Yahoo Finance·2025-12-20 00:09Core Insights - Carnival's shares increased following the announcement of record earnings and a positive outlook for the upcoming year [1] Financial Performance - Carnival's fourth-quarter revenue increased by 7% year over year, reaching $6.3 billion [3] - The company's net yields improved by 5.4% on a constant currency basis, amounting to $200.84 per available passenger cruise day [3] - Adjusted net income surged by 140% to $454 million, or $0.34 per share, exceeding Wall Street's expectations of $0.25 per share [4] - For the full year, adjusted net income rose over 60% to $3.1 billion [4] Future Outlook - The CEO indicated that momentum is expected to continue into 2026, with projections of double-digit earnings growth and return on invested capital exceeding 13.5% [5] Capital Management - Carnival has reduced over $10 billion of debt in less than three years, leading to lower leverage ratios and a stronger balance sheet [6] - The board approved the reinstatement of a quarterly cash dividend at an initial rate of $0.15 per share, payable on February 27 [6][7] Industry Context - The cruise industry is showing signs of recovery after years of challenges, with management expressing optimism about future performance [9]