How Royal Caribbean's Financial Domination Could Continue in 2026

Financial Performance - Royal Caribbean Cruises has shown strong financial performance, with record earnings of $2.88 billion in 2024 and over $4 billion in net income over the past 12 months [5] - The company experienced a V-shaped recovery post-pandemic, recovering quickly due to pent-up demand from travelers [5] - Despite carrying more debt, Royal Caribbean returned to profitability and improved its margins significantly [5] Debt Management - During the pandemic, Royal Caribbean raised over $12 billion in debt instruments, managing to do so without significant dilution of its stock [4] - The company issued about $3 billion in new shares, resulting in only a 25% increase in its outstanding diluted share count from 2019 to 2023, compared to Carnival's 80% increase and Norwegian's more than doubling [4] Market Position - Royal Caribbean has consistently outperformed the broader market and set new all-time record highs for its stock, while most cruise line stocks remain below pre-pandemic levels [6] - The company's financial strength has been a key factor in its success and recovery compared to peers [6]