Key Takeaways Carnival reports record pricing across North America and European brands with broad-based yield gains.Limited 2026 capacity growth and new destinations like Celebration Key support sustained pricing strength.Nearly half of 2026 bookings are locked in at higher prices despite loyalty and cost headwinds ahead.Carnival Corporation & plc (CCL) has entered a period of unprecedented pricing power, achieving record ticket pricing across both North America and European sourcing brands. Management conf ...

Accessibility StatementSkip Navigation Cruise Line to Bring Guests to Celebration Keyâ"¢ as Newest Destination in Caribbean Port Line-Up FORT LAUDERDALE, Fla., Nov. 13, 2025 /PRNewswire/ --Â Expanding its breadth and appeal in the Caribbean and Panama Canal, Princess Cruises revealed its largest and most diverse Caribbean program, with 31 ports sailing from five homeports for the newly announced 2027-28 season. Continue Reading Princess Cruises Deepens Connection in the Caribbean andPanama Canal with 2027-2 ...

Core Insights - Royal Caribbean Cruises Ltd. (RCL) is experiencing strong demand across its vacation offerings, with record booked load factors for 2025 and 2026, driven by higher pricing and robust consumer interest [1][8] - The company is seeing a trend of increased bookings through digital channels, indicating a more engaged guest base and supporting ongoing yield performance [1][8] - The positive booking momentum is expected to sustain the company's growth trajectory, supported by strong pricing and consumer sentiment [3] Company Performance - RCL reported record booked load factors for both 2025 and 2026, with bookings accelerating and rate growth at the high end of historical ranges [1][8] - The company highlighted strong interest in new offerings such as Star of the Seas and Celebrity River, which are designed to attract both repeat and new guests [2] - RCL's shares have gained 4.8% over the past six months, contrasting with a 0.5% decline in the industry [6] Financial Estimates - The Zacks Consensus Estimate for RCL's earnings implies a year-over-year increase of 32.5% for 2025 and 14.6% for 2026, with EPS estimates for 2025 having risen in the past 60 days [10] - RCL currently trades at a forward price-to-earnings ratio of 15.02X, which is below the industry average of 16.32X, indicating potential valuation upside [14] Industry Context - Other industry players like Norwegian Cruise Line Holdings (NCLH) and Carnival Corporation are also experiencing solid demand trends, with Norwegian focusing on premium experiences and Carnival benefiting from strong bookings and pricing [4][5] - The overall industry is seeing improved guest engagement and higher onboard spending, contributing to a positive outlook for cruise operators [4][5]

Core Insights - Carnival Corporation & plc (CCL) is experiencing a strong financial recovery, reporting record revenues of $8.15 billion and net income of $2 billion in Q3 2025, with earnings per share of $1.43, surpassing estimates [1][8] Financial Performance - The company achieved a year-over-year yield increase of 4.6%, driven by strong demand and onboard spending [1] - Carnival's return on invested capital (ROIC) reached 13%, the highest in nearly two decades, indicating robust profitability [4] - The net debt-to-EBITDA ratio improved to 3.6x, approaching investment-grade status [3] Booking and Pricing Power - Bookings are exceeding capacity growth, with nearly 50% of 2026 sailings already sold at higher prices, showcasing Carnival's enhanced pricing power [2][8] - The diversification of Carnival's portfolio, including new destinations like Celebration Key, is contributing positively to its financial performance [2] Competitive Landscape - Competitors Royal Caribbean Group (RCL) and Norwegian Cruise Line Holdings (NCLH) are also performing well, with RCL achieving record yields and strong forward bookings [4][5] - Norwegian Cruise Line is focusing on premium experiences and disciplined capacity management to enhance revenues per passenger [5] Stock Performance and Valuation - Carnival's shares have increased by 17.8% over the past six months, contrasting with a 0.8% decline in the industry [6] - The forward price-to-earnings ratio for CCL is 11.22X, significantly lower than the industry average of 16.19X, indicating potential undervaluation [9] Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings suggests a year-over-year increase of 51.4% and 11.7%, respectively, with recent EPS estimates for fiscal 2025 showing an upward revision [11]

Core Insights - Carnival Corporation & plc (CCL) shares have increased by 20.8% over the past six months, outperforming the Zacks Leisure and Recreation Services industry, which fell by 0.2%, and the S&P 500, which grew by 17.7% [1][6]. Financial Performance - The company has demonstrated strengthening fundamentals, driven by robust booking trends, sustained yield growth, and disciplined operational execution [2][3]. - Carnival's upgraded fiscal 2025 guidance anticipates adjusted EBITDA of approximately $7.05 billion, adjusted net income of about $2.925 billion, and adjusted EPS of approximately $2.14, reflecting over 15% growth year over year [13][14]. Market Position - Carnival's recent performance is supported by resilient global demand and firm pricing momentum, with record booking volumes and strong pricing strength in both North American and European markets [7][8]. - The successful launch of Celebration Key and enhancements to Half Moon Cay are expanding the company's network of high-value destinations, allowing for premium pricing and enhanced guest engagement [9]. Operational Efficiency - The company is focused on operational efficiency, driving cost reductions through energy optimization and disciplined expense management, which helps preserve pricing power [10][11]. - Ongoing deleveraging efforts have improved Carnival's balance sheet, moving closer to investment-grade leverage levels, and strong cash flow generation provides flexibility for strategic investments [11][12]. Valuation and Returns - Carnival has a trailing 12-month return on equity of 27.87%, higher than the industry average of 24.29%, indicating efficient use of shareholders' funds [19]. - The stock is currently trading at a forward 12-month P/E multiple of 11.21, below the industry average of 16, presenting an attractive investment opportunity [20]. Technical Indicators - From a technical perspective, CCL is trading above its 200-day moving average, indicating strong upward momentum and price stability [21]. Conclusion - Carnival's recent rally reflects growing investor confidence, supported by record booking volumes, strong onboard spending, and expanding destination offerings, reinforcing pricing strength and earnings visibility into 2026 and beyond [26][27]. - The combination of robust fundamentals, steady execution, and appealing valuation positions Carnival as a compelling opportunity in the travel and leisure sector [28].

Core Insights - The consumer discretionary sector presents attractive investment opportunities, particularly in travel, beverages, and video games, with strong momentum expected to continue into 2026 Group 1: Carnival Corp. - Carnival Corp. served over 13 million passengers last year, with demand for travel remaining high and ticket prices increasing due to capacity constraints [3] - The company reported record revenue and profits, with bookings for 2026 filling up, and its new Celebration Key private island has attracted 500,000 guests since July [3][4] - The stock has increased by 270% since 2022, trading at a forward price-to-earnings multiple of 12, indicating good value for a growing cruise business [4] Group 2: Dutch Bros - Dutch Bros is a high-growth drive-thru beverage chain focusing on customer experience, with plans to expand from around 1,000 shops to 2,029 in the next four years [7][8] - The company reported a 28% year-over-year revenue growth in the most recent quarter, driven by strong transaction growth and same-shop sales [9] - The stock's recent dip presents a potential buying opportunity as the company is poised for a rebound in 2026 [9] Group 3: Take-Two Interactive - Take-Two Interactive is a leading video game producer in a $200 billion industry, known for popular titles like Grand Theft Auto and NBA 2K [10] - The upcoming release of "Grand Theft Auto VI" on May 26, 2026, is anticipated to significantly boost the stock, following the success of the previous installment which sold 215 million copies since 2013 [10]

Core Insights - Carnival Corporation and Royal Caribbean Cruises are both positioned strongly for 2025, driven by resilient demand and strategic investments in destination-led growth [1] - The two companies have different approaches to expansion and value creation, with Carnival focusing on cost efficiency and balance sheet repair, while Royal Caribbean emphasizes premium product leadership and innovation [1][22] Carnival Corporation (CCL) - Carnival's transformation is gaining traction through a destination-led growth model, emphasizing yields and cost efficiency [2] - The debut of Celebration Key is attracting strong guest satisfaction and premium pricing, expected to be a significant revenue driver [3] - Fleet modernization initiatives, such as AIDA Evolutions, are aligning with consumer preferences, enhancing wellness, dining, and entertainment options [4] - Financially, Carnival is improving its balance sheet through deleveraging and refinancing, with over half of next year's bookings secured at higher prices [5] - The Zacks Consensus Estimate for Carnival's fiscal 2025 sales and EPS indicates year-over-year increases of 6.5% and 51.4%, respectively [12] - Carnival's stock has increased by 56.8% over the past six months, outperforming the industry and S&P 500 [17] - Carnival is trading at a forward P/E ratio of 12X, below the industry average of 17.48X [20] - The company is positioned for sustained margin expansion and potential capital distributions, earning a Zacks Rank 1 (Strong Buy) [24][25] Royal Caribbean Cruises Ltd. (RCL) - Royal Caribbean is implementing its "Perfecta" strategy, focusing on sustained earnings growth and innovation-led guest experiences [6] - The addition of new ships like Star of the Seas and Celebrity Xcel is enhancing the fleet with sustainable technology and improved guest amenities [7] - Royal Caribbean's destination projects, such as Royal Beach Club Paradise Island, are expected to elevate guest experiences and strengthen pricing [8] - The company is advancing digital transformation, with nearly half of onboard purchases made through its mobile app, enhancing convenience and revenue [9] - The Zacks Consensus Estimate for Royal Caribbean's 2025 sales and EPS suggests year-over-year increases of 9.1% and 32.5%, respectively [15] - Royal Caribbean shares have gained 54.9% in the past six months [17] - The company is trading at a forward P/E ratio of 16.89X, which is higher than Carnival's [20] - Near-term profitability challenges include elevated operating expenses and cost pressures from new ship launches [11][24]

Core Insights - Carnival Corporation & plc (CCL) is shifting its strategy towards destination-led growth, focusing on enhancing guest experiences rather than expanding fleet capacity, with projected capacity growth below 1% in fiscal 2026 [1][8] - The company is leveraging its exclusive Caribbean properties to drive yield gains and improve margins, moving towards a sustainable, high-ROI model centered on differentiated vacation experiences [1][4] Destination Strategy - Celebration Key, Carnival's newest private island, opened in mid-2025 and has attracted nearly half a million visitors, generating over 1.5 billion media impressions, indicating strong brand impact [2] - The company plans to expand pier capacity at Celebration Key to accommodate up to four ships simultaneously, enhancing year-round utilization across 20 vessels and 12 home ports [2] - Additional expansions at RelaxAway (Half Moon Cay) and Isla Tropicale (Mahogany Bay) are expected to attract over 8 million guest visits in 2026, nearly matching the entire cruise industry's visitor count [3] Financial Performance - In fiscal 2025, Carnival reported a 4.6% year-over-year increase in net yields, surpassing guidance and achieving record highs on a same-ship basis [4] - With nearly half of 2026 bookings secured at higher prices, Carnival's destination portfolio is positioned to be a sustainable driver of yield growth [4][8] Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) is leading in destination-driven growth with its Perfect Day series and upcoming Royal Beach Club projects, reporting a constant-currency net yield growth of 5.2% in Q2 2025 [5] - Norwegian Cruise Line Holdings Ltd. (NCLH) is also investing in its private island, Great Stirrup Cay, aiming to increase capacity from approximately 400,000 guests to over 1 million by 2026, projecting a 25-basis-point yield lift in 2026 [6] Stock Performance and Valuation - Carnival's shares have increased by 56.1% over the past six months, outperforming the industry's growth of 23% [9] - CCL trades at a forward price-to-earnings ratio of 11.96X, significantly lower than the industry average of 16.99X [11] - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 49.3% and 12.4%, respectively, with EPS estimates rising in the past 60 days [12]

Core Insights - Carnival Corporation & plc (CCL) reported record-breaking booking volumes in Q3 of fiscal 2025, indicating strong consumer demand for cruising and improved pricing power [1][10] - Nearly half of the 2026 sailings are already booked, significantly higher than the previous year, with elevated pricing levels marking the highest forward-booking position in the company's history [1][10] Booking Performance - Both North American and European brands achieved record-high pricing, reflecting strong demand across Carnival's portfolio [2] - Customer deposits reached a record $7.1 billion in Q3, up over $300 million from the prior year, driven by higher ticket pricing and pre-cruise onboard revenue sales [4] - Booking volumes exceeded expectations, allowing the company to raise full-year guidance for the third time in 2025 [5] New Destination Impact - The opening of Celebration Key, Carnival's new Bahamas destination, has contributed to booking strength, with itineraries commanding a premium on ticket pricing [6] - The company expects 2.8 million guests to visit Celebration Key in 2026, enhancing pricing opportunities and forward visibility [7] Financial Outlook - Carnival enters 2026 with record forward bookings, accelerating pricing, and constrained capacity growth, marking the strongest early reservation pace on record [8] - The company is positioned for continued margin expansion and solid free cash flow generation, supported by sustained onboard spending and balance sheet deleveraging [9] Earnings Estimates - The Zacks Consensus Estimate for Carnival's fiscal 2026 EPS has been revised upward from $2.28 to $2.35 over the past 60 days [11] Stock Performance - CCL stock has gained 46.4% in the past six months, outperforming the Zacks Leisure and Recreation Services industry and the S&P 500 Index [16] - CCL is currently trading at a forward 12-month P/E multiple of 12.43, below the industry average of 17.80, indicating an attractive investment opportunity [19] Investment Consideration - The alignment of strong fundamentals, disciplined execution, and a discounted valuation suggests that CCL stock presents a timely investment opportunity [24]

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]