Lindblad Expeditions Reports Strong Q3 Earnings and Growth

Lindblad Expeditions Holdings ((LIND)) has held its Q3 earnings call. Read on for the main highlights of the call.

Lindblad Expeditions Holdings recently held their earnings call, revealing a generally positive sentiment marked by strong financial performance and strategic growth initiatives. The company celebrated record-breaking metrics in guest experience and revenue growth, while also acknowledging increased operating expenses and anticipated pressure on Q4 EBITDA due to strategic investments and maintenance activities.

Record High Net Promoter Scores

Lindblad Expeditions achieved the highest Net Promoter Scores ever for both Q3 and year-to-date, highlighting the exceptional guest experiences that have become a hallmark of the company. This achievement underscores the company’s commitment to delivering unparalleled service and satisfaction to its guests.

Strong Revenue Growth

The company reported a consolidated revenue increase of 16.6%, with the Lindblad and Land Segments growing by 13.4% and 21.1%, respectively. This robust growth reflects the company’s successful strategies in expanding its market presence and enhancing its offerings.

Occupancy and Yield Records

In the Lindblad segment, occupancy reached 88%, which is 6 points higher than last year, accompanied by a 9% increase in net yields to $1,314. These figures represent the highest Q3 yields in the company’s history, indicating strong demand and effective pricing strategies.

Growing Alaska Trade

The core Alaska trade saw almost 16% yield growth, showcasing the strong demand for Lindblad’s unique experiences in this region. This growth is a testament to the company’s ability to capitalize on its niche offerings.

Increased Adjusted EBITDA

Adjusted EBITDA rose by 25% to $57.3 million, with margins expanding by 160 basis points to 23.8%. This improvement highlights the company’s operational efficiency and effective cost management.

Successful Debt Refinancing

Lindblad successfully refinanced its debt, extending maturities and lowering interest rates by approximately 75 basis points. This move enhances the company’s financial flexibility, positioning it well for future growth.

Strong Future Bookings

The company reported that net booking costs for 2026 are significantly ahead of the prior year, with an encouraging uptick in 2027 bookings. This positive trend indicates sustained demand and confidence in Lindblad’s offerings.

Expansion in Charter Offerings

Lindblad expanded its charter offerings, including a successful inaugural European river cruising program, with plans for increased voyages in 2027. This expansion reflects the company’s strategic focus on diversifying its product offerings.

Increase in Operating Expenses

Operating expenses increased by $22.7 million or 14% compared to Q3 2024, including a 20% rise in sales and marketing costs. This increase is part of the company’s strategy to support its growth initiatives.

Debt Refinancing Costs

The company incurred $23.5 million in debt refinancing expenses, which impacted net income available to stockholders. Despite this, the refinancing is expected to benefit the company in the long term.

Anticipated Q4 EBITDA Pressure

Lindblad anticipates a decline in Q4 EBITDA compared to the previous year due to increased marketing spend and more dry/wet docks. This pressure is expected as the company invests in its future growth.

Forward-Looking Guidance

During the earnings call, Lindblad provided an optimistic outlook, raising full-year guidance for net yields, revenue, and EBITDA. The company anticipates continued strong demand, with net booking costs for 2026 and 2027 significantly ahead of the prior year. Additionally, Lindblad is exploring accretive growth opportunities, including fleet expansion through charters, acquisitions, and new builds.

In summary, Lindblad Expeditions Holdings’ earnings call conveyed a positive sentiment with strong financial performance and strategic growth plans. While the company faces increased operating expenses and anticipated Q4 EBITDA pressure, its robust revenue growth, successful debt refinancing, and optimistic forward-looking guidance underscore its potential for continued success.