Financial Data and Key Metrics Changes - In 2025, total revenue reached a record of $6.5 billion, a 21.9% increase year-over-year, driven by a 12% increase in capacity and a 7.4% growth in net yields [11][12] - Adjusted EBITDA for 2025 was nearly $1.9 billion, reflecting a 38.8% increase year-over-year, with an adjusted net income of $1.2 billion, up 43.9% from the previous year [11][12] - For Q4 2025, total revenue was $1.7 billion, a 27.8% increase year-over-year, with adjusted EBITDA of $463 million, up 51.3% from Q4 2024 [17][18] Business Line Data and Key Metrics Changes - The River segment saw a 6.5% increase in capacity PCDs year-over-year, with adjusted gross margin growing 16.2% to $1.9 billion and net yield increasing 8.4% to $578 [19][20] - The Ocean segment experienced a 17.9% increase in capacity PCDs, with adjusted gross margin rising 30.9% to nearly $2 billion and net yield up 9.7% to $572 [20] Market Data and Key Metrics Changes - The company holds a 52% market share in the North American outbound river market and a 27% share in the luxury ocean market, indicating strong market positioning [14] - 54% of guests were repeat travelers, highlighting strong brand loyalty and customer retention [14] Company Strategy and Development Direction - The company aims to expand its fleet, recently surpassing 100 ships, and plans to introduce the world's first hydrogen-powered cruise ship [5][7] - The focus remains on enhancing guest experiences through partnerships in arts and culture, while also expanding into new destinations like India [7][8] - The company emphasizes a commitment to environmental sustainability and operational efficiency as part of its long-term strategy [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for 2026, with 86% of bookings already secured and advanced bookings up 13% compared to the previous year [24][25] - The geopolitical situation, particularly in the Middle East, is being monitored, but management believes it will not significantly impact demand due to the company's established customer base [38][42] Other Important Information - The company ended 2025 with a strong liquidity position, holding $3.8 billion in cash and cash equivalents, and a net leverage ratio of 1.1 times [21][22] - Deferred revenue totaled $4.6 billion, providing a solid foundation for future growth [23] Q&A Session Summary Question: Thoughts on yield growth for 2026 - Management noted that with 86% of bookings sold and a 13% increase in advanced bookings, yield growth is expected to remain solid in the 5%-7% range [35][36] Question: Impact of geopolitical issues on river business - Management indicated that past geopolitical uncertainties have not significantly impacted demand, and current bookings remain strong despite the situation [38][39] Question: Consideration of dividends or share repurchases - Management stated it is premature to consider dividends or share repurchases due to ongoing investments and a strong order book [45][46] Question: Demand for expedition ships - Management confirmed that the new expedition ships will be deployed in similar itineraries as current vessels, reflecting strong demand in that segment [48][49] Question: Insights on advanced bookings and repeat guests - Management highlighted a slight increase in repeat guests and emphasized the importance of balancing pricing with guest experience [56][57] Question: Occupancy versus pricing strategy - Management clarified that occupancy is at all-time highs, and the strategy focuses on selling out ships while managing price increases to maintain value for guests [64][65] Question: Delivery delays and reaccommodation expenses - Management confirmed minimal reaccommodation expenses due to identical vessels and noted that the impact of delivery delays is manageable [66][71] Question: Initial demand trends for new Indian River itineraries - Management reported strong initial demand for Indian itineraries, with high yield rates similar to those seen in Egypt [81][82] Question: Market depth and new customer acquisition - Management noted that many new customers are transitioning from larger cruise lines, indicating a strong demand for the company's offerings [92][94]