Key Takeaways Carnival posted record fiscal Q3 bookings, with nearly half of 2026 sailings already sold at higher prices.Customer deposits hit a record $7.1B, driving higher guidance for 2025 amid strong global demand.The new Celebration Key destination boosts pricing power and enhances Carnival's brand momentum.Carnival Corporation & plc (CCL) reported record-breaking booking volumes in the third quarter of fiscal 2025, underscoring strong consumer appetite for cruising and reinforcing its improving pricin ...

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]

 Record for any quarter. Accessibility StatementSkip Navigation Exceeds guidance and raises full year 2025 outlook for the third time this year MIAMI, Sept. 29, 2025 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced financial results for the third quarter 2025 and provided an updated outlook for the full year and an outlook for the fourth quarter 2025. "This was a phenomenal quarter delivering all-time high net income and our tenth consecutive quarter of record revenues. Stro ...

Core Viewpoint - Carnival Corporation & plc (CCL) is expected to report third-quarter fiscal 2025 results on September 29, 2025, with earnings per share (EPS) estimated at $1.31, reflecting a 3.2% increase from the previous year [1][8]. Financial Performance - The consensus estimate for fiscal third-quarter revenues is $8.1 billion, indicating a 2% growth year-over-year [5]. - CCL has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters with an average surprise of 169.9% [5][10]. Earnings Estimates - The current EPS estimate for Q3 is $1.31, with a 60-day unchanged consensus [2]. - The expected passenger ticket revenues are projected to rise 0.2% year-over-year to $5.25 billion, while onboard and other revenues are anticipated to increase by 2.3% to $2.71 billion [12]. Market Dynamics - European demand, premium pricing, and the launch of Celebration Key are expected to positively influence Q3 results [10][13]. - The company has seen strong booking momentum and robust onboard spending, contributing to revenue growth [11]. Cost Considerations - Total operating expenses are expected to rise by 1.5% year-over-year to $5.8 billion, driven by increased cruise costs excluding fuel [15]. - Management has indicated a 7% year-over-year increase in cruise costs, influenced by start-up expenses for Celebration Key and higher advertising costs [15]. Stock Performance - CCL shares have increased by 20.5% over the past three months, outperforming the Zacks Leisure and Recreation Services industry growth of 11.2% [16]. - The stock is currently trading at a forward P/E multiple of 13.64X, below the industry average of 18.77X, indicating a potential investment opportunity [19]. Strategic Initiatives - Carnival's strong demand trends support raised 2025 yield guidance, with record customer deposits and high pricing [21]. - The launch of Celebration Key and fleet enhancements are expected to drive incremental revenue and improve guest experiences [22]. Investment Outlook - Carnival is well-positioned for the upcoming fiscal third-quarter earnings, supported by resilient demand and sustained strength in pricing and onboard revenue [23]. - The company's discounted valuation relative to peers and leadership in the global cruise industry present a compelling opportunity for long-term investors [25].

Core Insights - Major indexes have shown significant gains in 2025, with the S&P 500 up approximately 12% and the Nasdaq Composite up around 15% [1][2] - Despite record highs for top indexes, some companies have seen their share prices decline over 50% from peak levels [2] Company Overview: Carnival Corporation - Carnival is the largest cruise company globally, currently facing challenges due to high debt accumulated during the pandemic [4] - The stock is 57% off its all-time highs but has increased nearly 100% over the past year, indicating a strong business rebound and effective debt management [5] - The company is investing in fleet and destination enhancements, including the launch of Celebration Key and a new ship, Carnival Festivale, set to debut in 2027 [6] Financial Performance - In the fiscal second quarter of 2025, Carnival exceeded guidance for net yields, adjusted EBITDA, and adjusted net income, reporting record revenue and operating income [7] - Deposits reached an all-time high of $8.5 billion, with 93% of 2025 occupancy booked at high ticket prices [7] - Carnival's management achieved its SEA change strategy goals ahead of schedule and raised guidance across various metrics for the full year [8] Debt Management - Carnival ended the quarter with over $27 billion in debt, significantly above pre-pandemic levels, but has made progress in reducing this debt [9] - The company has refinanced $7 billion in debt this year and prepaid $350 million of $1.4 billion due next year [9] - Lower interest rates are expected to facilitate further debt repayment, enhancing the company's financial stability [10]

Core Insights - Carnival Corporation & plc (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) are both experiencing growth driven by strong demand and strategic initiatives, with Carnival recently reaching a new 52-week high, indicating investor confidence in its recovery momentum [1][6] - Investors are evaluating which stock presents a better opportunity for exposure to the cruise recovery [1] Carnival Corporation (CCL) - Carnival is transforming into a destination-led cruise model, investing in exclusive private islands and modern ships, which has resulted in a 6.5% year-over-year yield increase in Q2 and the highest EBITDA margins in nearly two decades [2][5] - The launch of Celebration Key is expected to host over 2 million guests annually, enhancing customer loyalty and increasing yields [3] - Ongoing fleet upgrades through the AIDA Evolution initiative and new Excel-class ships are designed to improve guest satisfaction and expand family-friendly offerings [4] - Financially, Carnival has prepaid $350 million in debt, refinanced $7 billion, and improved its net debt-to-EBITDA ratio to 3.7x, nearing investment grade status, with record customer deposits supporting future cash flow [5][28] - Carnival's stock has surged 50.8% in the past six months, outperforming NCLH's 32.9% and broader market gains [9][19] - The company is trading at a forward P/E ratio of 14.20, below the industry average, suggesting potential upside supported by improving earnings momentum [23] Norwegian Cruise Line Holdings (NCLH) - NCLH is advancing its "Charting the Course" strategy, focusing on balanced growth and premium offerings, with significant upgrades planned for Great Stirrup Cay, including a new waterpark expected to host over 1 million guests in its first year [7][8] - NCLH is expanding its luxury segment with new ship deliveries and strong bookings, targeting a 4% capacity CAGR through 2036 [9][10] - The company is implementing a multi-year cost efficiency program aimed at saving over $300 million by 2026, maintaining flat adjusted cruise costs for 2024 and 2025 [11] - However, NCLH faces near-term earnings pressure from foreign exchange volatility and softer demand for certain European itineraries, which may impact profitability [12] - The Zacks Consensus Estimate for NCLH suggests year-over-year sales and EPS increases of 6.1% and 12.6%, respectively [17] Comparative Analysis - Carnival's net debt-to-EBITDA ratio of 3.86 is significantly lower than NCLH's 5.21, indicating stronger financial flexibility [28] - Carnival has achieved its 2026 transformation targets ahead of schedule, while NCLH continues to face challenges related to FX volatility and European demand [29] - Overall, Carnival is positioned as the better investment choice due to its stronger execution and financial metrics [27][30]

Core Insights - Carnival Corporation & plc has achieved record demand in the cruise industry, marking its eighth consecutive quarter of record revenues and yields, driven by strong ticket pricing and onboard spending [1][10] - The company reported net income exceeding guidance by $185 million, with EBITDA margins reaching their highest level in nearly two decades [1][10] Financial Performance - Yields increased by nearly 6.5% year over year, surpassing expectations by 200 basis points, indicating strong onboard spending despite economic uncertainties [2] - The Zacks Consensus Estimate for Carnival's fiscal 2025 and 2026 earnings suggests a year-over-year increase of 40.9% and 13.8%, respectively, with EPS estimates for fiscal 2025 rising in the past 60 days [12] Strategic Initiatives - Carnival is launching Celebration Key, a new Caribbean destination, which is generating strong early interest and expected to command pricing premiums [3] - The company is enhancing its fleet through upgrades and newbuild deliveries, alongside a revamped loyalty program set for 2026 to deepen customer engagement [3] Competitive Landscape - Carnival is not alone in benefiting from the surge in cruise demand; Royal Caribbean Group is also experiencing strong advance bookings with its new ships, focusing on high-end experiences [5] - Norwegian Cruise Line Holdings is emphasizing disciplined pricing and onboard revenue growth, although its heavier debt load presents challenges compared to competitors [6] Valuation Metrics - Carnival's shares have increased by 33.2% over the past three months, outperforming the industry's growth of 17.7% [8] - The company trades at a forward price-to-earnings ratio of 14.43X, significantly below the industry average of 19.9X [14]

The Royal Bahamas police say the two Americans, both in their 70s, died within hours of each other at this private Carnival Cruise Line destination called Celebration Key. Investigators are describing both events as drowning incidents. First, police say late Friday morning, a 79-year-old man became unresponsive while snorkeling at a beach. Then that afternoon, investigators say a 74 year old woman who sailed on a different ship became unresponsive while swimming in a pool.Both times a lifeguard gave assista ...

Group 1 - Carnival Cruise Line has officially opened its first exclusive destination, Celebration Key, in the Bahamas, welcoming guests from the Carnival Vista [1][5] - Celebration Key is designed to cater to all ages, featuring five distinct areas of entertainment [1] - The destination is expected to attract approximately two million guests in its first year, significantly benefiting the local economy of Grand Bahama [6] Group 2 - Christine Duffy, president of Carnival Cruise Line, highlighted the partnership with the people of Grand Bahama and noted that this is the first major project completed on the island in over 20 years [2] - Celebration Key includes various attractions such as a ten-story "Suncastle" with water slides, an adult-friendly area called Calypso Lagoon, and a family-friendly portal named Starfish Lagoon [8] - The destination will host 20 Carnival ships from ten U.S. homeports following its grand opening [5]

Core Viewpoint - Carnival Corporation's stock is experiencing a significant upward trend, driven by improved investor sentiment and a price target increase from Citigroup to $37.00 [1][2] Financial Performance - The company reported record revenues of $6.3 billion, supported by strong ticket sales and onboard spending, indicating robust pricing power [4] - Adjusted net income more than tripled year-over-year, showcasing efficient operations and strong margin expansion [4] - Customer deposits for future cruises reached a record $8.5 billion, providing visibility into future revenues and enhancing financial stability [4] Demand and Capacity - Ship occupancy reached 104%, reflecting exceptionally strong demand and maximizing revenue from available berths [5] Debt Management - Carnival is actively reducing its debt burden, having closed a $3.0 billion senior notes offering to replace high-interest debt with lower-cost alternatives [6][7] - This strategy is expected to lower annual interest payments significantly, benefiting net income and potential earnings per share [8] Credit Rating Improvement - Credit agencies S&P and Fitch upgraded Carnival's credit rating to BB+, moving closer to an investment-grade rating, which could lower borrowing costs and attract institutional investors [9][10] Growth Initiatives - Carnival is investing in high-margin projects, including the $600 million Celebration Key destination, set to open in July 2025, which will enhance revenue capture [12][13] - The upcoming Carnival Rewards loyalty program, launching in 2026, aims to increase customer retention and spending [14] Overall Investment Narrative - The investment case for Carnival has evolved from a recovery story to a growth narrative, supported by strong operational demand, financial de-risking, and clear growth catalysts [15][16]