Royal Caribbean Group reported fourth‑quarter 2025 results with revenue of $4.26 billion and net income of $0.80 billion, translating to an adjusted earnings per share of $2.80 for the quarter. The quarter’s revenue was $10 million below the consensus estimate of $4.27 billion, and the adjusted EPS missed the $2.81 estimate by $0.01, a 0.4% shortfall. The miss was largely driven by a modest decline in cruise‑related operating income, offset by a small one‑time charge related to a restructuring of the company’s loyalty program.
Compared with the same period a year earlier, Q4 2025 revenue fell 1.2% to $4.26 billion from $4.32 billion in Q4 2024, while net income slipped 5.5% to $0.80 billion from $0.84 billion. Adjusted EPS for the quarter rose 71% to $2.80 from $1.63 in Q4 2024, reflecting a stronger mix of high‑margin luxury itineraries and improved pricing power in the U.S. market. The company’s cost‑control program, which capped fuel‑related expenses and reduced discretionary spend, helped maintain margin stability despite a 3.5% increase in operating costs.
On the full‑year front, Royal Caribbean posted revenue of $17.94 billion, up 8.8% from $16.48 billion in 2024, and adjusted EPS of $15.64, a 5.4% increase from $11.80 in 2024. The revenue growth was driven by a 12% rise in cruise bookings and a 9% increase in average ticket price, while the earnings lift was supported by a 4% decline in operating costs per passenger and a 2% improvement in fuel‑efficiency metrics. The company also reported a 3.1% year‑over‑year increase in net yields, indicating stronger pricing power across its fleet.
Management guided for full‑year 2026 adjusted EPS of $17.70 to $18.10, a range that exceeds the consensus estimate of $17.66. The guidance reflects confidence in continued demand, with two‑thirds of 2026 capacity already booked at record prices. Royal Caribbean also reiterated its revenue outlook of $18.5 billion to $18.8 billion for 2026, up from the prior year’s $17.9 billion to $18.2 billion, signaling a belief that the company can sustain double‑digit growth. The forward guidance underscores the company’s belief that its new Discovery‑class ships and expanded river‑cruise portfolio will drive future revenue and margin expansion.
Investors responded positively to the results, citing the strong 2026 guidance and the company’s ability to maintain pricing power as key drivers of optimism. CEO Jason Liberty emphasized that “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.” He added that the company’s investment in new ships, expanded river‑cruise offerings, and five new exclusive destinations launching by 2028 will strengthen its long‑term growth trajectory and help achieve its Perfecta goals by 2027.
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