Revenue Growth Driven by New Ship Capacity
Total revenue rose 4.9% to $2.6 billion, primarily due to an increase in Capacity Days from new ship deliveries, while Occupancy Percentage dipped slightly to 102.4% from 103.9%.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Norwegian Cruise Line Holdings' second quarter of fiscal 2026 was defined by the delivery of new ships that expanded capacity, driving a 4.9% increase in revenue. However, higher operating costs, particularly fuel and payroll, outpaced revenue growth, leading to a 14.3% decline in operating income. Net income surged to $222.6 million from $30.0 million a year earlier, benefiting from a $156.4 million swing in foreign currency remeasurements on euro-denominated debt and lower interest expense after prior-year debt extinguishment charges. The company's aggressive fleet optimization strategy, including bareboat charters and a vessel sale, aims to improve long-term efficiency, but near-term demand softness from the Middle East conflict and company-specific execution challenges remain a concern.
Cost of Revenue
$1.59B
+8.92% YoY
EPS (Diluted)
$0.48
+585.71% YoY
Operating Income
$363.33M
-14.28% YoY
Source: SEC XBRL
Norwegian Cruise Line Holdings (NCLH) reported Q2 FY2026 revenue of $1.59B, up 8.9% year over year. NCLH's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.48 | 0.40 | Beat +20.4% |
| Mar 2026 | 0.23 | 0.15 | Beat +58.3% |
| Dec 2025 | 0.28 | 0.27 | Beat +5.3% |
| Sep 2025 | 1.20 | 1.18 | Beat +1.6% |
Reported EPS of $0.48 versus the $0.40 analyst consensus — a +20.4% beat for Jun 2026.
Compiled by AI from 10-Q Item 2 of this filing
Total revenue rose 4.9% to $2.6 billion, primarily due to an increase in Capacity Days from new ship deliveries, while Occupancy Percentage dipped slightly to 102.4% from 103.9%.
Source: 10-Q Item 2 MD&A
Net income of $222.6 million compared to $30.0 million a year ago, largely due to a $156.4 million favorable swing in foreign currency remeasurements on euro-denominated debt and a $68.4 million reduction in debt extinguishment charges.
Source: 10-Q Item 2 MD&A
The company entered bareboat charter agreements for Norwegian Sky and Norwegian Sun, a nine-year charter for Seven Seas Navigator, and entered a memorandum of agreement for the sale of Oceania Sirena, while repositioning Oceania Nautica as Aurelia after refurbishment.
Source: 10-Q Item 2 MD&A
Management is targeting $125 million in annualized savings within marketing, general and administrative expense, with an additional $100 million in expected annualized run-rate savings identified in Q2 from technology vendor consolidation and salary reductions.
Source: 10-Q Item 2 MD&A
The Company remains below its optimal booked position for the next 12 months, citing softer demand at Norwegian Cruise Line due to company-specific execution challenges and the ongoing Middle East conflict.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Adverse general economic factors such as inflation, interest rate increases, and the ongoing Middle East conflict are depressing consumer confidence and demand for cruise vacations, directly impacting booking volumes and pricing power.
Source: 10-Q Item 1A Risk Factors
The company carries a debt-to-equity ratio of 8.33 and a current ratio of 0.20, indicating heavy reliance on debt financing and a tight liquidity position that restricts financial flexibility and increases vulnerability to market disruptions.
Source: 10-Q Item 2 MD&A
The strategic sale, charter, and repositioning of older vessels involves complex transactions and may lead to residual liabilities, counterparty performance risk, and potential impairment losses, which could disrupt operations and financial stability.
Source: 10-Q Item 2 MD&A
Fuel is approximately 52% hedged for the remainder of 2026, but the remaining exposure poses a significant cost risk, as a 10% rise in fuel prices could increase annual fuel expense by tens of millions of dollars.
Source: 10-Q Item 2 MD&A
The company relies on third parties for hotel management on certain ships, key technology services, and payment processing; disruption or failure of these providers could severely interrupt operations and may not be replaceable on acceptable terms.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 1.59 $B | 1.46 $B | +8.92% |
Operating Income $M | 363.33 $M | 423.84 $M | -14.28% |
Net Income $M | 222.55 $M | 29.99 $M | +642.04% |
EPS (Basic) $ | 0.48 $ | 0.07 $ | +585.71% |
EPS (Diluted) $ | 0.48 $ | 0.07 $ | +585.71% |
SG&A Expense $M | 419.20 $M | 393.05 $M | +6.65% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
NCLH delivered a strong Q1 FY2026 with net income swinging to $104.7M from a prior-year loss of $40.3M, driven by a 15.9% jump in operating income and robust operating cash flow of $811.5M, though the balance sheet remains highly leveraged with a debt-to-equity ratio of 8.79.
NCLH delivered FY2025 operating income growth of 6.5% to $1.56B, but net income fell sharply by 53.5% to $423M, primarily due to elevated below-the-line costs, while the company significantly expanded its asset base and improved its equity position.
Other companies in Hotels, Resorts & Cruise Lines