, /PRNewswire/ -- Princess Cruises' stunning Sphere-Class ship, Sun Princess, has once again been recognized as the #1 Mega Cruise Ship in the prestigious Condé Nast Traveler 2025 Readers' Choice Awards. This marks the second consecutive year that Sun Princess has earned the top honor, underscoring her reputation for delivering unforgettable voyages with extraordinary style, innovation, and service. With over 1,500 balcony staterooms, suites are designed with comfort and style in mind, including the exclus ...

Core Insights - Princess Cruises has launched its newest Sphere-Class ship, Star Princess, which is embarking on its inaugural voyage from Barcelona, marking a significant addition to the fleet [1][2] Ship Features - Star Princess is a 177,800-ton vessel with a capacity for 4,300 guests, featuring 30 dining and bar venues, luxurious accommodations, and elevated entertainment options [2][5] - The ship includes over 1,500 balcony staterooms, providing guests with panoramic views and exclusive amenities [5][8] Inaugural Voyage Details - The inaugural 11-day Western Mediterranean voyage runs from October 4 to October 15, 2025, with stops in Marseille, Rome, Naples, Sicily, Cartagena, and Gibraltar before returning to Barcelona [6] - Following the Mediterranean voyage, Star Princess will sail a transatlantic route before debuting in Fort Lauderdale for its Caribbean season and official naming ceremony on November 6, 2025 [6] Entertainment Offerings - New entertainment highlights include the return of the acclaimed show "Spellbound," original theatrical productions "Meridian" and "Illuminate," and a vibrant array of deck parties and themed events [7][4] - The ship features a new Candlelight Concert Series in the glass-enclosed Dome, enhancing the onboard entertainment experience [7] Culinary Experience - Guests can choose from 30 dining venues, including an expanded O'Malley's Irish Pub and a specialty dining space by artist Romero Britto, offering a diverse culinary experience [12] - The Love Line Premium Liquor Collection features curated wines and spirits from renowned celebrities, enhancing the onboard beverage offerings [12] Wellness and Recreation - Star Princess offers wellness options such as a two-story Lotus Spa, a fitness center, and a new sports court for activities like pickleball and basketball [12]

Core Points - Carnival Corporation has partnered with food banks and local leaders to donate fresh, ready-to-eat meals to communities in Mexico, Honduras, and the Dominican Republic, marking the first time a cruise company has established such agreements in Latin America [1][3] - The meal donation program is part of Carnival's "Less Left Over" strategy aimed at reducing food waste, now operating in 19 port destinations worldwide [2][7] - The program has successfully delivered over 300,000 unserved meals since its inception in 2017, with plans for further expansion [6] Summary by Sections Meal Donation Program - The program redirects surplus prepared and unserved meals from Carnival's ships to local partners for distribution to families in need, addressing food insecurity [2][6] - Agreements have been signed with food banks in Mexico, Honduras, and the Dominican Republic to facilitate meal distribution [1][5] Partnerships - In Mexico, an agreement with Bancos de Alimentos de Mexico will initiate a pilot program in Ensenada [3] - In Honduras, a partnership with Mayor Ron McNab will distribute meals to schools and hospitals in Roatán [4] - In the Dominican Republic, agreements with the Catholic Diocese of Puerto Plata and Banco de Alimentos República Dominicana will support meal distribution across Puerto Plata [5] Strategic Goals - The expansion into Latin America is aimed at giving back to the communities that host Carnival's guests and addressing local food insecurity [3] - The program is part of a broader initiative to minimize food waste while maintaining high-quality dining experiences for guests [7]

Core Viewpoint - Carnival Corporation is conducting a private offering of $1.25 billion in senior unsecured notes at a 5.125% interest rate, aimed at redeeming $2.0 billion of existing higher-interest notes due in 2029, as part of its strategy to reduce interest expenses [1][2]. Group 1: Notes Offering Details - The offering consists of $1.25 billion aggregate principal amount of 5.125% senior unsecured notes due 2029 [1]. - Proceeds from the offering, along with cash on hand, will be used to redeem the $2.0 billion 6.000% senior unsecured notes due 2029 [2]. - The Notes will pay interest semi-annually starting May 1, 2026, and will mature on May 1, 2029 [4]. Group 2: Transaction Structure - The Notes will be fully and unconditionally guaranteed on an unsecured basis by Carnival plc and certain subsidiaries [4]. - The transaction is expected to close on October 15, 2025, subject to customary closing conditions [3]. - The indenture governing the Notes will include investment grade-style covenants [2]. Group 3: Regulatory and Offering Information - The Notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S [5]. - The Notes will not be registered under the Securities Act and may not be sold in the U.S. without registration or an exemption [6].

Core Insights - Carnival achieved a record net income of $1.9 billion, or $2 billion on an adjusted basis, marking an all-time high for the company [1] - The company reported a revenue of $8.2 billion in the fiscal third quarter, a 3% increase from the previous year, despite slightly lower capacity [2] - Carnival has delivered 10 consecutive quarters of record revenue and has consistently exceeded Wall Street profit targets for 12 straight reports [4] Financial Performance - The adjusted profit per share was $1.43, which was 9% above expectations, continuing a trend of positive surprises [1][6] - Carnival raised its guidance for adjusted earnings per share to $2.14, up from an initial target of $1.70 set in December [7] - The company experienced a 4.6% increase in net yields, another record high, contributing to the revenue growth [2][4] Market Reaction - Despite strong financial results, Carnival's stock fell 4% following the earnings report, indicating a disconnect between performance and market perception [5][6] - The year-over-year revenue growth of 3% was the weakest increase in over four years, raising concerns about Carnival's growth potential [12] - Analysts have adjusted profit targets higher post-report, indicating continued confidence in Carnival's future performance [13] Industry Context - The cruise line industry is recovering from significant challenges faced during the COVID-19 pandemic, with Carnival taking on debt to navigate the revenue-free phase [10] - Carnival's stock has risen nearly 60% over the past year, suggesting that the recent sell-off may be an overreaction [15] - The company is trading at less than 14 times this year's updated guidance, indicating potential value despite a debt-heavy balance sheet [16]

Core Points - Camila and Matthew McConaughey have been named godparents of the new Star Princess, continuing a tradition of iconic figures in the cruise industry [1][2] - The Star Princess is described as the most innovative ship in the Princess Cruises fleet, featuring a range of luxurious amenities and experiences [4][5] Company Overview - Princess Cruises is recognized as a leading cruise brand, known for delivering dream vacations and offering elite service across various sought-after destinations [9] - The company is part of Carnival Corporation & plc, which is publicly traded [9] Ship Details - The Star Princess has a capacity of 177,800 tons and can accommodate 4,300 guests, featuring 30 distinct dining and bar venues [4] - Unique offerings include The Sanctuary Collection, an adults-only pool deck, and a next-generation relaxation space called The Dome [4][5] - The ship will debut in the Mediterranean on October 4, 2025, and will subsequently operate Caribbean voyages starting November 7, 2025 [6] Brand Collaboration - The McConaugheys' Pantalones Organic Tequila will be featured in signature cocktails across the Princess fleet, including the popular 24K Gold Margarita [3]

Core Insights - Carnival Cruise Lines experienced significant stock volatility, initially rising by 6.1% before declining by 4.3% on the same day following its third-quarter earnings report [1][2] Financial Performance - In the third quarter, Carnival reported revenue of $8.12 billion, an increase of 3.3%, and adjusted non-GAAP earnings per share of $1.43, up 12.3%, both exceeding market expectations [3] - The company also improved several key metrics, including higher net yields and lower costs per available lower berth day, alongside an increase in adjusted EBITDA [3] Future Outlook - Carnival raised its full-year 2025 guidance across all financial metrics for the third consecutive quarter, contributing to initial stock appreciation [4][7] - However, the stock's decline was attributed to the announcement of plans to redeem all outstanding convertible notes totaling approximately $1.31 billion, which may involve equity issuance that could dilute current shareholders [4][5] Debt and Valuation - Carnival's market capitalization stands at $39.4 billion, with net debt around $25.4 billion, resulting in an enterprise value of approximately $64.8 billion and an EV/EBITDA ratio of 9.1, indicating a moderate valuation given its debt levels [8] - Management aims to reduce the debt-to-EBITDA ratio below 3, currently at 3.57, with the redemption of convertible notes expected to assist in this goal [9]

Core Insights - Carnival Corporation & plc reported record third-quarter 2025 results with net income of $1.9 billion, or $1.33 per diluted share, an increase from $1.7 billion a year earlier [1] - Adjusted net income was $2.0 billion, or $1.43 per diluted share, exceeding analyst expectations of $1.32 [1] - Revenue rose to $8.153 billion, surpassing the consensus estimate of $8.101 billion and increasing from $7.9 billion last year [1] Financial Performance - Adjusted EBITDA reached $3.0 billion [1] - Net yields in constant currency increased by 4.6% year over year, while gross margin yields improved by 6.4% [2] - Cruise costs per available lower berth day (ALBD) rose by 4.6% from 2024, with adjusted cruise costs excluding fuel increasing by 5.5%, which was 1.5 points better than guidance [2] Operational Metrics - Fuel consumption per ALBD fell by 5.2% due to efficiency investments [3] - Passenger cruise days totaled 27.5 million, with occupancy steady at 112% [3] - Customer deposits reached a record $7.1 billion as of August 31 [3] Cash Flow and Liquidity - Cash from operations was $1.38 billion in the quarter and $4.7 billion year-to-date [3] - Capital expenditures totaled $648 million in the quarter [3] - Liquidity stood at $6.26 billion, and total debt was $26.5 billion [4] Debt Management - The company improved its net debt-to-adjusted EBITDA ratio to 3.6x from 4.7x a year earlier [4] - During the quarter, the company refinanced $4.5 billion of debt and prepaid $700 million, while issuing new senior unsecured notes totaling $4.2 billion [6] - Moody's upgraded its credit rating and maintained a positive outlook [6] Future Outlook - Booking trends have strengthened since May, with higher booking volumes than last year, affirming the success of demand generation efforts [5] - Nearly half of 2026 is booked at historical high prices for both North America and Europe segments, building a strong base for next year [5] - Record booking volumes for 2027 were achieved during the third quarter [5]

[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) This section presents Carnival Corporation & plc's unaudited consolidated financial statements, including income, comprehensive income, balance sheets, cash flows, and shareholders' equity, with detailed explanatory notes [Consolidated Statements of Income (Loss)](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(LOSS)) This table presents the consolidated statements of income and loss, detailing 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)) This table presents the consolidated statements of comprehensive income, detailing net income and other comprehensive income components 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) This table presents the consolidated balance sheets, detailing 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) This table presents the consolidated statements of cash flows, detailing cash flows from operating, investing, and financing activities 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) This table presents the consolidated statements of shareholders' equity, detailing changes in equity over specified 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) This section provides detailed explanations and disclosures for the consolidated financial statements, covering accounting policies, debt, contingencies, fair value measurements, segment information, earnings per share, and supplemental cash flow data [NOTE 1 – General](index=9&type=section&id=NOTE%201%20%E2%80%93%20General) This note outlines the basis of presentation, accounting policies, and recent pronouncements affecting the financial statements - 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) This note details policies for recognizing revenue from passenger tickets, onboard activities, and associated 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) This note provides a detailed breakdown of the company's debt structure, activities, and covenants 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 | $5,034 | | 2029 | $4,832 | | Thereafter | $13,675 | | Total | $27,188 | - In June **2025**, Carnival Corporation and Carnival plc entered into a new **$4.5 billion** unsecured multi-currency revolving credit facility, replacing previous facilities and maturing in June **2030**[40](index=40&type=chunk) - During **2025**, the company issued **$9.2 billion** in senior unsecured notes and borrowed **$0.4 billion** under an unsecured term loan facility[45](index=45&type=chunk)[51](index=51&type=chunk) - The company prepaid **$9.6 billion** of debt instruments during **2025**, including senior secured term loans and various senior unsecured notes[46](index=46&type=chunk)[51](index=51&type=chunk) - Debt extinguishment and modification costs totaled **$111 million** for the three months and **$366 million** for the nine months ended August **31, 2025**, due to debt transactions[47](index=47&type=chunk) - As of August **31, 2025**, the company had **$8.7 billion** of undrawn export credit facilities to fund ship deliveries through **2033**[48](index=48&type=chunk) - As of August **31, 2025**, the company was in compliance with all applicable covenants under its debt agreements, including minimum interest coverage, minimum issued capital and reserves, and debt to capital limits[52](index=52&type=chunk)[57](index=57&type=chunk) [NOTE 4 – Contingencies and Commitments](index=15&type=section&id=NOTE%204%20%E2%80%93%20Contingencies%20and%20Commitments) This note details legal proceedings, regulatory inquiries, and commitments for new ship growth capital - The company is routinely involved in legal proceedings and government investigations, recording provisions when an unfavorable outcome is probable and estimable[53](index=53&type=chunk)[54](index=54&type=chunk) - A lawsuit under the Helms-Burton Act resulted in a **$110 million** judgment against Carnival Corporation, which was reversed on appeal. The case is pending further proceedings after a petition to the Supreme Court[56](index=56&type=chunk) - Two purported class actions related to COVID-19 in Australia and Italy remain pending. The Australian court found liability for negligence and breach of consumer protection warranties for the lead plaintiff, but awarded minimal damages. The Italian court rejected most claims[58](index=58&type=chunk) - The U.S. Department of Justice and EPA notified the company of potential civil penalties for alleged Clean Water Act violations, with a resolution pending[61](index=61&type=chunk) New Ship Growth Capital Commitments as of August 31, 2025 (in billions) | Year | Commitments | | :---------------- | :------------ | | Remainder of 2025 | $0.9 | | 2026 | $0.5 | | 2027 | $1.6 | | 2028 | $1.5 | | 2029 | $1.8 | | Thereafter | $6.5 | [NOTE 5 – Fair Value Measurements, Derivative Instruments and Hedging Activities and Financial Risks](index=17&type=section&id=NOTE%205%20%E2%80%93%20Fair%20Value%20Measurements,%20Derivative%20Instruments%20and%20Hedging%20Activities%20and%20Financial%20Risks) This note defines fair value levels, presents financial instrument values, and discusses risk management strategies Fair Value of Debt (in millions) | Item | Carrying Value (Aug 31, 2025) | Fair Value (Aug 31, 2025) | Carrying Value (Nov 30, 2024) | Fair Value (Nov 30, 2024) | | :---------------- | :---------------------------- | :-------------------------- | :---------------------------- | :-------------------------- | | Fixed rate debt | $23,418 | $24,856 | $22,449 | $23,241 | | Floating rate debt | $3,770 | $3,742 | $5,764 | $5,685 | | Total Debt | $27,188 | $28,598 | $28,213 | $28,927 | - The company manages fuel price risk through fleet optimization, energy efficiency, itinerary efficiency, new technologies, and alternative fuels[75](index=75&type=chunk) - Foreign currency exchange rate risks are managed through operating and financing activities, including netting exposures and using derivative instruments for ship commitments and net investments[76](index=76&type=chunk) - Interest rate risks are managed by adjusting the mix of fixed and floating rate debt through interest rate swaps, refinancing, and new debt issuances[80](index=80&type=chunk) - Credit risk concentrations are monitored and managed by conducting business with established financial institutions, diversifying counterparties, and adhering to credit rating and investment maturity guidelines[81](index=81&type=chunk)[85](index=85&type=chunk) [NOTE 6 – Segment Information](index=20&type=section&id=NOTE%206%20%E2%80%93%20Segment%20Information) This note provides financial information by reportable segment and breaks down revenue by geographic guest sourcing - The company's four reportable segments are North America cruise operations, Europe cruise operations, Cruise Support (port destinations and exclusive islands), and Tour and Other (Holland America Princess Alaska Tours)[83](index=83&type=chunk)[84](index=84&type=chunk) Operating Income (Loss) by Segment (in millions) | Segment | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :---------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | North America | $1,515 | $1,442 | $2,723 | $2,239 | | Europe | $810 | $770 | $1,318 | $1,058 | | Cruise Support | $(125) | $(104) | $(328) | $(313) | | Tour and Other | $71 | $70 | $36 | $30 | | Total | $2,271 | $2,178 | $3,748 | $3,013 | Revenue by Geographic Area (in millions) | Geographic Area | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :---------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | North America | $5,000 | $4,975 | $12,242 | $11,638 | | Europe | $2,609 | $2,406 | $6,200 | $5,605 | | Australia | $313 | $288 | $1,048 | $1,069 | | Other | $231 | $226 | $801 | $771 | | Total | $8,153 | $7,896 | $20,292 | $19,083 | [NOTE 7 – Earnings Per Share](index=22&type=section&id=NOTE%207%20%E2%80%93%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share, including dilutive effects Earnings Per Share (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 | | :---------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | 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 | | Diluted weighted-average shares outstanding | 1,402 | 1,399 | 1,401 | 1,398 | [NOTE 8 – Supplemental Cash Flow Information](index=22&type=section&id=NOTE%208%20%E2%80%93%20Supplemental%20Cash%20Flow%20Information) This note reconciles cash and cash equivalents and mentions non-cash activities Cash, Cash Equivalents and Restricted Cash (in millions) | Item | August 31, 2025 | November 30, 2024 | | :---------------------------------------------------------------- | :---------------- | :---------------- | | Cash and cash equivalents (Consolidated Balance Sheets) | $1,763 | $1,210 | | Restricted cash | $29 | $21 | | Total cash, cash equivalents and restricted cash (Consolidated Statements of Cash Flows) | $1,792 | $1,231 | - In June **2025**, **$46 million** of emission allowances and obligations were surrendered and derecognized as a non-cash activity[89](index=89&type=chunk) [NOTE 9 – Property and Equipment](index=22&type=section&id=NOTE%209%20%E2%80%93%20Property%20and%20Equipment) This note reports on ship sales completed during 2025, including capacity reduction and charter agreements - During **2025**, the company sold one North America segment ship (**460 berths**) and one Europe segment ship (**2,700 berths**), reducing passenger capacity[90](index=90&type=chunk) - The sold ships will continue to operate under bareboat charter agreements through May **2026** (North America) and September **2026** (Europe)[90](index=90&type=chunk) [NOTE 10 – Equity Method Investments](index=22&type=section&id=NOTE%2010%20%E2%80%93%20Equity%20Method%20Investments) This note discloses the sale of a portion of the company's interest in Grand Bahama Shipyard Ltd - In June **2025**, the company sold **one-third** of its interest in Grand Bahama Shipyard Ltd and Floating Docks S de RL, with no material impact on financial statements[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and future outlook [Cautionary Note Concerning Factors That May Affect Future Results](index=23&type=section&id=Cautionary%20Note%20Concerning%20Factors%20That%20May%20Affect%20Future%20Results) This section highlights forward-looking statements and various risks that could impact future results - The report contains forward-looking statements that involve risks and uncertainties, intended to qualify for safe harbors[92](index=92&type=chunk) - Key risk factors include geopolitical uncertainty, pandemics, inflation, higher fuel/interest rates, incidents concerning ships, regulatory non-compliance, climate change, cybersecurity incidents, loss of key personnel, supplier issues, foreign currency fluctuations, overcapacity, and debt[93](index=93&type=chunk) [New Accounting Pronouncements](index=24&type=section&id=New%20Accounting%20Pronouncements) This section refers to detailed discussions on new accounting pronouncements in the financial statements notes - Refer to Note **1** for additional discussion regarding new accounting pronouncements[98](index=98&type=chunk) [Critical Accounting Estimates](index=24&type=section&id=Critical%20Accounting%20Estimates) This section refers to detailed discussions on critical accounting estimates in the Form 10-K - For critical accounting estimates, refer to 'Item **7**. Management's Discussion and Analysis of Financial Condition and Results of Operations' in the Form **10-K**[99](index=99&type=chunk) [Seasonality](index=24&type=section&id=Seasonality) This section explains the seasonal nature of the company's revenues and operations - Passenger ticket revenues are seasonal, with the third quarter (Northern Hemisphere summer) experiencing the highest demand, ticket prices, occupancy, and operating income[100](index=100&type=chunk) - Results are also impacted by planned ship maintenance during non-peak seasons and the May-September Alaska cruise season for Holland America Princess Alaska Tours[100](index=100&type=chunk) [Known Trends and Uncertainties](index=24&type=section&id=Known%20Trends%20and%20Uncertainties) This section identifies key trends and uncertainties, including fuel costs and regulatory impacts - Volatility in fuel costs is reasonably likely to impact profitability in both the short and long term[101](index=101&type=chunk) - Increasing focus on greenhouse gas emissions and new regulatory requirements, like the EU ETS, are reasonably likely to have a material negative impact on future financial results[101](index=101&type=chunk) - The EU ETS impact was **$46 million** in **2024** (**40%** of emissions), will affect **70%** of emissions in **2025**, and all in-scope emissions in **2026**[101](index=101&type=chunk) [Statistical Information](index=25&type=section&id=Statistical%20Information) This section provides key operational statistics, including passenger days, occupancy, and fuel data Key Operational Statistics | Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Passenger Cruise Days ("PCDs") (in millions) | 27.5 | 28.1 | 77.1 | 76.0 | | Available Lower Berth Days ("ALBDs") (in millions) | 24.6 | 25.2 | 72.3 | 71.7 | | Occupancy percentage | 112 % | 112 % | 107 % | 106 % | | Passengers carried (in millions) | 3.8 | 3.9 | 10.3 | 10.3 | | Fuel consumption in metric tons (in millions) | 0.7 | 0.7 | 2.1 | 2.2 | | Fuel consumption in metric tons per thousand ALBDs | 28.0 | 29.5 | 29.4 | 31.0 | | Fuel cost per metric ton consumed (excluding EU Allowances) | $607 | $670 | $621 | $680 | - For the three months ended August **31, 2025**, ALBDs decreased by **2.5%** (North America **-3.1%**, Europe **-1.5%**)[104](index=104&type=chunk) - For the nine months ended August **31, 2025**, ALBDs increased by **0.9%** (North America **+0.8%**, Europe **+1.2%**)[104](index=104&type=chunk) - North America capacity changes include new ships (Carnival Cruise Line, Princess Cruises) and ships leaving the fleet (Seabourn, P&O Cruises Australia)[105](index=105&type=chunk) - Europe capacity changes include a new Cunard ship and the transfer of a Costa Cruises ship to Carnival Cruise Line[106](index=106&type=chunk) [Three Months Ended August 31, 2025 ("2025") Compared to Three Months Ended August 31, 2024 ("2024")](index=26&type=section&id=Three%20Months%20Ended%20August%2031,%202025%20(%222025%22)%20Compared%20to%20Three%20Months%20Ended%20August%2031,%202024%20(%222024%22)) This section analyzes financial performance for the three months ended August 31, 2025, compared to the prior year [Revenues](index=26&type=section&id=Revenues_3M) This section analyzes revenues for the specified period, detailing changes across segments - Consolidated passenger ticket revenues increased by **$191 million** (**3.6%**) to **$5.4 billion**, driven by higher ticket prices and favorable foreign currency translation, partially offset by a **2.5%** capacity decrease[107](index=107&type=chunk)[108](index=108&type=chunk) - Consolidated onboard and other revenues increased by **$66 million** (**2.5%**) to **$2.7 billion**, primarily due to higher onboard spending and favorable foreign currency translation, partially offset by capacity decrease[108](index=108&type=chunk)[109](index=109&type=chunk) - North America segment passenger ticket revenues increased by **$15 million** (**0.4%**) to **$3.5 billion**, driven by higher ticket prices, partially offset by capacity decrease and lower air transportation revenue[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - Europe segment passenger ticket revenues increased by **$166 million** (**9.1%**) to **$2.0 billion**, due to favorable foreign currency translation and higher ticket prices, partially offset by capacity decrease[113](index=113&type=chunk)[117](index=117&type=chunk) - Europe segment onboard and other revenues increased by **$54 million** (**11%**) to **$569 million**, driven by favorable foreign currency translation and higher onboard spending[117](index=117&type=chunk)[118](index=118&type=chunk) [Operating Expenses](index=27&type=section&id=Operating%20Expenses_3M) This section analyzes operating expenses for the specified period, detailing changes across segments - Consolidated operating expenses increased by **$82 million** (**1.9%**) to **$4.4 billion**, driven by unfavorable foreign currency translation, higher onboard costs, payroll, port expenses, and commissions, partially offset by lower fuel prices and consumption[118](index=118&type=chunk)[119](index=119&type=chunk)[125](index=125&type=chunk) - North America segment operating expenses decreased by **$65 million** (**2.2%**) to **$2.9 billion**, primarily due to capacity decrease and lower fuel prices, partially offset by higher payroll[120](index=120&type=chunk)[121](index=121&type=chunk)[126](index=126&type=chunk) - Europe segment operating expenses increased by **$135 million** (**12%**) to **$1.3 billion**, driven by unfavorable foreign currency translation, higher payroll, and commissions[127](index=127&type=chunk)[128](index=128&type=chunk)[133](index=133&type=chunk) - Consolidated depreciation and amortization expenses increased by **$66 million** (**10%**) to **$717 million**, driven by fleet enhancements[119](index=119&type=chunk) [Operating Income](index=28&type=section&id=Operating%20Income_3M) This section analyzes operating income for the specified period, detailing changes across segments - Consolidated operating income increased by **$94 million** to **$2.3 billion**[129](index=129&type=chunk) - North America segment operating income increased by **$73 million** to **$1.5 billion**[129](index=129&type=chunk) - Europe segment operating income increased by **$40 million** to **$810 million**[129](index=129&type=chunk) [Nonoperating Income (Expense)](index=28&type=section&id=Nonoperating%20Income%20(Expense)_3M) This section analyzes nonoperating income (expense) for the specified period, detailing changes in interest and debt costs - Interest expense, net, decreased by **$114 million** (**27%**) to **$317 million**, due to lower total debt, average interest rates, and increased capitalized interest[130](index=130&type=chunk) - Debt extinguishment and modification costs increased by **$98 million** to **$111 million**, resulting from debt transactions[130](index=130&type=chunk) [Nine Months Ended August 31, 2025 ("2025") Compared to Nine Months Ended August 31, 2024 ("2024")](index=28&type=section&id=Nine%20Months%20Ended%20August%2031,%202025%20(%222025%22)%20Compared%20to%20Nine%20Months%20Ended%20August%2031,%202024%20(%222024%22)) This section analyzes financial performance for the nine months ended August 31, 2025, compared to the prior year [Revenues](index=28&type=section&id=Revenues_9M) This section analyzes revenues for the specified period, detailing changes across segments - Consolidated passenger ticket revenues increased by **$757 million** (**6.0%**) to **$13.4 billion**, driven by higher ticket prices, capacity increase, favorable foreign currency translation, and increased occupancy[131](index=131&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk) - Consolidated onboard and other revenues increased by **$452 million** (**7.0%**) to **$6.9 billion**, driven by higher onboard spending and capacity increase[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - North America segment passenger ticket revenues increased by **$283 million** (**3.5%**) to **$8.5 billion**, due to higher ticket prices and capacity increase, partially offset by lower air transportation revenue[135](index=135&type=chunk)[136](index=136&type=chunk)[141](index=141&type=chunk) - North America segment onboard and other revenues increased by **$306 million** (**6.5%**) to **$5.0 billion**, driven by higher onboard spending and capacity increase[136](index=136&type=chunk)[137](index=137&type=chunk)[141](index=141&type=chunk) - Europe segment passenger ticket revenues increased by **$452 million** (**10%**) to **$4.9 billion**, driven by higher ticket prices, favorable foreign currency translation, increased occupancy, and capacity increase[137](index=137&type=chunk)[138](index=138&type=chunk)[141](index=141&type=chunk) - Europe segment onboard and other revenues increased by **$143 million** (**11%**) to **$1.5 billion**, driven by higher onboard spending and favorable foreign currency translation[138](index=138&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk) [Operating Expenses](index=29&type=section&id=Operating%20Expenses_9M) This section analyzes operating expenses for the specified period, detailing changes across segments - Consolidated operating expenses increased by **$232 million** (**2.0%**) to **$12.0 billion**, driven by capacity increase, higher onboard costs, commissions, repair/maintenance, and payroll, partially offset by gains on ship sales and lower fuel prices/consumption[139](index=139&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk) - North America segment operating expenses decreased by **$11 million** (**0.1%**) to **$8.0 billion**, due to lower fuel prices/consumption and a gain on ship sale, partially offset by capacity increase and higher onboard costs[145](index=145&type=chunk)[146](index=146&type=chunk)[153](index=153&type=chunk) - Europe segment operating expenses increased by **$227 million** (**6.4%**) to **$3.8 billion**, driven by unfavorable foreign currency translation, higher commissions, capacity increase, repair/maintenance, and onboard costs, partially offset by a gain on ship sale[148](index=148&type=chunk)[149](index=149&type=chunk)[154](index=154&type=chunk) - Consolidated depreciation and amortization expenses increased by **$166 million** (**8.7%**) to **$2.1 billion**[144](index=144&type=chunk) [Operating Income](index=31&type=section&id=Operating%20Income_9M) This section analyzes operating income for the specified period, detailing changes across segments - Consolidated operating income increased by **$735 million** to **$3.7 billion**[151](index=151&type=chunk) - North America segment operating income increased by **$484 million** to **$2.7 billion**[151](index=151&type=chunk) - Europe segment operating income increased by **$260 million** to **$1.3 billion**[151](index=151&type=chunk) [Nonoperating Income (Expense)](index=31&type=section&id=Nonoperating%20Income%20(Expense)_9M) This section analyzes nonoperating income (expense) for the specified period, detailing changes in interest and debt costs - Interest expense, net, decreased by **$317 million** (**23%**) to **$1.0 billion**, due to lower total debt, average interest rates, and increased capitalized interest[152](index=152&type=chunk) - Debt extinguishment and modification costs increased by **$288 million** to **$366 million**, resulting from debt transactions[152](index=152&type=chunk) [Liquidity, Financial Condition and Capital Resources](index=32&type=section&id=Liquidity,%20Financial%20Condition%20and%20Capital%20Resources) This section discusses the company's liquidity, financial condition, capital resources, and cash flow activities - As of August **31, 2025**, the company had **$6.3 billion** of liquidity, comprising **$1.8 billion** in cash and cash equivalents and **$4.5 billion** available under its Revolving Facility[155](index=155&type=chunk) - The company had a working capital deficit of **$7.6 billion** as of August **31, 2025**, an improvement from **$8.2 billion** at November **30, 2024**, primarily due to increased cash and decreased liabilities, partially offset by increased customer deposits[156](index=156&type=chunk) - The working capital deficit is mainly attributed to collecting passenger ticket receipts in advance, which remain current liabilities until sailing[156](index=156&type=chunk) - The company is not a party to any material off-balance sheet arrangements[157](index=157&type=chunk) [Sources and Uses of Cash](index=32&type=section&id=Sources%20and%20Uses%20of%20Cash) This section details the sources and uses of cash from operating, investing, and financing activities - Net cash from operating activities for the nine months ended August **31, 2025**, was **$4.7 billion**, a decrease of **$0.3 billion** from the prior year, mainly due to the nonrecurrence of a **$0.8 billion** credit card reserve release in **2024**, partially offset by increased net income[158](index=158&type=chunk) - Net cash used in investing activities for the nine months ended August **31, 2025**, was **$1.8 billion**, primarily for capital expenditures (**$2.1 billion**) and advances to affiliates, partially offset by proceeds from ship sales (**$312 million**)[159](index=159&type=chunk)[160](index=160&type=chunk) - Net cash used in financing activities for the nine months ended August **31, 2025**, was **$2.4 billion**, driven by **$10.7 billion** in debt repayments and **$8.6 billion** in new debt issuances[160](index=160&type=chunk) [Funding Sources](index=33&type=section&id=Funding%20Sources) This section outlines the company's funding strategies and available credit facilities - The company plans to use existing liquidity and future cash flows from operations to fund capital expenditures not covered by export credit facilities[161](index=161&type=chunk) - As of August **31, 2025**, the company had **$8.7 billion** of undrawn export credit facilities to fund ship deliveries through **2033**[155](index=155&type=chunk)[162](index=162&type=chunk) - In September **2025**, Sun Princess II borrowed **$0.8 billion** under an export credit facility[163](index=163&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses market risk exposures, hedging strategies, and debt composition - No material changes to market risk exposure have occurred since the **2024 Form 10-K** filing[164](index=164&type=chunk) Composition of Debt by Interest Rate Type (August 31, 2025) | Debt Type | Percentage | | :---------------- | :--------- | | Fixed rate | 57 % | | EUR fixed rate | 29 % | | Floating rate | 3 % | | EUR floating rate | 11 % | [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of disclosure controls and internal control over financial reporting [A. Evaluation of Disclosure Controls and Procedures](index=34&type=section&id=A.%20Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and procedures - The Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer concluded that disclosure controls and procedures were effective as of August **31, 2025**[167](index=167&type=chunk) [B. Changes in Internal Control over Financial Reporting](index=34&type=section&id=B.%20Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any material changes in internal control over financial reporting - There were no material changes in internal control over financial reporting during the quarter ended August **31, 2025**[168](index=168&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) This section incorporates legal proceedings disclosures and notes environmental matter reporting requirements - Legal proceedings, including regulatory and governmental inquiries, are incorporated by reference from Note **4** of the consolidated financial statements[170](index=170&type=chunk) - Disclosure is required for environmental matters where governmental authority is a party and potential monetary sanctions exceed **$1 million**[170](index=170&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Form 10-K for a discussion of business and financial risk factors - Risk factors are discussed in 'Item **1A**. Risk Factors' in the Form **10-K**, with no material changes since that filing[171](index=171&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) This section reports on director and officer trading arrangements during the quarter - No director or Section **16** officer adopted or terminated any Rule **10b5-1** or non-Rule **10b5-1** trading arrangements during the quarter ended August **31, 2025**[172](index=172&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including corporate and contractual documents - Exhibits include corporate governance documents (articles of incorporation, by-laws), material contracts (Revolving Credit Agreement, Indentures for notes), and certifications from executive officers[173](index=173&type=chunk) - The Interactive Data File (XBRL) for the consolidated financial statements is also included as an exhibit[174](index=174&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) This section contains the signatures of authorized representatives certifying the report filing - The report is signed by Josh Weinstein (Chief Executive Officer) and David Bernstein (Chief Financial Officer and Chief Accounting Officer) for both Carnival Corporation and Carnival plc[177](index=177&type=chunk)[178](index=178&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q3 2025 Performance Highlights](index=1&type=section&id=1.1.%20Q3%202025%20Performance%20Highlights) Carnival achieved record Q3 2025 financial results, with $1.9 billion net income and $8.2 billion revenues | Metric | Q3 2025 Value | YoY Change | | :----- | :------------ | :--------- | | Net Income | $1.9 billion | +$116 million (vs 2024) | | Adjusted Net Income | $2.0 billion | N/A | | Revenues | $8.2 billion | +$250 million (vs prior year) | | Net Yields (constant currency) | N/A | +4.6% (vs 2024) | | Adjusted EBITDA | $3.0 billion | N/A | | Adjusted ROIC (trailing 12-months) | 13% | N/A | [Strategic & Operational Achievements](index=1&type=section&id=1.2.%20Strategic%20%26%20Operational%20Achievements) The company launched Celebration Key and strengthened its balance sheet via significant debt refinancing - Successfully opened Celebration Key, a new exclusive destination, receiving rave guest reviews and overwhelming media coverage[4](index=4&type=chunk) - Refinanced **$4.5 billion** of debt and prepaid an additional **$0.7 billion** during the quarter, simplifying the capital structure[7](index=7&type=chunk) [Updated Outlook & Guidance](index=1&type=section&id=1.3.%20Updated%20Outlook%20%26%20Guidance) Carnival raised full-year 2025 adjusted net income guidance by nearly 55% and maintains strong 2026 bookings - Raised full year 2025 adjusted net income guidance for the third quarter in a row, now expected to be up nearly **55 percent year over year**[7](index=7&type=chunk) - Cumulative advanced booked position for 2026 remains strong, in line with 2025 record levels and at historical high prices (in constant currency)[7](index=7&type=chunk) [Third Quarter 2025 Detailed Results](index=1&type=section&id=Third%20Quarter%202025%20Results) [Financial Performance](index=1&type=section&id=2.1.%20Financial%20Performance) Carnival reported record Q3 2025 financial metrics, including net income, adjusted EBITDA, and 4.6% net yield growth | Metric | Q3 2025 | Q3 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Income | $1.9 billion | $1.735 billion | +$116 million | | Adjusted Net Income | $2.0 billion | $1.751 billion | N/A | | Adjusted EBITDA | $3.0 billion | $2.822 billion | N/A | | Revenues | $8.2 billion | $7.896 billion | +$250 million | | Gross Margin Yields | 6.4% higher than 2024 | N/A | N/A | | Net Yields (constant currency) | 4.6% higher than 2024 | N/A | N/A | [Operational Metrics](index=1&type=section&id=2.2.%20Operational%20Metrics) Cruise costs per ALBD increased, but adjusted cruise costs excluding fuel per ALBD improved better than guidance | Metric | Q3 2025 | Q3 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Cruise Costs per ALBD | +4.6% (vs 2024) | N/A | N/A | | Adjusted Cruise Costs excl. Fuel per ALBD (constant currency) | +5.5% (vs 2024) | N/A | N/A | | Fuel Consumption per ALBD | -5.2% (vs prior year) | N/A | N/A | | Customer Deposits | $7.1 billion | $6.425 billion (Nov 30, 2024) | N/A | [Booking Trends](index=2&type=section&id=2.3.%20Booking%20Trends) Booking trends strengthened since May, with higher volumes outpacing capacity growth and strong 2026/2027 positions - Booking trends have continued to strengthen since May, with higher booking volumes than last year and far outpacing capacity growth[9](index=9&type=chunk) - Nearly half of 2026 is booked, in line with 2025 record levels (at the same time last year) but at **historical high prices** (in constant currency) for both North America and Europe segments[9](index=9&type=chunk) - 2027 is already off to a great start, achieving **record booking volumes** during the third quarter[9](index=9&type=chunk) [Financial Management & Capital Structure](index=2&type=section&id=Financing) [Debt Refinancing and Reduction](index=2&type=section&id=3.1.%20Debt%20Refinancing%20and%20Reduction) Carnival aggressively refinanced over $11 billion of debt and prepaid another $1 billion, simplifying its capital structure - Opportunistically refinanced over **$11 billion** of debt and prepaid another **$1 billion** this year[10](index=10&type=chunk) - Issued two senior unsecured notes: **$1.2 billion** at **4.125%** due 2031 and **$3.0 billion** at **5.75%** due 2032, and entered into a **$400 million** loan, using proceeds to repay over **$5 billion** of debt[10](index=10&type=chunk) - Reduced secured debt by nearly **$2.5 billion** during the quarter[10](index=10&type=chunk) [Credit Rating Update](index=2&type=section&id=3.2.%20Credit%20Rating%20Update) Moody's upgraded the company's credit rating and maintained a positive outlook, reflecting improved leverage and momentum - Moody's upgraded the company's credit rating and maintained a positive outlook, reflecting improved leverage metrics and strong momentum[11](index=11&type=chunk) [Balance Sheet and Cash Flow Summary](index=2&type=section&id=3.3.%20Balance%20Sheet%20and%20Cash%20Flow%20Summary) The company ended the quarter with $26.5 billion in total debt and a significantly improved net debt to adjusted EBITDA ratio | Metric (in millions) | August 31, 2025 | August 31, 2024 | November 30, 2024 | | :----- | :-------------- | :-------------- | :---------------- | | Total Debt | $26.5 billion | N/A | $27.475 billion | | Net Debt to Adjusted EBITDA Ratio | 3.6x | 4.7x | N/A | | Customer Deposits | $7.1 billion | N/A | $6.779 billion | | Liquidity | $6.263 billion | N/A | $4.155 billion | | Cash from Operations (9 months) | $4.7 billion | $5.012 billion | N/A | | Capital Expenditures (9 months) | $2.105 billion | $4.034 billion | N/A | [Recent Operational Highlights](index=2&type=section&id=Other%20Recent%20Highlights) [New Destinations and Fleet Additions](index=2&type=section&id=4.1.%20New%20Destinations%20and%20Fleet%20Additions) Carnival launched Celebration Key, its new exclusive destination, and Princess Cruises welcomed the Star Princess - Successfully opened Celebration Key, the company's new exclusive destination on Grand Bahama Island, featuring the largest freshwater lagoon in the Caribbean and the world's largest swim-up bar[13](index=13&type=chunk) - Carnival Cruise Line hosted nearly **half a million guests** at Celebration Key since its opening in July[13](index=13&type=chunk) - Princess Cruises welcomed Star Princess, sister to the successful Sun Princess, which was previously awarded Condé Nast Traveler's 2024 Mega Ship of the year[13](index=13&type=chunk) [Brand Recognition and Sustainability](index=4&type=section&id=4.2.%20Brand%20Recognition%20and%20Sustainability) Holland America Line received multiple awards, Cunard launched a new campaign, and Carnival released its sustainability report - Holland America Line was recognized as both the **Best Large Ship Ocean Cruise Line** and **Best Mid-Sized Ship Ocean Cruise Line** in Travel + Leisure's 2025 World's Best Awards[14](index=14&type=chunk) - Cunard launched its new campaign, 'Why cruise when you can Cunard,' inviting guests to experience its iconic blend of style, elegance, and uncompromising luxury[14](index=14&type=chunk) - Named by Forbes as one of America's **Best Employers for Women** and one of the **Best-in-State Employers for Florida** in 2025[14](index=14&type=chunk) - Released its **15th annual sustainability report**, 'Doing Business Responsibly from Ship to Shore,' detailing continued progress towards sustainability goals[14](index=14&type=chunk) [Outlook and Guidance](index=2&type=section&id=Guidance) [Full Year 2025 Guidance](index=2&type=section&id=5.1.%20Full%20Year%202025%20Guidance) For full year 2025, Carnival expects significant improvements in net yields and adjusted net income, with adjusted EBITDA projected at $7.05 billion | Metric | Full Year 2025 Outlook | YoY Change (vs 2024) | | :----- | :--------------------- | :------------------- | | Net Yields (constant currency) | Approx. 5.3% | +0.3 percentage points better than June guidance | | Adjusted Cruise Costs excl. Fuel per ALBD (constant currency) | Approx. 3.3% | Better than June guidance | | Adjusted Net Income | Approx. $2,925 million | Up nearly 55% | | Adjusted EBITDA | Approx. $7.05 billion | Up 15% | | Adjusted EPS - diluted | Approx. $2.14 | N/A | [Fourth Quarter 2025 Guidance](index=2&type=section&id=5.2.%20Fourth%20Quarter%202025%20Guidance) For Q4 2025, the company forecasts net yields (constant currency) to be up approximately 4.3% and adjusted net income to increase by over 60% | Metric | 4Q 2025 Outlook | YoY Change (vs 4Q 2024) | | :----- | :-------------- | :---------------------- | | Net Yields (constant currency) | Approx. 4.3% | N/A | | Adjusted Net Income | Approx. $300 million | Up over 60% | | Adjusted EBITDA | Approx. $1.34 billion | N/A | | Adjusted EPS - diluted | Approx. $0.23 | N/A | [Capital Expenditures](index=5&type=section&id=5.3.%20Capital%20Expenditures) Newbuild capital expenditures for Q4 2025 are projected at $1.0 billion, with an additional $0.7 billion for non-newbuilds | Category | 4Q 2025 Capital Expenditures | | :------- | :--------------------------- | | Newbuild | $1.0 billion | | Non-newbuild | $0.7 billion | [Company Overview](index=6&type=section&id=Company%20Information) [About Carnival Corporation & plc](index=6&type=section&id=6.1.%20About%20Carnival%20Corporation%20%26%20plc) Carnival Corporation & plc is the largest global cruise company, operating a portfolio of world-class cruise lines - Carnival Corporation & plc is the largest global cruise company, with a portfolio of world-class cruise lines[19](index=19&type=chunk) - Portfolio includes AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn[19](index=19&type=chunk) [Conference Call and Contacts](index=6&type=section&id=6.2.%20Conference%20Call%20and%20Contacts) The company scheduled a conference call to discuss earnings, with additional information available on its website - A conference call with analysts was scheduled for September 29, 2025, at 10:00 a.m. EDT to discuss the earnings release[18](index=18&type=chunk) - Additional information, including the earnings presentation and debt maturities schedule, is available on www.carnivalcorp.com and www.carnivalplc.com[18](index=18&type=chunk) [Cautionary Note Concerning Factors That May Affect Future Results](index=7&type=section&id=Cautionary%20Note%20Concerning%20Factors%20That%20May%20Affect%20Future%20Results) [Forward-Looking Statements](index=7&type=section&id=7.1.%20Forward-Looking%20Statements) The document contains forward-looking statements involving risks and uncertainties regarding future results, operations, and financial position - The document contains 'forward-looking statements' involving risks, uncertainties, and assumptions concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, and liquidity[21](index=21&type=chunk) - These statements are based on current expectations, estimates, forecasts, and projections about the business and industry, and are intended to qualify for safe harbors from liability[21](index=21&type=chunk) [Key Risk Factors](index=7&type=section&id=7.2.%20Key%20Risk%20Factors) Various factors could cause actual results to differ materially, including global events, incidents, regulations, and debt levels - Events and conditions around the world, including geopolitical uncertainty, war, pandemics, inflation, higher fuel prices, and higher interest rates, could lead to a decline in demand for cruises and negatively impact financial condition[24](index=24&type=chunk) - Risks include incidents concerning ships/guests, non-compliance with laws/regulations, factors associated with climate change, cybersecurity incidents, loss of key team members, increases in fuel prices, reliance on suppliers, fluctuations in foreign currency exchange rates, overcapacity/competition, and the company's debt levels[24](index=24&type=chunk)[28](index=28&type=chunk) [Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income (Loss)](index=9&type=section&id=8.1.%20Consolidated%20Statements%20of%20Income%20(Loss)) The consolidated statements of income show total revenues of $8,153 million for Q3 2025 and $20,292 million for the nine months ended August 31, 2025 | Metric (in millions) | 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 | | Operating Income | $2,271 | $2,178 | $3,748 | $3,013 | | Income Before Income Taxes | $1,857 | $1,743 | $2,368 | $1,626 | | Net Income (Loss) | $1,852 | $1,735 | $2,338 | $1,613 | | Diluted EPS | $1.33 | $1.26 | $1.71 | $1.21 | [Consolidated Balance Sheets](index=10&type=section&id=8.2.%20Consolidated%20Balance%20Sheets) As of August 31, 2025, total assets were $50,831 million, with total liabilities of $38,903 million and equity of $11,928 million | Metric (in millions) | August 31, 2025 | November 30, 2024 | | :------------------- | :-------------- | :---------------- | | Total Assets | $50,831 | $49,057 | | Cash and cash equivalents | $1,763 | $1,210 | | Property and Equipment, Net | $42,889 | $41,795 | | Total Current Liabilities | $11,436 | $11,617 | | Long-Term Debt | $25,064 | $25,936 | | Total Shareholders' Equity | $11,928 | $9,251 | [Other Balance Sheet and Statistical Information](index=11&type=section&id=8.3.%20Other%20Balance%20Sheet%20and%20Statistical%20Information) The company reported $6,263 million in liquidity, $26,481 million in total debt, and record customer deposits of $7,146 million | Metric (in millions) | August 31, 2025 | November 30, 2024 | | :------------------- | :-------------- | :---------------- | | Liquidity | $6,263 | $4,155 | | Debt (current and long-term) | $26,481 | $27,475 | | Customer deposits | $7,146 | $6,779 | | Statistical Metric | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :----------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Passenger cruise days (PCDs) | 27.5 | 28.1 | 77.1 | 76.0 | | ALBDs | 24.6 | 25.2 | 72.3 | 71.7 | | Occupancy percentage | 112% | 112% | 107% | 106% | | Passengers carried | 3.8 | 3.9 | 10.3 | 10.3 | | Fuel consumption (metric tons) | 0.7 | 0.7 | 2.1 | 2.2 | | Fuel cost per metric ton (excl. EUA) | $607 | $670 | $621 | $680 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Measures](index=12&type=section&id=9.1.%20Reconciliation%20of%20Non-GAAP%20Measures) The report reconciles non-GAAP measures like adjusted net income, adjusted EBITDA, and net yields to comparable U.S. GAAP measures | Metric (in millions, except per share) | 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 (loss) | $1,852 | $1,735 | $2,338 | $1,613 | | Adjusted net income (loss) | $1,982 | $1,751 | $2,625 | $1,705 | | Adjusted EBITDA | $2,993 | $2,822 | $5,706 | $4,890 | | Diluted EPS | $1.33 | $1.26 | $1.71 | $1.21 | | Adjusted earnings per share - diluted | $1.43 | $1.27 | $1.91 | $1.27 | | Metric (per ALBD) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2025 (Constant Currency) | Three Months Ended Aug 31, 2024 | | :---------------- | :------------------------------ | :-------------------------------------------------- | :------------------------------ | | Gross margin yields | $124.20 | N/A | $116.77 | | Net yields | $249.11 | $244.51 | $233.87 | | Adjusted cruise costs excluding fuel per ALBD | $111.96 | $109.65 | $103.97 | [Explanation of Non-GAAP Measures](index=15&type=section&id=9.2.%20Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures provide insights into core operating performance, leverage, and cost control by excluding certain non-core items - Adjusted net income (loss) and adjusted earnings per share exclude certain gains, losses, and expenses not considered part of core operating business to provide insight into future earnings performance[44](index=44&type=chunk) - Adjusted EBITDA, adjusted EBITDA per ALBD, and adjusted EBITDA margin provide information on core operating profitability by excluding non-core items, interest, taxes, depreciation, and amortization[45](index=45&type=chunk) - Net yields measure cruise segment performance on a per ALBD basis, using adjusted gross margin to reflect revenues net of significant variable costs[47](index=47&type=chunk) - Adjusted cruise costs per ALBD and excluding fuel per ALBD help monitor cost performance by separating capacity changes and excluding fuel expense[48](index=48&type=chunk)[49](index=49&type=chunk) [Constant Currency Reporting](index=16&type=section&id=9.3.%20Constant%20Currency%20Reporting) Constant currency reporting removes exchange rate impacts to facilitate a comparative view of business changes amidst fluctuations - Constant currency reporting removes the impact of changes in exchange rates on the translation of operations and transactional impacts from revenues and expenses denominated in a currency other than the functional currency[53](index=53&type=chunk) - This method facilitates a comparative view for changes in the business in an environment with fluctuating exchange rates, applied to metrics like adjusted gross margin, net yields, and adjusted cruise costs excluding fuel[54](index=54&type=chunk) - The company does not provide a reconciliation of forecasted non-GAAP financial measures to GAAP due to the unreasonable effort required to predict future foreign exchange rates, fuel prices, and non-core gains/losses[51](index=51&type=chunk)