ROYAL CARIBBEAN GROUP REPORTS SECOND QUARTER RESULTS AND INCREASES FULL YEAR GUIDANCE
Royal Caribbean Group (NYSE: RCL) reported strong Q2 2025 results with EPS of $4.41 and Adjusted EPS of $4.38, exceeding guidance due to robust demand and lower costs. The company increased its full-year 2025 Adjusted EPS guidance to $15.41-$15.55, representing approximately 31% year-over-year growth.
Key Q2 metrics include total revenues of $4.5 billion, Net Income of $1.2 billion, and Adjusted EBITDA of $1.9 billion. Load factor reached 110%, with Net Yields up 5.3% as-reported. The company served 2.3 million guests, a 10% increase year-over-year.
Looking ahead, RCL expects Q3 2025 Adjusted EPS of $5.55-$5.65, with capacity increasing by 2.9% and Net Yields projected to grow 2.3-2.8% as-reported.
Royal Caribbean Group (NYSE: RCL) ha riportato risultati solidi nel secondo trimestre del 2025 con un EPS di $4,41 e un EPS rettificato di $4,38, superando le previsioni grazie a una domanda robusta e costi inferiori. L'azienda ha rivisto al rialzo la guidance per l'intero anno 2025 sull'EPS rettificato, portandola a $15,41-$15,55, con una crescita di circa il 31% su base annua.
I principali indicatori del secondo trimestre includono ricavi totali di $4,5 miliardi, utile netto di $1,2 miliardi e un EBITDA rettificato di $1,9 miliardi. Il tasso di occupazione ha raggiunto il 110%, con rendimenti netti in aumento del 5,3% come riportato. La compagnia ha servito 2,3 milioni di ospiti, con un incremento del 10% rispetto all'anno precedente.
Guardando al futuro, RCL prevede per il terzo trimestre del 2025 un EPS rettificato tra $5,55 e $5,65, con una capacità in aumento del 2,9% e rendimenti netti stimati in crescita tra il 2,3% e il 2,8% come riportato.
Royal Caribbean Group (NYSE: RCL) reportó sólidos resultados en el segundo trimestre de 2025 con un EPS de $4.41 y un EPS ajustado de $4.38, superando las previsiones gracias a una demanda robusta y costos menores. La compañía aumentó su guía de EPS ajustado para todo el año 2025 a $15.41-$15.55, lo que representa un crecimiento aproximado del 31% interanual.
Las métricas clave del segundo trimestre incluyen ingresos totales de $4.5 mil millones, ingreso neto de $1.2 mil millones y un EBITDA ajustado de $1.9 mil millones. El factor de ocupación alcanzó el 110%, con rendimientos netos aumentando un 5.3% reportado. La compañía atendió a 2.3 millones de huéspedes, un aumento del 10% año tras año.
De cara al futuro, RCL espera un EPS ajustado para el tercer trimestre de 2025 entre $5.55 y $5.65, con una capacidad que aumentará un 2.9% y rendimientos netos proyectados a crecer entre 2.3% y 2.8% reportados.
로열 캐리비안 그룹 (NYSE: RCL)은 2025년 2분기 실적에서 주당순이익(EPS) $4.41과 조정 주당순이익 $4.38을 기록하며 견고한 성과를 보였습니다. 이는 강한 수요와 비용 절감 덕분에 예상치를 상회한 결과입니다. 회사는 2025년 전체 조정 EPS 가이던스를 $15.41-$15.55로 상향 조정했으며, 이는 전년 대비 약 31% 성장한 수치입니다.
2분기 주요 지표로는 총 매출 $45억, 순이익 $12억, 조정 EBITDA $19억이 포함됩니다. 탑승률은 110%에 달했으며, 보고된 순수익률은 5.3% 증가했습니다. 회사는 230만 명의 고객을 서비스하며 전년 대비 10% 증가했습니다.
앞으로 RCL은 2025년 3분기 조정 EPS를 $5.55-$5.65로 예상하며, 수용 능력은 2.9% 증가하고 순수익률은 보고 기준으로 2.3%에서 2.8% 사이의 성장이 전망됩니다.
Royal Caribbean Group (NYSE : RCL) a annoncé de solides résultats pour le deuxième trimestre 2025, avec un BPA de 4,41 $ et un BPA ajusté de 4,38 $, dépassant les prévisions grâce à une forte demande et des coûts réduits. La société a relevé ses prévisions de BPA ajusté pour l'ensemble de l'année 2025 à 15,41 $ - 15,55 $, soit une croissance d'environ 31 % d'une année sur l'autre.
Les principaux indicateurs du deuxième trimestre comprennent des revenus totaux de 4,5 milliards de dollars, un résultat net de 1,2 milliard de dollars et un EBITDA ajusté de 1,9 milliard de dollars. Le taux d'occupation a atteint 110 %, avec des rendements nets en hausse de 5,3 % selon les données publiées. La société a accueilli 2,3 millions de clients, soit une augmentation de 10 % par rapport à l'année précédente.
Pour l'avenir, RCL prévoit un BPA ajusté pour le troisième trimestre 2025 compris entre 5,55 $ et 5,65 $, avec une capacité en hausse de 2,9 % et des rendements nets projetés en croissance de 2,3 à 2,8 % selon les données publiées.
Royal Caribbean Group (NYSE: RCL) meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Gewinn je Aktie (EPS) von $4,41 und einem bereinigten EPS von $4,38, was die Prognosen dank robuster Nachfrage und geringerer Kosten übertraf. Das Unternehmen erhöhte seine Prognose für das bereinigte EPS im Gesamtjahr 2025 auf $15,41-$15,55, was einem Wachstum von etwa 31 % gegenüber dem Vorjahr entspricht.
Wichtige Kennzahlen für das zweite Quartal umfassen Gesamtumsätze von $4,5 Milliarden, Nettoeinkommen von $1,2 Milliarden und ein bereinigtes EBITDA von $1,9 Milliarden. Die Auslastung erreichte 110%, mit einem Anstieg der Nettorenditen um 5,3% laut Bericht. Das Unternehmen bediente 2,3 Millionen Gäste, was einem Anstieg von 10 % gegenüber dem Vorjahr entspricht.
Für das dritte Quartal 2025 erwartet RCL ein bereinigtes EPS von $5,55-$5,65, bei einer Kapazitätssteigerung von 2,9 % und einem erwarteten Anstieg der Nettorenditen von 2,3 bis 2,8 % laut Bericht.
- Full year 2025 Adjusted EPS guidance increased to $15.41-$15.55, representing 31% YoY growth
- Q2 revenues reached $4.5B with Net Income of $1.2B
- Load factor increased to 110%, up 2 percentage points YoY
- Strong bookings momentum for both 2025 and 2026 at higher rates
- Investment grade ratings received from all three major credit rating agencies
- Robust liquidity position of $7.1B as of June 30, 2025
- Net Cruise Costs excluding Fuel increased 2.5% YoY in Q2
- Q3 2025 costs expected to rise 6.4-6.9% due to new ship delivery timing
- Significant debt maturities ahead: $2.9B in 2026, $2.6B in 2027, and $3.1B in 2028
Insights
Royal Caribbean delivered exceptional Q2 results with record EPS of $4.41, raising 2025 guidance amid strong demand and improving margins.
Royal Caribbean delivered outstanding second quarter results that exceeded management's previous guidance, with
The company's operational excellence is evident in its 110% load factor, up two percentage points from last year, indicating ships are sailing at full capacity with many cabins accommodating more than two guests. Net Yields increased
Cost control remains impressive with Net Cruise Costs excluding Fuel only increasing
Management has raised full-year 2025 Adjusted EPS guidance to
The company's future booking trends remain robust across all key products and source markets, with both 2025 and 2026 bookings showing higher rates compared to previous years. The introduction of new vessels like Star of the Seas and Celebrity Xcel, along with the Royal Beach Club Paradise Island destination, are generating strong advance bookings at premium prices.
Royal Caribbean's financial position continues to strengthen, with
"Demand for our portfolio of brands and our industry-leading experiences continues to accelerate. Grounded in our mission to deliver the best vacations responsibly, we remain keenly focused on delivering exceptional value for our guests and shareholders - not just by executing today, but by staying ahead of where demand is going," said Royal Caribbean Group President and CEO Jason Liberty.
"We are well on our way to achieving our Perfecta financial targets by the end of 2027. As we look beyond 2027, we see another step change in growth as we deepen our moat with a powerful pipeline of incredible new ships, the ramp-up of our highly differentiated new destinations and river cruising, and continued investments in disruptive technology, personalization and loyalty," Liberty added.
Second Quarter 2025:
- Load factor in the second quarter was
110% . - Gross Margin Yields were up
11.0% as-reported. Net Yields were up5.3% as-reported and5.2% in Constant Currency. - Gross Cruise Costs per Available Passenger Cruise Days ("APCD") increased
0.8% as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased2.5% as-reported and2.1% in Constant Currency. - Total revenues were
$4.5 billion $1.2 billion $4.41 $1.2 billion $4.38 $1.9 billion
Full Year 2025 Outlook:
- Net Yields are expected to increase
3.5% to4.0% as-reported and in Constant Currency. - NCC, excluding Fuel, per APCD is expected to increase approximately
0.5% as-reported and0.3% in Constant Currency. - Adjusted EPS is expected to grow approximately
31% year over year and be in the range of$15.41 $15.55
Second Quarter 2025 Results
Net Income for the second quarter of 2025 was
Capacity for the second quarter was up
Gross Cruise Costs per APCD increased
Update on Bookings and Onboard Revenue
Booked load factors remain in line with prior years and at higher rates for both 2025 and 2026. Bookings have accelerated since the last earnings call, particularly for close-in sailings, leading to second quarter outperformance. The company continues to experience strong demand across all key products and source markets. Commercial channels, particularly digital channels, are performing exceptionally well for both bookings and pre-cruise purchases. Guest spending onboard and pre-cruise purchases continue to exceed prior years, driven by greater participation at higher prices.
Bookings for Star of the Seas and Celebrity Xcel, both debuting this year, are performing extremely well and building on the success of their respective classes. In addition, Royal Beach Club Paradise Island recently became available for sale, and early demand has been very robust.
"The strong demand we are seeing across our new ships and land-based destinations reinforces that our strategy is working and resonating with today's traveler," said Jason Liberty, president and CEO, Royal Caribbean Group. "As consumer preferences continue to evolve - toward more frequent vacations, closer-in vacation planning, and a greater focus on meaningful, experience-driven travel - our experiences are designed to meet these evolving expectations. These trends, combined with our pipeline of bold, guest-centric initiatives, position us not only to create value for our shareholders, but to continue winning share of the growing
Third Quarter 2025
Capacity in the third quarter is expected to increase
NCC, excluding Fuel, per APCD, is expected to increase
Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects third quarter Adjusted EPS to be in the range of
Fuel Expense
Bunker pricing, net of hedging, for the second quarter was
The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel prices, the company has included
The company provided the following guidance for the third quarter and full year 2025:
FUEL STATISTICS | Third Quarter 2025 | Full Year 2025 |
Fuel Consumption (metric tons) | 433,000 | 1,718,000 |
Fuel Expenses | ||
Percent Hedged (fwd. consumption) | 64 % | 66 % |
GUIDANCE | As-Reported | Constant Currency |
Third Quarter 2025 | ||
Net Yields vs. 2024 | ||
Net Cruise Costs per APCD vs. 2024 | ||
Net Cruise Costs per APCD ex. Fuel vs. 2024 | ||
Full Year 2025 | ||
Net Yields vs. 2024 | ||
Net Cruise Costs per APCD vs. 2024 | Approximately ( | Approximately ( |
Net Cruise Costs per APCD ex. Fuel vs. 2024 | Approximately | Approximately |
Third Quarter 2025 | Full Year 2025 | |
APCDs | 13.7 million | 53.3 million |
Capacity change vs. 2024 | 2.9 % | 5.5 % |
Depreciation and amortization | ||
Net Interest, excluding loss on extinguishment of debt | ||
Adjusted EPS | ||
SENSITIVITY | Third Quarter 2025 | Full Year 2025 |
Third Quarter 2025 | Remainder of Year 2025 | |
100 basis pt. Change in SOFR | ||
Exchange rates used in guidance calculations | ||
GBP | ||
AUD | ||
CAD | ||
EUR | ||
Liquidity and Financing Arrangements
As of June 30, 2025, the company's liquidity position was
During the first half of this year, the company received investment grade ratings by all three major credit rating agencies, reflecting the strength of its financial position, consistent performance, and disciplined capital allocation strategy.
In addition, the company amended and upsized its two unsecured revolving credit facilities during the quarter, bringing the combined revolving credit facilities commitments to
The company noted that as of June 30, 2025, the scheduled debt maturities for the remainder of 2025, 2026, 2027, and 2028 were
Capital Expenditures and Capacity Guidance
Capital expenditures for the full year 2025 are expected to be approximately
Capacity changes for 2025 are expected to be
Conference call scheduled
The company has scheduled a conference call at 10 a.m. Eastern Time today. This call can be heard, either live or on a delayed basis, on the company's investor relations website at www.rclinvestor.com.
Definitions
Selected Operational and Financial Metrics
Adjusted Earnings per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. (as defined below) divided by weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other income, (ii) equity investment impairment, recovery of losses, and other, (iii) restructuring charges and other initiative expenses, and (iv) impairment losses.
Adjusted EBITDA Margin is a non-GAAP measure that represents Adjusted EBITDA (as defined above) divided by total revenues.
Adjusted Gross Margin represents Gross Margin, adjusted for payroll and related, food, fuel, other operating, and depreciation and amortization expense. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents net income less net income attributable to noncontrolling interest, excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense, (ii) the amortization of the Silversea Cruises intangible assets resulting from the Silversea Cruises acquisition, (iii) restructuring charges and other initiative expenses, (iv) equity investments impairment, recovery of losses, and other, (v) impairment losses, and (vi) gain on sale of noncontrolling interest.
Adjusted Operating Income represents operating income including income from equity investments and income taxes but excluding certain items for which we believe adjusting for is meaningful when assessing our operating performance on a comparative basis. We use this non-GAAP measure to calculate ROIC (as defined below).
Available Passenger Cruise Days ("APCD") is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period, which excludes canceled cruise days and cabins not available for sale. We use this measure to perform capacity and rate analysis to identify our main non-capacity drivers that cause our cruise revenue and expenses to vary.
Constant Currency is a significant measure for our revenues and expenses, which are denominated in currencies other than the
EBITDA is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) income tax expense. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis.
Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.
Gross Margin Yields represent Gross Margin per APCD.
Invested Capital represents the most recent five-quarter average of total debt (i.e., Current portion of long-term debt plus long-term debt) plus the most recent five-quarter average of total shareholders' equity. We use this measure to calculate ROIC (as defined below).
Net Cruise Costs and Net Cruise Costs Excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs Excluding Fuel, fuel expenses. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs Excluding Fuel to be the most relevant indicators of our performance. For the periods presented, Net Cruise Costs and Net Cruise Costs Excluding Fuel excludes impairment losses, and restructuring charges and other initiative expenses.
Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.
Occupancy ("Load factor"), in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of
Passenger Cruise Days ("PCD") represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.
Perfecta Program refers to the multi-year Adjusted EPS and ROIC goals we are seeking to achieve by end of 2027. Under our Perfecta Program, we are targeting
Return on Invested Capital ("ROIC") represents Adjusted Operating Income divided by Invested Capital. We believe ROIC is a meaningful measure because it quantifies how efficiently we generated operating income relative to the capital we have invested in the business.
For additional information see "Adjusted Measures of Financial Performance" below.
About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is a vacation industry leader with a global fleet of 68 ships across its five brands traveling to all seven continents. With a mission to deliver the best vacations responsibly, Royal Caribbean Group serves millions of guests each year through its portfolio of best-in-class brands, including Royal Caribbean, Celebrity Cruises, and Silversea; and an expanding portfolio of land-based vacation experiences through Perfect Day at CocoCay and Royal Beach Club collection. The company also owns a
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release relating to, among other things, our future performance estimates, forecasts and projections constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: statements regarding revenues, costs and financial results for 2025 and beyond; our progress toward achievement of our Perfecta Program; demand for our brands; and expectations regarding our credit profile. Words such as "anticipate," "believe," "could," "driving," "estimate," "expect," "focused on," "goal," "intend," "may," "plan," "project," "shaping up," "position," "allows," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service; disease outbreaks and increased concern about the risk of illness on our ships or when travelling to or from our ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on our business; risks related to our sustainability activities; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity and overcapacity; inability to manage our cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market our cruises; reliance on third-party service providers; potential unavailability of insurance coverage; the risks and costs related to cyber security attacks, data breaches, protecting our systems and maintaining data integrity and security; uncertainties of a foreign legal system as we are not incorporated in
More information about factors that could affect our operating results is included under the caption "Risk Factors" in our most recent annual report on Form 10-K, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures defined as non-GAAP financial measures under Securities and Exchange Commission rules, which we believe provide useful information to investors as a supplement to our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles, or
The presentation of adjusted financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with
A reconciliation to the most comparable
ROYAL CARIBBEAN CRUISES LTD. | |||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||
(unaudited; in millions, except per share data) | |||||||
Quarter Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Passenger ticket revenues | $ 3,199 | $ 2,887 | $ 5,942 | $ 5,429 | |||
Onboard and other revenues | 1,339 | 1,223 | 2,595 | 2,409 | |||
Total revenues | 4,538 | 4,110 | 8,537 | 7,838 | |||
Cruise operating expenses: | |||||||
Commissions, transportation and other | 606 | 572 | 1,128 | 1,070 | |||
Onboard and other | 262 | 244 | 463 | 437 | |||
Payroll and related | 329 | 313 | 669 | 631 | |||
Food | 246 | 225 | 486 | 446 | |||
Fuel | 279 | 282 | 557 | 586 | |||
Other operating | 561 | 516 | 1,061 | 1,039 | |||
Total cruise operating expenses | 2,283 | 2,152 | 4,362 | 4,209 | |||
Marketing, selling and administrative expenses | 508 | 466 | 1,071 | 1,001 | |||
Depreciation and amortization expenses | 417 | 393 | 829 | 780 | |||
Operating Income | 1,329 | 1,099 | 2,275 | 1,848 | |||
Other income (expense): | |||||||
Interest income | 12 | 4 | 15 | 9 | |||
Interest expense, net of interest capitalized | (228) | (298) | (477) | (721) | |||
Equity investment income | 107 | 56 | 155 | 97 | |||
Other expense | (6) | (3) | (17) | (11) | |||
(115) | (241) | (325) | (626) | ||||
Net Income | 1,214 | 858 | 1,950 | 1,222 | |||
Less: Net Income attributable to noncontrolling interest | 5 | 4 | 10 | 8 | |||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,210 | $ 854 | $ 1,940 | $ 1,214 | |||
Earnings per Share: | |||||||
Basic | $ 4.45 | $ 3.32 | $ 7.17 | $ 4.72 | |||
Diluted | $ 4.41 | $ 3.11 | $ 7.10 | $ 4.46 | |||
Weighted-Average Shares Outstanding: | |||||||
Basic | 272 | 257 | 270 | 257 | |||
Diluted | 275 | 281 | 275 | 281 | |||
Comprehensive Income (Loss) | |||||||
Net Income | $ 1,214 | $ 858 | $ 1,950 | $ 1,222 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | (9) | 6 | (26) | 10 | |||
Change in defined benefit plans | 4 | (12) | — | (3) | |||
Gain (loss) on cash flow derivative hedges | 181 | (31) | 309 | 13 | |||
Total other comprehensive income (loss) | 176 | (37) | 283 | 20 | |||
Comprehensive Income | 1,391 | 821 | 2,233 | 1,242 | |||
Less: Comprehensive Income attributable to noncontrolling interest | 5 | 4 | 10 | 8 | |||
Comprehensive Income attributable to Royal Caribbean Cruises Ltd. | $ 1,386 | $ 817 | $ 2,222 | $ 1,234 | |||
Certain amounts may not add due to use of rounded numbers. |
ROYAL CARIBBEAN CRUISES LTD. | |||||||
STATISTICS | |||||||
(unaudited) | |||||||
Quarter Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Passengers Carried | 2,254,057 | 2,040,242 | 4,495,730 | 4,094,624 | |||
Passenger Cruise Days | 14,277,894 | 13,230,448 | 28,046,226 | 26,380,157 | |||
APCD | 12,942,385 | 12,233,196 | 25,600,377 | 24,519,026 | |||
Occupancy | 110.3 % | 108.2 % | 109.6 % | 107.6 % | |||
ROYAL CARIBBEAN CRUISES LTD. | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions, except share data) | |||
As of | |||
June 30, | December 31, | ||
2025 | 2024 | ||
(unaudited) | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 735 | $ 388 | |
Trade and other receivables, net | 431 | 371 | |
Inventories | 247 | 265 | |
Prepaid expenses and other assets | 785 | 670 | |
Derivative financial instruments | 252 | 11 | |
Total current assets | 2,450 | 1,705 | |
Property and equipment, net | 32,351 | 31,831 | |
Operating lease right-of-use assets | 656 | 677 | |
Goodwill | 808 | 808 | |
Other assets | 2,277 | 2,049 | |
Total assets | $ 38,542 | $ 37,070 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Current portion of long-term debt | $ 1,402 | $ 1,603 | |
Current portion of operating lease liabilities | 84 | 74 | |
Accounts payable | 959 | 919 | |
Accrued expenses and other liabilities | 1,701 | 1,635 | |
Derivative financial instruments | 48 | 90 | |
Customer deposits | 6,379 | 5,496 | |
Total current liabilities | 10,573 | 9,817 | |
Long-term debt | 17,612 | 18,473 | |
Long-term operating lease liabilities | 639 | 670 | |
Other long-term liabilities | 358 | 375 | |
Total liabilities | 29,182 | 29,335 | |
Shareholders' equity | |||
Preferred stock ( | — | — | |
Common stock ( | 3 | 3 | |
Paid-in capital | 7,874 | 7,831 | |
Retained earnings | 4,144 | 2,612 | |
Accumulated other comprehensive loss | (519) | (802) | |
Treasury stock (29,575,028 and 28,468,430 common shares at cost, June 30, 2025 and | (2,333) | (2,081) | |
Total shareholders' equity attributable to Royal Caribbean Cruises Ltd. | 9,169 | 7,563 | |
Noncontrolling Interests | 191 | 172 | |
Total shareholders' equity | 9,360 | 7,735 | |
Total liabilities and shareholders' equity | $ 38,542 | $ 37,070 | |
ROYAL CARIBBEAN CRUISES LTD. | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(unaudited, in millions) | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
Operating Activities | |||
Net Income | $ 1,950 | $ 1,222 | |
Adjustments: | |||
Depreciation and amortization | 829 | 780 | |
Net deferred income tax expense | 4 | 5 | |
(Gain) loss on derivative instruments not designated as hedges | (56) | 40 | |
Share-based compensation expense | 92 | 83 | |
Equity investment income | (155) | (97) | |
Amortization of debt issuance costs, discounts and premiums | 46 | 51 | |
Loss on extinguishment of debt and inducement expense | 10 | 133 | |
Changes in operating assets and liabilities: | |||
Increase in trade and other receivables, net | (51) | (16) | |
Decrease in inventories | 17 | 6 | |
Increase in prepaid expenses and other assets | (142) | (196) | |
Increase in accounts payable trade | 24 | 18 | |
Decrease in accrued expenses and other liabilities | (21) | (47) | |
Increase in customer deposits | 883 | 934 | |
Other, net | (57) | (15) | |
Net cash provided by operating activities | 3,373 | 2,901 | |
Investing Activities | |||
Purchases of property and equipment | (1,264) | (2,382) | |
Cash received on settlement of derivative financial instruments | 111 | 12 | |
Cash paid on settlement of derivative financial instruments | (11) | (92) | |
Investments in and loans to unconsolidated affiliates | (77) | (20) | |
Cash received on loans from unconsolidated affiliates | 70 | 9 | |
Proceeds from sale of unconsolidated affiliates | 15 | — | |
Other, net | 10 | (21) | |
Net cash used in investing activities | (1,146) | (2,494) | |
Financing Activities | |||
Debt proceeds | 730 | 4,698 | |
Debt issuance costs | (28) | (87) | |
Repayments of debt | (1,945) | (4,974) | |
Premium on repayment of debt | (2) | (104) | |
Repurchase of common stock | (241) | — | |
Dividends paid | (348) | — | |
Other, net | (53) | (44) | |
Net cash used in financing activities | (1,887) | (511) | |
Effect of exchange rate changes on cash and cash equivalents | 7 | (2) | |
Net increase (decrease) in cash and cash equivalents | 347 | (106) | |
Cash and cash equivalents at beginning of period | 388 | 497 | |
Cash and cash equivalents at end of period | $ 735 | $ 391 | |
Supplemental Disclosure | |||
Cash paid during the period for: | |||
Interest, net of amount capitalized | $ 443 | $ 621 | |
Non-cash Investing Activities | |||
Purchase of property and equipment included in accounts payable and accrued | $ 61 | $ 34 | |
Non-cash Financing Activity | |||
Non-cash inducement on convertible notes exchange | $ 7 | $ — | |
ROYAL CARIBBEAN CRUISES LTD. | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||
(unaudited) | |||||||||||
Gross Margin Yields, Net Yields and Adjusted Gross Margin per PCD were calculated by dividing Gross Margin and Adjusted Gross Margin by APCD, and Adjusted Gross Margin by PCD as follows (in millions, except APCD, PCD, Yields, and Adjusted Gross Margin per PCD. Certain amounts may not add due to use of rounded numbers; reported Adjusted Gross Margin, Yields and per PCD amounts are calculated from the underlying dollar amounts): | |||||||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
2025 | 2025 On a | 2024 | 2025 | 2025 On a | 2024 | ||||||
Total revenue | $ 4,538 | $ 4,531 | $ 4,110 | $ 8,537 | $ 8,562 | $ 7,838 | |||||
Less: | |||||||||||
Cruise operating expenses | 2,283 | 2,273 | 2,152 | 4,362 | 4,359 | 4,209 | |||||
Depreciation and | 417 | 417 | 393 | 829 | 829 | 780 | |||||
Gross Margin | 1,838 | 1,840 | 1,565 | 3,345 | 3,374 | 2,849 | |||||
Add: | |||||||||||
Payroll and related | 329 | 328 | 313 | 669 | 669 | 631 | |||||
Food | 246 | 246 | 225 | 486 | 486 | 446 | |||||
Fuel | 279 | 279 | 282 | 557 | 557 | 586 | |||||
Other operating | 561 | 555 | 516 | 1,061 | 1,058 | 1,039 | |||||
Depreciation and amortization expenses | 417 | 417 | 393 | 829 | 829 | 780 | |||||
Adjusted Gross Margin | $ 3,670 | $ 3,667 | $ 3,294 | $ 6,946 | $ 6,971 | $ 6,331 | |||||
APCD | 12,942,385 | 12,942,385 | 12,233,196 | 25,600,377 | 25,600,377 | 24,519,026 | |||||
Passenger Cruise Days | 14,277,894 | 14,277,894 | 13,230,448 | 28,046,226 | 28,046,226 | 26,380,157 | |||||
Gross Margin Yields | $ 142.00 | $ 142.20 | $ 127.94 | $ 130.67 | $ 131.78 | $ 116.21 | |||||
Net Yields | $ 283.56 | $ 283.32 | $ 269.38 | $ 271.33 | $ 272.31 | $ 258.23 | |||||
Adjusted Gross Margin per PCD | $ 257.03 | $ 256.82 | $ 249.08 | $ 247.67 | $ 248.57 | $ 240.01 | |||||
ROYAL CARIBBEAN CRUISES LTD. | |||||||||||
NON-GAAP RECONCILING INFORMATION | |||||||||||
(unaudited) | |||||||||||
Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs excluding Fuel were calculated as follows (in millions, except APCD and costs per APCD. Certain amounts may not add due to use of rounded numbers; reported Gross Cruise Costs, Net Cruise Costs, Net Cruise Costs excluding Fuel, and per APCD amounts are calculated from the underlying dollar amounts): | |||||||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||
2025 | 2025 On a | 2024 | 2025 | 2025 On a | 2024 | ||||||
Total cruise operating expenses | $ 2,283 | $ 2,273 | $ 2,152 | $ 4,362 | $ 4,359 | $ 4,209 | |||||
Marketing, selling and | 508 | 507 | 466 | 1,071 | 1,072 | 1,001 | |||||
Gross Cruise Costs | 2,791 | 2,780 | 2,618 | 5,433 | 5,431 | 5,210 | |||||
Less: | |||||||||||
Commissions, transportation and other | 606 | 603 | 572 | 1,128 | 1,129 | 1,070 | |||||
Onboard and other | 262 | 261 | 244 | 463 | 461 | 437 | |||||
Net Cruise Costs including | 1,923 | 1,916 | 1,802 | 3,842 | 3,841 | 3,703 | |||||
Less: | |||||||||||
Impairment losses (1) | — | — | 6 | — | — | 6 | |||||
Restructuring charges and | 3 | 3 | 3 | 6 | 6 | 3 | |||||
Net Cruise Costs | 1,920 | 1,913 | 1,793 | 3,837 | 3,835 | 3,694 | |||||
Less: | |||||||||||
Fuel | 279 | 279 | 282 | 557 | 557 | 586 | |||||
Net Cruise Costs Excluding Fuel | $ 1,641 | $ 1,633 | $ 1,511 | $ 3,280 | $ 3,279 | $ 3,108 | |||||
APCD | 12,942,385 | 12,942,385 | 12,233,196 | 25,600,377 | 25,600,377 | 24,519,026 | |||||
Gross Cruise Costs per APCD | $ 215.68 | $ 214.82 | $ 214.06 | $ 212.22 | $ 212.15 | $ 212.50 | |||||
Net Cruise Costs per APCD | $ 148.34 | $ 147.79 | $ 146.70 | $ 149.88 | $ 149.82 | $ 150.69 | |||||
Net Cruise Costs Excluding | $ 126.76 | $ 126.21 | $ 123.65 | $ 128.14 | $ 128.08 | $ 126.78 | |||||
(1) | For 2024, represents property and equipment impairment charges related to certain construction in progress assets. This amount is included in Other operating within our consolidated statements of comprehensive income (loss). |
(2) | These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). |
ROYAL CARIBBEAN CRUISES LTD.
| ||||||||
NON-GAAP RECONCILING INFORMATION | ||||||||
(unaudited) | ||||||||
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin were calculated as follows (in millions, except APCD and per APCD data. Certain amounts may not add due to use of rounded numbers; reported EBITDA, Adjusted EBITDA, and per APCD and Margin amounts are calculated from the underlying dollar amounts): | ||||||||
Quarter Ended June 30, | Six Months Ended June 30, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,210 | $ 854 | $ 1,940 | $ 1,214 | ||||
Interest income | (12) | (4) | (15) | (9) | ||||
Interest expense, net of interest capitalized | 228 | 298 | 477 | 721 | ||||
Depreciation and amortization expenses | 417 | 393 | 829 | 780 | ||||
Income tax expense (1) | 17 | 17 | 33 | 23 | ||||
EBITDA | 1,860 | 1,558 | 3,264 | 2,729 | ||||
Other income (2) | (11) | (14) | (15) | (12) | ||||
Equity investment impairment, recovery losses, and other | (1) | — | (1) | — | ||||
Restructuring charges and other initiative expenses (3) | 3 | 3 | 6 | 3 | ||||
Impairment losses (4) | — | 6 | — | 6 | ||||
Adjusted EBITDA | $ 1,851 | $ 1,553 | $ 3,252 | $ 2,726 | ||||
Total revenues | $ 4,538 | $ 4,110 | $ 8,537 | $ 7,838 | ||||
APCD | 12,942,385 | 12,233,196 | 25,600,377 | 24,519,026 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. per APCD | $ 93.47 | $ 69.85 | $ 75.76 | $ 49.53 | ||||
Adjusted EBITDA per APCD | $ 143.00 | $ 126.96 | $ 127.04 | $ 111.18 | ||||
Adjusted EBITDA Margin | 40.8 % | 37.8 % | 38.1 % | 34.8 % | ||||
(1) | These amounts are included in Other expense within our consolidated statements of comprehensive income (loss). |
(2) | Represents net non-operating income. The amount excludes income tax expense, included in the EBITDA calculation above. |
(3) | These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). |
(4) | For 2024, represents property and equipment impairment charges related to certain construction in progress assets. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss). |
ROYAL CARIBBEAN CRUISES LTD.
| |||||||
NON-GAAP RECONCILING INFORMATION | |||||||
(unaudited) | |||||||
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. and Adjusted Earnings per Share were calculated as follows (in millions, except per share data. Certain amounts may not add due to use of rounded numbers; reported Adjusted Net Income attributable to Royal Caribbean Cruises Ltd., Earnings per Share, and Adjusted Earnings per Share amounts are calculated from the underlying dollar amounts): | |||||||
Quarter Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,210 | $ 854 | $ 1,940 | $ 1,214 | |||
Loss on extinguishment of debt and inducement expense (1) | — | 17 | 10 | 133 | |||
Amortization of Silversea Cruises intangible assets resulting from the Silversea | 2 | 2 | 3 | 3 | |||
Restructuring charges and other initiative expenses (3) | 3 | 3 | 6 | 3 | |||
Equity investments impairment, recovery of losses, and other | (1) | — | (1) | — | |||
Impairment losses (4) | — | 6 | — | 6 | |||
Gain on sale of noncontrolling interest (5) | (11) | — | (11) | — | |||
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. | $ 1,202 | $ 882 | $ 1,946 | $ 1,359 | |||
Earnings per Share - Diluted (6) | $ 4.41 | $ 3.11 | $ 7.10 | $ 4.46 | |||
Adjusted Earnings per Share - Diluted (7) | $ 4.38 | $ 3.21 | $ 7.09 | $ 4.97 | |||
Weighted-Average Shares Outstanding - Diluted | 275 | 281 | 275 | 281 | |||
(1) | For 2025, includes |
(2) | Represents the amortization of the Silversea Cruises intangible assets resulting from the 2018 Silversea Cruises acquisition. |
(3) | These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). |
(4) | For 2024, represents property and equipment impairment charges related to certain construction in progress assets which we determined would no longer be completed. These amounts are included in Other operating within our consolidated statements of comprehensive income (loss). |
(5) | Represents gain on sale of noncontrolling interest of Floating Docks and Grand Bahama Shipyard. These amounts are included in Other income within our consolidated statements of comprehensive income (loss). |
(6) | Diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of |
(7) | Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of |
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SOURCE Royal Caribbean Group
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