Carnival (US:CCL)2025-12-19 14:17Financial 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] - Adjusted EBITDA for Q1 2026 is approximately $1.24 billion, with a full year estimate of approximately $7.63 billion[21] - Adjusted net income for Q1 2026 is approximately $235 million, with a full year estimate of approximately $3,450 million[21] - Total revenues for the full year 2025 reached $26.622 billion, up from $25.021 billion in 2024, indicating a year-over-year growth of approximately 6.4%[35] - The company reported an operating income of $735 million for Q4 2025, compared to $561 million in Q4 2024, representing a year-over-year increase of approximately 31%[35] - Adjusted earnings per share for the full year 2025 is approximately $2.48, compared to $1.44 in 2024, showing a significant increase[21] - Cash from operations for the twelve months ended November 30, 2025, was $6,218 million, up from $5,923 million in 2024, reflecting a 5% increase[39] - Adjusted net income for the twelve months ended November 30, 2025, was $3,079 million, compared to $1,891 million in 2024, marking a 63% increase[43] - Total revenues for the three months ended November 30, 2025, reached $6,330 million, up from $5,938 million in 2024, indicating a 7% growth[45] Customer Metrics - Record customer deposits reached $7.2 billion, exceeding the previous fourth quarter record[7] - Customer deposits rose to $7,246 million in 2025 from $6,779 million in 2024, an increase of 7%[39] - The company achieved record booking volumes for 2026 and 2027 sailings, indicating strong demand for future cruises[9] - The occupancy percentage for the three months ended November 30, 2025, was 102%, slightly down from 103% in 2024[40] Cost and Expenses - Adjusted cruise costs excluding fuel per available lower berth day (ALBD) are expected to increase approximately 3.25% compared to 2025[12] - Fuel expense for Q1 2026 is $0.38 billion, with a full year estimate of $1.63 billion, reflecting a decrease in fuel cost per metric ton consumed to $539 from $524[21] - Cruise and tour operating expenses for the twelve months ended November 30, 2025, were $15,947 million, compared to $15,638 million for the previous year, reflecting an increase of 1.97%[47] - Adjusted cruise costs excluding fuel per ALBD for the three months ended November 30, 2025, were $124.81, up from $121.83 in the same period of 2024, indicating a 2.43% increase[47] - Adjusted cruise costs per ALBD for the three months ended November 30, 2025, were $142.41, compared to $139.40 in the same period of 2024, reflecting a 2.03% increase[47] Capital Expenditures - Newbuild capital expenditures for the full year 2026 are projected at $0.6 billion, while non-newbuild capital expenditures are estimated at $2.5 billion[22] - Capital expenditures for the twelve months ended November 30, 2025, were $3,611 million, down from $4,626 million in 2024, a decrease of 22%[39] Shareholder Returns - The company plans to reinstate a quarterly dividend of $0.15 per share, reflecting confidence in future performance[10] - Total shareholders' equity increased to $12,284 million in 2025 from $9,251 million in 2024, representing a 33% growth[37] Strategic Initiatives - The proposed unification of the dual-listed framework aims to streamline governance and reporting, potentially increasing liquidity and reducing administrative costs[15] - The company is developing Ensenada Bay Village in Mexico as part of its destination strategy, enhancing its portfolio of exclusive destinations[18] - 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] Market Position - The company is the largest global cruise company, operating a portfolio of world-class cruise lines, indicating strong market presence and brand recognition[24] Financial Ratios - 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] - A 1% change in net yields is estimated to impact adjusted net income by $43 million in Q1 2026 and $204 million for the full year[21] - Net debt to adjusted EBITDA ratio is used to assess overall leverage, defined as total debt less cash and cash equivalents divided by twelve-month adjusted EBITDA[51] - Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenues, providing a measure of core operating profitability[50] Currency Risks - The company utilizes multiple currencies, including the U.S. dollar, which subjects it to foreign currency translational and transactional risks[57] - The company reports adjusted gross margin, net yields, and adjusted cruise costs on a constant currency basis to facilitate comparative analysis[59] Adjustments and Exclusions - Adjusted net income (loss) and adjusted earnings per share provide insights into future earnings performance by excluding non-core operating gains and losses[49] - Gains and losses on ship sales and impairment charges are excluded from adjusted net income to focus on core operating performance[49]