10-Q · August 3, 2026
NCLH delivered Q2 revenue of $2.641 billion, up 4.9% year over year and 13.3% sequentially from $2.330 billion, while GAAP EPS rose to $0.48 from $0.07 a year earlier and $0.23 in Q1. Underlying operating trends were…
Earnings analysis · 10-Q
NCLH earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
NCLH delivered a strong Q3, with revenue of $2.947 billion, diluted EPS of $1.12, gross margin of 47.1% and operating margin of 25.5%; both margins expanded substantially sequentially. The accompanying earnings update…
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NCLH delivered a strong Q3, with revenue of $2.947 billion, diluted EPS of $1.12, gross margin of 47.1% and operating margin of 25.5%; both margins expanded substantially sequentially. The accompanying earnings update raised full-year 2026 adjusted EPS guidance to approximately $1.70 and adjusted EBITDA guidance to approximately $2.55 billion. Offsetting concerns include rising variable-rate debt exposure, substantial unhedged euro-denominated shipbuilding commitments and higher fuel-cost sensitivity; current-quarter free cash flow and detailed balance-sheet changes were not present in the supplied filing extract.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.12
What stood out
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Revenue rebounded sequentially
Q3 revenue was $2.947 billion, up approximately 11.6% from $2.64 billion in Q2 2026 and approximately 0.2% from $2.94 billion in Q3 2025.
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Strong margin expansion
Gross margin increased to 47.1% from 39.9% in Q2 2026, while operating margin rose to 25.5% from 13.8%, representing sequential expansions of 7.2 and 11.7 percentage points, respectively.
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EPS improved materially
Diluted EPS was $1.12 versus $0.48 in Q2 2026 and $0.86 in Q3 2025, increases of $0.64 and $0.26, respectively.
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Fuel hedging provides protection
The company had hedged approximately 48% of remaining 2026 projected fuel purchases and 39% of 2027 purchases as of September 30, 2026, providing partial protection against fuel-price volatility.
What to watch
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Higher variable-rate exposure
Variable-rate debt increased to 12% of total debt from 10% at December 31, 2025. A one-percentage-point increase in SOFR would raise annual interest expense by approximately $18.2 million.
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Large euro construction exposure
Unhedged euro-denominated ship-construction payments totaled €14.1 billion, or $16.0 billion, as of September 30, 2026. A 10% euro movement would change their U.S.-dollar value by approximately $1.6 billion.
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Fuel costs remain a headwind
Fuel expense represented 11.7% of cruise operating expense in Q3 2026 versus 11.3% in Q3 2025. A 10% increase in weighted-average fuel prices would increase anticipated 2026 fuel expense by $25.1 million, partly offset by an estimated $11.6 million increase in fuel-swap fair value.
Management's outlook
Full-year 2026 adjusted EPS guidance was raised to approximately $1.70 and adjusted EBITDA guidance to approximately $2.55 billion. Q4 net yield guidance remained approximately negative 6.5%. These quantitative outlook figures were disclosed in the accompanying earnings update; the extracted 10-Q text does not include the MD&A guidance section.
Earlier filings 4
10-Q · May 4, 2026
Norwegian Cruise Line Holdings reported solid Q1 2026 results with revenue of $2.33 billion, a 9.6% increase from the previous year. EPS came in at $0.23, a significant turnaround from a loss of $0.09 year-over-year.…
10-K · March 2, 2026
NCLH's 2025 10-K reiterates a fleet-led growth strategy — 34 ships (~71,400 berths) today and a pipeline of 17 additional ships from 2026–2037 — supported by export credit financing and revolving credit availability…
10-Q · November 4, 2025
Norwegian Cruise Line reported Q3 revenue of $2,938,142,000, up $131,564,000 versus Q3 2024, with adjusted operating income rising to $768,420,000 and operating income to $749,449,000. However, net income and diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.