Royal Caribbean Says Two-Thirds Of 2026 Already Booked At Record Prices

Core Insights - Royal Caribbean Group reported strong fourth-quarter results driven by high demand, increased yields, and effective cost management, achieving adjusted earnings of $2.80 per share on revenue of $4.259 billion, slightly below consensus estimates [1][3] Quarterly Performance - Net income increased to $0.8 billion from $0.6 billion, with adjusted EBITDA reaching $1.5 billion [2] - Quarterly revenue rose from $3.761 billion in the previous year, supported by a load factor of 108% [3] - Gross Margin Yields improved by 9.2%, while Net Yields increased by 3.1% year-over-year [3] - Net Cruise Costs, excluding fuel, per APCD decreased by 5.8% year-over-year [3] Full-Year Results - For the full year 2025, Royal Caribbean reported GAAP EPS of $15.61 and adjusted EPS of $15.64, with total revenue increasing to $17.935 billion from $16.484 billion in 2024 [4] - Net income for the year totaled $4.3 billion, and adjusted EBITDA reached $7.0 billion [4] - Operating cash flow for the year was $6.465 billion [4] Occupancy and Booking Trends - Full-year occupancy was 109.7%, with 9.45 million passengers carried [5] - Gross Margin Yields increased by 8.5%, and Net Yields rose by 3.8% [5] - The company experienced record booking weeks during Cyber Sales and the start of WAVE season, with about two-thirds of 2026 capacity booked at record rates [5] Onboard Revenue and Spending - Onboard and pre-cruise spending surpassed previous years, with nearly 50% of 2025 onboard revenue booked pre-cruise [6] Liquidity and Capital Allocation - As of December 31, 2025, liquidity stood at $7.2 billion, including cash and undrawn revolver capacity, with cash and equivalents of $825 million [7] - In the fourth quarter, the company repurchased 1.8 million shares for $504 million, completing a $1 billion repurchase program [7] - Scheduled debt maturities were outlined through 2030 [7]