Headlines
Norwegian Cruise forecasts quarterly profit below estimates, shares tumble
Published by Global Banking and Finance Review
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Norwegian Cruise Line forecasts lower Q4 profit due to cost pressures and reduced travel demand, causing a 15% share drop.
By Neil J Kanatt
(Reuters) -Norwegian Cruise Line Holdings forecast fourth-quarter profit below expectations on cost pressures and subdued appetite for sea-based vacations as travelers curb spending, sending its shares down about 15% on Tuesday.
Persistent inflation, tariff-driven uncertainty, and the fallout of the prolonged U.S. government shutdown on port activity have clouded demand heading into the crucial holiday season.
Volatile fuel prices due to geopolitical tensions, and expenses related to drydocks, ship deliveries and maintenance are also pressuring cruise operators.
Norwegian expects current-quarter adjusted profit per share of 27 cents, below estimates of 30 cents, according to data compiled by LSEG.
"We're strengthening our brand positioning and marketing to reach the broader family market," said CEO Harry Sommer in a post-earnings call.
Analysts blamed the sharp fall in the stock on investor worries over the company's efforts to cater heavily to families, as it would likely hit ticket revenue.
"While pricing for first and second passengers should rise, additional children in a cabin dilute blended pricing," said Morningstar analyst Jamie Katz.
Norwegian's third-quarter revenue rose 4.7% to $2.94 billion, compared with analysts' expectations of $3.02 billion. It had risen 10.7% in the year-ago quarter.
It said lower air program participation - where the company helps coordinate flights to fit a planned cruise itinerary - affected revenue.
Occupancy fell to 106.4% from 108.1%, while fuel price increased to $744 per metric ton, net of hedges, from $699 a year earlier.
However, the company lifted its annual adjusted profit forecast to $2.10 per share, compared with the prior forecast of $2.05. Adjusted profit per share of $1.20 beat estimates of $1.16 for the third quarter.
Peer Royal Caribbean raised its annual profit forecast last week, but forecast current-quarter profit below estimates on higher costs.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Pooja Desai and Sriraj Kalluvila)
Adjusted profit per share is a financial metric that indicates a company's profitability on a per-share basis, excluding certain non-recurring expenses and income.
Cost pressures refer to the increasing expenses that a company faces, which can affect its profitability and operational efficiency.
Market response is the reaction of investors and consumers to a company's financial performance or news, often reflected in stock price movements.
Revenue is the total income generated by a company from its business activities, typically from sales of goods and services.
Occupancy rate is a measure of how much of a company's available capacity is being utilized, often expressed as a percentage.
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