Adjusted EPS was $0.51, in line with guidance despite an $0.08 foreign exchange headwind related to advanced ticket sales revaluation.
Adjusted net cruise cost excluding fuel was flat at $163, better than expected due to timing of expenses.
For Q3, occupancy is expected at approximately 105.5%, with net yield growth of about 1.5% and adjusted EBITDA just over $1 billion.
Full year 2025 occupancy is expected to average 103.3%, with a margin target of approximately 37% and continued margin expansion toward 39% by end of 2026.
Net leverage reduced to 5.3x in Q2, expected to be 5.2x at year-end, down over 2 turns from 2023, with a goal of mid-4x range by 2026.
Net yield grew 3.1%, driven by strong close-in demand and onboard spend, with a trailing 12-month margin of 36.3%, up over 300 basis points year-over-year.
Norwegian Cruise Line Holdings reported a record second quarter 2025 with revenue and adjusted EBITDA exceeding guidance, achieving $694 million adjusted EBITDA, $24 million above expectations.
Occupancy for Q2 was 103.9%, slightly above guidance, with pricing growth of 5.1%.
Agent commission splits were 80.9%, up 36 basis points year-over-year, driven by business mix and agent mix with top agents taking greater share of transactions.
Balance sheet strengthened with $500 million new second lien debt issued, $345 million exchangeable notes repurchased at discount, revolver balance reduced to $460 million.
Operating EBITDA by segment: Anywhere Brands $163 million (up $4 million), franchise business expanded margins despite flat volume, Advisors operating EBITDA was 0, down $4 million due to higher employee benefit and commission costs, Integrated Services operating EBITDA was $10 million, up $1 million.
Q2 free cash flow was $36 million before a $41 million onetime payment for a 1999 Cendant legacy tax matter and negatively impacted by $25 million in seasonal volatility from securitization facility.
Q2 operating EBITDA was $133 million, a decrease of $10 million versus prior year, primarily due to higher employee benefit costs, increased investment in Reimagine initiative and an increase in agent commission costs in our own brokerage business.
Q2 revenue was $1.7 billion, up 1% versus prior year.
We realized $25 million in cost savings in the quarter and $39 million of cost savings year-to-date, on target to achieve $100 million in cost savings for 2025 with 95% of savings identified.
Adjusted free cash flow productivity for the quarter was 110%; returned $3.3 billion to shareholders.
Adjusted free cash flow productivity was 87%; returned $16 billion to shareholders including $10 billion in dividends and $6.5 billion in share repurchases.
Core earnings per share for the quarter were $1.48, up 6% versus prior year; core operating margin increased 150 basis points.
Core earnings per share were $6.83, up 4% for the year; core gross margin declined 40 basis points; core operating margin increased 50 basis points.
E-commerce sales increased 12%, representing 19% of total company sales.
Enterprise Markets were up 2%, led by Latin America with 4% organic sales growth.
Fiscal '25 organic sales grew 2%, with volume growth contributing 1 point and price/mix adding 1 point.
Focus Markets grew organic sales 2% for the year; North America up 2%, Europe Focus Markets up 3%.
Fourth quarter organic sales were 2%, with volume in line with prior year and pricing and mix each up 1%.
Greater China organic sales were down 5% for the year but grew 2% sequentially in the most recent quarter.
Nearly $2.7 billion of productivity improvements enabled increased investment in products, packaging, and brand communication.
Nine of 10 product categories grew organic sales for the year; Baby Care was down low singles.
Dafinchi
