Legendary Value Investor Seth Klarman is Buying Norwegian Cruise Line (NCLH)

Baupost's Stake: $67,881,000

Norwegian Cruise Line Holdings (NYSE:NCLH) trades astatine astir 9x EV/EBITDA and little than 10x guardant earnings. This shows a discount to peers similar Royal Caribbean and Carnival, which commercialized astatine higher multiples.

In Q1 2026, NCLH returned to profitability with gross of $2.33 cardinal and nett income of $104.67 cardinal versus a nonaccomplishment a twelvemonth earlier. Occupancy is expected to transcend 104% successful 2026, and Norwegian Cruise Line Holdings' (NYSE:NCLH) luxury brands proceed to spot steadfast demand. Broader cruise bookings are holding up good crossed the industry.

The indebtedness load has been the biggest interest hanging implicit the stock. But astir of that indebtedness does not mature until 2030, giving absorption respective years to amended currency travel and trim leverage. Capital spending is besides expected to diminution importantly aft 2027, perchance freeing up astir $1 cardinal annually for indebtedness reduction.

Activist capitalist Elliott Management has pushed for operational improvements, committee changes, and a much disciplined fiscal strategy. And caller CEO John Chidsey has launched a turnaround program including $125 cardinal successful outgo savings.

Ariel Small Cap Value Fund stated the pursuing regarding Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) in its Q1 2026 capitalist letter:

Alternatively, shares of Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) declined during the 4th aft net guidance came successful beneath capitalist expectations. The results bespeak a transitional play nether caller enactment arsenic the institution ..." (Click Here to Read the Letter successful Detail).

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