Royal Caribbean Group
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.98%.
Did RCL Beat Earnings? Q4 2025 Results
Royal Caribbean Cruises closed out Q4 2025 with a performance that largely met expectations while underscoring the cruise industry's durable demand story, posting adjusted EPS of $2.80 against a consensus of $2.79 for a narrow beat, even as revenue of $4.26 billion came in just 0.36% shy of analyst forecasts. The top line still represented a healthy 13.2% year-over-year gain, lifted primarily by a 9.2% improvement in Gross Margin Yields and disciplined cost management, with Net Cruise Costs excluding fuel per APCD falling 5.8% in Q4. Full-year adjusted EPS of $15.64, up from $11.80 in 2024, already pushed the company past its Perfecta Program ROIC target of high-teens by 2027, a milestone that puts Royal Caribbean ahead of <a href="https://247wallst.com/investing/2026/01/22/carnival-posts-19-year-high-profitability-while-carrying-26-8-billion-debt-load/">its major cruise rivals</a> on financial returns. The company also declared a $1.50 quarterly dividend, reflecting confidence in its trajectory. Looking ahead, management guided for 2026 adjusted EPS of $17.70 to $18.10, backed by record WAVE season booking momentum, with approximately two-thirds of 2026 capacity already secured at record rates.
- Net Yields increased 3.1% as-reported in Q4 and 3.8% for the full year
- Load factor of 108% in Q4 and 109.7% for the full year
- Net Cruise Costs excluding Fuel per APCD declined 5.8% in Q4
- Onboard and pre-cruise guest spending continued to exceed prior years driven by greater participation at higher prices
- Nearly 50% of onboard revenue in 2025 was booked pre-cruise, with 90% of pre-cruise purchases through digital channels
- Equity investment income of $100 million in Q4 and $414 million for the full year, contributing to better-than-expected results
“2025 was an outstanding year, and the momentum is further accelerating into 2026. WAVE is off to a great start and we continue to see strong and growing preference for our leading brands and differentiated vacation experiences. We expect another strong year of financial performance with both revenue and earnings growing double digits, and we remain on track to achieve our Perfecta goals by 2027.”
Royal Caribbean Cruises CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, Royal Caribbean expects Adjusted EPS of $17.70 to $18.10, representing double-digit earnings growth and a 23% CAGR over the first two years of the Perfecta Program. Net Yields are expected to increase 2.1% to 4.1% as-reported (1.5% to 3.5% in Constant Currency), including 30 bps headwind from China itinerary modifications. NCC excluding Fuel per APCD is expected to be 0.4% to 1.4% as-reported. Capacity is expected to grow 6.7% in 2026. Capital expenditures for 2026 are expected to be approximately $5 billion. For Q1 2026, Adjusted EPS is expected to be $3.18 to $3.28, with Net Yields increasing 2.4% to 2.9% as-reported. Approximately two-thirds of 2026 capacity is booked at record rates, and WAVE season is off to a record start with the highest seven booking weeks in company history. Capacity changes for 2027, 2028, and 2029 are expected to be 4%, 6%, and 7%, respectively.
RCL YoY Financials
RCL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.