Royal Caribbean Group
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did RCL Beat Earnings? Q1 2025 Results
Royal Caribbean Cruises delivered a convincing first quarter for 2025, posting adjusted EPS of $2.71 against a consensus estimate of $2.53, a beat of 7.02%, even as revenue of $4.00 billion came in fractionally below the $4.02 billion forecast, rising 7.3% year over year. The earnings strength traced directly to stronger-than-expected close-in pricing demand and favorable cost timing, with Net Yields climbing 4.7% as-reported and Gross Cruise Costs per APCD actually declining 1.1%, a combination that pushed Adjusted EBITDA to $1.40 billion and expanded margins to 35.1% from 31.5% a year earlier. The company carried 2.2 million guests during the quarter, up 9% year over year, with load factor reaching a robust 109%. Record WAVE season bookings and continued strength in close-in demand have given management enough confidence to raise full-year 2025 Adjusted EPS guidance to a range of $14.55 to $15.55, representing roughly 28% year-over-year growth, though the range was widened to reflect broader macroeconomic uncertainty.
- Stronger than expected pricing on close-in demand
- Lower costs mainly due to timing
- Net Yield growth of 4.7% as-reported (5.6% in constant currency)
- Load factor of 109%
- 9% increase in guests carried year over year to 2.2 million
- 3% capacity increase year over year
- Interest expense declined significantly from $424M to $249M year over year
- Adjusted EBITDA margin expanded to 35.1% from 31.5%
“Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver. As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control -- delivering the best vacation experiences, optimizing revenue, and managing costs, while continuing to invest in our future and drive further differentiation. With our industry-leading brands, state-of-the-art ships, exclusive destinations, and a fortified balance sheet, we will continue dreaming and innovating to win a greater share of the growing $2 trillion global vacation market.”
Royal Caribbean Cruises CEO, on the earnings call
Forward Guidance & Outlook
Royal Caribbean raised its full-year 2025 Adjusted EPS guidance to $14.55–$15.55, representing approximately 28% year-over-year growth, driven by Q1 revenue outperformance plus benefits from favorable currency exchange rates and lower fuel costs. The guidance range was widened to account for macroeconomic uncertainty. Full-year Net Yields are expected to increase 2.5%–4.5% as-reported (2.6%–4.6% in constant currency). NCC excluding fuel per APCD is expected to increase 0.1%–1.1% as-reported. For Q2 2025, Adjusted EPS is expected to be $4.00–$4.10, with Net Yields increasing 4.4%–4.9% as-reported. Capacity is expected to grow 5.5% for 2025, with 6%, 5%, and 6% growth in 2026, 2027, and 2028, respectively. Full-year capital expenditures are projected at approximately $5 billion. Full-year fuel expense is estimated at $1,140 million. Bookings remain on track with record WAVE season results, normal cancellation levels, and continued strength in close-in demand.
RCL YoY Financials
RCL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.