Azamara (SP Cruises)-Solid delivery in a low-season quarter-05/20/2026

Research evidence excerpt

Azamara (SP Cruises)-Solid delivery in a low-season quarter-05/20/2026

Azamara (SP Cruises)

CREDIT NEWSFLASH | 20 MAY 2026

Solid delivery in a low-season quarter

Azamara delivered Q1 adjusted EBITDA of USD 0.4m, ahead of our estimate of negative USD 5.7m and up from negative USD

9.8m in Q1’25. The beat was driven by higher revenue and slightly lower costs than expected. Net yield improved 13% year-

over-year, and the company continues to point to strong booking momentum, with double-digit growth for the remainder of

2026 compared to the same time last year, supporting forward estimates. Cash generation was weaker than we projected

due to lower working capital inflow, but liquidity remains solid with a cash balance of USD 88m. We expect cash flow to turn

positive in Q2. Higher fuel prices are likely to weigh on Q2 8gures, although fuel has historically represented only 10-15%

of total opex, limiting the overall impact. In sum, a solid delivery from Azamara in a seasonally weak quarter, supported by

continued pricing momentum and strong forward demand. We view par as a fair pricing level for the bonds.

Key bullets

• Azamara reported adj. EBITDA of USD 0.4m in Q1’26, above our estimated negative USD 5.7m. The beat was mainly driven by stronger

net yield, resulting in net revenue of USD 70m vs. our USD 65m estimate

• Revenue per APD was strong at USD 287 vs. our USD 280 estimate, while reported net yield came in at USD 268, USD 2 above our

estimate. Load factor was slightly below expectations at 93% vs. 95%, but this was more than offset by better pricing

• Forward demand remains supportive, with Azamara reporting its strongest wave season in history and booked net ticket revenue for the

remainder of 2026 up double digits vs.