Norwegian Cruise Line Holdings Ltd. (NCLH) saw its stock drop sharply by around 11.5% following a disappointing first-quarter earnings report for 2025. The company posted a loss of $40.3 million, or $0.09 per share, compared to a profit of $17.35 million during the same period last year. Adjusted earnings per share (EPS) came in at $0.07, falling short of Wall Street’s expectations of $0.09. Revenue for the quarter also declined by 3%, totaling $2.13 billion, which missed the projected $2.15 billion.

The company attributed the weaker-than-expected results to lower demand for its premium voyages and private island experiences, which it linked to broader economic uncertainties, including potential recession fears and the impact of tariffs. Additionally, Norwegian revised its 2025 earnings guidance down to $2.05 per share, lower than analysts’ expectations of $2.08 per share.

While Norwegian maintained its full-year 2025 earnings target, it also lowered its net yield growth forecast to a range of 2.0% to 3.0%, down from the previous 3.0%.

As of April 30, 2025, NCLH shares were trading at $15.91, marking a significant decline of 8.46% from the previous session. Investors have expressed concerns about the company’s ability to navigate the current economic climate and meet its financial goals, given the underperformance and cautious outlook.

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