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)

Core Insights - Carnival Corporation & plc reported record financial results for Q3 2025, achieving an all-time high net income of $1.9 billion and adjusted net income of $2.0 billion, marking a nearly 55% year-over-year increase [10][11][12] - The company raised its full-year 2025 adjusted net income guidance for the third consecutive quarter, driven by improved net yields and effective cost management [10][12] - Strong demand and onboard spending contributed to a 4.6% improvement in net yields on a constant currency basis [2][10] Financial Performance - Total revenues for Q3 2025 reached $8.2 billion, up over $250 million compared to the prior year, marking the tenth consecutive quarter of record revenues [10][11] - Adjusted EBITDA for the quarter was approximately $3.0 billion, with adjusted net income of $2.0 billion, surpassing previous records set in 2019 [11][12] - The company achieved a gross margin yield increase of 6.4% compared to 2024, with all-time high net yields outperforming June guidance by 1.1 points [11][12] Booking Trends - Booking trends have strengthened since May, with higher booking volumes than last year, significantly outpacing capacity growth [8] - Nearly half of 2026 is already booked at historical high prices in constant currency for both North America and Europe segments, indicating a strong base for future business [8][10] Capital Structure and Debt Management - The company has successfully refinanced over $11 billion of debt this year and prepaid an additional $1 billion, aiming to reach investment-grade leverage metrics [9][10] - During the quarter, Carnival reduced secured debt by nearly $2.5 billion and issued two senior unsecured notes totaling $4.2 billion [9][10] Operational Highlights - The new exclusive destination, Celebration Key, received positive reviews and is expected to attract more first-time cruisers [4][18] - The company continues to focus on increasing same-ship net yields and closing the price-to-value gap with land-based vacation alternatives [5][10] Future Outlook - For Q4 2025, the company expects net yields to increase approximately 6.4% year-over-year, with adjusted cruise costs excluding fuel per ALBD expected to rise approximately 5.5% [16] - The company aims to drive its net debt to adjusted EBITDA ratio to under 3x as part of its financial strength strategy [9][14]

Core Insights - Archer Roose Wines has partnered with Princess Cruises to become the first official canned wine partner, offering a selection of wines on all voyages starting September 2025 [1][3] - The partnership aims to enhance the cruising experience by providing high-quality, sustainable wine options to guests [3][4] Company Overview - Archer Roose Wines is recognized as one of the fastest-growing wine brands in the U.S., specializing in luxury canned wines sourced from esteemed winemakers globally [4] - The brand emphasizes low-intervention winemaking practices, producing vegan, gluten-free wines with no added sugar or unnecessary additives [4] Product Offering - The wines available on Princess Cruises include Bubbly, Pinot Noir, Rosé, and Sauvignon Blanc, designed to be enjoyed in various settings onboard [1][2] - Archer Roose Wines has received multiple awards, including recognition as the most awarded brand at the California-hosted International Canned Wine Competition [4] Marketing Strategy - A promotional video featuring Elizabeth Banks, the brand's Chief Creative Officer, will highlight the partnership and its appeal to modern cruisers [2][3] - The marketing campaign will be distributed across social media platforms, Princess Cruises' YouTube channel, and in-stateroom video on demand [2]

Group 1 - Costco Wholesale Corporation is highlighted as a significant retail player with earnings report scheduled after market close on Thursday [1] - Nike Inc. is set to report its earnings after market close next Tuesday [1] - Several IT services companies, including Accenture plc Class A (Ireland), will report earnings on Thursday morning [1] Group 2 - Leisure companies Carnival Corporation and Carnival Plc ADS are scheduled to report pre-market next Monday [1]

Group 1 - Major consumer and tech companies are set to report earnings in the upcoming week, with Costco Wholesale Corporation reporting on Thursday after market close and Accenture plc Class A (Ireland) before market open [1] - Micron Technology Inc. will kick off the earnings reports on Tuesday after market close, while Nike Inc. will conclude the reporting next Tuesday after market close [1] - Carnival Corporation and Carnival Plc ADS will report pre-market next Monday, amidst a moderately dense earnings schedule [1]

There's one thing holding back investors today.Carnival Corp. (CCL) (CUK 0.11%) stock has proven the naysayers wrong from a few years ago and has bounced back in a big way from 2022 lows. It's up roughly 216% over the past three years and has become a rare turnaround story. However, it's still 57% off its all-time highs set back in 2018 as it continues to repay its standing debt of $27 billion.Big news is expected at the end of the month that could help it get even closer to its previous highs. You might wa ...

Group 1 - Major market movers include Micron Technology Inc. after the close on Tuesday [1] - Accenture plc Class A (Ireland) is set to report pre-market [1] - Costco Wholesale Corporation will report after the close on Thursday, noted for having the highest earnings density [1] Group 2 - Next Monday will focus on the leisure sector, with Carnival Corporation and Carnival Plc ADS reporting pre-market [1]

Core Viewpoint - Both Carnival and Chewy are experiencing revenue growth and present strong long-term investment opportunities in the consumer goods sector [1][2]. Group 1: Carnival - Carnival, the largest cruise operator, faced significant challenges during the pandemic, leading to a substantial increase in debt [4]. - The company has made progress by replacing older ships with fuel-efficient vessels, enhancing onboard spending strategies, and focusing on debt repayment, particularly variable-rate borrowings [4]. - Recent financial performance includes record revenue of $6.3 billion and customer deposits reaching $8.5 billion, with advanced bookings for next year matching record levels at higher fares [5]. - Carnival has exceeded financial targets in its turnaround plan, achieving the highest adjusted return on invested capital in over 20 years [6]. - Lower interest rates are expected to facilitate debt repayment and encourage consumer spending on cruises [7]. Group 2: Chewy - Chewy is a leading e-commerce platform for pet supplies, with a loyal customer base supported by its Autoship service, which accounts for 83% of overall sales [8]. - The company reported a sales increase of over 8% to $3.1 billion, with Autoship sales climbing 15% [9]. - Chewy has diversified its revenue by opening veterinary clinics, allowing it to introduce e-commerce services to new customers [10]. - The company maintains a strong financial position with no debt and over $590 million in cash [11]. - Chewy's loyal customer base, as evidenced by Autoship metrics, positions it well for long-term success despite competition [11]. Group 3: Investment Comparison - Both Carnival and Chewy are considered reasonably priced, with Carnival trading at 15 times forward earnings estimates and Chewy at 29 times [12]. - The high debt level of Carnival poses a risk, while Chewy's debt-free status is viewed favorably [14][15]. - If only one stock could be chosen, Chewy is preferred due to its lack of debt and strong customer loyalty [15].