Financial Performance - The company reported record revenues, net yields, adjusted EBITDA, adjusted EBITDA per ALBD, operating income, and customer deposits in the first quarter of 2025[9] - First quarter 2025 net yields outperformed December guidance by reaching 7.3% compared to the approximate 4.6% guidance versus 2024[10] - Adjusted cruise costs excluding fuel per ALBD for the first quarter of 2025 were up 1.0% compared to the approximate 3.4% guidance versus 2024[10] - Adjusted EBITDA for the first quarter of 2025 reached $1.20 billion, exceeding the approximate $1.04 billion guidance[10] - Adjusted net income for the first quarter of 2025 was $174 million, significantly outperforming the approximate $1 million guidance[10] - Full year 2025 adjusted net income guidance was raised by $185 million, from approximately $2.305 billion to approximately $2.490 billion, driven by stronger than expected first quarter results and refinancing efforts[11] Strategic Initiatives - The company is focused on generating sustained demand, with booked positions for the remainder of 2025 at historically high prices for each quarter[16] - Customer deposits reached a record level, increasing by $2.4 billion compared to the prior year[31] - The company refinanced $5.5 billion of debt during the first quarter, resulting in approximately $145 million in annualized interest expense savings[33] Future Outlook - The company expects to hit both 2026 SEA Change financial targets one year early[40]

The cruise line operator posted record revenues and earnings in its fiscal Q1 2025, outpacing expectations.Carnival (CCL -1.13%), the largest cruise line operator in the world, delivered impressive fiscal 2025 first-quarter results on March 21. It recorded $5.81 billion in revenue, surpassing estimates by $64 million (or about 1.1%), and delivered adjusted earnings per share (EPS) of $0.13, far exceeding analysts' consensus expectation of $0.02. With operating income almost doubling year over year to $543 m ...

Carnival (CCL) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 550%. A quarter ago, it was expected that this cruise operator would post earnings of $0.08 per share when it actually produced earnings of $0.14, delivering a surprise of 75%.Over the last four quarters, the company has surpa ...

Financial Data and Key Metrics Changes - The company reported a net income exceeding guidance by more than $170 million, driven by strong demand and a 7.3% yield increase, surpassing last year's 17% yield improvement [6][20] - EBITDA reached $1.2 billion, marking a nearly 40% year-over-year increase, with operating income nearly doubling [7][19] - Operating and EBITDA margins improved over 400 basis points year-over-year, now surpassing 2019 levels [7][9] Business Line Data and Key Metrics Changes - Both ticket and onboard spending outperformed expectations, indicating strong consumer demand [6][20] - Customer deposits increased by over $300 million compared to the prior year, reflecting improved ticket prices and pre-cruise onboard sales [22] Market Data and Key Metrics Changes - The company is experiencing historical high prices across all core programs for 2025, with booking volumes for 2026 sailings also reaching an all-time high [10] - European brands continue to outperform year-over-year on both price and occupancy [20] Company Strategy and Development Direction - The company is focused on enhancing its marketing campaigns to drive broader consideration for cruise travel and maintain momentum [10][12] - Strategic investments include the expansion and renovation of Denali Lodge and the Aida Evolution program, aimed at enhancing guest experiences and operational efficiency [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened macroeconomic and geopolitical volatility but expressed confidence in achieving strong results due to robust demand and effective execution [9][15] - The company is well-positioned for future growth, with a focus on maintaining investment-grade leverage metrics and reducing debt [17][18] Other Important Information - The company has successfully refinanced $5.5 billion of debt, resulting in significant interest expense savings [25][26] - The sale of Seabourn Sojourn was executed in the best interest of shareholders, consolidating the fleet while maintaining a strong luxury offering [15][106] Q&A Session Summary Question: Can you provide more color on consumer demand trends since Q4? - Management noted that Wave season was a success, with record bookings and strong pricing, indicating robust consumer demand [30] Question: Is there potential upside to the yield guidance for the rest of the year? - Management confirmed that strong Q1 performance and ongoing onboard spending trends suggest potential for upside in yield guidance [42][44] Question: Are there any material differences in bookings for 2026 by brand? - Management indicated no significant concerns across brands, with a strong foundation for 2026 bookings [51] Question: What cost levers are available if demand weakens? - Management highlighted the absence of hedging on commodities as a natural hedge, allowing flexibility in cost management [87] Question: How is the company approaching capital allocation beyond debt paydown? - Management stated that immediate debt paydown is the priority, but future considerations will include investments in growth opportunities [117]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Carnival (CCL) Q1 2025 Earnings Call March 21, 2025 10:00 AM ET Company Participants Beth Roberts - Senior Vice President and Investor RelationsJosh Weinstein - President, CEO, Chief Climate Officer & DirectorDavid Bernstein - CFO & CAORobin Farley - Managing DirectorSteven Wieczynski - Managing DirectorPatrick Scholes - Managing Director - Lodging & Leisure Equity ResearchDavid Katz - Managing DirectorLizzie Dove - Vice President Equity Research Conference Call Participants Benjamin Chaiken - Equity Analys ...

Financial Performance - Record first quarter revenues of $5.8 billion, up over $400 million compared to the prior year[6] - Record first quarter operating income of $543 million, nearly double the prior year[6] - Revenues for the three months ended February 28, 2025, were $5,810 million, an increase from $5,406 million in the same period of 2024, representing a growth of 7.5%[32] - Adjusted net income for the three months ended February 28, 2025, was $174 million, compared to an adjusted net loss of $180 million in the same period of 2024[40] - Adjusted EBITDA for the three months ended February 28, 2025, was $1,205 million, up from $871 million in the same period of 2024, indicating a significant improvement in operational performance[40] - Adjusted gross margin for the same period was $4,359 million, compared to $4,033 million in 2024, reflecting an increase of 8.1%[43] - Total revenues for the three months ended February 28, 2025, were $5,810 million, an increase from $5,406 million in 2024, representing a growth of 7.5%[43] Customer Metrics - Total customer deposits reached a first quarter record of $7.3 billion, reflecting continued growth in ticket prices and pre-cruise onboard sales[7] - Customer deposits increased to $6,853 million as of February 28, 2025, compared to $6,425 million as of November 30, 2024, indicating growing customer interest[34] - The occupancy percentage for the three months ended February 28, 2025, was 103%, slightly higher than 102% in the same period of 2024, reflecting strong demand for cruise services[37] Future Guidance - Adjusted net income guidance for 2025 expected to be up over 30 percent compared to 2024, better than December guidance by $185 million[6] - Adjusted EBITDA of approximately $6.7 billion expected for full year 2025, up nearly 10 percent compared to 2024[14] - Booking volumes for 2026 sailings and beyond reached an all-time high at higher prices in constant currency[9] - Adjusted return on invested capital (ROIC) expected to reach approximately 12 percent, achieving 2026 SEA Change targets one year in advance[14] Debt and Capital Expenditures - The company successfully refinanced $5.5 billion of debt, delivering $145 million in annualized interest savings[12] - The company plans newbuild capital expenditures of $1.0 billion and non-newbuild capital expenditures of $1.9 billion for the remainder of 2025[20] - The company’s total debt (current and long-term) was $27,018 million as of February 28, 2025, down from $27,475 million as of November 30, 2024[36] Cost Metrics - The average fuel cost per metric ton consumed (excluding EUA) decreased to $643 in the three months ended February 28, 2025, from $686 in the same period of 2024[37] - Net yields per ALBD were $184.95, a 5.5% decrease from $188.20 in 2024[43] - Cruise costs per ALBD were $194.99, showing a slight decrease of 0.3% from $195.60 in 2024[45] - Adjusted cruise costs excluding fuel per ALBD were $113.76, a decrease of 0.3% compared to $115.24 in the previous year[45] Non-GAAP Measures - The company utilizes non-GAAP financial measures to assess performance, including adjusted net income and adjusted earnings per share, which exclude certain non-core expenses[46] - Future forecasts for non-GAAP financial measures are not reconciled to U.S. GAAP due to the unpredictability of certain variables like foreign exchange rates and fuel prices[54] - The company operates under constant currency reporting to mitigate the impact of foreign exchange fluctuations on financial results[56]

Core Insights - Carnival Corporation & plc reported strong financial results for Q1 2025, with record revenues and improved earnings expectations for the year [1][2][3] Financial Performance - The company achieved record first quarter revenues of $5.8 billion, an increase of over $400 million compared to the previous year [7][8] - Record net yields were 7.3% higher than 2024 and exceeded December guidance by 270 basis points [8] - Operating income for the first quarter was $543 million, nearly double that of the prior year [8] - Adjusted net income guidance for 2025 is expected to rise over 30% compared to 2024, surpassing December guidance by $185 million [7][8] Booking Trends - The cumulative advanced booked position for the remainder of 2025 is in line with last year's record levels, with pricing at historical highs [11] - Booking volumes for 2026 and beyond reached record levels, indicating strong future demand [10][11] Debt Management - The company refinanced $5.5 billion of debt, resulting in $145 million in annualized interest savings and a reduction of the debt balance by $0.5 billion [7][13][17] - The average cash interest rate has been reduced to 4.6% [13] Operational Highlights - Total customer deposits reached a record of $7.3 billion in the first quarter, reflecting growth in ticket prices and onboard sales [8] - The company continues to focus on delivering value for money, enhancing customer experiences [4] Future Outlook - For Q2 2025, the company expects net yields to increase approximately 4.3% year-over-year, with adjusted cruise costs excluding fuel per ALBD expected to rise approximately 5.6% [19] - The company anticipates achieving its 2026 SEA Change financial targets one year ahead of schedule [7][16]

Carnival Corporation CCL will release its first-quarter financial results, before the opening bell, on Friday, March 21.Analysts expect the Miami, Florida-based company to report quarterly earnings at 2 cents per share, versus a year-ago loss of 14 cents per share. Carnival projects quarterly revenue of $5.74 billion, compared to $5.41 billion a year earlier, according to data from Benzinga Pro.On Feb. 28, Carnival announced the closing of $1.0 billion 5.750% senior unsecured notes offering for refinancing ...

Group 1 - Carnival has a strong history of beating earnings estimates, with an average surprise of 41.77% over the last two quarters [2] - In the most recent quarter, Carnival reported earnings of $0.14 per share, exceeding the expected $0.08 per share by 75% [2] - The previous quarter also saw Carnival surpass estimates, reporting $1.27 per share against a consensus of $1.17 per share, resulting in an 8.55% surprise [2] Group 2 - There has been a favorable change in earnings estimates for Carnival, indicated by a positive Earnings ESP of +0.50% [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with nearly 70% of stocks in this category producing positive surprises [4][6] - Carnival's next earnings report is expected to be released on March 21, 2025 [6] Group 3 - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [7] - It is crucial to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [8]