Carnival (CCL) - 2025 Q2 - Quarterly Results

Financial Performance - Carnival Corporation & plc achieved record second quarter revenues of $6.3 billion, an increase of nearly $550 million compared to the prior year[4]. - Adjusted net income for the second quarter was $470 million, more than tripling compared to 2024, and outperforming March guidance by $185 million[5]. - For the full year 2025, the company expects adjusted EBITDA of approximately $6.9 billion, up over 10% compared to 2024[10]. - For the three months ended May 31, 2025, total revenues increased to $6,328 million, up from $5,781 million in the same period of 2024, representing an increase of 9.5%[30]. - Net income for the three months ended May 31, 2025, was $565 million, compared to a net income of $92 million for the same period in 2024, indicating a significant improvement[30]. - Adjusted net income for the same period was $470 million, compared to $134 million in the prior year, indicating a year-over-year growth of approximately 251%[39]. - Adjusted EBITDA for the three months ended May 31, 2025, was $1.508 billion, compared to $1.197 billion in the same period of 2024, reflecting a growth of approximately 25.9%[39]. - Carnival Corporation's adjusted earnings per share for the three months ended May 31, 2025, was $0.35, compared to $0.11 in the same period of 2024, reflecting a year-over-year increase of approximately 218%[39]. Customer Engagement and Demand - Customer deposits reached an all-time high of $8.5 billion, reflecting strong demand and booking trends[4]. - The cumulative advanced booked position for 2026 is in line with 2025 record levels and at historical high prices in constant currency[7]. - Carnival Corporation & plc plans to launch "Carnival Rewards," a new loyalty program, in June 2026, enhancing customer engagement[13]. - The company carried 3.4 million passengers in the three months ended May 31, 2025, compared to 3.3 million in the same period of 2024, showing a growth in passenger numbers[36]. Cost Management and Efficiency - Adjusted cruise costs excluding fuel per ALBD are expected to increase approximately 4.4% for the full year 2025 compared to the prior year[14]. - Adjusted cruise costs per ALBD for the three months ended May 31, 2025, were $136.75, compared to $135.68 in 2024, showing a slight increase of 0.8%[43]. - Substantially all adjusted cruise costs excluding fuel are largely fixed, with changes in prices impacting costs once ALBDs are determined[50]. - The company excludes fuel expenses to provide supplemental information on non-fuel adjusted cruise cost performance[50]. Debt and Liquidity - The company has refinanced nearly $7 billion of debt at favorable rates, improving its balance sheet and credit ratings[8]. - The company reported a total debt of $18.5 billion as of May 31, 2025, with net debt to adjusted EBITDA ratio providing insights into overall leverage[47]. - Total liabilities decreased slightly to $27,254 million as of May 31, 2025, from $27,475 million as of November 30, 2024[34]. - The company’s liquidity increased to $5,172 million as of May 31, 2025, compared to $4,155 million as of November 30, 2024[34]. Operational Metrics - The occupancy percentage for the three months ended May 31, 2025, was 104%, consistent with the same period in 2024[36]. - Cash from operations for the three months ended May 31, 2025, was $2,392 million, compared to $2,040 million in the same period of 2024, reflecting a 17.3% increase[35]. - Capital expenditures for the three months ended May 31, 2025, were $850 million, down from $1,318 million in the same period of 2024[35]. - Gross margin yields per ALBD for the three months ended May 31, 2025, were $72.25, compared to $57.45 in 2024, marking an increase of approximately 25.8%[41]. - Net yields per ALBD for the same period were $200.07, up from $186.60 in 2024, indicating a growth of about 7.2%[41]. - Fuel cost per metric ton consumed (excluding EUA) decreased to $614 in the three months ended May 31, 2025, from $684 in the same period of 2024[36]. Strategic Initiatives - The company has ordered two newbuilds for AIDA Cruises, scheduled for delivery in fiscal years 2030 and 2032, expanding its fleet[13]. - The company continues to focus on enhancing operational efficiency and expanding its market presence through new strategies and product offerings[45]. Currency and Reporting - Constant currency reporting is utilized to remove the impact of exchange rate fluctuations on financial results, facilitating comparative analysis[55]. - The company reports adjusted gross margin, net yields, and adjusted cruise costs on a constant currency basis to facilitate comparison[55]. - Strengthening of the U.S. dollar against foreign currencies results in decreased reported revenues and expenses in U.S. dollars[56]. - Foreign currency translational and transactional risks are present due to operations in multiple currencies, including the U.S. dollar, Australian dollar, euro, and sterling[53]. - Future movements of foreign exchange rates and fuel prices cannot be predicted without unreasonable effort, impacting financial forecasts[52]. - The company does not provide reconciliations of forecasted non-GAAP financial measures to U.S. GAAP due to the unreasonable effort required[52].