Stock Markets February 16, 2026

Activist Firm Takes Double-Digit Stake in Norwegian Cruise Line, Seeks Board Influence

Elliott has accumulated more than 10% of Norwegian and is pursuing changes while the operator faces profit pressure and lagging stock performance

By Caleb Monroe
Activist Firm Takes Double-Digit Stake in Norwegian Cruise Line, Seeks Board Influence

An activist investor has built a stake exceeding 10% in Norwegian Cruise Line and is preparing to press for changes at the company, according to a report citing people familiar with the matter. The move comes as Norwegian’s shares have underperformed peers amid expectations of weaker fourth-quarter results and recent leadership turnover.

Key Points

  • An activist investor has built a stake exceeding 10% in Norwegian Cruise Line and plans to press for changes at the company - impacts the cruise and hospitality sectors.
  • Norwegian’s shares have declined more than 11% in 2025 while competitors Royal Caribbean and Carnival have risen on strong demand and higher ticket prices - relevant to investor sentiment in travel and leisure stocks.
  • Norwegian recently appointed John Chidsey as CEO, replacing Harry Sommer, and says it expects fourth-quarter profit to be below expectations - a corporate governance and earnings risk for the company.

An activist investor has amassed a stake larger than 10% in Norwegian Cruise Line and intends to push for changes at the cruise operator, according to people cited in a report published on Monday. The report noted the investor's intent but has not been independently verified by other news outlets, and Norwegian Cruise Line did not immediately reply to a request for comment.

Data compiled by LSEG show that Norwegian’s stock has fallen by more than 11% so far in 2025, even as competitors Royal Caribbean and Carnival have advanced amid robust demand and rising ticket prices. The share-price underperformance has coincided with a period of corporate change at Norwegian.

Last week, Norwegian named John Chidsey, the former chief executive of Subway Restaurants, as its new chief executive officer, replacing Harry Sommer. Separately, the company has informed investors that it expects its fourth-quarter profit, due to be reported later this month, to come in below expectations.

The activist investor has reportedly been in private discussions about potential board nominees. The report said the investor approached Adam Goldstein, the one-time president and chief operating officer of Royal Caribbean, as a potential candidate for a board seat at Norwegian Cruise Line.

According to the report, the activist's objectives include improving Norwegian’s financial performance and enhancing the guest experience. The investor reportedly views Royal Caribbean as having performed well on both of those fronts and considers that Norwegian previously executed a strong turnaround before recent setbacks.

Royal Caribbean, in its own outlook issued last month, projected continued strong demand, noting that wealthier travelers remain inclined toward sea-based vacations. That outlook contrasts with Norwegian’s caution about near-term profitability.


Context and implications

  • Norwegian's recent management change and profit warning are central to the backdrop against which the activist has built its stake.
  • Rival cruise lines have posted stronger stock performance so far in 2025, supported by elevated demand and higher pricing.
  • The activist is pursuing both operational and customer-experience improvements, and has privately contacted an experienced industry executive as a possible board nominee.

Risks

  • The report of the activist stake and plans is based on people familiar with the matter and was not immediately independently verified - creates uncertainty for investors and the corporate governance process.
  • Norwegian expects fourth-quarter profit to fall short of expectations, which could weigh on its financial performance and stock price - affects the company and the broader travel and leisure sector.
  • It is unclear whether the activist will secure board representation or achieve the proposed operational and guest-experience improvements - outcome remains uncertain for shareholders and stakeholders.

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