Elliott sends letter and presentation to Board of Directors of Norwegian Cruise Line Holdings Ltd.

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 17 February 2026 17 February 2026

Elliott Investment Management L.P., which manages funds that together hold a greater than 10% economic interest in Norwegian Cruise Line Holdings Ltd., today sent a presentation and letter to the Company's Board of Directors. The materials described Norwegian's strategic and execution missteps during a time of strong demand in the cruise industry, which have led to profound undervaluation and substantial untapped potential.

Elliott's materials detailed the case for change, including a decade of strategic misjudgments and poor execution, meaningful financial and stock-price underperformance and a long-term erosion of investor confidence.

In the materials, Elliott argued that the Board of Directors has failed to fulfill its fundamental responsibilities, including its most important obligation – to select the right leadership. Elliott criticized the Board for appointing successive CEOs who have each destroyed significant shareholder value and said the recent abrupt appointment of a long-tenured Board member with no cruise-industry executive experience continues this troubling pattern of poor judgment and insufficient process.

Elliott's materials outlined a clear path for Norwegian to improve its financial performance, restore credibility with investors and materially boost its shareholder value. Elliott called for comprehensive Board change, including the addition of new, truly independent directors with relevant industry and operational expertise. Elliott further called on the new Board to ensure that the right executive leadership is in place to execute an ambitious turnaround. Finally, Elliott noted that the Company must develop and implement a new business plan that achieves the best-in-class performance that Norwegian shareholders deserve. Elliott believes these actions create a clear path for the stock to reach $56 per share, or 159% higher than current levels.

"Norwegian benefits from a rare combination of secular tailwinds, high-quality assets and untapped opportunity," Elliott wrote in its letter. "Realizing this potential, however, requires meaningful change."

Elliott expressed its desire to reach a constructive resolution with Norwegian, while noting that it is prepared to take its case directly to shareholders at the Company's upcoming annual meeting.

The full text of the letter follows:

February 17, 2026

The Board of Directors
Norwegian Cruise Line Holdings Ltd.
7665 Corporate Center Drive
Miami, Florida 33126

Dear Members of the Board:

We write on behalf of Elliott Investment Management L.P. (together with its affiliates, "Elliott" or "we"), which manages funds holding a greater than 10% economic interest in Norwegian Cruise Line Holdings Ltd. ("Norwegian" or the "Company"), making Elliott one of the Company's largest investors. We have made such a large commitment to Norwegian because we believe the Company is significantly undervalued, despite possessing a fundamentally strong business with substantial untapped potential. We believe it is time for that to change.

The cruise industry continues to benefit from powerful secular tailwinds, including limited capacity growth amid surging demand. Against this backdrop, Norwegian should be particularly well positioned. The Company operates globally recognized brands, serves a large and loyal customer base, and owns a fleet of modern, well-maintained ships with first-class amenities. Norwegian also owns Great Stirrup Cay, one of the largest private island destinations in the industry. These attributes can and should deliver durable growth, meaningful margin expansion and top-tier return on invested capital.

Yet Norwegian has failed to translate these advantages into superior performance. Over the past decade, the Company has fallen from a best-in-class cruise operator at the time of its initial public offering to a clear industry laggard, suffering from inconsistent strategy, weak execution, inaccurate guidance and poor cost discipline. Norwegian has lost its former position as a profitability leader and now operates near the bottom of the peer set. Investor confidence has eroded accordingly, as reflected in the Company's deeply discounted valuation. Norwegian shares are among the worst-performing in the S&P 500 over the last five years.

As Norwegian's financial position has atrophied, its Board of Directors has failed to fulfill any of its fundamental responsibilities, including its most important obligation – to select the right leadership. In 2015, the Board appointed a CEO whose tenure was defined by wasteful spending, misguided strategy and a share-price decline of more than 50%.1 The Board then saw fit to appoint this CEO's protégé, whose poorly executed strategic pivots and repeated guidance misses drove further underperformance of more than 140% relative to Norwegian's peers.2 And last week, shareholders abruptly received the troubling news that the same Board that oversaw all of this value destruction had selected one of its own long-tenured members, who lacks any executive experience in the cruise industry, to be the Company's next chief executive.

The case for change at Norwegian is as compelling as any we have ever seen. We believe the gap between Norwegian's current performance and what it should be achieving under capable leadership represents one of the clearest value-creation opportunities in the public markets. With the right strategy and strong execution, we see a clear path for the stock to reach $56 per share, or 159% higher than current levels.

Today we are publishing a presentation titled "Norwegian Now," which details the case for change at Norwegian and outlines the actions required to improve performance, rebuild credibility and unlock significant shareholder value. As one of Norwegian's largest investors, Elliott is fully committed to driving the changes necessary to unlock the Company's full potential.

A Company Adrift

Norwegian's underperformance reflects more than a decade of strategic misjudgments and poor execution, left unaddressed by a Board that has neglected its oversight responsibilities. The Company has repeatedly pursued initiatives misaligned with industry trends and customer preferences – while competitors have seized opportunities to drive superior growth and profitability.

Critical revenue opportunities were missed or poorly executed. For example, despite Norwegian being the first cruise line to acquire a private island, its leadership inexplicably neglected this transformative opportunity, even as private island destinations became a key driver of customer demand and returns across the industry. Belated attempts to course-correct have been rushed and mismanaged. Norwegian is now redeploying capacity to the Caribbean, but well ahead of the completion of key amenities required to fully monetize its private island. This stumble has created further near-term revenue headwinds and is yet another example of poor strategic execution on the same strategic objectives that have driven results for its peers.

At the same time, a lack of cost discipline became endemic across the organization. Unit costs have risen substantially over the past decade, outpacing peers and consistently exceeding management's own guidance. Growth in corporate overhead – largely disconnected from the customer experience – has been especially pronounced. Despite repeated promises of cost control initiatives, results have failed to materialize, with announced cost programs simply resulting in business-as-usual inflation rather than meaningful structural improvement.

Throughout this period, the Board has failed to hold management accountable for sustained underperformance. In the past five years, Norwegian's shares have underperformed those of Royal Caribbean by approximately 400% and Carnival by more than 60%.3 Yet the Board approved $111 million in CEO compensation during that period.4 More troubling, a series of governance lapses – including, among others, real estate deals between the Company's then-Chairman and management and financial dealings between the Company and the former Chairman shortly after his departure – raise further serious questions about the Board's independence and judgment.

Clearly, the time is now for Norwegian to embrace the changes necessary to improve financial performance and restore investor confidence.

Norwegian Now

With the right leadership, strategy and Board oversight, we believe Norwegian's challenges are readily addressable. In the accompanying presentation, we outline a clear path to a materially higher share price that reflects Norwegian's true potential. The plan calls for:

Comprehensive Board Change: Norwegian requires comprehensive Board change, including the addition of new, truly independent directors with relevant industry and operational expertise, empowered to drive change and hold management accountable.

Management Review: The new Board must ensure that Norwegian has the right executive leadership team in place to restore credibility and execute a bold strategic plan.

New Business Plan: Following Board and leadership changes, the Company should develop, communicate and implement a comprehensive new business plan that delivers on available revenue opportunities, restores cost discipline and achieves industry-leading profitability and return on invested capital.

Norwegian has successfully executed a turnaround before. Under former CEO Kevin Sheehan, the Company achieved best-in-class performance on revenue, costs and margins, including more than 20 points of margin outperformance relative to peers.5 These results were achieved alongside meaningful improvements in the guest experience, including the expansion of freestyle cruising, the launch of highly successful new ships and enhanced onboard entertainment and amenities. We believe the same combination of disciplined execution and customer-focused innovation can drive a comparable turnaround today – but it requires a new Board willing to demand it and with the ability to see it through.

Next Steps

Norwegian benefits from a rare combination of secular tailwinds, high-quality assets and untapped opportunity. Realizing this potential, however, requires meaningful change. We urge the Board to engage with Elliott to implement the changes necessary to strengthen this important Company. Norwegian's shareholders have waited long enough.

We are prepared to meet promptly to discuss these issues in greater detail and align on a path forward. While our preference is to reach a constructive resolution, we are prepared to take our case directly to shareholders at the Company's upcoming annual meeting. We believe investors would welcome the change, as would all those with a stake in Norwegian's future success.

Sincerely,

John Pike
Partner

Bobby Xu
Portfolio Manager

 

 

Norwegian Cruise Line Holdings orders three new cruise ships from Fincantieri

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 16 February 2026 16 February 2026

Fincantieri announces the acquisition of a significant order from Norwegian Cruise Line Holdings Ltd. for the construction of three next-generation cruise ships further consolidating the long-standing relationship between the two Groups. The value of this agreement, subject to financing and other typical terms and conditions, is considered very important.

The three vessels will be built respectively for Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, each as a sister ship to the most recent newbuilds built by Fincantieri for their respective brands. All units will be constructed at Fincantieri’s Italian shipyards, with deliveries scheduled between 2036 and 2037. These ships will embody the highest standards of technological innovation, comfort, and will include environmental sustainability features, reflecting the shared commitment of both Groups to responsible and forward-looking growth.

The new ship for Norwegian Cruise Line will have a gross tonnage of approximately 227,000 tons. With over 5,000 berths, it will be designed according to the highest standards of comfort and technology. The vessel for Regent Seven Seas Cruises will have a gross tonnage of 77,000 tons and around 822 berths, reaffirming the brand’s positioning in the ultra‑luxury segment. The ship for Oceania Cruises will feature a gross tonnage of 86,000 tons and capacity for approximately 1,390 berths, consistent with the brand’s focus on refined, destination‑immersive experiences.

Pierroberto Folgiero, CEO and Managing Director of Fincantieri, said: “We are proud to announce this important order, which further strengthens our collaboration with a prestigious and visionary partner such as Norwegian Cruise Line Holdings and reinforces Fincantieri’s long-standing leadership in the cruise sector. This milestone reflects the core elements of our strategy, as per our 2026–2030 Industrial Plan: leadership, innovation, and the capability to transform the global shipbuilding industry. These next‑generation ships will bring together advanced technology, design excellence, a strong focus on sustainability, energy efficiency and passenger experience, and the industrial strength of our shipyards, reaffirming Fincantieri’s role at the forefront of cruise innovation. Today, we further enhance our long‑term visibility and secure a solid workload across our shipyards through 2037, enabling us to plan future investments in capacity, digitalization, and sustainable shipbuilding. Together, we are shaping the future of cruising by delivering long‑term value and new benchmarks of excellence.”

Norwegian Cruise Line Holdings appoints John W. Chidsey as President and Chief Executive Officer with immediate effect

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 12 February 2026 12 February 2026

Norwegian Cruise Line Holdings Ltd. , a leading global cruise company operating Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, today announced that its Board of Directors has appointed John W. Chidsey, a director of NCLH, as President and Chief Executive Officer, effective immediately. Chidsey succeeds Harry Sommer, who is stepping down as President and Chief Executive Officer and as a Director of NCLH.

Chidsey has a proven track record of leading large global consumer-facing companies through strategic and operational transformation, with experience across franchised operating models, as well as yield-driven, asset-intensive businesses. Across his career, he has been entrusted with leading companies at pivotal moments, strengthening execution, restoring operational discipline, and positioning organizations for improved performance. Most recently, Chidsey served as Chief Executive Officer of Subway Restaurants for five years, leading a multi-year effort to reposition the brand, modernize operations, and strengthen the company’s long-term growth trajectory. Chidsey was appointed to the NCLH Board of Directors in February 2025 and previously served on the Board from 2013 to 2022.

“During his tenure on the Board of Norwegian Cruise Line Holdings, John has been a highly respected leader and strategic voice. He is the right person to lead the Company through its next phase of execution and performance improvement,” said Stella David, chairperson of the Board. “John has demonstrated his ability to lead businesses through meaningful transformation with a focus on operational rigor and accountability. We are excited for John to assume the role of President and Chief Executive Officer and are confident his leadership will enhance execution, strengthen financial performance, reduce leverage and drive long-term shareholder value. On behalf of the Board, I thank Harry for his many years of dedication and service to the Company.”

Chidsey said, “I am honored to take on the role of President and Chief Executive Officer at Norwegian Cruise Line Holdings. I look forward to building upon the solid foundation already in place, laid out by the Company’s award-winning brands, dedicated team and crew members, and loyal guests. In my new position, my priority will be to partner with the Board and management team to sharpen execution, improve performance, and continue providing exceptional vacation experiences while delivering durable, long-term value creation.”

Fourth quarter and full year 2025 results

The Company expects its fourth quarter 2025 Net Yield to be around the midpoint of the previously disclosed range and expects its core quarterly and full year 2025 results to be in line with its previously issued guidance on November 4, 2025.

The Company will provide further information when it releases its fourth quarter and full year 2025 results on Monday, March 2, 2026.

Hurtigruten opens a new route from Copenhagen to North Cape and Tromsø

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 12 February 2026 12 February 2026

Hurtigruten is launching a new sailing from Copenhagen to Tromsø via North Cape as one of three new routes along Norway’s coast. The new itinerary gives Scandinavians and international travelers the opportunity to journey from the continent to the Arctic, with stops in some of Norway’s most iconic coastal towns and natural areas.

Demand from Scandinavia is growing strongly. The number of Danish customers has increased by 17 percent from 2024 to 2025, while the number of Swedish travelers has grown by 20 percent during the same period.

“We are pleased that many Danes wish to experience Norway’s beautiful coastline, and we look forward to welcoming even more guests. With departures from Copenhagen, travelers will experience the very best of Norwegian fjords and coastal communities at a slower pace,” says Hurtigruten’s CEO, Hedda Felin.

Copenhagen Malmö Port AB also welcomes the expansion of the route offering.

“Hurtigruten’s strong heritage and focus on authentic experiences are a great match for Copenhagen as a leading cruise destination in the region. An expansion of activities into the winter months is particularly valuable, as it generates important economic activity for the city during the low season,” says Luis de Carvalho, Commercial Cruise Director at Copenhagen Malmö Port AB.

In addition to the Copenhagen route, Hurtigruten is launching a week-long fjord sailing from Bergen as well as a round trip in Northern Norway starting and ending in Tromsø. The sailings are aimed at travelers seeking authentic experiences, with longer stays in each port and excursions developed in collaboration with local operators.

All voyages will take place aboard Trollfjord and follow Hurtigruten’s signature concept, where all food and beverages are included and based on local ingredients, with ample time spent in each port.

The new routes are currently being introduced with selected departures during limited periods. Bookings open on February 12, 2026, and the first sailings will take place from 2027.