Steve Wieczynski

Steve Wieczynski inquired about current trends in Caribbean demand and pricing, especially for close-in bookings, given industry capacity increases. He also asked if the 2026 yield guidance of 2.5% aligns with the company's 'moderate yield growth' profile.

Answer

Chairman and CEO Jason Liberty stated that demand for the Caribbean is strong across all three brands, with pricing higher than last year. He confirmed the 2026 yield guidance (1.5%-3.5%) falls within the moderate range (2%-4%), despite minor impacts from China redeployments. CFO Naftali Holtz reiterated the strategy of growing both capacity and yield.

Steve Wieczynski asked about the drivers behind the improved 2026 pricing across river and ocean segments, specifically whether it's due to strong demand or more desirable inventory, and the current promotional/marketing strategies for 2026. He also inquired about the meaning of 'pursue long-term growth' in the context of Viking's capital structure.

Answer

Leah Talactac, President and CFO, attributed the pricing increase to the health and resilience of Viking's consumers, noting their willingness to travel and pay. She stated that marketing focuses on consumer engagement rather than aggressive pricing actions. Tor Hagen, Chairman and CEO, added that customer satisfaction and loyalty are key. For long-term growth, Leah clarified it encompasses organic expansion (e.g., new river ship options, luxury ocean market share) and opportunistic inorganic growth that is scalable, margin-accretive, and complementary to the brand.

Steve Wieczynski asked about the drivers behind the improved 2026 pricing across Viking's river and ocean segments, specifically whether it's due to strong demand or more desirable itineraries/cabin classes, and the current promotional/marketing strategies.

Answer

Leah Talactac, President and CFO, and Tor Hagen, Chairman and CEO, explained that the pricing increase reflects the resilience and financial health of Viking's consumers, who are willing to travel and pay for Viking's product. They noted that the marketing strategy focuses on consumer engagement rather than aggressive pricing actions, and customers consistently praise the unique Viking experience.

Steve Wieczynski asked about the unusual pattern observed during Macau's Golden Week, where higher-end visitors initially stayed away but returned later, and whether this behavior is expected to repeat. He also inquired about the stability of the Boston property, specifically if promotions drove volumes or contributed to margin deceleration.

Answer

CEO Craig Billings acknowledged the unusual Golden Week pattern, attributing it to 'all of the above' factors, but stated it's too early to determine if it's a trend, noting they would consider more flexible strategies for future holidays. For Boston, he clarified that margin deceleration was 'definitely not' promotion-driven, explaining that stability involves balancing database growth with labor costs, with marginal fluctuations due to hold and volumes.

Steve Wieczynski questioned the potential upside to Norwegian Cruise Line Holdings' charting the course EPS targets for 2026, considering the projected low to mid-single-digit yield growth, sub-inflationary cost growth, and recent capital market transactions. He also asked if the Q4 yield guidance accounted for impacts from weather or a government shutdown, beyond the load factor lift.

Answer

Mark Kempa (EVP and CFO) reiterated the commitment to sub-inflationary unit cost growth for 2026, building on two successful years. Harry Sommer (President and CEO) affirmed confidence in hitting charting the course targets, noting strong macro conditions and record bookings. He acknowledged a modest headwind from the government shutdown but stated weather impacts were minor, emphasizing the strong 3.5%-4% Q4 yield growth.

Steve Wieczynski inquired about potential upside to charting-the-course EPS targets for next year, considering the low to mid-single-digit yield growth, sub-inflationary cost growth, and recent capital market transactions. He also asked if the Q4 yield guidance embedded any impacts from weather or the government shutdown, beyond the load factor lift.

Answer

Mark Kempa (EVP and CFO) reiterated the commitment to sub-inflationary unit cost growth for 2026. Harry Sommer (President and CEO) confirmed confidence in hitting charting-the-course targets, citing strong execution and early positive indicators. Harry Sommer also stated that while a 3.5-4% yield growth for Q4 was strong, a modest headwind from the government shutdown was possible, but weather impacts were minimal.

Steve Wieczynski asked for an update on the 2026 outlook compared to three months prior, noting that booking trends appear to have accelerated against market fears of deceleration. He also sought clarification on the term 'unprecedented start' used for 2027 bookings. For a follow-up, he asked about any unmentioned initiatives to mitigate the 200 basis points of headwinds anticipated for 2026 (50bps loyalty, 100bps dry docks, 50bps island build-out).

Answer

CEO Josh Weinstein clarified that 'unprecedented' for 2027 bookings refers to a record number of bookings in the 13-week Q3 window. For 2026, he expressed confidence, attributing it to improved commercial execution across brands. To mitigate 2026 headwinds, Mr. Weinstein highlighted several positives: 50% booked (longest curve), stronger Q3 bookings, absence of an election cycle, full-year benefit of Celebration Key, half-year benefit of Half Moon Cay, continued onboard revenue strength, and minimal capacity growth. He also mentioned ongoing efforts to enhance efficiency and cost mitigation, including upcoming meetings with brands for 2026 operating plans.

Steve Wieczynski from Stifel sought clarification on Carnival's sentiment regarding 2026 compared to three months prior, given accelerated booking trends, and asked for the meaning of "unprecedented start" for 2027 bookings. He also inquired about specific initiatives or "behind-the-scenes" efforts to mitigate the projected 200 basis point headwind for 2026 from Carnival Rewards, dry docks, and island development.

Answer

CEO Josh Weinstein confirmed that "unprecedented start" for 2027 bookings refers to a record number of bookings in the Q3 2025 13-week window. He expressed confidence in 2026, citing the longest booking curve on record (50% booked), strong Q3 booking period, full-year benefit of Celebration Key, half-year benefit of Relax Away Half Moon Cay, continued onboard revenue strength, and minimal capacity growth. He mentioned ongoing efforts to improve efficiency and mitigate cost headwinds, with brand-specific operating plan meetings scheduled.

Steve Wieczynski asked for clarification on Boyd Gaming's use of proceeds from the FanDuel transaction, questioning what 'other growth opportunities' might entail and if it signals potential M&A activity.

Answer

President and CEO Keith Smith stated the FanDuel deal is not a precursor to another transaction but a move to monetize an undervalued asset. He explained that while proceeds will initially reduce debt, the goal is to deploy the capital into higher-returning investments. Smith reiterated that the company's balanced capital allocation strategy, including its approach to M&A, remains unchanged.