NCLH — Q2 2026 Financial Report Analysis

Overview: more ships, lower prices, and a profit jump that came from currency swings

Norwegian Cruise Line Holdings (NCLH), which runs the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands, grew second-quarter 2026 revenue 4.9% to $2.64 billion. According to the 10-Q, that increase was "primarily due to an increase in Capacity Days related to the delivery of new ships." A capacity day is one lower berth available for one day, so it measures how much cruising the fleet could sell. Capacity days rose 8.9%, to 6.59 million from 6.05 million. Norwegian Luna was delivered in 2026 and Norwegian Aqua in 2025.

Revenue grew about half as fast as capacity, which means the company earned less per available berth. The key measure here is Net Yield. It is the revenue left after direct variable costs such as travel-agent commissions, airfare and the cost of onboard goods, divided by capacity days. Put simply, it shows how much the company earns per berth per day after paying the costs that come with each booking. Net Yield fell 2.1% to $298.10 as reported, and 2.6% at constant currency (removing exchange-rate moves). That was better than the company's guidance for a 3.6% decline, but it was still a decline.

On a GAAP basis, net income rose to $222.6 million ($0.48 per diluted share) from $30.0 million ($0.07). That jump does not mean the business improved. Operating income fell 14.3%, to $363.3 million from $423.8 million. The entire increase came from items below the operating line:

• Currency remeasurement of euro debt. NCLH carries debt denominated in euros, and its dollar value is restated each quarter. The result was $33.5 million of other income this quarter, against $156.4 million of other expense a year ago. That swing of about $190 million alone is larger than the whole increase in net income.
• Lower interest expense. Net interest expense fell to $170.9 million from $236.8 million. The 10-Q says the change "primarily reflects losses in 2025 from extinguishment of debt and debt modification costs, which were $68.4 million." That was a one-off refinancing charge in the prior year.

Excluding these items, Adjusted EPS fell 6.6% to $0.48 from $0.51, and Adjusted EBITDA fell 4.1% to $665.5 million. EBITDA is earnings before interest, tax, depreciation and amortization, and this is the company's measure of operating cash profit. Both results beat the company's own guidance ($0.38 and $632 million). They are the better guide to how the business actually performed.