Royal Caribbean Group Reports Second Quarter Results and Increases Full Year Guidance

Royal Caribbean Group has released its second quarter results for 2025, showcasing a strong performance that has led the company to increase its full-year guidance. The company reported better-than-expected earnings, driven by robust demand and cost management.

Financial Highlights

For the second quarter of 2025, Royal Caribbean Group reported:

• Earnings per Share (EPS) of $4.41 and Adjusted EPS of $4.38, surpassing the company's guidance.
• Total revenues of $4.5 billion, with a Net Income of $1.2 billion.
• Adjusted EBITDA of $1.9 billion.
• Gross Margin Yields increased by 11.0% as-reported, and Net Yields increased by 5.3% as-reported (5.2% in Constant Currency).
• Load factor for the quarter was 110%, up two percentage points from the previous year.

Business and Operational Highlights

The company experienced a 5.8% year-over-year increase in capacity and delivered vacations to 2.3 million guests, a 10% increase from the previous year. The growth in Net Yields was driven by both ticket pricing and onboard spend, with new ships contributing to higher load factors.

Bookings for the new ships, Star of the Seas and Celebrity Xcel, have been performing exceptionally well, indicating strong demand for the company's offerings. Additionally, the Royal Beach Club Paradise Island has seen robust early demand.

Strategic Initiatives and Corporate Developments

Royal Caribbean Group has made significant strides in its financial strategy, including:

• Increasing its full-year 2025 Adjusted EPS guidance to $15.41 to $15.55.
• Maintaining a strong liquidity position of $7.1 billion as of June 30, 2025.
• Receiving investment grade ratings from all three major credit rating agencies.
• Amending and upsizing its two unsecured revolving credit facilities to $6.4 billion.

Management's Perspective

Jason Liberty, President and CEO of Royal Caribbean Group, commented on the results, stating, "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."

Liberty also highlighted the company's progress towards achieving its Perfecta financial targets by the end of 2027 and expressed optimism about future growth driven by new ships, differentiated destinations, and investments in technology and personalization.

Future Outlook

Looking ahead, Royal Caribbean Group expects:

• Net Yields to increase by 3.5% to 4.0% for the full year 2025.
• Adjusted EPS to grow approximately 31% year over year, reaching a range of $15.41 to $15.55.
• Third quarter 2025 Adjusted EPS to be in the range of $5.55 to $5.65.

The company also provided guidance on fuel expenses, with a forecasted consumption of 433,000 metric tons for the third quarter and 1,718,000 metric tons for the full year 2025.

SEC Filing: ROYAL CARIBBEAN CRUISES LTD [ RCL ] - 8-K - Jul. 29, 2025