Carnival plc(US:CUK)2026-01-27 15:06Company Overview - Carnival Corporation & plc operates as the largest global cruise company with a portfolio of eight cruise lines, including Carnival Cruise Line and Princess Cruises, and serves over 13.5 million guests annually[21]. - As of December 31, 2023, Carnival Corporation & plc has a passenger capacity of 263,300, which is projected to increase to 272,460 by 2025[33]. - The North America segment accounts for 64% of total passenger capacity, with Carnival Cruise Line alone representing 35%[35]. - In 2025, Carnival Corporation & plc carried a total of 13,627 thousand passengers, an increase from 13,509 thousand in 2024 and 12,460 thousand in 2023[53]. - The United States and Canada accounted for 8,092 thousand passengers in 2025, up from 7,938 thousand in 2024, while Continental Europe saw an increase to 2,754 thousand from 2,702 thousand[53]. - Carnival plc delivered extraordinary cruise vacations to over 13.5 million guests in 2025[220]. Corporate Structure and Governance - The company plans to unify its dual listed structure under Carnival Corporation, listed solely on the New York Stock Exchange, with a proposed legal incorporation shift to Bermuda, expected to be completed in Q2 2026[22][23]. - Carnival Corporation announced a proposed unification of its dual-listed company (DLC) structure under a single entity, Carnival Corporation, with a migration from Panama to Bermuda, which is expected to provide various benefits, although the realization of these benefits is uncertain[174]. - As of January 13, 2026, there were 2,164 holders of record of Carnival Corporation common stock and 27,361 holders of record of Carnival plc ordinary shares[197]. Financial Performance - The company aims to strengthen its balance sheet while delivering outsized shareholder returns, achieving strong profitability and a double-digit return on invested capital (ROIC)[30]. - The company did not pay or declare dividends for the year ended November 30, 2025, but reinstated a quarterly dividend of $0.15 per share, with a record date of February 13, 2026[198]. - Carnival Corporation's common stock price performance showed a value of $129 at the end of 2025, compared to $100 at the beginning of the period, indicating a 29% increase[207]. - In 2025, Carnival plc completed a $19 billion refinancing plan and reduced total debt by over $10 billion since January 2023[214]. - The company reinstated its dividend, reflecting confidence in cash generation and balance sheet improvements[214]. Operational Developments - Carnival Corporation & plc operates a portfolio of seven owned or operated ports and destinations, welcoming 7.4 million guests in 2025, up from 6.5 million in 2024[48]. - The newly launched Celebration Key, an exclusive cruise port destination, opened in July 2025 and will accommodate up to four cruise ships simultaneously after a pier extension in 2026[50]. - The company intends to enhance its exclusive destination RelaxAway, Half Moon Cay, with a new pier expected to open in summer 2026, allowing two cruise ships to dock[51]. - The company has seven cruise ships under contract for construction, with expected deliveries ranging from 2027 to 2033, including new builds for Carnival Cruise Line with capacities up to 6,160[39]. - Carnival plc is expanding return-generating ship enhancement initiatives and exclusive destination development programs[215]. Sustainability and Environmental Initiatives - Carnival Corporation & plc is committed to executing its sustainability roadmap, focusing on reducing fuel consumption and carbon footprint while enhancing community partnerships[29]. - The company aims for net zero emissions from ship operations by 2050, contingent on the development of alternative low GHG emission fuels and technologies that are not yet available at scale[144]. - In 2021, the company established sustainability goals for 2030, focusing on themes of People and Planet, with specific areas including Well-Being, Inclusion, Climate Action, and Biodiversity[143]. - The company achieved a 20% reduction in greenhouse gas emissions intensity ahead of its 2030 goal, compared to the 2019 baseline[218]. - Carnival plc's "Less Left Over" strategy reduced food waste by over 47%, nearing its 50% target for 2030[218]. Marketing and Demand Generation - Marketing and advertising programs were increased in 2025, aimed at driving demand and enhancing brand differentiation, with a focus on digital performance marketing[62]. - The company is focused on strengthening demand generation efforts to position itself for success in 2026 and beyond[216]. - The company is enhancing commercial strategies by leveraging AI to improve marketing effectiveness and drive efficiency gains[216]. Workforce and Labor Relations - The average number of employees in 2025 was 101,000 onboard ships, with an additional 16,000 shoreside employees, reflecting a robust workforce to support operations[70]. - Approximately 48% of shipboard employees and 21% of shoreside employees were represented by collective bargaining agreements, indicating strong labor relations[71]. - The company has invested in leadership development programs to foster career growth and retain top talent, ensuring a strong pipeline of experienced leaders[74]. Regulatory and Compliance Issues - The company is subject to various governmental regulations, including those addressing antitrust, data privacy, and sustainability reporting[141]. - The IMO has established a global 0.5% sulfur cap for marine fuel, with compliance options including Advanced Air Quality Systems[117]. - The IMO's 2023 Strategy aims for a 40% reduction in CO2 emissions intensity by 2030 compared to 2008 levels[121]. - The EU's Emissions Trading System (ETS) will require ships to procure emission allowances covering 40% of their 2024 emissions to be surrendered in 2025, increasing to 100% of annual emissions thereafter, with costs expected to rise from $91 million in 2025 to approximately $170 million in 2026[132]. - The FuelEU Maritime regulation, effective January 2025, mandates compliance with maximum limits of GHG intensity of energy used on board, with increasing stringency over time and financial penalties for non-compliance[133]. Risk Factors - Adverse weather conditions and natural disasters may significantly impact the company's operations, including potential itinerary changes and cancellations, affecting profitability[153]. - The company faces risks related to its sustainability objectives, which may not be achieved due to factors beyond its control, including the availability of low-emission energy sources and evolving regulatory requirements[154]. - Cybersecurity incidents and data privacy breaches pose risks to the company's operations, potentially leading to financial losses and reputational damage[155]. - The company's ability to service its debt is contingent on future operating performance and cash generation, which may be affected by various uncontrollable factors[156]. - Increases in fuel costs and volatility in fuel supply could adversely affect the company's operational costs and profitability, impacting guest demand[158]. - The company relies on suppliers for critical operations, and disruptions in the supply chain could lead to increased costs and operational challenges[161]. - Fluctuations in foreign currency exchange rates may negatively impact the company's financial results, as revenues and expenses are incurred in multiple currencies[162]. - Investments in port destinations and exclusive islands expose the company to risks such as weather events and local political developments[163]. - Overcapacity in the cruise industry may lead to reduced pricing power and profitability, as competition increases from other cruise brands and land-based vacation alternatives[164]. - Regulatory changes related to sustainability and emissions may require significant capital investments and could impact operational costs and access to certain destinations[172]. Cybersecurity Measures - The company has implemented a comprehensive cybersecurity risk management program, leveraging frameworks such as NIST and ISO/IEC 27001, to proactively identify and mitigate potential threats[179]. - Carnival Corporation has not experienced any material cybersecurity incidents in the last three fiscal years, and expenses related to cybersecurity incidents were not material[184]. - The company maintains an incident response plan that is regularly updated and tested through crisis simulation exercises[180]. - The Global Chief Information Security Officer (CISO) leads cybersecurity efforts and reports to executive management, ensuring alignment with industry developments[185]. - The company has a focus on data privacy and security standards to comply with regulations such as GDPR and CCPA, employing encryption and access controls[181]. Headquarters and Operations - Carnival Corporation's headquarters and principal shoreside operations are located in Miami, Florida, and Southampton, England, with plans to relocate its Miami headquarters[189].