Royal Caribbean Cruises .(US:RCL)2026-01-29 11:32Financial Performance - Royal Caribbean Group reported 2025 Adjusted EPS of $15.64, exceeding guidance due to favorable revenue and joint venture performance [1]. - Total revenues for 2025 reached $17.9 billion, with a Net Income of $4.3 billion [4]. - Fourth quarter 2025 Net Income was $0.8 billion or $2.80 per share, compared to $0.4 billion or $1.63 per share in the prior year [6]. - Total revenues for Q4 2025 reached $4,259 million, a 13.2% increase from $3,761 million in Q4 2024 [52]. - Passenger ticket revenues increased to $2,937 million in Q4 2025, up 13% from $2,599 million in Q4 2024 [52]. - Onboard and other revenues rose to $1,323 million in Q4 2025, compared to $1,161 million in Q4 2024, marking a 14% increase [52]. - Operating income for the year ended December 31, 2025, was $4,910 million, a 19.6% increase from $4,106 million in 2024 [52]. - Comprehensive income attributable to Royal Caribbean Cruises Ltd. for the year ended December 31, 2025, was $4,466 million, compared to $2,750 million in 2024 [52]. - Net income for the year ended December 31, 2025, was $4,291 million, compared to $2,896 million in 2024, reflecting a 48% increase [60]. - Adjusted earnings per share for the year ended December 31, 2025, was $15.64, compared to $11.80 in 2024, reflecting a growth of 32.4% [69]. - Adjusted net income attributable to Royal Caribbean Cruises Ltd. for Q4 2025 was $762 million, compared to $445 million in Q4 2024, a rise of 71.1% [69]. Future Projections - The company expects 2026 Adjusted EPS to be between $17.70 and $18.10, indicating a CAGR of 23% over the first two years of its Perfecta program [10]. - The company targets a 20% compound annual growth rate in Adjusted EPS by the end of 2027 under its Perfecta Program [38]. - Net Yields for 2026 are projected to increase by 2.1% to 4.1% as-reported, with a 30 bps headwind from itinerary modifications in China [10]. - Capital expenditures for 2026 are expected to be around $5 billion, primarily for new ship orders [21]. Capacity and Expansion - Approximately two-thirds of 2026 capacity is booked at record rates, with onboard revenue pre-cruise purchases up year-over-year [8]. - The company plans to expand its vacation portfolio with the new Discovery Class ships and 10 additional ships for Celebrity River Cruises by 2031 [14]. - Royal Caribbean Group plans to expand its portfolio of private destinations from three to eight by 2028 [43]. - The company will enter river cruising in 2027 with Celebrity River Cruises, enhancing its market offerings [43]. Liquidity and Debt - As of December 31, 2025, the Group's liquidity position was $7.2 billion, including cash and undrawn credit facilities [19]. - Scheduled debt maturities for 2026 amount to $3.2 billion, with total maturities of $10.2 billion through 2030 [20]. - Royal Caribbean's long-term debt as of December 31, 2025, was $18,165 million, slightly down from $18,473 million in 2024 [58]. Operational Metrics - In Q4 2025, Royal Caribbean carried 2,484,241 passengers, a 15% increase from 2,159,429 in Q4 2024 [56]. - Passenger cruise days increased to 15,116,254 in Q4 2025, up from 13,678,795 in Q4 2024, representing an 11% growth [56]. - The total assets of Royal Caribbean as of December 31, 2025, reached $41,619 million, a 12% increase from $37,070 million in 2024 [58]. - Cash and cash equivalents at the end of 2025 were $825 million, up from $388 million in 2024, indicating a 113% increase [60]. - The company reported a net cash provided by operating activities of $6,465 million for the year ended December 31, 2025, compared to $5,265 million in 2024, a 23% increase [60]. Cost and Expenses - Total current liabilities increased to $12,055 million in 2025 from $9,817 million in 2024, a 23% rise [58]. - Total cruise operating expenses for Q4 2025 were $2,242 million, compared to $2,232 million in Q4 2024, reflecting a slight increase of 0.4% [67]. - Marketing, selling, and administrative expenses for Q4 2025 were $630 million, compared to $674 million in Q4 2024, a decrease of 6.5% [67]. - Gross cruise costs per APCD for Q4 2025 were $204.79, slightly down from $214.33 in Q4 2024, a decrease of 4.0% [67]. - Net cruise costs excluding fuel for the year ended December 31, 2025, were $6,803 million, compared to $6,440 million in 2024, an increase of 5.6% [67]. - Adjusted EBITDA for the year ended December 31, 2025, reached $7,025 million, compared to $5,971 million in 2024, indicating an increase of 17.7% [68]. - Adjusted gross margin per passenger cruise day (PCD) for the year ended December 31, 2025, was $249.24, up from $242.96 in 2024, a 2% increase [65]. - The company reported a gross margin of $1,564 million for Q4 2025, compared to $1,298 million in Q4 2024, marking a 21% increase [65].