Norwegian Cruise Line slashes FY2026 guidance, citing softer bookings and execution issues, prompting a 9-10% earnings outlook reduction.
Morgan Stanley lowered its price target for Norwegian Cruise Line Holdings (NCLH) from $23 to $20, reflecting concerns over weaker booking momentum and execution challenges. The stock has fallen 21% this year amid pricing friction and softer demand in key markets like Europe and Alaska.
NCLH revised its FY2026 guidance, projecting a 3% to 5% decline in Net Yield, down from previous flat expectations. Adjusted EBITDA is now forecast at $2.48 billion to $2.64 billion, signaling reduced pricing power and onboard spending pressures.
Management attributed the shortfall to slower-than-expected recovery, marketing inefficiencies, and revenue management missteps. The company entered 2026 behind its booking curve and has struggled to regain momentum.