnaround strategy: The company's turnaround strategy rests on three pillars: strengthening revenue performance, improving operating efficiency, and enhancing the guest experience.built around 3 priorities: strengthening revenue performance, improving operating efficiency and enhancing the guest experience
  • Revenue management: A new revenue management system and baseloading strategy have been implemented across the majority of NCL's second half 2027 sailings and all 2028 sailings.implemented a new revenue management system, rolled out a new baseloading strategy across the majority of NCL's second half 2027 sailings and all 2028 sailings
  • Cost savings: An additional $100 million in expected run rate savings was announced from air optimization and promotional refinements, bringing total identified annualized savings to over $600 million.
  • Marketing: A new creative platform centered around the tagline 'It's different out here' will launch in January alongside the 2027 wave season.expect to launch in January alongside the 2027 wave season

Financial guidance and outlook

  • Q4 2026 outlook: For the fourth quarter, net yield is expected to decline approximately 6.5% on a constant currency basis.expect net yield to decline approximately 6.5% on a constant currency basis
  • Q4 2026 outlook: Fourth quarter adjusted net cruise cost excluding fuel per capacity day is expected to increase approximately 1.7% year-over-year.expect adjusted net cruise cost ex fuel per capacity day to increase approximately 1.7% year-over-year
  • Q4 2026 outlook: Fourth quarter adjusted EBITDA is projected at approximately $414 million, with adjusted EPS expected to be negative $0.12.
  • Full year 2026 guidance: Full year 2026 net yield guidance was raised to a decline of approximately 4.4% on a constant currency basis.raising our full year net yield guidance to a decline of approximately 4.4%
  • Full year 2026 guidance: Full year 2026 adjusted net cruise cost excluding fuel per capacity day is expected to decline approximately 0.4%.expect full year adjusted net cruise cost, excluding fuel per capacity day to decline approximately 0.4%
  • Full year 2026 guidance: Full year 2026 adjusted EBITDA outlook was raised by approximately $50 million to $2.55 billion, and adjusted EPS outlook was increased by $0.20 to $1.70.
  • 2027 outlook: Full year 2027 net yield growth is expected to be 1% to 2% on a constant currency basis, with a meaningful acceleration in the second half.full year net yield growth will be 1% to 2% with a meaningful acceleration in the second half of the year

Leadership transition

  • Management change: Mark Kempa is stepping down as Chief Financial Officer after more than 25 years with the company, continuing as CFO through the end of 2026 and in an advisory capacity through June 2027.Mark will be stepping down as Chief Financial Officer after more than 25 years with the company
  • Management change: Meghan Montana, current Chief Strategy Officer and former American Airlines executive, will succeed Mark Kempa as CFO effective January 1, 2027.Meghan Montana, our current Chief Strategy Officer, succeeding him effective January 1, 2027

Q3 2026 results

MetricResultChange
Net yield-6.7%220 basis points better than guidance
Adjusted net cruise cost excluding fuel per capacity day-2.3%140 basis points better than guidance
Occupancy106.5%250 basis points above expectation of 104%
Adjusted EBITDA$937 millionExceeded guidance by $63 million
Adjusted EPS$1.12$0.22 above guidance
Adjusted operational EBITDA margin43.3%Approximately 210 basis points above guidance

How management sounded

Balanced (+35 on our -100 to +100 scale). Management highlighted strong third quarter beats and high confidence in 2027 performance while noting continued turnaround progress. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.

Read the analyst Q&A summary and guidance and outlook for this call.

What to watch before the next call

  • Continuation of close-in booking demand trends into future quarters.
  • Progress and early benefits from the turnaround strategy and baseloading implementation.
  • Execution of the CFO transition from Mark Kempa to Meghan Montana.

Earlier calls

  • Q2 2026 (Jul 30, 2026), tone Cautious: Norwegian Cruise Line reported solid second quarter results with top line growth of 5% and profitability ahead of guidance, while cutting unit costs 0.5%.