Key Takeaways CCL is adding vessels and upgrades to reinforce its position against major cruise rivals.New Excel class ships will debut in 2027 and 2028 with a three-deck water park.Only three ships are on order over four years, supporting debt reduction and guest experience.Carnival Corporation (CCL) is gearing up for a competitive environment, with major players like Royal Caribbean Cruises Ltd. (RCL) and Norwegian Cruise Line Holdings (NCLH) continuing to add capacity and enhance offerings. CCL is also a ...

Travel Experts Reveal Their Favorite Cruises And Hotels For 2025 https://t.co/me25EZ1rKM https://t.co/me25EZ1rKM ...

Core Insights - Royal Caribbean Cruises Ltd. (RCL) reported mixed second-quarter 2025 results, with adjusted earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [1][10] Booking Updates - The second quarter of 2025 saw a strong booking environment for Royal Caribbean, driven by robust consumer demand across all brands and itineraries, with a notable acceleration in bookings compared to the previous quarter [2] - Approximately 75% of travelers plan to spend the same or more on leisure travel in the next 12 months, indicating positive consumer sentiment [2] - A shift in booking behavior was observed, with over half of travelers now booking closer to their departure date than in previous years [2] Financial Performance - For 2025 and 2026, Royal Caribbean's booked position aligns with historical levels but at higher average per diems, indicating strong demand and pricing power [3] - Onboard spending and pre-cruise purchases have exceeded prior-year levels, enhancing yield performance [3] New Assets and Experiences - The strength in bookings extends to Royal Caribbean's newest ships, such as Star of the Seas and Celebrity Xcel, which have shown solid booking volumes and pricing [4] - Early demand for the newly launched Royal Beach Club Paradise Island has been described as "incredibly strong," supporting the company's strategy of offering premium destination-led experiences [4] Outlook - For the third quarter of 2025, Royal Caribbean expects depreciation and amortization expenses to be between $425 million and $435 million, with adjusted EPS projected in the range of $5.55 to $5.65 [6] - The company anticipates net yields to increase by 2.3% to 2.8% on a reported basis year-over-year [6] - For 2025, depreciation and amortization expenses are expected to be between $1.70 billion and $1.71 billion, with adjusted EPS anticipated between $15.41 and $15.55, an increase from previous expectations [7] - Net yields for 2025 are projected to rise by 3.5% to 4% on a reported basis year-over-year [7]

Financial Data and Key Metrics Changes - The company reported record Q2 revenue, with net yield growing by 3.1%, driven by strong closing demand and onboard spending [9][28] - Adjusted EBITDA reached $694 million, exceeding guidance by $24 million, with a trailing twelve-month margin of 36.3%, reflecting a year-over-year improvement of over 300 basis points [9][35] - Adjusted EPS for the quarter was $0.51, in line with guidance despite an $0.08 headwind from foreign exchange losses [9][30] Business Line Data and Key Metrics Changes - The successful delivery of Oceana Cruises' Allura, the eighth vessel for the brand, and the confirmation of two additional Sonata class ships, bringing the total order book to four ships [8][16] - The company is enhancing its private island experience with the announcement of the Great Tides Waterpark, set to open in 2026, which is expected to drive incremental onboard revenue [10][12] Market Data and Key Metrics Changes - The company experienced record bookings over the last three months, indicating strong customer demand [7][31] - The advanced ticket sales (ATS) balance reached an all-time high of $4 billion, reflecting robust demand [31] Company Strategy and Development Direction - The company is focused on its "Charting the Course" strategy, balancing return on investment with return on experience to deliver exceptional vacations while driving strong financial results [7][8] - The strategy includes a measured expansion with 13 ships on order across three brands, ensuring investment in the unique strengths of each brand [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with expectations for net yield growth in the low to mid-single-digit range [22][24] - The company anticipates a positive demand driver from the Great Tides Waterpark, with expected benefits starting in 2026 [22][24] Other Important Information - The company has made significant progress on cost savings, expecting to deliver over $200 million in savings by year-end 2025 [23][35] - The company was recognized by Forbes as one of America's best large employers for 2025, highlighting the dedication of its team [27] Q&A Session Summary Question: Can you discuss the increase in demand across all three brands and changes for 2026? - Management noted a shift to shorter itineraries in Europe and a modest decrease in deployment, which reflects consumer demand [47][48] - The company is in an optimal booking position for 2026, with strong demand observed in Q3 [49][50] Question: What are the key drivers for 2026 yield and cost expectations? - Management expects tailwinds from Q3 2025 and a focus on fun and sun itineraries to improve load factors over time [53][54] Question: How does the company view the potential ROI yield benefit from Great Stirrup Cay? - Management emphasized that while Caribbean itineraries may not yield higher ticket prices, they optimize profitability and guest satisfaction [60][62] Question: Can you elaborate on the recent bookings momentum and promotional strategies? - The improvement in bookings was attributed to a better macroeconomic environment and a shift towards brand-oriented marketing [97][98]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $4.38 for the second quarter, which was 36% higher year over year and exceeded guidance by $0.33 [7][22] - Net yield grew by 5.2%, 70 basis points higher than guidance, driven by better-than-expected demand across key itineraries [6][20] - Adjusted EBITDA margin was 41%, 300 basis points better than last year, with operating cash flow reaching $1.7 billion [22][26] Business Line Data and Key Metrics Changes - The company delivered over 2.3 million vacations in the second quarter, with new-to-cruise guests accounting for approximately 60% of total guests, more than half of whom were millennials or younger [21] - Load factor was reported at 110%, two percentage points higher than the previous year, indicating strong demand for the company's brands [7][20] - Onboard revenue increased across all key categories, with approximately half of onboard spend booked before sailing [21] Market Data and Key Metrics Changes - The Caribbean represents 57% of the company's deployment for the year, while Europe accounts for 15% and Alaska for 6% [23][24] - Bookings have accelerated, particularly for close-in sailings, with 75% of consumers intending to spend the same or more on leisure travel over the next twelve months [8][10] - The company is seeing strong demand across demographics, particularly among millennials, who represent half of the customer base [11][12] Company Strategy and Development Direction - The company plans to introduce seven new ships by 2028, including Star of the Seas and Celebrity XL, to support moderate capacity growth and enhance its global reach [16][19] - The strategic focus includes expanding destination experiences with new Royal Beach Clubs and enhancing digital capabilities to improve customer engagement and loyalty [17][18] - The company aims to close the gap with land-based vacations, targeting a significant share of the $2 trillion global vacation market [5][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment, noting that consumers are financially secure and willing to spend on leisure travel [10][19] - The outlook for 2025 is positive, with expected adjusted earnings per share growth of 31% and net yield growth of 3.5% to 4% [13][25] - Management emphasized the importance of operational excellence and customer trust as they ramp up new destinations and experiences [90] Other Important Information - The company ended the quarter with $7.1 billion in liquidity and received investment-grade ratings from all three major credit agencies [28][29] - The company is committed to maintaining a competitive dividend yield and opportunistically buying back shares as part of its capital return strategy [30][45] Q&A Session Summary Question: Could you elaborate on the continued acceleration in demand and July booking trends? - Management noted an overall acceleration in closing demand, with strong consumer confidence and spending behavior observed across various markets [34][35] Question: What is embedded for close-in demand in the back half of the year? - Management indicated that further acceleration in closing demand could create upside potential for the second half of the year, with a focus on moderate capacity and yield growth [43][44] Question: How do you view the impact of new ships and dry dock days on yield? - Management explained that the timing of new ship deliveries and dry dock days would impact yield, with a quantifiable drag of approximately 90 basis points expected [72] Question: What are the operational expectations for the Royal Beach Club? - Management reported strong pre-booking activity and high interest in the Royal Beach Club, with a thoughtful ramp-up strategy to ensure operational excellence [87][90]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $4.38 for Q2 2025, a 36% increase year over year, exceeding guidance by $0.33 [8][25] - Net yield grew by 5.2%, which was 70 basis points higher than guidance, driven by strong demand across key itineraries [7][22] - Load factor reached 110%, two percentage points higher than the previous year, indicating strong demand for the company's brands [8][22] Business Line Data and Key Metrics Changes - The company delivered over 2,300,000 vacations in Q2, with approximately 60% of guests being new to cruise or new to the brand, and more than half of these guests were millennials or younger [22][23] - Onboard revenue increased across all key categories, with about half of onboard spend booked before sailing [22][23] - Capacity increased by 6% for the year, with a projected 10% growth in Q4 due to the full operation of new ships [26][30] Market Data and Key Metrics Changes - The Caribbean accounted for 57% of deployment for the year, while Europe and Alaska represented 15% and 6% of total capacity, respectively [26] - The company noted that 75% of consumers intend to spend the same or more on leisure travel over the next twelve months, with a significant portion booking closer to departure dates [9][12] Company Strategy and Development Direction - The company is focused on a strategic initiative called "Perfecta," aiming for a 20% compound annual growth rate in adjusted earnings per share through 2027 [16][46] - Plans include launching seven new ships and expanding private destinations, which are expected to enhance competitive positioning and drive significant growth [18][19] - The company is investing in digital innovation and AI to improve customer experience and operational efficiency [20][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment, noting that consumers are financially secure and willing to spend on leisure travel [11][12] - The outlook for 2025 has been revised to expect adjusted earnings per share growth of 31%, reflecting better-than-expected performance in Q2 [14][29] - Management highlighted the importance of operational excellence and customer trust in new destination launches, emphasizing a gradual ramp-up strategy [96] Other Important Information - The company ended the quarter with $7.1 billion in liquidity and received investment-grade ratings from all three major credit agencies [31][32] - The company is committed to maintaining a competitive dividend yield and opportunistically buying back shares as part of its capital return strategy [32][47] Q&A Session Summary Question: Could you elaborate on the continued acceleration in demand and July booking trends? - Management noted an overall acceleration in closing demand, with strong consumer confidence and spending behavior observed across various demographics [36][37] Question: What have you embedded for close-in demand in the back half of the year? - Management indicated that further acceleration in closing demand could create upside potential for the second half of the year, with a focus on moderate capacity and yield growth [45][46] Question: How should we interpret the change in the top end of the yield range? - Management explained that the range was expanded due to geopolitical noise, and the current guidance reflects a return to normal forecasting practices [81][86] Question: Is growth in onboard spend still higher than growth in ticket price? - Management confirmed that growth in onboard spend is strong and similar to ticket price growth, with increasing pre-cruise sales activities contributing to overall spend [88]

Financial Performance - Royal Caribbean Group reported second quarter 2025 EPS of $4.41 and Adjusted EPS of $4.38, exceeding guidance due to strong demand and lower costs [1][4] - Net Income for the second quarter was $1.2 billion, compared to $0.9 billion in the same period last year, with total revenues of $4.5 billion and Adjusted EBITDA of $1.9 billion [4][42] - The company increased its full year 2025 Adjusted EPS guidance to a range of $15.41 to $15.55, driven by better-than-expected second quarter performance [1][11] Operational Highlights - Capacity for the second quarter increased by 5.8% year-over-year, serving 2.3 million guests, a 10% increase from the previous year [5][43] - Gross Margin Yields rose by 11.0% and Net Yields increased by 5.3% year-over-year, with a load factor of 110%, up two percentage points [5][11] - Bookings for new ships Star of the Seas and Celebrity Xcel are performing well, with strong early demand for Royal Beach Club Paradise Island [7][8] Strategic Outlook - The company is on track to achieve its Perfecta financial targets by the end of 2027, with plans for new ships and differentiated destinations [3][9] - Royal Caribbean Group aims to capture a larger share of the $2 trillion global vacation market by adapting to evolving consumer preferences [9][10] - The third quarter is expected to see a capacity increase of 2.9% compared to the same period last year, with anticipated Net Yield growth of 2.3% to 2.8% [10][11] Liquidity and Financing - As of June 30, 2025, the company's liquidity position was $7.1 billion, reflecting a strong financial position and investment-grade ratings from major credit agencies [16][17] - The company amended and upsized its revolving credit facilities to $6.4 billion, extending the maturity of one facility to October 2030 [17] Capital Expenditures - Capital expenditures for 2025 are expected to be approximately $5 billion, primarily for new ship orders and land-based initiatives [18][19] - Capacity changes for 2025 are projected at 5.5%, with further increases expected in subsequent years [19]

Key Takeaways RCL is projected to post Q2 EPS of $4.10 on $4.55B in revenues, up 10.7% from the prior year.New vessels and strong loyalty-driven spend may support yield and revenue growth in the second quarter.Q2 margin gains could be tempered by elevated dry dock activity and new ship ramp-up expenses.Royal Caribbean Cruises Ltd. (RCL) is scheduled to release second-quarter 2025 results on July 29.The Zacks Consensus Estimate for RCL’s second-quarter earnings per share (EPS) is pegged at $4.10, suggesting ...

Industry Performance - The cruising industry is experiencing strong performance, with companies achieving record revenue and earnings [1] - Passionate cruisers contribute to the strong demand for cruising [2] Market Dynamics - Cruise companies are drawn to Galveston, Texas due to its access to the Western Caribbean and proximity to fast-growing cities like San Antonio, Houston, and Dallas, creating a drive-in market [3] - Galveston hosts nearly 2 million cruisers annually [2] Financial Impact - Cruise ships account for approximately 65% of the port's revenue [4] - Cruise-related activities contribute almost $900 million annually to the local economy [4] - An extra billion dollars for 50,000 people brings significant economic benefits [5]

US demand projections are down for almost every kind of travel this summer — except cruises. It’s a mixed blessing for the industry’s favorite ports.@redd_brown55 visited the port city of Galveston, Texas — and joins @sarahsholder on the Big Take podcast to tell the tale https://t.co/vVriPOzkno ...