Financial Data and Key Metrics Changes - The company achieved record revenues, operating income, EBITDA, and customer deposits, with net income reaching an all-time high of $2 billion, surpassing pre-pandemic levels by nearly 10% [7][9][19] - Operating income and EBITDA reached the highest levels in nearly 20 years, despite a 2.5% lower capacity compared to the previous year [8][9] - Yields increased by 4.6% on a same-ship basis, exceeding guidance due to strong close-in demand and onboard spending [9][20] - The company reported a return on invested capital (ROIC) of 13%, the first time in nearly 20 years that returns have reached the teens [9][10] Business Line Data and Key Metrics Changes - Customer deposits at the end of the quarter reached a record $7.1 billion, up over $300 million from the previous year, driven by higher ticket pricing and increased sales of pre-cruise onboard revenue items [22] - Cruise costs without fuel per available lower berth day (ALBD) increased by 5.5% compared to the prior year, but this was better than guidance due to cost-saving initiatives [20] Market Data and Key Metrics Changes - Booking trends have improved significantly, with nearly half of 2026 already booked at higher prices, indicating strong demand [10][24] - The company expects 2.8 million guests to visit Celebration Key next year, with high utilization rates anticipated [13] Company Strategy and Development Direction - The company is focused on increasing same-ship yields and closing the value gap with land-based alternatives, with plans to return capital to shareholders as leverage metrics improve [10][27] - The successful launch of Celebration Key is expected to enhance guest experiences and drive future bookings, with significant media impressions generated [12][13] - The company is investing in its brands and assets, with a focus on improving operational performance and profitability [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong booking trends and operational execution as key drivers of success [10][18] - The company is optimistic about 2026, with expectations of continued yield improvement despite some anticipated headwinds from new loyalty programs and operational costs [24][57] Other Important Information - The company has been actively refinancing and deleveraging, reducing secured debt by nearly $2.5 billion and targeting a net debt to EBITDA ratio of under three times [26][28] - The company plans to reinstate its dividend program and potentially consider share buybacks as it approaches its leverage targets [80] Q&A Session Summary Question: Clarification on forward booking prices - Management confirmed that both North America and Europe are at historical record high pricing levels, with no dramatic changes from the previous quarter [31][32] Question: Impact of Celebration Key on ticket prices - Management indicated that Celebration Key is positively impacting ticket prices, with early operations meeting expectations [33][34] Question: Consumer behavior shifts - Management noted that they are not seeing significant shifts in consumer behavior, with strong bookings continuing year over year [40][41] Question: 2026 booking strategy - Management is optimistic about 2026, with a focus on optimizing strategies based on past experiences and current market conditions [44][45] Question: 2027 bookings and dry dock plans - Management indicated that 2027 bookings are off to an unprecedented start, with plans for fewer dry dock days compared to 2026 [50][104] Question: Evaluating new ships versus retrofitting programs - Management is actively considering retrofitting programs similar to AIDA's, focusing on maximizing existing assets [107][108] Question: Competitive edge in Galveston - Management emphasized the importance of maintaining a strong guest experience and diversifying offerings to stay competitive in the Galveston market [110][111]