Core Insights - Carnival Corporation & plc (CCL) reported strong third-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [2][4][9] - The company raised its full-year fiscal 2025 adjusted net income guidance for the third consecutive quarter, driven by stronger net yields and effective cost management [3][12] Financial Performance - Adjusted earnings per share (EPS) for Q3 were $1.43, surpassing the Zacks Consensus Estimate of $1.32 by 8.3%, and increased from $1.27 in the same quarter last year [4] - Total revenues for the quarter reached $8.15 billion, beating the consensus mark of $8.07 billion by 1% and reflecting a 3.3% year-over-year increase [4] - Adjusted net income for the quarter was $1.98 billion, a 13.2% increase from $1.75 billion year-over-year [6] - Adjusted EBITDA totaled $3 billion, up from $2.82 billion in the prior-year quarter [6] Revenue Breakdown - Passenger ticket revenues amounted to $5.43 billion, up from $5.24 billion in the prior-year quarter, exceeding estimates of $5.25 billion [5] - Onboard and other revenues increased to $2.72 billion from $2.66 billion year-over-year, matching estimates [5] Balance Sheet and Liquidity - As of August 31, 2025, cash and cash equivalents were $1.76 billion, up from $1.21 billion as of November 30, 2024 [7] - Total liquidity at the end of the quarter was $6.26 billion, with total debt decreasing to $26.5 billion from $27.48 billion [7] Booking Trends - Carnival has experienced strong booking momentum since May, with volumes exceeding last year and outpacing capacity growth [8] - Nearly half of fiscal 2026 is already booked at historical high prices, with record booking volumes for 2027 [10] Future Outlook - For Q4 fiscal 2025, Carnival expects adjusted EBITDA of approximately $1.34 billion and adjusted net income of about $300 million, with adjusted EPS projected at nearly 23 cents [11] - The company anticipates adjusted EBITDA for fiscal 2025 to be around $7.05 billion, indicating over 15% growth year-over-year, and adjusted net income to be about $2.925 billion [12]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Viewpoint - Carnival reported quarterly earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, and showing an increase from $1.27 per share a year ago, indicating a positive earnings surprise of +8.33% [1] Financial Performance - The company achieved revenues of $8.15 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.99% and up from $7.9 billion year-over-year [2] - Over the last four quarters, Carnival has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Carnival shares have increased approximately 22.9% since the beginning of the year, outperforming the S&P 500's gain of 13% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates of $0.21 on $6.32 billion in revenues for the upcoming quarter and $2.02 on $26.53 billion in revenues for the current fiscal year [7] - The Zacks Rank for Carnival is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Carnival belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - The company achieved record revenues, operating income, EBITDA, and customer deposits, with net income reaching an all-time high of $2 billion, surpassing pre-pandemic levels by nearly 10% [7][9][19] - Operating income and EBITDA reached the highest levels in nearly 20 years, despite a 2.5% lower capacity compared to the previous year [8][9] - Yields increased by 4.6% on a same-ship basis, exceeding guidance due to strong close-in demand and onboard spending [9][20] - The company reported a return on invested capital (ROIC) of 13%, the first time in nearly 20 years that returns have reached the teens [9][10] Business Line Data and Key Metrics Changes - Customer deposits at the end of the quarter reached a record $7.1 billion, up over $300 million from the previous year, driven by higher ticket pricing and increased sales of pre-cruise onboard revenue items [22] - Cruise costs without fuel per available lower berth day (ALBD) increased by 5.5% compared to the prior year, but this was better than guidance due to cost-saving initiatives [20] Market Data and Key Metrics Changes - Booking trends have improved significantly, with nearly half of 2026 already booked at higher prices, indicating strong demand [10][24] - The company expects 2.8 million guests to visit Celebration Key next year, with high utilization rates anticipated [13] Company Strategy and Development Direction - The company is focused on increasing same-ship yields and closing the value gap with land-based alternatives, with plans to return capital to shareholders as leverage metrics improve [10][27] - The successful launch of Celebration Key is expected to enhance guest experiences and drive future bookings, with significant media impressions generated [12][13] - The company is investing in its brands and assets, with a focus on improving operational performance and profitability [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong booking trends and operational execution as key drivers of success [10][18] - The company is optimistic about 2026, with expectations of continued yield improvement despite some anticipated headwinds from new loyalty programs and operational costs [24][57] Other Important Information - The company has been actively refinancing and deleveraging, reducing secured debt by nearly $2.5 billion and targeting a net debt to EBITDA ratio of under three times [26][28] - The company plans to reinstate its dividend program and potentially consider share buybacks as it approaches its leverage targets [80] Q&A Session Summary Question: Clarification on forward booking prices - Management confirmed that both North America and Europe are at historical record high pricing levels, with no dramatic changes from the previous quarter [31][32] Question: Impact of Celebration Key on ticket prices - Management indicated that Celebration Key is positively impacting ticket prices, with early operations meeting expectations [33][34] Question: Consumer behavior shifts - Management noted that they are not seeing significant shifts in consumer behavior, with strong bookings continuing year over year [40][41] Question: 2026 booking strategy - Management is optimistic about 2026, with a focus on optimizing strategies based on past experiences and current market conditions [44][45] Question: 2027 bookings and dry dock plans - Management indicated that 2027 bookings are off to an unprecedented start, with plans for fewer dry dock days compared to 2026 [50][104] Question: Evaluating new ships versus retrofitting programs - Management is actively considering retrofitting programs similar to AIDA's, focusing on maximizing existing assets [107][108] Question: Competitive edge in Galveston - Management emphasized the importance of maintaining a strong guest experience and diversifying offerings to stay competitive in the Galveston market [110][111]

Financial Data and Key Metrics Changes - The company achieved record revenues, yields, operating income, EBITDA, and customer deposits, with net income reaching an all-time high of $2 billion, surpassing pre-pandemic levels by nearly 10% [7][20]. - Operating income and EBITDA reached the highest levels in nearly 20 years, despite a 2.5% lower capacity compared to the previous year [7][9]. - Yields increased by 4.6% on a same-ship basis, exceeding guidance due to strong close-in demand and onboard spending [9][21]. - The return on invested capital (ROIC) was reported at 13%, the first time reaching the teens since 2007 [9][27]. - The net debt to EBITDA ratio improved to 3.6 times, moving closer to investment-grade metrics [9][27]. Business Line Data and Key Metrics Changes - Customer deposits reached a record $7.1 billion, up over $300 million year-over-year, driven by higher ticket pricing and increased sales of pre-cruise onboard revenue items [22]. - Cruise costs without fuel per available lower berth day (ALBD) increased by 5.5% compared to the prior year, but this was better than guidance due to cost-saving initiatives [21][24]. Market Data and Key Metrics Changes - Booking trends have improved significantly, with nearly half of 2026 already booked at higher prices, indicating strong demand [10][25]. - The company expects 2.8 million guests to visit the new destination, Celebration Key, next year, enhancing utilization rates [13][16]. Company Strategy and Development Direction - The company is focused on increasing same-ship yields and closing the value gap with land-based alternatives, aiming to push margins and returns higher over time [10][19]. - The successful launch of Celebration Key is expected to drive future growth, with plans for further development in Caribbean destinations [11][14]. - The company is also investing in its brands and assets, with a focus on improving operational performance and capitalizing on high-return opportunities [17][18]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong operational execution and improved booking trends as key drivers for growth [10][19]. - The company anticipates a favorable environment for 2026, with no significant capacity growth and a focus on optimizing operations to mitigate cost headwinds [25][55]. - Management highlighted the importance of diversifying offerings and enhancing guest experiences to maintain competitive advantages in key markets [102][103]. Other Important Information - The company has been actively refinancing to reduce interest expenses and strengthen its capital structure, with over $11 billion of debt refinanced at favorable rates [27][28]. - The company plans to return capital to shareholders as leverage metrics improve, with discussions around reinstating dividends and potential buybacks [75][76]. Q&A Session Summary Question: Clarification on forward booking prices - Management confirmed that both North America and Europe are at historical record high pricing levels, with no dramatic changes from the previous quarter [33][34]. Question: Impact of Celebration Key on ticket prices - Management indicated that Celebration Key is positively impacting ticket prices, with early operations meeting expectations [35][37]. Question: Consumer behavior shifts - Management noted that they are not seeing significant shifts in consumer behavior, with strong bookings continuing across various brands [43][44]. Question: 2026 booking strategy - Management expressed confidence in the 2026 booking strategy, emphasizing the importance of optimizing operations based on past learnings [46][55]. Question: 2027 bookings and dry dock plans - Management indicated that 2027 bookings are off to an unprecedented start, with plans for fewer dry dock days compared to 2026 [51][95]. Question: Capital return strategy - Management discussed the potential for returning capital to shareholders, emphasizing the importance of reinstating dividends while also considering buybacks [71][75].

Financial Data and Key Metrics Changes - The company achieved record revenues, operating income, EBITDA, and customer deposits, with net income reaching an all-time high of $2 billion, surpassing pre-pandemic levels by nearly 10% [7][9][19] - Operating income and EBITDA reached the highest levels in nearly 20 years, despite a 2.5% decrease in capacity compared to the previous year [8][9] - Yields increased by 4.6% on a same-ship basis, exceeding guidance, driven by strong close-in demand and onboard spending [9][20] - The company reported a return on invested capital (ROIC) of 13%, the first time since 2007 that returns have reached the teens [9][10] - Net debt to EBITDA ratio improved to 3.6x, approaching investment-grade metrics [9][26] Business Line Data and Key Metrics Changes - The company welcomed the Star Princess into the fleet, which represents over 15% of the Princess fleet, expected to boost brand performance [11] - Celebration Key, a new destination, has received positive feedback and is anticipated to attract 2.8 million guests next year, enhancing overall brand value [12][13] - The company is focusing on targeted investments in Caribbean destinations, expecting to capture over 8 million guest visits next year [15] Market Data and Key Metrics Changes - The company has the largest assets and capacity dedicated to Alaska and a significant presence in Europe, both performing well [16] - The Caribbean market remains a crucial segment, accounting for about one-third of the company's business [109] Company Strategy and Development Direction - The company aims to continue improving same-ship yields and closing the value gap with land-based alternatives, enhancing margins and returns over time [10][15] - The strategic focus includes expanding destination offerings and enhancing guest experiences to drive consumer consistency and conversion [15][16] - The company plans to maintain a disciplined approach to capital deployment, focusing on high-return brands and operational improvements [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in booking trends, with nearly half of 2026 already booked at higher prices, indicating a positive outlook for the upcoming year [10][24] - The company is optimistic about the impact of the new loyalty program and the operational benefits from new destinations [24][25] - Management acknowledged potential headwinds in 2026 but emphasized the strength of the diversified portfolio and ongoing operational improvements [56][90] Other Important Information - The company has been actively refinancing to reduce interest expenses and strengthen its capital structure, with a target of a net debt to EBITDA ratio below three times [26][27] - The company plans to return capital to shareholders as leverage metrics improve, with discussions on reinstating dividends and potential buybacks [75][76] Q&A Session Summary Question: Clarification on forward booking prices - Management confirmed that both North America and Europe are at historical record high pricing levels, with no significant changes from the previous quarter [31][32] Question: Impact of Celebration Key on ticket prices - Management indicated that Celebration Key is positively impacting ticket prices, with early operations meeting expectations [33][34] Question: Consumer behavior shifts - Management noted strong booking trends and emphasized that the company is not seeing significant shifts in consumer behavior despite broader market trends [39][40] Question: 2026 booking strategy - Management expressed confidence in the current booking position for 2026 and indicated that lessons learned from previous years will inform future strategies [42][44] Question: 2027 bookings and dry dock plans - Management stated that 2027 bookings are off to an unprecedented start, with plans for fewer dry dock days compared to 2026 [50][100] Question: Capital return strategy - Management highlighted the importance of reinstating dividends and the potential for buybacks, with a focus on returning capital to shareholders as leverage improves [75][76] Question: Connection between brand initiatives and pricing - Management discussed the positive impact of brand initiatives like the AIDA Evolutions program on pricing and overall yield improvements [64][68] Question: Improvements in laggard brands - Management acknowledged that some laggard brands are showing improvement and emphasized ongoing support for these brands to enhance their performance [94][96]

Group 1 - Carnival Corp (CCL) stock is down 3.3% to $29.47 despite reporting fiscal third-quarter earnings that exceeded estimates and raising its annual profit forecast [1] - CCL traded as high as $32.49 earlier in the day, but has since declined, with sector peers Royal Caribbean Cruises (RCL) and Norwegian Cruise Line (NCLH) also experiencing losses [1] - Year-to-date, CCL shares are up 19.3%, with a significant 60% increase over the last 12 months, and the 80-day moving average is aiding in managing today's pullback [2] Group 2 - Short-term options traders have recently favored puts, indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.64, which is in the 94th percentile of the past 12 months [2] - Currently, the skew favors calls, with over 74,000 calls traded, which is nine times the average intraday volume and more than double the number of puts [3] - Most of the call activity is centered around the weekly 10/3 30-strike call, where new positions are being established [3]

Financial Data and Key Metrics Changes - The company achieved record revenues, yields, operating income, EBITDA, and customer deposits, with net income reaching an all-time high of $2 billion, surpassing pre-pandemic levels by nearly 10% [9][22] - Operating income and EBITDA reached the highest levels in nearly 20 years, despite a 2.5% lower capacity compared to the previous year [9][11] - Yields increased by 4.6% on a same-ship basis, exceeding guidance due to strong close-in demand and onboard spending [10][22] - The company reported a return on invested capital (ROIC) of 13%, the first time in nearly 20 years that returns have reached the teens [11][19] - Net debt to EBITDA ratio improved to 3.6 times, approaching investment-grade metrics [11][28] Business Line Data and Key Metrics Changes - Customer deposits reached a record $7.1 billion, up over $300 million year-over-year, driven by higher ticket pricing and increased sales of pre-cruise onboard revenue items [24] - Cruise costs without fuel per available lower berth day (ALBD) increased by 5.5% compared to the prior year, but were better than guidance due to cost-saving initiatives [23][28] Market Data and Key Metrics Changes - Booking trends have improved, with nearly half of 2026 already booked at higher prices, indicating strong demand [12][26] - The company expects 2.8 million guests to visit Celebration Key next year, with high utilization rates anticipated [15][17] Company Strategy and Development Direction - The company is focused on increasing same-ship yields and closing the value gap with land-based alternatives, with plans to return capital to shareholders as leverage improves [12][29] - The successful launch of Celebration Key is expected to enhance guest experiences and drive future bookings [14][27] - The company is investing in its brands and operational improvements to enhance profitability and returns, with a disciplined approach to capital deployment [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of booking trends and operational execution, despite potential headwinds from new loyalty programs and dry dock expenses [26][60] - The company anticipates a capacity increase of only 0.8% in 2026, which is expected to support pricing power and yield improvements [26][60] Other Important Information - The company has been actively refinancing to reduce interest expenses and strengthen its capital structure, with over $11 billion of debt refinanced at favorable rates [28][30] - The company is targeting a net debt to EBITDA ratio of under three times, with plans to return capital to shareholders once this target is achieved [29][30] Q&A Session Summary Question: Clarification on forward booking prices - Management clarified that both North America and Europe are at historic record high pricing levels, with no significant changes from the previous quarter [35][36] Question: Impact of Celebration Key on forward bookings - Management indicated that Celebration Key is positively impacting ticket prices for itineraries that include the destination, meeting expectations [37][38] Question: Observations on consumer behavior - Management noted that they have not observed significant behavioral shifts among consumers, with strong booking trends continuing [46][48] Question: 2026 outlook and booking strategy - Management expressed confidence in the 2026 outlook, with a strong booking curve and no capacity growth expected [60][61] Question: Capital return strategy - Management indicated that discussions on capital return will occur once leverage metrics improve, with a focus on reinstating dividends [76][77]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Presents unaudited consolidated financial statements and management's discussion and analysis of financial condition and operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements including income, balance sheets, cash flows, and detailed notes [Consolidated Statements of Income (Loss)](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(LOSS)) Presents the company's revenues, expenses, operating income, and net income for specified periods Consolidated Statements of Income (Loss) (in millions, except per share data) | Item | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total Revenues | $8,153 | $7,896 | $20,292 | $19,083 | | Total Cruise and tour operating expenses | $4,385 | $4,303 | $12,037 | $11,805 | | Selling and administrative expense | $779 | $763 | $2,442 | $2,366 | | Depreciation and amortization expense | $717 | $651 | $2,064 | $1,898 | | Operating Income | $2,271 | $2,178 | $3,748 | $3,013 | | Interest expense, net | $(317) | $(431) | $(1,034) | $(1,352) | | Debt extinguishment and modification costs | $(111) | $(13) | $(366) | $(78) | | Net Income | $1,852 | $1,735 | $2,338 | $1,613 | | Basic Earnings Per Share | $1.41 | $1.37 | $1.78 | $1.27 | | Diluted Earnings Per Share | $1.33 | $1.26 | $1.71 | $1.21 | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)) Details net income and other comprehensive income components, including foreign currency adjustments Consolidated Statements of Comprehensive Income (Loss) (in millions) | Item | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :---------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net Income | $1,852 | $1,735 | $2,338 | $1,613 | | Change in foreign currency translation adjustment | $18 | $64 | $233 | $71 | | Other Comprehensive Income (Loss) | $39 | $26 | $260 | $45 | | Total Comprehensive Income (Loss) | $1,890 | $1,761 | $2,598 | $1,658 | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Outlines the company's assets, liabilities, and shareholders' equity at specific dates Consolidated Balance Sheets (in millions) | Item | August 31, 2025 | November 30, 2024 | | :---------------------------------- | :---------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $1,763 | $1,210 | | Total current assets | $3,868 | $3,378 | | Property and Equipment, Net | $42,889 | $41,795 | | Total Assets | $50,831 | $49,057 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Total current liabilities | $11,436 | $11,617 | | Long-Term Debt | $25,064 | $25,936 | | Total Shareholders' Equity | $11,928 | $9,251 | | Total Liabilities and Shareholders' Equity | $50,831 | $49,057 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Reports cash flows from operating, investing, and financing activities for the periods presented Consolidated Statements of Cash Flows (in millions) | Item | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $4,700 | $5,012 | | Net cash provided by (used in) investing activities | $(1,815) | $(3,961) | | Net cash provided by (used in) financing activities | $(2,355) | $(1,953) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $560 | $(893) | | Cash, cash equivalents and restricted cash at end of period | $1,792 | $1,543 | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY) Details changes in total shareholders' equity over various periods Consolidated Statements of Shareholders' Equity (in millions) | Item | At May 31, 2025 | At Aug 31, 2025 | At Nov 30, 2024 | At Aug 31, 2024 | | :---------------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Total shareholders' equity (3 months) | $10,007 | $11,928 | N/A | $8,597 | | Total shareholders' equity (9 months) | N/A | $11,928 | $9,251 | $8,597 | [Notes to Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Provides detailed explanations and disclosures for the consolidated financial statements [NOTE 1 – General](index=9&type=section&id=NOTE%201%20%E2%80%93%20General) Outlines financial statement presentation, seasonality, reclassifications, and recent accounting pronouncements - Carnival Corporation & plc's consolidated financial statements are unaudited and include normal recurring adjustments. Operations are seasonal, with interim results not necessarily indicative of the full year. The interim statements should be read in conjunction with the **2024** Form **10-K**[22](index=22&type=chunk)[23](index=23&type=chunk) - In March **2025**, the P&O Cruises (Australia) brand was sunsetted, and its operations were integrated into Carnival Cruise Line[25](index=25&type=chunk) - New FASB guidance on Segment Reporting (effective **2025/2026**) will affect segment reporting disclosures but not the Consolidated Statements of Income (Loss) or Balance Sheets[26](index=26&type=chunk) - New FASB guidance on Income Taxes (effective **2026**) requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction[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 recognizing revenue from passenger tickets, onboard activities, and related expenses - Guest cruise deposits and advance onboard purchases are initially recorded as customer deposits and recognized as revenue upon voyage completion (for voyages **10** nights or less) or on a pro rata basis (for voyages over **10** nights)[31](index=31&type=chunk) - As of August **31**, **2025**, total customer deposits were **$7.1 billion**, up from **$6.8 billion** as of November **30**, **2024**[34](index=34&type=chunk) - During the nine months ended August **31**, **2025**, **$5.8 billion** in revenues were recognized from customer deposits, compared to **$5.1 billion** in the prior year[34](index=34&type=chunk) - Incremental travel agent commissions and credit/debit card fees are recognized as assets within prepaid expenses and other, then expensed at revenue recognition or voyage cancellation[36](index=36&type=chunk) [NOTE 3 – Debt](index=12&type=section&id=NOTE%203%20%E2%80%93%20Debt) Provides a detailed breakdown of the company's debt structure, maturities, and recent debt activities Total Debt (in millions) | Item | August 31, 2025 | November 30, 2024 | | :------------------------------------------ | :---------------- | :---------------- | | Total Debt | $27,188 | $28,213 | | Less: unamortized debt issuance costs and discounts | $(707) | $(738) | | Total Debt, net | $26,481 | $27,475 | | Less: current portion of long-term debt | $(1,417) | $(1,538) | | Long-Term Debt | $25,064 | $25,936 | Scheduled Maturities of Debt as of August 31, 2025 (in millions) | Year | Principal Payments | | :---------------- | :----------------- | | Remainder of 2025 | $261 | | 2026 | $1,426 | | 2027 | $1,959 | | 2028 |

Financial Performance - Achieved an all-time high quarterly Adjusted Net Income of $2 billion[1,9] - Adjusted EBITDA reached $3 billion in 3Q 2025[10] - Full year 2025 Adjusted Net Income guidance raised to $29 billion[1,11] - Net Yields increased by 46% in 3Q 2025 compared to 2024[10] - Adjusted cruise costs excluding fuel per ALBD decreased by 55% compared to 2024[10] - Customer deposits increased by $22 billion compared to 3Q 2019[12] Strategic Initiatives & Expansion - Celebration Key welcomed nearly half a million guests[20] - Nearly 3 million guests are expected to visit Celebration Key in 2026[21] - The company has the most assets and capacity dedicated to Alaska[26] - The company's leading brands hold the 1 or 2 market position in every established cruise market in Europe[33] Financial Strategy - The company repaid over $5 billion of debt using proceeds from financings and cash on hand[37] - The company is targeting a Net Debt to Adjusted EBITDA ratio of under 30x[44]