Royal Caribbean Cruises .(US:RCL) Prnewswireยท2025-10-28 10:32Core Insights - Royal Caribbean Group reported strong third quarter results with an Earnings per Share (EPS) of $5.74 and an Adjusted EPS of $5.75, exceeding guidance due to higher demand and lower costs [1][3] - The company raised its full year 2025 Adjusted EPS guidance to a range of $15.58 to $15.63, indicating a 32% year-over-year growth [1][12] - The introduction of the Royal Beach Club Santorini, set to open in 2026, expands the company's land-based destination portfolio from two to eight by 2028 [2][11] Financial Performance - For Q3 2025, net income was $1.6 billion, up from $1.1 billion in Q3 2024, with total revenues reaching $5.1 billion and Adjusted EBITDA of $2.3 billion [3][12] - Capacity increased by 2.9% year-over-year, serving 2.5 million guests, a 7% increase, with a load factor of 112% [4][12] - Gross Margin Yields rose by 3.8% and Net Yields increased by 2.8% as-reported [4][12] Cost Management - Gross Cruise Costs per Available Passenger Cruise Days (APCD) increased by 2.7% year-over-year, while Net Cruise Costs excluding fuel per APCD rose by 4.8% [5][12] - Cost growth was lower than guidance, reflecting strong operational execution and disciplined cost management [5] Future Outlook - The company anticipates a 10.3% capacity increase in Q4 2025 compared to Q4 2024, driven by new ship introductions [8][12] - Expected Net Yields for Q4 2025 are projected to increase by 2.6% to 3.1% as-reported [8][12] - The company is confident in its booked position for 2026, projecting earnings per share to have a $17 handle [2][12] Strategic Initiatives - The Royal Beach Club Santorini aims to enhance the vacation experience by combining local culture with the company's offerings, contributing to the expansion of the vacation ecosystem [10][11] - The company is focused on innovative ships and technology to improve guest experiences and strengthen loyalty [2][14] Shareholder Returns - The company repurchased approximately 1.3 million shares during the third quarter, with $345 million remaining for future repurchases [19] - A 33% increase in the quarterly dividend to $1.00 per share was authorized, reflecting a commitment to returning capital to shareholders [19]