Carnival (CCL)

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Carnival (CCL) International Revenue Performance Explored
ZACKS· 2025-06-27 14:16
Core Insights - Carnival's international operations are crucial for assessing its financial strength and growth potential [1][2] - The company's total revenue for the quarter was $6.33 billion, a 9.5% increase year-over-year [4] International Revenue Trends - Australia contributed $315 million, or 4.98% of total revenue, which was an 11.19% miss against expectations of $354.7 million [5] - Other International markets generated $275 million, accounting for 4.35% of total revenue, exceeding the estimate of $212.65 million by 29.32% [6] - Europe represented 31.04% of total revenue, translating to $1.96 billion, surpassing expectations by 4.11% [7] Revenue Forecasts - For the current fiscal quarter, total revenue is projected at $8 billion, a 1.3% increase year-over-year, with contributions expected from Australia (6.3%), Other International (3.6%), and Europe (30%) [8] - For the full year, total revenue is anticipated to reach $26.37 billion, reflecting a 5.4% increase, with regional contributions from Australia (6.4%), Other International (4%), and Europe (29.3%) [9] Market Performance - Carnival's stock has increased by 13% over the past month, outperforming the S&P 500's 6% increase [13] - Over the past three months, the company's shares rose by 51.5%, compared to a 7.9% increase in the S&P 500 [13]
Carnival (CCL) - 2025 Q2 - Quarterly Report
2025-06-26 14:09
[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements: income, comprehensive income, balance sheets, cash flows, equity, and detailed notes [Consolidated Statements of Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Income%20%28Loss%29) Presents the consolidated statements of income (loss) for the three and six months ended May 31, 2025 and 2024 | Metric | 3 Months Ended May 31, 2025 (Millions) | 3 Months Ended May 31, 2024 (Millions) | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | | :----- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Revenues | $6,328 | $5,781 | $12,139 | $11,187 | | Operating Income | $934 | $560 | $1,477 | $836 | | Net Income (Loss) | $565 | $92 | $486 | $(123) | | Basic EPS | $0.43 | $0.07 | $0.37 | $(0.10) | | Diluted EPS | $0.42 | $0.07 | $0.37 | $(0.10) | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Details the consolidated statements of comprehensive income (loss) for the three and six months ended May 31, 2025 and 2024 | Metric | 3 Months Ended May 31, 2025 (Millions) | 3 Months Ended May 31, 2024 (Millions) | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | | :----- | :------------------------------------- | :------------------------------------- | :------------------------------------- | :------------------------------------- | | Net Income (Loss) | $565 | $92 | $486 | $(123) | | Other Comprehensive Income (Loss) | $233 | $18 | $221 | $19 | | Total Comprehensive Income (Loss) | $798 | $110 | $708 | $(104) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Provides the consolidated balance sheets as of May 31, 2025, and November 30, 2024, detailing assets, liabilities, and equity | Metric | May 31, 2025 (Millions) | November 30, 2024 (Millions) | | :----- | :---------------------- | :--------------------------- | | Total Assets | $51,165 | $49,057 | | Total Current Assets | $4,349 | $3,378 | | Total Current Liabilities | $12,920 | $11,617 | | Total Debt (net of unamortized costs) | $27,254 | $27,475 | | Customer Deposits | $8,082 | $6,425 | | Total Shareholders' Equity | $10,007 | $9,251 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Outlines the consolidated statements of cash flows for the six months ended May 31, 2025 and 2024, across operating, investing, and financing activities | Activity | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | | :------- | :------------------------------------- | :------------------------------------- | | Net cash provided by (used in) operating activities | $3,317 | $3,807 | | Net cash provided by (used in) investing activities | $(1,191) | $(3,384) | | Net cash provided by (used in) financing activities | $(1,211) | $(1,183) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $940 | $(767) | | Cash, cash equivalents and restricted cash at end of period | $2,171 | $1,669 | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Presents the consolidated statements of shareholders' equity as of May 31, 2025, May 31, 2024, November 30, 2024, and November 30, 2023 | Metric | At May 31, 2025 (Millions) | At May 31, 2024 (Millions) | At November 30, 2024 (Millions) | At November 30, 2023 (Millions) | | :----- | :------------------------- | :------------------------- | :------------------------------ | :------------------------------ | | Total Shareholders' Equity | $10,007 | $6,814 | $9,251 | $6,882 | | Retained Earnings | $2,543 | $62 | $2,101 | $185 | | Accumulated Other Comprehensive Income (Loss) | $(1,753) | $(1,919) | $(1,975) | $(1,939) | [Notes to Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Provides detailed explanatory notes to the consolidated financial statements, covering accounting policies, debt, contingencies, and other financial disclosures [NOTE 1 – General](index=9&type=section&id=NOTE%201%20%E2%80%93%20General) Outlines the basis of presentation for interim financial statements, including estimates, seasonality, brand realignment, and new accounting pronouncements - Brand Realignment: In March 2025, the P&O Cruises (Australia) brand was **sunset**, with operations folded into Carnival Cruise Line[23](index=23&type=chunk) - New Accounting Pronouncements: The company is evaluating new FASB guidance on Segment Reporting (effective 2025/2026), Income Tax Disclosures (effective 2026), Debt with Conversion Options (effective 2027), and Expense Disaggregation (effective 2028)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [NOTE 2 – Revenue and Expense Recognition](index=10&type=section&id=NOTE%202%20%E2%80%93%20Revenue%20and%20Expense%20Recognition) Details policies for revenue and expense recognition, including guest cruise deposits, advance onboard purchases, and contract costs | Metric | May 31, 2025 (Millions) | November 30, 2024 (Millions) | | :----- | :---------------------- | :--------------------------- | | Total Customer Deposits | $8,500 | $6,800 | | Incremental Costs of Obtaining Contracts | $445 | $336 | [NOTE 3 – Debt](index=11&type=section&id=NOTE%203%20%E2%80%93%20Debt) Provides a detailed breakdown of the company's debt structure, including maturities, interest rates, new facilities, and recent issuances/redemptions | Metric | May 31, 2025 (Millions) | November 30, 2024 (Millions) | | :----- | :---------------------- | :--------------------------- | | Total Debt | $27,967 | $28,213 | | Long-Term Debt | $25,862 | $25,936 | | Current Portion of Long-Term Debt | $1,392 | $1,538 | - New Revolving Facility: In June 2025, a **$4.5 billion** unsecured multi-currency revolving credit facility was entered, replacing the previous one and maturing in June 2030[37](index=37&type=chunk) - Debt Refinancing Activities in 2025: - Issued **$1.0 billion** of 5.75% senior unsecured notes due 2030 to redeem 10.50% notes due 2030 - Issued **$2.0 billion** of 6.13% senior unsecured notes due 2033 to redeem 10.38% senior priority notes due 2028 - Issued **$1.0 billion** of 5.88% senior unsecured notes due 2031 to redeem 7.63% senior unsecured notes due 2026[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) | Metric | 3 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2025 (Millions) | | :----- | :------------------------------------- | :------------------------------------- | | Debt Extinguishment and Modification Costs | $4 | $255 | - Covenant Compliance: As of May 31, 2025, the company was in **compliance with all applicable covenants** under its debt agreements, including minimum interest coverage and liquidity[48](index=48&type=chunk)[50](index=50&type=chunk) [NOTE 4 – Contingencies and Commitments](index=15&type=section&id=NOTE%204%20%E2%80%93%20Contingencies%20and%20Commitments) Details ongoing legal proceedings, regulatory inquiries, contingent obligations, including Helms-Burton Act lawsuit, COVID-19 class actions, and ship commitments - Helms-Burton Act Lawsuit: A **$110 million judgment** against Carnival Corporation was reversed, with the company believing the ultimate outcome will not have a material impact[54](index=54&type=chunk) - COVID-19 Class Actions: Courts in Australia and Italy found limited liability or rejected most claims, with the company believing the ultimate outcome will not have a material impact[54](index=54&type=chunk) | Year Ending November 30 | New Ship Growth Capital Commitments (Billions) | | :---------------------- | :--------------------------------------------- | | Remainder of 2025 | $0.9 | | 2026 | $0.5 | | 2027 | $1.6 | | 2028 | $1.4 | | 2029 | $1.8 | | Thereafter | $6.3 | [NOTE 5 – Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks](index=16&type=section&id=NOTE%205%20%E2%80%93%20Fair%20Value%20Measurements%2C%20Derivative%20Instruments%20and%20Hedging%20Activities%20and%20Financial%20Risks) Discusses fair value measurements, derivative instruments for hedging, and strategies for managing fuel price, foreign currency, and interest rate risks | Metric | May 31, 2025 (Millions) | November 30, 2024 (Millions) | | :----- | :---------------------- | :--------------------------- | | Total Debt (Carrying Value) | $27,967 | $28,213 | | Total Debt (Fair Value) | $28,309 | $28,927 | - Derivative Instruments: As of May 31, 2025, interest rate swaps converted **$1.0 billion** of SOFR-based variable rate debt to fixed rate debt, designated as cash flow hedges[71](index=71&type=chunk) - Risk Management Strategies: - Fuel Price Risks: Managed through fleet optimization, energy efficiency, and new technologies/alternative fuels - Foreign Currency Exchange Rate Risks: Managed through operating/financing activities, netting exposures, and derivative instruments - Interest Rate Risks: Managed through debt portfolio management and investment strategies, including interest rate swaps[73](index=73&type=chunk)[74](index=74&type=chunk)[78](index=78&type=chunk) [NOTE 6 – Segment Information](index=20&type=section&id=NOTE%206%20%E2%80%93%20Segment%20Information) Provides financial information by reportable segment, detailing revenues, operating expenses, and operating income for specified periods Operating Income by Segment (Millions) | Segment | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 6 Months Ended May 31, 2025 | 6 Months Ended May 31, 2024 | | :------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | North America | $691 | $525 | $1,207 | $797 | | Europe | $368 | $168 | $508 | $288 | | Consolidated | $934 | $560 | $1,477 | $836 | Revenue by Geographic Area (Millions) | Geographic Area | 6 Months Ended May 31, 2025 | 6 Months Ended May 31, 2024 | | :-------------- | :-------------------------- | :-------------------------- | | North America | $7,243 | $6,663 | | Europe | $3,590 | $3,199 | | Australia | $735 | $781 | [NOTE 7 – Earnings Per Share](index=22&type=section&id=NOTE%207%20%E2%80%93%20Earnings%20Per%20Share) Presents the calculation of basic and diluted earnings per share, including net income, weighted-average shares, and dilutive effects | Metric | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 6 Months Ended May 31, 2025 | 6 Months Ended May 31, 2024 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Basic EPS | $0.43 | $0.07 | $0.37 | $(0.10) | | Diluted EPS | $0.42 | $0.07 | $0.37 | $(0.10) | - Antidilutive Securities: For the six months ended May 31, 2025, **84 million** Convertible Notes were excluded from diluted EPS computations as they were antidilutive[87](index=87&type=chunk) [NOTE 8 – Supplemental Cash Flow Information](index=22&type=section&id=NOTE%208%20%E2%80%93%20Supplemental%20Cash%20Flow%20Information) Provides a reconciliation of cash and cash equivalents from balance sheets to total cash, cash equivalents, and restricted cash | Metric | May 31, 2025 (Millions) | November 30, 2024 (Millions) | | :----- | :---------------------- | :--------------------------- | | Cash and cash equivalents | $2,146 | $1,210 | | Restricted cash | $25 | $21 | | Total cash, cash equivalents and restricted cash | $2,171 | $1,231 | [NOTE 9 – Property and Equipment](index=22&type=section&id=NOTE%209%20%E2%80%93%20Property%20and%20Equipment) Reports on ship sales completed in 2025, detailing passenger capacity reduction and continued operation under bareboat charter agreements - Ship Sales in 2025: The company completed sales of one North America segment ship (**460 berths**) and one Europe segment ship (**2,700 berths**), reducing passenger capacity[89](index=89&type=chunk) - Continued Operation: Sold North America segment ship will operate through May 2026, and Europe segment ship through September 2026, under bareboat charter agreements[89](index=89&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and results, including forward-looking statements, accounting estimates, seasonality, trends, and detailed analysis of revenues and expenses [Cautionary Note Concerning Factors That May Affect Future Results](index=23&type=section&id=Cautionary%20Note%20Concerning%20Factors%20That%20May%20Affect%20Future%20Results) Highlights forward-looking statements and outlines significant risks and uncertainties, including geopolitical events, regulatory changes, climate change, cybersecurity, and substantial debt - Key Risk Factors: Include geopolitical uncertainty, pandemics, inflation, higher fuel prices and interest rates, regulatory changes, climate change, cybersecurity, and substantial debt[91](index=91&type=chunk) - Debt Amplification: Many identified risks are amplified by the **substantial debt balance** incurred during the pause of guest cruise operations[92](index=92&type=chunk) [New Accounting Pronouncements](index=24&type=section&id=New%20Accounting%20Pronouncements) Refers to Note 1 of the consolidated financial statements for discussion of new accounting pronouncements - Reference to Note 1: Additional discussion regarding new accounting pronouncements is in Note 1 - "General, Accounting Pronouncements" of the consolidated financial statements[95](index=95&type=chunk) [Critical Accounting Estimates](index=24&type=section&id=Critical%20Accounting%20Estimates) Directs readers to the Form 10-K for a discussion of critical accounting estimates, with no new changes in the interim report - Reference to Form 10-K: Critical accounting estimates are discussed in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Form 10-K[96](index=96&type=chunk) [Seasonality](index=24&type=section&id=Seasonality) Explains the seasonal nature of passenger ticket revenues, with highest demand in the third quarter and impact from planned maintenance - Seasonal Demand: Cruise demand is **highest in the third quarter**, leading to higher ticket prices, occupancy, and operating income[97](index=97&type=chunk) - Impact of Maintenance: Results are affected by ships taken out-of-service for planned maintenance during non-peak seasons[97](index=97&type=chunk) [Known Trends and Uncertainties](index=24&type=section&id=Known%20Trends%20and%20Uncertainties) Identifies key trends and uncertainties, including fuel cost volatility and the increasing impact of the EU Emissions Trading System (ETS) - Fuel Cost Volatility: Volatility in fuel costs is reasonably likely to impact profitability in both the short and long-term[98](index=98&type=chunk) - EU Emissions Trading System (ETS): Subject to EU ETS since January 1, 2024, with a three-year phase-in; 2024 impact was **$46 million** (40% of emissions)[98](index=98&type=chunk) [Statistical Information](index=25&type=section&id=Statistical%20Information) Provides key operational statistics for the three and six months ended May 31, 2025 and 2024, including PCDs, ALBDs, occupancy, and fuel data | Metric | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 6 Months Ended May 31, 2025 | 6 Months Ended May 31, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Passenger Cruise Days (PCDs) (in millions) | 25.3 | 24.3 | 49.6 | 47.8 | | Available Lower Berth Days (ALBDs) (in millions) | 24.2 | 23.5 | 47.8 | 46.5 | | Occupancy percentage | 104 % | 104 % | 104 % | 103 % | | Passengers carried (in millions) | 3.4 | 3.3 | 6.5 | 6.3 | | Fuel consumption in metric tons (in millions) | 0.7 | 0.7 | 1.4 | 1.5 | | Fuel cost per metric ton consumed | $614 | $684 | $628 | $685 | - Capacity Increase (3 months): ALBDs increased by **3.1%**, with North America up **0.3%** and Europe up **8.4%**[102](index=102&type=chunk) - Capacity Increase (6 months): ALBDs increased by **2.8%**, with North America up **2.9%** and Europe up **2.6%**[103](index=103&type=chunk) [Three Months Ended May 31, 2025 Compared to Three Months Ended May 31, 2024](index=26&type=section&id=Three%20Months%20Ended%20May%2031%2C%202025%20Compared%20to%20Three%20Months%20Ended%20May%2031%2C%202024) Analyzes financial performance for the three months ended May 31, 2025 vs 2024, covering revenues, operating expenses, and income [Revenues](index=26&type=section&id=Revenues%20%28Three%20Months%29) Consolidated total revenues increased by **$547 million (9.5%)** to **$6.3 billion**, driven by higher passenger ticket and onboard revenues | Revenue Type | 3 Months Ended May 31, 2025 (Millions) | 3 Months Ended May 31, 2024 (Millions) | Change (Millions) | Change (%) | | :------------- | :------------------------------------- | :------------------------------------- | :---------------- | :--------- | | Passenger ticket | $4,104 | $3,754 | $351 | 9.3% | | Onboard and other | $2,224 | $2,027 | $197 | 9.7% | | Total Revenues | $6,328 | $5,781 | $547 | 9.5% | - Passenger ticket revenue increased by **$169 million** from higher ticket prices, **$115 million** from **3.1%** capacity increase, and **$51 million** from favorable foreign currency translation[109](index=109&type=chunk) - Onboard and other revenue increased by **$128 million** from higher guest spending and **$37 million** from a **3.1%** capacity increase[107](index=107&type=chunk) [Operating Expenses](index=27&type=section&id=Operating%20Expenses%20%28Three%20Months%29) Consolidated operating expenses increased by **$89 million (2.3%)** to **$3.9 billion**, driven by capacity, maintenance, and onboard costs, partially offset by ship sales and lower fuel prices | Expense Type | 3 Months Ended May 31, 2025 (Millions) | 3 Months Ended May 31, 2024 (Millions) | Change (Millions) | Change (%) | | :------------- | :------------------------------------- | :------------------------------------- | :---------------- | :--------- | | Cruise and tour operating expenses | $3,886 | $3,798 | $88 | 2.3% | | Selling and administrative | $816 | $789 | $27 | 3.4% | | Depreciation and amortization | $692 | $634 | $58 | 9.1% | | Total Operating Expenses | $5,394 | $5,221 | $173 | 3.3% | - Key increases in operating expenses included **$101 million** from capacity, **$72 million** from repair and maintenance, **$31 million** from onboard costs, and **$31 million** from unfavorable foreign currency translation[120](index=120&type=chunk) - These increases were partially offset by **$103 million** gains on ship sales, **$40 million** lower fuel prices, and **$32 million** lower fuel consumption per ALBD[120](index=120&type=chunk) [Operating Income](index=28&type=section&id=Operating%20Income%20%28Three%20Months%29) Consolidated operating income significantly increased by **$374 million** to **$934 million**, driven by positive revenue and expense trends across segments | Segment | 3 Months Ended May 31, 2025 (Millions) | 3 Months Ended May 31, 2024 (Millions) | Change (Millions) | | :------------ | :------------------------------------- | :------------------------------------- | :---------------- | | Consolidated | $934 | $560 | $374 | | North America | $691 | $525 | $166 | | Europe | $368 | $168 | $200 | [Nonoperating Income (Expense)](index=28&type=section&id=Nonoperating%20Income%20%28Expense%29%20%28Three%20Months%29) Interest expense, net of capitalized interest, decreased by **$109 million** due to lower debt and rates; debt extinguishment costs also decreased | Metric | 3 Months Ended May 31, 2025 (Millions) | 3 Months Ended May 31, 2024 (Millions) | Change (Millions) | | :---------------------------------- | :------------------------------------- | :------------------------------------- | :---------------- | | Interest expense, net of capitalized interest | $(341) | $(450) | $109 | | Debt extinguishment and modification costs | $(4) | $(33) | $29 | [Six Months Ended May 31, 2025 Compared to Six Months Ended May 31, 2024](index=28&type=section&id=Six%20Months%20Ended%20May%2031%2C%202025%20Compared%20to%20Six%20Months%20Ended%20May%2031%2C%202024) Analyzes financial performance for the six months ended May 31, 2025 vs 2024, covering revenues, operating expenses, and income [Revenues](index=28&type=section&id=Revenues%20%28Six%20Months%29) Consolidated total revenues increased by **$952 million (8.5%)** to **$12.1 billion**, driven by higher passenger ticket and onboard revenues | Revenue Type | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | Change (Millions) | Change (%) | | :------------- | :------------------------------------- | :------------------------------------- | :---------------- | :--------- | | Passenger ticket | $7,936 | $7,370 | $566 | 7.7% | | Onboard and other | $4,202 | $3,817 | $385 | 10.1% | | Total Revenues | $12,139 | $11,187 | $952 | 8.5% | - Passenger ticket revenue increased by **$320 million** from higher ticket prices, **$207 million** from **2.8%** capacity increase, and **$68 million** from **0.9%** occupancy increase[129](index=129&type=chunk) - Onboard and other revenue increased by **$252 million** from higher guest spending, **$103 million** from **2.8%** capacity increase, and **$29 million** from **0.9%** occupancy increase[128](index=128&type=chunk)[129](index=129&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses%20%28Six%20Months%29) Consolidated operating expenses increased by **$150 million (2.0%)** to **$7.7 billion**, driven by capacity, onboard costs, and maintenance, partially offset by ship sales and lower fuel prices | Expense Type | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | Change (Millions) | Change (%) | | :------------- | :------------------------------------- | :------------------------------------- | :---------------- | :--------- | | Cruise and tour operating expenses | $7,653 | $7,502 | $151 | 2.0% | | Selling and administrative | $1,663 | $1,603 | $60 | 3.7% | | Depreciation and amortization | $1,346 | $1,247 | $99 | 7.9% | | Total Operating Expenses | $10,662 | $10,352 | $310 | 3.0% | - Key increases in operating expenses included **$206 million** from capacity, **$63 million** from onboard costs, and **$50 million** from repair and maintenance[138](index=138&type=chunk) - These increases were partially offset by **$103 million** gains on ship sales, **$68 million** lower fuel prices, and **$58 million** lower fuel consumption per ALBD[138](index=138&type=chunk) [Operating Income](index=31&type=section&id=Operating%20Income%20%28Six%20Months%29) Consolidated operating income significantly increased by **$641 million** to **$1.5 billion**, reflecting strong revenue and expense trends across segments | Segment | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | Change (Millions) | | :------------ | :------------------------------------- | :------------------------------------- | :---------------- | | Consolidated | $1,477 | $836 | $641 | | North America | $1,207 | $797 | $410 | | Europe | $508 | $288 | $220 | [Nonoperating Income (Expense)](index=31&type=section&id=Nonoperating%20Income%20%28Expense%29%20%28Six%20Months%29) Interest expense, net of capitalized interest, decreased by **$203 million**; however, debt extinguishment and modification costs increased significantly | Metric | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | Change (Millions) | | :---------------------------------- | :------------------------------------- | :------------------------------------- | :---------------- | | Interest expense, net of capitalized interest | $(718) | $(921) | $203 | | Debt extinguishment and modification costs | $(255) | $(66) | $(189) | [Liquidity, Financial Condition and Capital Resources](index=32&type=section&id=Liquidity%2C%20Financial%20Condition%20and%20Capital%20Resources) Discusses the company's liquidity, working capital, and strategies for managing cash and debt, highlighting new revolving credit and export credit facilities [Sources and Uses of Cash](index=32&type=section&id=Sources%20and%20Uses%20of%20Cash) Details cash sources and uses for operating, investing, and financing activities, noting decreased operating and investing cash flow, and substantial debt transactions | Activity | 6 Months Ended May 31, 2025 (Millions) | 6 Months Ended May 31, 2024 (Millions) | | :------- | :------------------------------------- | :------------------------------------- | | Net cash provided by (used in) operating activities | $3,317 | $3,807 | | Net cash used in investing activities | $(1,191) | $(3,384) | | Net cash used in financing activities | $(1,211) | $(1,183) | - Investing activities in 2025 were driven by **$1.5 billion** in capital expenditures and **$312 million** in proceeds from ship sales[154](index=154&type=chunk)[155](index=155&type=chunk) - Financing activities in 2025 included **$5.1 billion** in long-term debt repayments and **$4.1 billion** in long-term debt issuances[155](index=155&type=chunk) [Funding Sources](index=33&type=section&id=Funding%20Sources) Outlines the company's funding strategy, relying on liquidity and cash flows for capital expenditures, and managing credit risk - Liquidity: As of May 31, 2025, the company had **$5.2 billion** of liquidity, including **$2.1 billion** in cash and **$3.0 billion** available under the Revolving Facility[150](index=150&type=chunk) - Undrawn Export Credit Facilities: The company had **$8.4 billion** of undrawn export credit facilities to fund ship deliveries planned through 2033[150](index=150&type=chunk) | Year | Future Export Credit Facilities at May 31, 2025 (Billions) | | :--- | :------------------------------------------------------- | | 2025 | $0.8 | | 2026 | — | | 2027 | $1.3 | | 2028 | $1.3 | | 2029 | $1.7 | | Thereafter | $3.4 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Provides disclosures on market risk exposure, particularly interest rate risks, confirming no material changes since the previous Form 10-K filing [Interest Rate Risks](index=33&type=section&id=Interest%20Rate%20Risks) Provides debt composition by interest rate type after swaps, indicating no material changes to market risk exposure since the 2024 Form 10-K | Debt Type | May 31, 2025 (%) | | :---------- | :--------------- | | Fixed rate | 58 % | | EUR fixed rate | 24 % | | Floating rate | 7 % | | EUR floating rate | 11 % | - No Material Changes: There have been **no material changes** to the company's exposure to market risks since its 2024 Form 10-K filing[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Addresses the effectiveness of disclosure controls and procedures and reports on changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=33&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) States that disclosure controls and procedures were evaluated and concluded to be effective as of May 31, 2025 - Effectiveness: The company's disclosure controls and procedures were evaluated and concluded to be **effective** as of May 31, 2025[161](index=161&type=chunk) [Changes in Internal Control over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Reports no material changes in the company's internal control over financial reporting during the quarter ended May 31, 2025 - No Material Changes: There have been **no material changes** in internal control over financial reporting during the quarter ended May 31, 2025[162](index=162&type=chunk) [PART II - OTHER INFORMATION](index=35&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates legal proceedings disclosures from Note 4, including regulatory inquiries and SEC environmental disclosure requirements for sanctions exceeding **$1 million** - Reference to Note 4: Legal proceedings, including regulatory inquiries, are described in Note 4 – "Contingencies and Commitments" of the consolidated financial statements[165](index=165&type=chunk) - Environmental Disclosure: SEC rules require disclosure of environmental matters with potential monetary sanctions exceeding **$1 million**[165](index=165&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) Refers to the Form 10-K for a comprehensive discussion of risk factors, confirming no material changes since the filing - Reference to Form 10-K: Risk factors affecting business and financial results are discussed in "Item 1A. Risk Factors" in the Form 10-K[166](index=166&type=chunk) - No Material Changes: There have been **no material changes** to these risk factors since the Form 10-K filing[166](index=166&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) Reports no director or Section 16 officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - Trading Plans: No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended May 31, 2025[167](index=167&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) Provides an index of exhibits filed with Form 10-Q, including articles, material contracts, various certifications, and the Interactive Data File - Exhibits List: Includes Articles of Incorporation, By-Laws, Indenture for **5.875%** Senior Unsecured Notes due 2031, stock award agreements, and various executive officer certifications[169](index=169&type=chunk) - Interactive Data File: Consolidated financial statements for the quarter ended May 31, 2025, are filed in Inline XBRL format as Exhibit 101[169](index=169&type=chunk)[170](index=170&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) [Signatures](index=38&type=section&id=Signatures) Contains signatures of authorized representatives, including the Chief Executive Officer and Chief Financial Officer, certifying the report filing - Signatories: The report is duly signed by Josh Weinstein (Chief Executive Officer) and David Bernstein (Chief Financial Officer and Chief Accounting Officer) for both Carnival Corporation and Carnival plc[173](index=173&type=chunk)[174](index=174&type=chunk)
Carnival's Booking Surge Has Wall Street Talking 2026 Already
Benzinga· 2025-06-25 15:31
Core Viewpoint - Carnival Corp reported strong fiscal second-quarter results, exceeding expectations, but shares traded lower amid a challenging market environment [1][2]. Group 1: Analyst Ratings and Price Targets - Goldman Sachs analyst Lizzie Dove maintained a Buy rating and raised the price target from $31 to $33, citing significantly better-than-expected results and conservative guidance [2]. - Stifel analyst Steven M. Wieczynski reaffirmed a Buy rating and increased the price target from $33 to $34, noting gross and net revenues of $6.3 billion and $4.9 billion, respectively, which surpassed consensus estimates [4]. Group 2: Financial Performance and Guidance - Carnival's management raised full-year guidance for adjusted earnings from $1.83 per share to $1.97 per share and for adjusted EBITDA from $6.7 billion to $6.9 billion [4]. - The company indicated that 2026 bookings are approaching record levels, which may alleviate investor concerns regarding cruise demand [5]. Group 3: Market Context and Strategic Positioning - Despite a murky macro and geopolitical environment, Carnival's local European exposure and focus on drive-to/shorter itineraries from the U.S. provide a buffer against potential headwinds [3]. - Analysts highlighted the significant free cash flow generation currently being produced, which will assist in deleveraging Carnival's balance sheet [5].
Carnival: An Undervalued Vessel Ready To Cruise Higher
Seeking Alpha· 2025-06-25 15:03
Core Insights - The article emphasizes the identification of investment opportunities in undervalued companies, leveraging the author's extensive experience in financial markets and institutions [1]. Group 1 - The author has a background as a managing editor at a financial media publication that focused on mid and small-cap companies, which informs the analysis of potential investment opportunities [1]. - The research includes thorough analysis of financial statements, market trends, and upcoming events that may impact specific companies or industries [1].
Carnival's Loyalty Overhaul Takes Shape: Will It Lift Long-Term Demand?
ZACKS· 2025-06-25 14:56
Group 1: Core Strategy and Program Launch - Carnival Corporation & plc (CCL) is set to launch "Carnival Rewards," a new customer loyalty program in June 2026, aimed at enhancing long-term guest engagement through data-driven personalization and monetization [1][9] - The new program will reward guests based on total spending, including onboard expenditures and co-branded credit card usage, moving away from the traditional model based on cumulative cruise days [2][9] - The initiative is expected to generate positive cash flow initially, but will result in a temporary yield reduction of approximately 50 basis points in 2026, with expectations of becoming accretive by 2028 [3][9] Group 2: Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) operates a unified loyalty program focused on vacation frequency and experiential engagement, with loyalty members accounting for 40% of total bookings in 2024 and spending 25% more per trip than non-members [5] - Norwegian Cruise Line Holdings Ltd. (NCLH) is enhancing its fleet and destination offerings but has not yet introduced a spend-based loyalty framework, maintaining a focus on cruise frequency [6] Group 3: Financial Performance and Valuation - CCL shares have increased by 22.8% over the past three months, outperforming the industry growth of 8.5% [7] - CCL trades at a forward price-to-earnings ratio of 12.70X, significantly lower than the industry average of 18.32X [11] - The Zacks Consensus Estimate indicates a year-over-year earnings increase of 32.4% for fiscal 2025 and 13.7% for fiscal 2026, with EPS estimates for fiscal 2025 having risen in the past 30 days [12]
X @Investopedia
Investopedia· 2025-06-25 13:00
Carnival Corporation beat fiscal second-quarter profit and sales forecasts, and increased its outlook on more passengers and lower costs. https://t.co/uHiBkb9zFn ...
创纪录需求助推业绩飙升 邮轮巨头嘉年华(CCL.US)上调全年盈利预期
Zhi Tong Cai Jing· 2025-06-25 00:21
Core Viewpoint - Carnival Corporation (CCL.US) reported significantly better-than-expected Q2 earnings, leading to a nearly 7% surge in stock price, and raised its full-year guidance [1] Financial Performance - Adjusted earnings per share reached $0.35, exceeding analyst expectations of $0.24 [1] - Adjusted revenue hit a record high of $6.3 billion, surpassing market expectations of $6.2 billion [1] - Net profit soared to $565 million, a substantial increase from $92 million in the same period last year [1] Customer Insights - Customer advance payments reached a historic high of $8.5 billion [1] - The company noted that the cumulative booking volume for 2026 is on par with the record levels of 2025, with pricing remaining at historical highs [1] - Carnival highlighted the price advantage of sea travel over land vacations, which is particularly appealing to consumers with limited income amid economic uncertainty [1] Operational Highlights - The CEO stated that all brands under Carnival are showing strong growth momentum [1] - The profit margin for the last quarter reached its highest level in nearly two decades, driven by a surge in last-minute bookings, strong onboard spending, and rising ticket prices [1] Future Outlook - Carnival announced it has achieved its "2026 SEA Change" financial goals 18 months ahead of schedule, with adjusted return on invested capital and EBITDA per available bed day reaching near two-decade highs [2] - The company raised its full-year profit forecast, now expecting adjusted net income to be 40% higher than in 2024, an increase of approximately $200 million from March estimates [2] - Adjusted EBITDA for the year is projected to reach $6.9 billion, up from previous estimates of $6.7 billion [2] - The opening of the new private island resort "Celebration Key" in the Bahamas is set for July 19, which is expected to further enhance the company's offerings [2] - Post-pandemic demand for cruises remains strong, with rising ticket prices and increased occupancy rates driving industry profits back to pre-pandemic levels [2]
Carnival shares pop on earnings beat and raised full-year outlook
CNBC· 2025-06-24 18:23
Core Insights - Carnival shares increased approximately 7% following the release of stronger-than-expected second-quarter results and an upward revision of its full-year guidance [1] - The company reported adjusted earnings of 35 cents per share, surpassing analyst expectations of 24 cents, with adjusted revenue reaching a record $6.3 billion compared to the anticipated $6.2 billion [1] Financial Performance - Net income rose significantly to $565 million, up from $92 million a year ago, indicating strong financial growth [2] - Carnival raised its full-year guidance, now expecting adjusted net income to be 40% higher than 2024, translating to an increase of about $200 million from its previous forecast in March [2] Future Expectations - The company anticipates full-year adjusted EBITDA to be $6.9 billion, an increase from the prior estimate of $6.7 billion [3] - Carnival is set to open the island Celebration Key in the Bahamas on July 19, which is expected to contribute positively to future revenues [3] Industry Trends - Post-pandemic cruise demand remains robust, with expectations of higher prices and fuller ships, which are likely to drive profits closer to pre-pandemic levels [4]
Carnival Reports Record Q2 Results
The Motley Fool· 2025-06-24 17:04
Core Insights - Carnival Corp. reported its eighth consecutive quarter of record revenue, with EBITDA rising 26% year over year and net income of $565 million exceeding management's guidance by $185 million [1] - The company surpassed all three of its 2026 strategic targets 18 months early and upgraded its full-year guidance [1] Financial Performance - In the trailing 12 months, EBITDA per available lower berth day (ALBD) was 52% above the 2023 baseline, and return on invested capital (ROIC) surpassed 12.5%, marking the highest levels in nearly two decades [2][3] - Unit net yields expanded by over 6.4% on an adjusted basis compared to the prior year, building on a comparable 12% gain from last year [2] Strategic Initiatives - Carnival is investing in exclusive destinations like Celebration Key, which features 275,000 square feet of lagoon space, to capture greater price premiums and boost market share against land-based vacation alternatives [4] - Early pricing premiums on Celebration Key itineraries are in line with expectations, supporting the company's portfolio yield management strategy [5] Financial Flexibility - During the second quarter, Carnival prepaid $350 million in senior notes due in 2026 and increased its revolving credit capacity by 50% to $4.5 billion [6] - The net-debt-to-EBITDA ratio improved from 4.1x to 3.7x, with rating upgrades bringing the company just one notch below investment-grade status at both S&P Global and Fitch [6][7] Future Outlook - Full-year 2025 net income guidance was increased by $200 million to approximately $2.7 billion, with net yield growth guidance raised to 5% for FY2025 [8] - The company plans to set new post-2026 financial and environmental targets and focus on the launch of Celebration Key in July 2025 and the new Carnival Rewards loyalty program in the second half of 2026 [9]
Business is strong and our brand is amazing, says Carnival Corporation CEO Josh Weinstein
CNBC Television· 2025-06-24 16:04
Josh Weinstein, Carnival Corporation CEO, joins 'Money Movers' to discuss consumer demand, summer travel and the stock. ...