WS Investor
29 Jan 2026, 17:16
Royal Caribbean Group reported strong full-year 2025 results and issued an upbeat outlook for 2026, citing robust demand, record booking momentum, and continued expansion of its vacation portfolio.
For full-year 2025, the company posted earnings per share of $15.61 and adjusted EPS of $15.64, exceeding its prior guidance, supported by stronger revenue performance and improved results from joint ventures. Total revenues reached $17.9 billion, net income was $4.3 billion, and adjusted EBITDA totaled $7.0 billion. Yield performance improved, with gross margin yields up 8.5% and net yields up 3.8%, while cruise costs remained largely contained.
Momentum accelerated toward the end of the year, with the fourth quarter delivering net income of $0.8 billion, or $2.76 per share, and adjusted EPS of $2.80, both well above the prior year. Revenues for the quarter were $4.3 billion, supported by higher yields, strong onboard spending, and a load factor of 108%. Costs declined on a per-passenger basis, further supporting profitability.
Looking ahead, Royal Caribbean expects adjusted EPS of $17.70 to $18.10 in 2026, implying continued double-digit growth in earnings and revenue. The company expects net yields to rise further in 2026, supported by higher capacity and sustained pricing strength, while costs excluding fuel are expected to remain broadly controlled. Management highlighted that roughly two-thirds of 2026 capacity is already booked at record rates, with onboard and pre-cruise spending continuing to trend higher.
Strategically, the company announced significant fleet and product expansion plans, including the launch of Royal Caribbean’s new Discovery Class ships later in the decade and a major expansion of Celebrity River Cruises, with 10 additional ships planned by 2031. Management said these investments, combined with strong booking trends and loyalty engagement, position the company for sustained growth as it advances toward its multi-year financial targets.
For full-year 2025, the company posted earnings per share of $15.61 and adjusted EPS of $15.64, exceeding its prior guidance, supported by stronger revenue performance and improved results from joint ventures. Total revenues reached $17.9 billion, net income was $4.3 billion, and adjusted EBITDA totaled $7.0 billion. Yield performance improved, with gross margin yields up 8.5% and net yields up 3.8%, while cruise costs remained largely contained.
Momentum accelerated toward the end of the year, with the fourth quarter delivering net income of $0.8 billion, or $2.76 per share, and adjusted EPS of $2.80, both well above the prior year. Revenues for the quarter were $4.3 billion, supported by higher yields, strong onboard spending, and a load factor of 108%. Costs declined on a per-passenger basis, further supporting profitability.
Looking ahead, Royal Caribbean expects adjusted EPS of $17.70 to $18.10 in 2026, implying continued double-digit growth in earnings and revenue. The company expects net yields to rise further in 2026, supported by higher capacity and sustained pricing strength, while costs excluding fuel are expected to remain broadly controlled. Management highlighted that roughly two-thirds of 2026 capacity is already booked at record rates, with onboard and pre-cruise spending continuing to trend higher.
Strategically, the company announced significant fleet and product expansion plans, including the launch of Royal Caribbean’s new Discovery Class ships later in the decade and a major expansion of Celebrity River Cruises, with 10 additional ships planned by 2031. Management said these investments, combined with strong booking trends and loyalty engagement, position the company for sustained growth as it advances toward its multi-year financial targets.
