Carnival plc(CUK) - 2025 Q4 - Annual Results

Financial Performance - Full year net income reached $2.8 billion, with record adjusted net income of $3.1 billion, up over 60% compared to the previous year[6] - Full year revenues totaled $26.6 billion, achieving record net yields in constant currency, outperforming guidance for the fourth time in 2025[6] - Adjusted return on invested capital (ROIC) exceeded 13%, with a net debt to adjusted EBITDA ratio of 3.4x, recognized as investment grade by Fitch[6] - For 2026, adjusted net income is expected to be $3.5 billion, surpassing record 2025 levels[6] - In Q1 2026, adjusted EBITDA was approximately $1.24 billion, while for the full year 2026, it is projected to be approximately $7.63 billion[21] - Adjusted net income for Q1 2026 was approximately $235 million, and for the full year 2026, it is expected to be approximately $3,450 million[21] - The company reported total revenues of $6.33 billion for the three months ended November 30, 2025, compared to $5.94 billion for the same period in 2024, reflecting a year-over-year increase of 6.6%[35] - Adjusted net income for the twelve months ended November 30, 2025, was $3,079 million, compared to $1,891 million in 2024, marking a significant increase of 62.8%[43] - The company reported a diluted earnings per share of $2.02 for the twelve months ended November 30, 2025, up from $1.44 in 2024, a growth of 40.3%[43] Customer Metrics - Record customer deposits reached $7.2 billion, exceeding the previous fourth quarter record[7] - The company achieved record booking volumes for 2026 and 2027 sailings, indicating strong demand for future cruises[9] - Customer deposits increased to $7,246 million in 2025 from $6,779 million in 2024, reflecting a growth of 6.9%[39] Cost and Expense Management - Adjusted cruise costs excluding fuel per available lower berth day (ALBD) are projected to rise approximately 9.6% in the first quarter of 2026[20] - Total cruise and tour operating expenses for the twelve months ended November 30, 2025, were $15.95 billion, compared to $15.64 billion for the previous year, indicating a slight increase[35] - Cruise and tour operating expenses for the three months ended November 30, 2025, were $3,910 million, compared to $3,833 million in 2024, reflecting an increase of 2%[47] - Adjusted cruise costs per ALBD for the twelve months ended November 30, 2025, were $142.41, up from $135.73 in 2024, indicating a year-over-year increase of 4.9%[47] - Adjusted cruise costs excluding fuel per ALBD for the twelve months ended November 30, 2025, were $124.81, compared to $116.99 in 2024, representing a 6.1% increase[47] - Total cruise costs for the twelve months ended November 30, 2025, were $19,154 million, compared to $18,678 million in 2024, marking a 2.5% increase[47] Future Projections - The first quarter of 2026 is expected to see net yields increase approximately 5.1% in current dollars and 1.6% in constant currency[20] - The company anticipates a 1% change in net yields to impact adjusted net income by $43 million in Q1 2026 and $204 million for the full year 2026[21] - Adjusted earnings per share (diluted) for Q1 2026 is approximately $0.17, with a projection of approximately $2.48 for the full year 2026[21] Governance and Corporate Actions - The company plans to unify its dual-listed framework into a single entity, Carnival Corporation, to streamline governance and reporting[15] - The quarterly dividend has been reinstated at $0.15 per share, reflecting confidence in future performance and commitment to shareholder value[10] - The company plans to file a Registration Statement with the SEC regarding proposed unification and redomiciliation transactions, which will contain important information for investors[61] Financial Ratios and Metrics - Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenues, providing insight into core operating profitability[50] - Net debt to adjusted EBITDA is a measure of overall leverage, defined as total debt less cash and cash equivalents divided by twelve-month adjusted EBITDA[51] - The company reports adjusted gross margin, net yields, and adjusted cruise costs on a "constant currency" basis to facilitate comparative analysis[59] - Gains and losses on ship sales and impairment charges are excluded from adjusted measures as they are not indicative of future earnings performance[49]