Royal Caribbean Group
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did RCL Beat Earnings? Q3 2025 Results
Royal Caribbean Cruises delivered a confident third quarter, posting adjusted earnings per share of $5.75 against a consensus estimate of $5.68, a beat of 1.24%, even as revenue of $5.14 billion came in fractionally below the $5.17 billion analysts had expected, rising 5.2% year over year. The headline driver was a surge in close-in demand paired with disciplined cost control, with net cost per available cruise day coming in nearly 200 basis points below guidance and helping push Adjusted EBITDA to $2.29 billion at a 44.6% margin. Load factor climbed to 112.1%, up from 111.0% a year ago, underscoring the continued strength of consumer appetite for cruise travel even as rival Norwegian Cruise Line grappled with its own revenue shortfalls in the period. Looking ahead, Royal Caribbean raised its full-year 2025 adjusted EPS guidance to a range of $15.58 to $15.63, reflecting roughly 32% year-over-year growth, and CEO Jason Liberty signaled that 2026 EPS is expected to carry a "$17 handle," keeping the company firmly on track toward its 2027 Trifecta targets.
- Higher-than-expected close-in demand
- Lower costs coming in nearly 200 bps below guidance
- Net Yields up 2.8% as-reported driven by ticket pricing and onboard spend
- Load factor of 112.1%, up 1 percentage point year-over-year
- New ships carrying higher load factors and like-for-like improvements
- Approximately 50% of onboard revenue booked pre-cruise with nearly 90% through digital channels
- Guest spending onboard and pre-cruise purchases exceeding prior years driven by greater participation at higher prices
“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.”
Royal Caribbean Cruises CEO, on the earnings call
Forward Guidance & Outlook
Royal Caribbean raised its full year 2025 Adjusted EPS guidance to $15.58-$15.63, representing approximately 32% year-over-year growth. Full year Net Yields are expected to increase 3.5%-4.0% as-reported and in constant currency. NCC excluding Fuel per APCD is expected to increase approximately 0.1% as-reported and decline approximately (0.1%) in constant currency for the full year. For Q4 2025, Adjusted EPS is guided at $2.74-$2.79, with Net Yields expected to increase 2.6%-3.1% as-reported. Q4 capacity is expected to increase 10.3% year-over-year. Looking further ahead, the CEO indicated 2026 EPS is expected to have a '$17 handle,' with strong booked positions at record rates for 2026. The company remains on track for its 2027 Perfecta targets of 20% compound annual EPS growth and 17%+ ROIC. Capacity growth is expected at 6% in 2026, 4% in 2027, and 6% in 2028. Full year 2025 capital expenditures are expected to be approximately $5 billion.
RCL YoY Financials
RCL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.