CRUISES

ROYAL CARIBBEAN GROUP REPORTS THIRD QUARTER RESULTS, INCREASES FULL YEAR GUIDANCE AND ANNOUNCES A NEW EXCLUSIVE DESTINATION

"We continue to see strong momentum across our business, powered by accelerated demand, growing loyalty, and guest satisfaction that is at all-time highs. Our commercial flywheel - combining innovative ships, distinctive destinations, and world-class brands - continues to drive sustained growth and guests' trust in our ability to deliver the best vacation experiences responsibly," said Royal Caribbean Group President and CEO Jason Liberty.

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Royal Caribbean Group

Expands its vacation ecosystem with the introduction of Royal Beach Club Santorini

Royal Caribbean Group reported third quarter Earnings per Share (“EPS”) of $5.74 and Adjusted EPS of $5.75. These results were better than the company’s guidance primarily due to higher than expected close-in demand and lower costs. The company is raising its full year 2025 Adjusted EPS guidance to $15.58 to $15.63, representing 32% year-over-year growth. This increase is mainly driven by the better-than-expected third quarter performance which is more than offsetting the minimal impact in the fourth quarter from recent adverse weather, and the unplanned extension of the temporary closure of one of the company’s exclusive destinations in Labadee, Haiti.

“We continue to see strong momentum across our business, powered by accelerated demand, growing loyalty, and guest satisfaction that is at all-time highs. Our commercial flywheel – combining innovative ships, distinctive destinations, and world-class brands – continues to drive sustained growth and guests’ trust in our ability to deliver the best vacation experiences responsibly,” said Royal Caribbean Group President and CEO Jason Liberty. “Looking ahead, while it’s still early in the planning process, our strong booked position gives us confidence for 2026 and beyond. With our proven formula of moderate yield growth, strong cost controls, and disciplined capital allocation, we expect 2026 earnings per share to have a $17 handle, positioning us well to achieve our 2027 Perfecta targets.”

“Today’s announcement of the new Royal Beach Club Santorini, opening in 2026, reflects our vision to redefine how the world vacations and increases our land-based destination portfolio from two to eight by 2028,” added Liberty. “We are focused on building for the future through innovative ships, a growing portfolio of exclusive destinations, technology, and AI that enhance every step of the guest journey. Together, these investments strengthen guest loyalty and attract new travelers, positioning us to win more share of the fast-growing $2 trillion vacation market and further setting us up for robust shareholder returns well beyond the Perfecta target period.”

Third Quarter 2025:

• Load factor in the third quarter was 112%.
• Gross Margin Yields were up 3.8% as-reported. Net Yields were up 2.8% as-reported and 2.4% in Constant Currency.
• Gross Cruise Costs per Available Passenger Cruise Days (“APCD”) increased 2.7% as-reported. Net Cruise Costs (“NCC”), excluding Fuel, per APCD increased 4.8% as-reported and 4.3% in Constant Currency.
• Total revenues were $5.1 billion, Net Income was $1.6 billion or $5.74 per share, Adjusted Net Income was $1.6 billion or $5.75 per share, and Adjusted EBITDA was $2.3 billion.

Full Year 2025 Outlook:

• Net Yields are expected to increase 3.5% to 4.0% on both an as-reported and Constant Currency basis.
• NCC, excluding Fuel, per APCD is expected to increase approximately 0.1% as-reported and decline approximately (0.1%) in Constant Currency.
• Adjusted EPS is expected to grow approximately 32% year over year and be in the range of $15.58 to $15.63.

Third Quarter 2025 Results

Net Income for the third quarter of 2025 was $1.6 billion or $5.74 per share compared to Net Income of $1.1 billion or $4.21 per share for the same period in the prior year. Adjusted Net Income was $1.6 billion or $5.75 per share for the third quarter of 2025 compared to Adjusted Net Income of $1.4 billion or $5.20 per share for the same period in the prior year. The company also reported total revenues of $5.1 billion and Adjusted EBITDA of $2.3 billion.

Capacity for the third quarter was up 2.9% year over year and the company delivered memorable vacations to 2.5 million guests, a 7% increase year over year at high guest satisfaction scores. Gross Margin Yields increased 3.8% as-reported, and Net Yields increased 2.8% as-reported (2.4% in Constant Currency). Load factor for the quarter was 112%, up one percentage point versus the prior year, driven by contribution of new ships that carry higher load factors, and improvements on a like for like basis. As expected, Net Yield growth in the quarter was driven mainly by like for like hardware, and was supported by both ticket pricing and onboard spend across the portfolio.

Gross Cruise Costs per APCD increased 2.7% as-reported, compared to the third quarter of 2024. NCC, excluding Fuel, per APCD increased 4.8% as-reported (4.3% in Constant Currency), when compared to the third quarter of 2024. Notably, cost growth was nearly (200) bps lower than the company’s guidance, reflecting continued strong execution across its operations and disciplined cost management.

Update on Bookings and Onboard Revenue

The company continues to be encouraged by the demand and pricing environment for its vacation experiences. Booked load factors remain within historical ranges at record rates for both 2025 and 2026. Since the last earnings call, bookings are up on both new hardware and like for like hardware, with particular acceleration for close-in sailings. Bookings for 2026 have come in at rates that are well above the prior year, resulting in a year-over-year rate growth at the high end of historical ranges. Guest spending onboard and pre-cruise purchases continue to exceed prior years, driven by greater participation at higher prices. Approximately 50% of onboard revenue during the third quarter was booked pre-cruise, with nearly 90% of pre-cruise purchases being made through digital channels.

“Looking ahead, we see strong momentum across our portfolio of brands and the differentiated experiences that they provide as consumers continue to prioritize vacations,” said Jason Liberty, president and CEO, Royal Caribbean Group. “From the launch of Star of the Seas and the overwhelming response to Celebrity River – with all initially available deployment selling out almost immediately – to the upcoming debuts of Celebrity Xcel and Royal Beach Club Paradise Island, these game-changing investments exemplify how we continue to raise the bar for our guests and expand the reach of our growing vacation ecosystem.”

Fourth Quarter 2025

Capacity in the fourth quarter is expected to increase 10.3% compared to fourth quarter 2024, driven by the introduction of Star of the Seas during the third quarter, Celebrity Xcel in mid-November, and fewer drydock days. Net Yields are expected to increase 2.6% to 3.1% as-reported and 2.2% to 2.7% in Constant Currency. The expected growth in yield is driven by both ticket and onboard spend, as well as new and like for like hardware. Yield growth in the fourth quarter is on top of 7.3% growth in the fourth quarter of 2024. Fourth quarter Net Yield growth is marginally impacted by weather events and the unplanned extension of the temporary closure of Labadee, Haiti.

NCC, excluding Fuel, per APCD, is expected to decrease (6.2%) to (5.7%) as-reported and (6.6%) to (6.1%) in Constant Currency as compared to the same period in the prior year. 

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be in the range of $2.74 to $2.79.

New Exclusive Destination – Royal Beach Club Santorini

Royal Caribbean Group continues to strategically invest in expanding its unrivaled portfolio of destinations and experiences – deepening its competitive moat, strengthening its vacation ecosystem and creating new ways to deliver extraordinary vacations that resonate with guests.

Today the company announced plans to bring the ultimate day to Santorini. Set to open in summer 2026, Royal Beach Club Santorini will welcome vacationers from Royal Caribbean and Celebrity Cruises and combine the breathtaking volcanic beaches of this iconic Greek island with the company’s signature experiences alongside the vibrant Grecian spirit and culture to create the ultimate Santorini experience. The beach club will be part of an Ultimate Santorini Day that will include a day of exploring the gems of the island, from the white-washed buildings and blue-domed churches in Oia, to a stroll through the shops, cafes and art galleries in Fira. Vacationers will have the opportunity to check off these bucket list items while also enjoying the Mediterranean vibes of the beach club. 

As the first Royal Beach Club experience readies to launch in The Bahamas this December, Royal Beach Club Santorini is the latest in the company’s growing lineup of exclusive land-based destinations, which includes the top-rated Perfect Day at CocoCay, which disrupted the cruise industry and redefined the future of cruise vacations. With this announcement, the company extends its offering from two to eight land-based destinations by 2028.

This exciting lineup of land-based initiatives strengthens Royal Caribbean Group’s strategy to extend its brands’ reach beyond the ship and deepen guest engagement, while creating lasting benefits for local communities – all while advancing the company’s mission to deliver the best vacation experiences responsibly.

Fuel Expense

Bunker pricing, net of hedging, for the third quarter was $694 per metric ton and consumption was 428,000 metric tons.

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 $286 million of fuel expense in its fourth quarter guidance at a forecasted consumption of 438,000 metric tons, which is 68% hedged via swaps. Forecasted consumption is 68%, 60%, 47%, and 26% hedged via swaps for 2025, 2026, 2027, and 2028, respectively. The annual average cost per metric ton of the hedge portfolio is approximately $480, $474, $393, and $416 for 2025, 2026, 2027, and 2028, respectively.

SOURCE Royal Caribbean Group

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