The Secret to Royal Caribbean's Growth in 2026 and Beyond

Core Insights - Royal Caribbean Cruises has demonstrated exemplary returns for shareholders over the past five years, distinguishing itself in a challenging industry [1] - The company has ambitious plans to sustain its growth momentum and has been selected as the first stock in a new investment portfolio for 2026 [2] Strategy and Financial Goals - Royal Caribbean's strategy focuses on moderate capacity growth, yield growth, and disciplined cost control to enhance shareholder value [4] - The company aims for an average annual growth rate of 20% in earnings per share from now until 2027, while maintaining a high investment-grade bond rating to control financing costs [5] Fleet Expansion and New Destinations - The company is launching an ambitious schedule of new cruise ships, including the Star of the Seas and Celebrity Xcel in 2025, and several others through 2028, catering to a diverse range of travelers [6][8] - Royal Caribbean plans to expand its exclusive destination resorts, adding new locations such as Royal Beach Club resorts in the Bahamas and Mexico, and properties in Chile for expeditions to Antarctica [8] Investment Appeal - The strong business execution of Royal Caribbean, particularly its successful strategy prior to the pandemic, positions the company favorably for future growth [11]