[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company achieved record Q2 operating results, exceeding guidance and reaching 2026 financial targets early, driven by record revenues and customer deposits [Q2 2025 Key Achievements](index=1&type=section&id=Q2%202025%20Key%20Achievements) Carnival Corporation & plc reported its highest-ever second-quarter operating results, exceeding guidance and achieving its 2026 SEA Change financial targets 18 months ahead of schedule - Exceeded 2026 SEA Change financial targets 18 months early, with **adjusted ROIC surpassing 12.5%** and **adjusted EBITDA per ALBD increasing by 52%** in under two years[2](index=2&type=chunk)[4](index=4&type=chunk) - The company's cumulative advanced booked position for 2026 is aligned with the record levels of 2025 and at historically high prices (in constant currency)[4](index=4&type=chunk)[7](index=7&type=chunk) - In June, the company extended and increased its revolver capacity by **50% to $4.5 billion**[4](index=4&type=chunk)[8](index=8&type=chunk) | Metric | Q2 2025 | Change vs. Q2 2024 | Note | | :--- | :--- | :--- | :--- | | **Revenues** | $6.3 billion | +$550 million | Record Second Quarter | | **Operating Income** | $934 million | - | Record Second Quarter | | **Net Income** | $565 million | +$475 million | - | | **Adjusted Net Income** | $470 million | More than tripled | Outperformed guidance by $185M | | **Adjusted EBITDA** | $1.5 billion | +26% | Record Second Quarter | | **Customer Deposits** | $8.5 billion | - | All-time high | [Financial Performance](index=1&type=section&id=Financial%20Performance) The company achieved record Q2 2025 revenues and operating income, driven by strong net yield growth and effective cost management [Q2 2025 Detailed Results](index=1&type=section&id=Q2%202025%20Detailed%20Results) In Q2 2025, the company achieved record revenues of $6.3 billion and record operating income of $934 million, with net yields growing 6.4% year-over-year - Operating margins and adjusted EBITDA margins increased by over **500 and 300 basis points**, respectively, compared to 2024, significantly exceeding 2019 levels[5](index=5&type=chunk) | Performance Metric | Q2 2025 Result | Comparison/Note | | :--- | :--- | :--- | | **Record Revenues** | $6.3 billion | Up nearly $550 million vs. 2024 | | **Record Operating Income** | $934 million | - | | **Record Net Yields (Constant Currency)** | +6.4% vs. 2024 | Outperformed guidance by 200 bps | | **Adjusted Cruise Costs ex. Fuel per ALBD (Constant Currency)** | +3.5% vs. 2024 | Better than March guidance | | **Fuel Consumption per ALBD** | -6.3% vs. 2024 | Better than guidance by 300 bps | | **Occupancy Percentage** | 104% | Same as Q2 2024 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended May 31, 2025, total revenues increased to $6.33 billion, leading to a significant rise in net income to $565 million | (in millions, except per share data) | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | Six Months Ended May 31, 2025 | Six Months Ended May 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $6,328 | $5,781 | $12,139 | $11,187 | | **Operating Income** | $934 | $560 | $1,477 | $836 | | **Net Income (Loss)** | $565 | $92 | $486 | $(123) | | **Diluted EPS** | $0.42 | $0.07 | $0.37 | $(0.10) | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $51.17 billion, with customer deposits growing significantly to $8.08 billion | (in millions) | May 31, 2025 | November 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | $51,165 | $49,057 | | Cash and cash equivalents | $2,146 | $1,210 | | Property and Equipment, Net | $42,751 | $41,795 | | **Total Liabilities** | $41,158 | $39,806 | | Total current liabilities | $12,920 | $11,617 | | Customer deposits (current) | $8,082 | $6,425 | | Long-Term Debt | $25,862 | $25,936 | | **Total Shareholders' Equity** | $10,007 | $9,251 | [Business Outlook & Guidance](index=2&type=section&id=Business%20Outlook%20%26%20Guidance) The company maintains strong booking trends and has raised its full-year 2025 guidance for adjusted net income and EBITDA [Booking Trends](index=2&type=section&id=Booking%20Trends) Booking trends remain exceptionally strong, with the booking curve extending further out than ever before, indicating robust future demand - Close-in demand and onboard spending were very strong for Q2 sailings[6](index=6&type=chunk) - The booking curve is the furthest out on record, indicating strong future demand[6](index=6&type=chunk) - For the rest of 2025, occupancy is the second-highest on record with pricing at historical highs (in constant currency)[7](index=7&type=chunk) - The booked position for 2026 is in line with 2025's record levels at the same point last year, also at historical high prices[7](index=7&type=chunk) [Full Year & Q3 2025 Guidance](index=2&type=section&id=Full%20Year%20%26%20Q3%202025%20Guidance) The company has raised its full-year 2025 guidance, expecting adjusted net income of approximately $2.69 billion and adjusted EBITDA of around $6.9 billion | Guidance Metric (Full Year 2025) | Forecast | Note | | :--- | :--- | :--- | | **Net Yields (Constant Currency)** | ~5.0% growth | Better than March guidance | | **Adj. Cruise Costs ex. Fuel per ALBD (Constant Currency)** | ~3.6% growth | Better than March guidance | | **Adjusted EBITDA** | ~$6.9 billion | Up >10% vs. 2024 | | **Adjusted Net Income** | ~$2.69 billion | Up >40% vs. 2024; $200M better than March guidance | | **Adjusted EPS - Diluted** | ~$1.97 | - | | Guidance Metric (Q3 2025) | Forecast | Note | | :--- | :--- | :--- | | **Net Yields (Constant Currency)** | ~3.5% growth | - | | **Adj. Cruise Costs ex. Fuel per ALBD (Constant Currency)** | ~7.0% growth | Includes Celebration Key opening & advertising costs | | **Adjusted EBITDA** | ~$2.87 billion | - | | **Adjusted Net Income** | ~$1.8 billion | - | | **Adjusted EPS - Diluted** | ~$1.30 | - | | Sensitivities (Impact to Adjusted Net Income) | Remainder of 2025 (in millions) | | :--- | :--- | | 1% change in net yields | $104 | | 1% change in adjusted cruise costs ex. fuel per ALBD | $55 | | 10% change in fuel cost per metric ton | $88 | [Financial Position & Capital Management](index=2&type=section&id=Financial%20Position%20%26%20Capital%20Management) The company is actively managing its debt profile to rebuild an investment-grade balance sheet and maintains a strong liquidity position [Financing Activities & Debt Management](index=2&type=section&id=Financing%20Activities%20%26%20Debt%20Management) The company is actively managing its debt profile to rebuild an investment-grade balance sheet, with recent credit rating upgrades and debt refinancing efforts - S&P upgraded the company's credit rating to **BB+ (stable outlook)** and Fitch upgraded it to **BB+ (positive outlook)**, placing it one notch from investment grade[8](index=8&type=chunk)[9](index=9&type=chunk) - Proactively managed debt by prepaying **$350 million of 2026 notes** and refinancing the remainder, which will reduce net interest expense by over **$20 million** through 2026[11](index=11&type=chunk) - Total debt was **$27.3 billion** as of May 31, 2025, with the net debt to adjusted EBITDA ratio improving from **4.1x to 3.7x** during the quarter[10](index=10&type=chunk)[12](index=12&type=chunk) [Liquidity and Capital Expenditures](index=3&type=section&id=Liquidity%20and%20Capital%20Expenditures) The company maintains a strong liquidity position, enhanced by an upsized revolving credit facility, with planned capital expenditures for newbuilds and non-newbuild projects - Capital expenditures for the remainder of 2025 are projected to be **$2.3 billion**, comprising **$1.1 billion for newbuilds** and **$1.2 billion for non-newbuilds**[17](index=17&type=chunk) | Liquidity (in millions) | May 31, 2025 | Note | | :--- | :--- | :--- | | **Cash and cash equivalents** | $2,146 | - | | **Revolver Availability** | $3,026 | Facility upsized to $4.5B in June 2025 | | **Total Liquidity** | $5,172 | - | [Other Corporate Developments](index=3&type=section&id=Other%20Corporate%20Developments) Carnival announced strategic initiatives including new ship orders, a new loyalty program, and expansion of Caribbean destinations [Recent Highlights](index=3&type=section&id=Recent%20Highlights) Carnival announced several strategic initiatives, including ordering two new mid-size class ships for AIDA Cruises and launching a new loyalty program - Ordered two newbuilds for AIDA Cruises, for delivery in fiscal 2030 and 2032, bringing the total newbuild pipeline to **eight ships through 2033**[13](index=13&type=chunk) - Carnival Cruise Line will launch 'Carnival Rewards' in June 2026, a new loyalty program based on spending on fares and onboard activities[13](index=13&type=chunk) - Introduced the 'Paradise Collection' of destinations, including the new Celebration Key (opening July 2025) and enhancements to Half Moon Cay and Mahogany Bay[13](index=13&type=chunk) - Sold the Costa Fortuna, which is expected to leave the fleet in September 2026, resulting in a gain on the sale[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures to assess core operating performance, excluding non-recurring or non-core items [Definitions and Reconciliation](index=12&type=section&id=Definitions%20and%20Reconciliation) The company utilizes non-GAAP financial measures to assess performance, excluding items not considered part of core operations, to understand underlying business trends - Non-GAAP measures like Adjusted Net Income and Adjusted EBITDA are used to provide additional information on core operating profitability by excluding certain non-recurring or non-core business items[45](index=45&type=chunk)[46](index=46&type=chunk) - Net Yields and Adjusted Cruise Costs per ALBD are used to measure cruise segment performance, separating the impact of capacity changes from price and other operational changes[48](index=48&type=chunk)[49](index=49&type=chunk) - Reconciliation of forecasted non-GAAP data to GAAP is not provided because predicting future movements of foreign exchange, fuel prices, and other non-core gains/losses would require unreasonable effort[52](index=52&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to numerous risks and uncertainties that could cause actual results to differ materially [Cautionary Note on Future Results](index=7&type=section&id=Cautionary%20Note%20on%20Future%20Results) This report contains forward-looking statements regarding future results, operations, and strategy, which are subject to numerous risks and uncertainties - The report includes forward-looking statements that are not guarantees of future performance and involve risks and uncertainties[21](index=21&type=chunk)[22](index=22&type=chunk) - Key risk factors that could affect future results include: - Global events (geopolitical uncertainty, inflation, pandemics) - Incidents concerning ships or the cruise industry - Changes in laws and regulations (environmental, health, safety) - Climate change-related factors - Cybersecurity incidents and data breaches - Increases in fuel prices and supply issues - Competition and overcapacity - The company's substantial debt balance[24](index=24&type=chunk)[28](index=28&type=chunk)

Core Points - Cunard is celebrating its 185th anniversary with a special sale offering fares starting at $899 per person and $185 in Onboard Credit per stateroom, available for 185 voyages [1] - The sale is valid from now until July 9, 2025, covering select voyages from 2025 to 2027 across various destinations including Alaska, the Caribbean, and Europe [1][2] - Cunard's flagship Queen Mary 2, Queen Victoria, the newly transformed Queen Elizabeth, and the newest ship Queen Anne are featured in this promotion [1][2] Company Overview - Cunard is a luxury British cruise line with a history dating back to 1840, known for providing exceptional experiences and fine dining [4] - The company operates four ships: Queen Mary 2, Queen Elizabeth, Queen Victoria, and Queen Anne, which entered service in May 2024 [5] - Cunard is owned by Carnival Corporation & plc since 1998 and is based in Southampton [6] Upcoming Voyages and Events - Queen Elizabeth will sail from Seattle for the first time this summer, offering 7 to 11-night voyages to Alaska, including scenic cruising through Glacier Bay National Park [5] - The ship will also operate winter cruises from Miami to the Caribbean from October 16 to April 14, visiting various ports [5] - Queen Mary 2 will host the Transatlantic Fashion Week from October 31 to November 7, 2025, featuring designer Christian Siriano and fashion icons [5]

Core Points - Carnival Cruise Line is set to launch a new loyalty program named Carnival Rewards™ in June 2026, introducing a points-based system with personalized perks and new ways to earn status [1][2][3] Group 1: Program Features - The Carnival Rewards program will feature a dual-earning structure, allowing guests to accumulate both Carnival Rewards points and status qualifying stars, moving away from the current model that focuses solely on the number of nights sailed [3][4] - Guests will earn points on eligible purchases, including cruise fares and onboard activities, providing more opportunities to achieve higher status levels based on overall spending [3][4] - The program will be closely linked to the Carnival Rewards Mastercard, enabling cardmembers to earn points and status more rapidly through everyday spending [3][4] Group 2: Transition and Status Retention - Existing loyalty status from the current Very Important Fun Person (VIFP) program will carry over into the new Carnival Rewards program for a two-year period, ensuring that current members' status is honored [5] - Diamond members will retain their status for an extended period of six years, through May 31, 2032, allowing ample time for members to adapt to the new rewards system [5] - Current cardmembers will have their Fun Points converted to Carnival Rewards points upon the launch of the new program [5] Group 3: Customer Engagement and Information - Carnival Cruise Line will provide detailed information and tools for guests to track their status and point balances, as well as tips to maximize rewards under the new system [6] - Current loyalty members will receive updates via email throughout the transition process leading up to the launch [6]

Core Viewpoint - Carnival Corporation & plc has successfully arranged a new $4.5 billion multi-currency revolving credit facility, enhancing its liquidity and supporting debt reduction efforts [1][2]. Group 1: Financial Arrangement - The new revolving credit facility matures in June 2030 and replaces the existing facility of Carnival Holdings (Bermuda) II Limited [1]. - The facility includes an accordion feature, allowing for up to $1.0 billion of additional revolving commitments, representing a 50 percent increase in available liquidity [1][2]. Group 2: Management Commentary - The Chief Financial Officer, David Bernstein, emphasized that the increase in the revolver reflects confidence in the company's performance and is a milestone in rebuilding its financial strength [2]. - Bernstein noted that the New Revolver is a testament to the company's ongoing business improvement and strong banking relationships [2]. Group 3: Security and Structure - The New Revolver will be unsecured and guaranteed on an unsecured basis by the same subsidiaries that guarantee the company's senior secured term loan facilities [3]. - Carnival Corporation and Carnival plc are entering into the New Revolver with a global syndicate of financial institutions, with JPMorgan Chase Bank, N.A. acting as the administrative agent [3]. Group 4: Company Overview - Carnival Corporation & plc is the largest global cruise company and one of the largest leisure travel companies, operating a portfolio of world-class cruise lines [4].

Core Insights - Carnival Corporation achieved a 44% reduction in unit food waste in 2024 compared to 2019, surpassing its 2025 target of 40% a year early, and is on track for a 50% reduction by 2030 [1][2][3] - The company has avoided over $250 million in food costs since 2019 through its "Less Left Over" food management strategy, which enhances dining experiences while minimizing waste [2][3] Food Management Strategy - The "Less Left Over" strategy includes various programs and technologies aimed at reducing food waste by 50% by 2030, fostering a culture of creativity among its 160,000 employees [3][4] - The company employs a circular economy approach to repurpose food scraps into new products, such as vegan soap from coffee grounds and biofuel from used cooking oil [4][5] Technological Innovations - Carnival Corporation utilizes over 630 biodigesters fleetwide to liquefy uneaten food, significantly reducing its volume [6][7] - The company has installed over 90 dehydrators to remove excess water from food waste, shrinking the remaining volume by approximately 90% for potential use as organic mulch or compost [7] Sustainability Initiatives - The food management strategy is part of a broader waste management and circular economy initiative, focusing on efficient resource management and sustainability [8] - Carnival Corporation's efforts aim to reduce environmental impact while providing sustainable financial results for stakeholders [8]

Core Concept - Cunard has partnered with Abbey Road Studios to create an exclusive Listening Lounge experience on board the Queen Elizabeth, featuring curated playlists of iconic recordings and film scores [1][2][4]. Group 1: Partnership and Experience - The Listening Lounge experience will debut on Queen Elizabeth in Autumn 2025, hosted in the Commodore Club, and will last 60 minutes [1]. - The playlists will include music from celebrated artists such as Ed Sheeran, Fela Kuti, and The Beatles, highlighting Abbey Road's rich recording heritage [2]. - Guests will enjoy the experience on select sea days, starting during Queen Elizabeth's maiden Caribbean season from Miami in October 2025, with a curated menu of cocktails available [5]. Group 2: Musical Heritage and Events - The playlists will feature famous film scores from iconic movies, showcasing Abbey Road's Studio One, which has been a home for film music for over 45 years [4]. - A special Event Voyage in partnership with Abbey Road is scheduled to depart Southampton for New York on October 23, 2026, celebrating the studio's musical heritage [6]. - The week-long crossing will include live performances, a photography exhibition, and Q&As with Abbey Road's award-winning engineers [7]. Group 3: Company Background - Cunard is a luxury British cruise line with a history dating back to 1840, celebrating 185 years of operation in 2025 [10]. - The company currently operates four ships: Queen Mary 2, Queen Elizabeth, Queen Victoria, and the newly launched Queen Anne [11]. - Cunard is known for its fine dining, entertainment, and outstanding service, with a focus on creating unforgettable experiences for guests [10].

Core Points - Cunard's Transatlantic Fashion Week voyage will take place from October 31 to November 7, 2025, sailing from New York to Southampton aboard the Queen Mary 2 [3][4] - The event will feature prominent fashion figures including Christian Siriano, Bob Mackie, and Coco Rocha, showcasing a blend of fashion and luxury at sea [4][7] - This marks the first time Cunard's Transatlantic Fashion Week will sail from the U.S., continuing the brand's tradition of high culture on the high seas [4][10] Company Highlights - Cunard has been a leading operator of passenger ships since 1840 and is celebrating 185 years of operation in 2025 [10] - The company operates four ships, including the newly launched Queen Anne, marking a significant expansion in its fleet [11] - Cunard is known for its luxurious experiences, including fine dining and high-quality entertainment, which are integral to its brand identity [10] Event Details - Christian Siriano will headline the voyage with his first-ever runway show at sea, featuring highlights from his 16-year archive and a custom nautical-themed dress [4][5] - Bob Mackie will showcase selected pieces from his personal archive, including celebrity gowns and sketches, along with a documentary screening and live Q&A [5][6] - Coco Rocha will lead workshops, including a model camp at sea, sharing her expertise from a 20-year career in fashion [7][8]

Core Insights - Cunard has launched a new program featuring 195 itineraries across its fleet, visiting 115 destinations in 32 countries from April 2027 to January 2028, including 93 UNESCO World Heritage sites [1][2] - The program includes 18 overnight port calls and 33 late-evening departures, enhancing exploration opportunities for guests [1] - Cunard aims to provide diverse travel experiences, with each ship offering unique itineraries and destinations [3] Itinerary Highlights - Queen Anne will make maiden calls at Sorrento, Italy, and La Rochelle, France, while Queen Mary 2 will visit Charlottetown, Canada for the first time [2] - Queen Elizabeth will return to Europe with 65 new voyages, visiting 22 ports not visited in 15 years, including Palermo and Istanbul [4] - Queen Mary 2 will continue iconic Transatlantic Crossings and offer immersive itineraries to destinations like Norway and the Caribbean [5] - Queen Anne will provide round-trip voyages from Southampton, featuring Mediterranean and Nordic adventures [6] - Queen Victoria will operate round-trip Southampton voyages, including itineraries to Scandinavia and Iceland, marking its first visit to Grundarfjordur since 2009 [7][8] Booking Information - Bookings for Cunard World Club members will open on June 11, 2025, and for the general public on June 12, 2025 [10] Company Background - Cunard is a luxury British cruise line with a history dating back to 1840, celebrating 185 years of operation in 2025 [11][12] - The company currently operates four ships: Queen Mary 2, Queen Elizabeth, Queen Victoria, and the newly introduced Queen Anne [12]

Core Insights - Princess Cruises has launched its new 2026-27 South America and Antarctica season, featuring scenic routes and immersive itineraries, now available for booking [1][2] Itinerary Highlights - The 3,560-guest Majestic Princess will debut in this season, with a commitment to safe and environmentally responsible travel to Antarctica as a member of IAATO [2] - New scenic cruising routes include the Beagle Channel Fjords and Glacier Alley, showcasing glaciers from the Darwin Mountain Range [3] - The season includes five itineraries and six departures, ranging from 15 to 33 days, covering 17 destinations across 10 countries, including 10 UNESCO World Heritage Sites [8] Wildlife and Scenic Experiences - Guests can expect to see over one million penguins from five species in the Falkland Islands, along with whales, porpoises, and leopard seals during the cruise [5] - Scenic highlights include iconic locations such as Rio's skyline, Gerlache Strait, Elephant Island, and Cape Horn [6] Cultural Experiences - The itineraries will immerse guests in the local culture, featuring samba in Brazil and tango in Argentina and Uruguay, along with culinary experiences like caipirinhas and world-renowned steaks [7] Booking Incentives - Early booking discounts are available until June 14, 2025, offering perks such as onboard credits up to $1,200 and shore excursion credits up to $400 per stateroom [8][9]

Core Viewpoint - Cunard is celebrating its 185th anniversary with the "Sea of Glamour" exhibition, showcasing stories and photographs from guests around the world, highlighting the brand's rich history in luxury ocean travel [1][4][14]. Group 1: Exhibition Details - The "Sea of Glamour" exhibition will feature 185 curated images, including rare archive photos of Hollywood icons, musicians, and politicians, alongside guest-submitted photographs [2][9]. - The exhibition will be held at The Royal Liver Building in Liverpool from May 28, 2025, to June 17, 2025, before traveling aboard the Cunard fleet [8][10]. - An immersive audio storytelling experience and a sculptural installation called "Sails of History" will enhance visitor engagement [10]. Group 2: Curatorial Insights - The exhibition is curated by renowned photographer Mary McCartney, who emphasizes the importance of personal stories shared by Cunard guests [11][12]. - McCartney's work aims to capture the essence of glamour not just through celebrity images but through the shared experiences of all passengers [12]. Group 3: Company Background - Cunard, a luxury British cruise line, has been a leading operator of passenger ships since 1840 and is known for its fine dining, entertainment, and exceptional service [14][15]. - The company currently operates four ships: Queen Mary 2, Queen Elizabeth, Queen Victoria, and the newly launched Queen Anne, marking a significant expansion in its fleet [15].