ROYAL CARIBBEAN GROUP REPORTS SECOND QUARTER RESULTS AND INCREASES FULL YEAR GUIDANCE

Financial Performance - Royal Caribbean Group reported second quarter 2025 EPS of $4.41 and Adjusted EPS of $4.38, exceeding guidance due to strong demand and lower costs [1][4] - Net Income for the second quarter was $1.2 billion, compared to $0.9 billion in the same period last year, with total revenues of $4.5 billion and Adjusted EBITDA of $1.9 billion [4][42] - The company increased its full year 2025 Adjusted EPS guidance to a range of $15.41 to $15.55, driven by better-than-expected second quarter performance [1][11] Operational Highlights - Capacity for the second quarter increased by 5.8% year-over-year, serving 2.3 million guests, a 10% increase from the previous year [5][43] - Gross Margin Yields rose by 11.0% and Net Yields increased by 5.3% year-over-year, with a load factor of 110%, up two percentage points [5][11] - Bookings for new ships Star of the Seas and Celebrity Xcel are performing well, with strong early demand for Royal Beach Club Paradise Island [7][8] Strategic Outlook - The company is on track to achieve its Perfecta financial targets by the end of 2027, with plans for new ships and differentiated destinations [3][9] - Royal Caribbean Group aims to capture a larger share of the $2 trillion global vacation market by adapting to evolving consumer preferences [9][10] - The third quarter is expected to see a capacity increase of 2.9% compared to the same period last year, with anticipated Net Yield growth of 2.3% to 2.8% [10][11] Liquidity and Financing - As of June 30, 2025, the company's liquidity position was $7.1 billion, reflecting a strong financial position and investment-grade ratings from major credit agencies [16][17] - The company amended and upsized its revolving credit facilities to $6.4 billion, extending the maturity of one facility to October 2030 [17] Capital Expenditures - Capital expenditures for 2025 are expected to be approximately $5 billion, primarily for new ship orders and land-based initiatives [18][19] - Capacity changes for 2025 are projected at 5.5%, with further increases expected in subsequent years [19]