Company Reports

Royal Caribbean plans to acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion. The transaction has committed debt financing, is set to close at the beginning of 2027, and is expected to be accretive to 2027 EBITDA and earnings.

Consumer interest in cruise travel has maintained momentum for Royal Caribbean in 2026, exhibiting solid demand and pricing trends. Since the full redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth supersede prepandemic levels. Royal Caribbean is expected to report record yields again in 2026 given consumer interest in new hardware and destinations which support premium prices. On the cost side, expenses (excluding fuel) should be well managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Royal delivered second-quarter growth of 1.9% in net revenue yield and 4.4% in net cruise costs excluding fuel, resulting in adjusted EPS of $4.21, roughly $0.30 ahead of the firm's outlook. Close close-in demand, controlled costs, and solid joint venture results led to a lift in 2026 EPS guidance.

Consumer interest in cruise travel has maintained momentum for Royal Caribbean in 2026, exhibiting solid demand and pricing trends. Since the full redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth supersede prepandemic levels. Royal Caribbean is expected to report record pricing again in 2026 given consumer interest in new hardware and destinations which support premium prices. On the cost side, expenses (excluding fuel) should be well managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Royal Caribbean's first-quarter results included 3.6% net revenue yield growth and a 1.2% net cruise cost decline, rendering adjusted EPS of $3.60, ahead of its $3.18-$3.28 guidance. Incremental fuel costs of $0.62 prompted a reduction to the full-year outlook to $17.10-$17.50, from $17.70-$18.10.

Consumer interest in cruise travel is set to maintain momentum for Royal Caribbean in 2026, exhibiting solid demand and pricing trends. Since the full redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth supersede prepandemic levels. Royal Caribbean is expected to report record pricing again in 2026 given consumer interest in new hardware and destinations which support premium prices. On the cost side, expenses should be well managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Royal Caribbean's fourth-quarter 3.1% net revenue yield growth against a 5.8% decline in net cruise cost excluding fuel led to adjusted EPS of $2.80. The firm's initial 2026 outlook calls for yield growth of 2.1%-4.1% and total cost growth of 0.2% at the midpoint, leading to EPS of $17.70-$18.10.

Consumer interest in cruise travel is set to maintain momentum for Royal Caribbean into 2026, exhibiting solid demand and pricing trends. Since the full redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth has normalized. Royal Caribbean is expected to report record pricing again in 2025, with further growth anticipated in 2026, given new hardware and destinations set to launch at premium prices. On the cost side, expenses should be well managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

A third-quarter net yield lift of 2.8% and net cruise cost growth of 4% supported EPS of $5.75 at Royal Caribbean, ahead of its $5.55-$5.65 guidance. The firm maintained its 2025 yield outlook of 3.5%-4% but lifted its net cruise cost decline by 40 basis points to 1%, which offers EPS near $15.60.

Consumer interest in travel has maintained momentum for Royal Caribbean in 2025, exhibiting robust demand and pricing trends. With the redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth has normalized. Royal Caribbean is expected to report record pricing again in 2025, with further growth anticipated in 2026, given new hardware and destinations set to launch at premium prices. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

In its second quarter, Royal Caribbean announced as-reported yield growth of 5.3% and net cruise costs excluding fuel growth of 2.5%. Adjusted EPS of $4.38 was ahead of the firm's $4.00-$4.10 prior guidance, but Royal held the high end of its 2025 outlook intact, calling for EPS of $15.41-$15.55.

Consumer interest in travel has maintained momentum for Royal Caribbean in 2025, exhibiting robust demand and pricing trends. With the redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth has normalized. Royal Caribbean is expected to report record pricing again in 2025, with further growth anticipated in 2026, given new hardware and destinations set to launch at premium prices. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Royal's first-quarter revenue of $4 billion and adjusted EPS of $2.71 grew 7% and 53%, respectively. Strong demand led the firm to lift its full-year outlook to include as-reported yield growth of 2.5%-4.5% (from 1.8%-3.8%) and adjusted EPS to $14.55-$15.55 (from $14.35-$14.65).

Royal closed its fourth quarter with net revenue yield growth of 7% and adjusted earnings per share of $1.63, as higher pricing and onboard spending trends persist. With the bookings pace accelerating since last quarter, at higher prices, consumer interest in travel is set for smooth seas in 2025.

Consumer interest in travel is set to maintain momentum for Royal Caribbean in 2025, continuing the robust demand and pricing trends in the business. With the redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth has normalized. Royal Caribbean is expected to report record pricing again in 2025, with further growth anticipated in 2026, given new hardware and destinations set to launch at premium prices. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Consumer interest in travel is set to maintain momentum for Royal Caribbean into 2025, continuing the robust demand and pricing trends in the business. With the redeployment of the fleet in mid-2022, occupancy has returned to historical levels, and profits and cash flow growth has begun to normalize. Royal Caribbean is expected to report record pricing again in 2024 (26% above 2019's level), with further growth anticipated in 2025, given robust advance booking patterns and price levels. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Narrow-moat Royal Caribbean printed another stellar set of financial results, showing adjusted EPS of $5.20, up 36% versus last year, thanks to robust pricing and lower costs. Yields rose a whopping 7.9% as-reported, outpacing the firm’s 6.5%-7% guide and our 6.5% forecast, as close in pricing and healthy onboard spending outperformed. While the cost profile was impressive, rising a mere 2.7%, timing shifts will give some upside back in the fourth quarter, with as-reported net cruise costs set to rise around 8%. Even with costs outpacing yields in the fourth quarter, Royal will see earnings growth, aided by higher capacity and lower interest expense.

Consumer interest in travel has maintained momentum for Royal Caribbean into 2024, continuing the robust demand and pricing trends in the business. The redeployment of the fleet was completed in mid-2022 and occupancy has returned to historical levels aiding a normalization of profits and cash flow. Royal Caribbean reported record pricing in 2023 (13% above 2019's level), with further growth anticipated in 2024, given robust advance booking patterns and price levels thanks to a healthy consumer appetite for travel. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.

Narrow-moat cruise operator Royal Caribbean continues to buck softer consumer spending trends on discretionary goods. While the absolute price point of a vacation in an inflationary environment could be viewed as high, the cruise value proposition remains compelling, a factor we believe is key in the firm’s collection of $6.2 billion in advance ticket sales (up 3% sequentially). By all measures, Royal’s performance has been stellar, with second-quarter as-reported net yield growth of 13.2% ahead of our 11% estimate and net cruise costs excluding fuel of 5.5% lower than our 6% outlook. Such outperformance led to adjusted EPS of $3.21, $0.56 ahead of our forecast and 26% higher than the second quarter of 2019, even with a 34% higher share count.

Consumer interest in travel has maintained momentum for Royal Caribbean into 2024, continuing the robust demand and pricing trends in the business. The redeployment of the fleet was completed in mid-2022 and occupancy has returned to historical levels aiding a normalization of profits and cash flow. Royal Caribbean reported record pricing in 2023 (13% above 2019's level), with further growth anticipated in 2024, given robust advance booking patterns and price levels thanks to a healthy consumer appetite for travel. On the cost side, expenses should be better managed ahead as a result of optimized occupancy and ongoing productivity initiatives, aiding profitability.