Core Insights - The company reported strong third-quarter results, exceeding expectations due to high demand and lower costs, with a 7% year-over-year increase in vacation deliveries and an 11% rise in adjusted earnings per share [1][19] - The company aims to expand its exclusive land-based destination portfolio significantly by 2028, reflecting a commitment to enhancing customer experiences and driving long-term shareholder value [2][3] - The company is well-positioned to capture growth in the $2 trillion vacation market, supported by a robust pipeline of strategic initiatives and a strong balance sheet [3][6] Financial Performance - In Q3, net yield grew by 2.4%, with adjusted earnings per share reaching $5.75, an 11% increase from the previous year [1][19] - The company expects a 10% capacity increase in Q4 and anticipates total revenue growth of approximately 13% year-over-year [4][19] - Full-year net yield is projected to grow between 3.5% and 4%, with adjusted earnings per share expected to be in the range of $15.58 to $15.63, reflecting a 32% year-over-year growth [5][23] Strategic Initiatives - The company plans to introduce new exclusive destinations, including the Royal Beach Club Santorini, enhancing the guest experience and brand reach [3][14] - The introduction of Celebrity River has seen strong demand, with initial bookings selling out quickly, indicating a successful expansion into the river cruise segment [10][11] - The company is focused on leveraging technology and AI to enhance customer engagement and operational efficiency, with a significant increase in pre-cruise onboard revenue bookings [15][19] Market Outlook - Consumer sentiment towards travel remains positive, with approximately 75% of consumers planning to spend the same or more on vacations in the next year [8][18] - The Caribbean market continues to perform well, with expected yield growth of 37% compared to 2019, despite increased supply in the region [21][56] - The company anticipates a strong demand environment for 2026, with bookings showing growth at the high end of historical ranges [27][50] Cost Management - The company maintains a disciplined approach to cost management, with expectations for net cruise costs excluding fuel to decline by approximately 0.1% for the full year [22][23] - Operating cash flow is projected to reach nearly $6 billion for the year, supporting ongoing investments and capital returns to shareholders [6][30] - The company has a strong liquidity position, ending the quarter with $6.8 billion in liquidity and a commitment to maintaining investment-grade balance sheet metrics [30][31]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $5.75 for Q3 2025, an 11% increase year over year [10][25] - Net yields grew by 2.4% year over year, driven by strong demand across all key itineraries [10][23] - Full year adjusted earnings per share is now expected to be in the range of $15.58 to $15.63, reflecting a 32% year over year growth [12][29] Business Line Data and Key Metrics Changes - Capacity increased by 3% in Q3 2025, with nearly 2,500,000 vacations delivered, marking a 7% increase year over year [10][24] - The Caribbean represents 57% of the company's deployment for the year, with a 6% increase in capacity [26] - The company anticipates a 10% capacity growth in Q4 2025, driven by new ships and additional APCDs [11][26] Market Data and Key Metrics Changes - Book load factors for 2026 remain well within historical ranges at record rates, with booked APD growth at the high end of historical ranges [16][32] - The company expects Caribbean yields in Q4 to be up 37% compared to 2019 [26] - Europe is expected to account for 15% of capacity for the year, with strong booking positions as the European season wraps up [27] Company Strategy and Development Direction - The company is focused on building a vacation platform that leads the leisure market through innovative ships and exclusive destinations [6][7] - Plans to expand the exclusive land-based destination portfolio from two to eight by 2028 [7] - The company aims to capture a greater share of the $2 trillion global vacation market by enhancing customer experiences and loyalty [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer sentiment towards travel and leisure, with three-quarters of consumers intending to spend the same or more on vacations over the next twelve months [14] - The company is optimistic about the demand environment, with strong bookings and a powerful pipeline of strategic initiatives [13][15] - Despite some adverse weather impacts, the company expects total revenue to increase by approximately 13% year over year in Q4 [11][29] Other Important Information - The company ended the quarter with $6.8 billion in liquidity and adjusted leverage below 3x [35][36] - A 30% increase in the quarterly dividend to $1 per common share was authorized by the Board of Directors [37] - The company repurchased approximately 1.3 million shares during the quarter, with $345 million still available under the current authorization [37] Q&A Session Summary Question: Thoughts on 2026 guidance and yield growth - Management indicated that 2026 earnings are expected to have a $17 handle, with moderate yield growth anticipated [40][76] Question: Clarification on cost growth expectations - Management described cost growth as "anemic," including structural costs and new destination impacts [47][52] Question: Insights on global demand progression - Management noted strong demand across all markets, with a normalization in Canada and robust bookings from Europe [58][59] Question: Concerns about oversupply in the Caribbean - Management acknowledged increased supply but emphasized that it is manageable and that their differentiated assets help maintain demand [64] Question: Yield performance in 2025 - Management explained that yield deceleration in the second half of 2025 is influenced by tougher comparisons and fewer new hardware tailwinds [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 Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.71 for the first quarter, which was $0.23 higher than guidance, driven by better revenue and favorable timing of expenses [10][21] - Yields grew by 5.6% in constant currency compared to the first quarter of 2024, exceeding initial guidance by 60 basis points [21] - Adjusted EBITDA margin was 35%, which is 360 basis points better than the previous year [22] Business Line Data and Key Metrics Changes - Bookings in the first quarter outpaced last year across all products, resulting in the best wave season in the company's history [10][11] - Onboard spending and pre-cruise purchases exceeded prior years, driven by increased participation in onboard activities and experiences at higher prices [11][12] - The Caribbean accounted for 57% of deployment this year and 49% of capacity in the second quarter [22] Market Data and Key Metrics Changes - The company expects capacity to grow by 5.5% in 2025, supported by the introduction of new ships [15] - Europe is projected to account for 15% of capacity for the year, while Alaska is expected to account for 6% [24] - The company reported that 7 out of 10 consumers intend to spend the same or more on leisure travel over the next twelve months [12] Company Strategy and Development Direction - The company is focused on delivering exceptional vacation experiences, optimizing revenue, managing costs, and executing long-term strategies [7][8] - The introduction of seven new ships over the next three years is expected to enhance customer experiences and drive growth [18] - The company aims for a 20% compound annual growth rate in adjusted earnings per share through 2027 [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened uncertainty in the macro landscape but emphasized strong consumer demand for cruising experiences [6][7] - The company remains confident in its growth strategy and the opportunity to capture a larger share of the $2 trillion vacation market [7][15] - Recent booking trends and disciplined cost management position the company well for strong earnings growth despite macroeconomic uncertainties [15][28] Other Important Information - The company ended the quarter with $4.5 billion in liquidity and received an investment-grade credit rating upgrade from S&P Global Ratings [30][31] - The company repurchased 1 million shares under its $1 billion share repurchase program [31] Q&A Session Summary Question: Drivers of better than planned performance in Q1 - Management noted strong close-in demand and the ability to raise pricing during this period, alongside high-quality customers spending well on the ship [38][39] Question: Areas of guidance expansion due to macro backdrop - Management expanded guidance ranges to account for broader external factors while maintaining confidence in long-term growth strategies [46][48] Question: Pricing strategy for new ships and potential headwinds - New ships entering service later in the year may create a headwind due to lower average passenger cruise days initially [54][56] Question: Onboard spending and consumer behavior - Management indicated that consumer spending remains strong, with no significant trade-down behavior observed among loyalty program members [78][79] Question: Capital allocation and share repurchase strategy - The company is focused on maintaining a strong balance sheet while also returning capital to shareholders through dividends and share repurchases [92][94]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $2.71 for the first quarter, which was $0.23 higher than guidance, driven by better revenue and favorable timing of expenses [10][21] - Yields grew by 5.6% in constant currency compared to the first quarter of 2024, exceeding initial guidance by 60 basis points [21] - Adjusted EBITDA margin was 35%, which is 360 basis points better than the previous year [22] Business Line Data and Key Metrics Changes - Bookings for 2025 are outpacing last year, with the best wave season in the company's history [10][11] - Onboard spending and pre-cruise purchases have exceeded prior years, driven by increased participation in onboard activities [11][12] - The Caribbean represents 57% of the company's deployment for the year, with 49% of capacity in the second quarter [22][23] Market Data and Key Metrics Changes - The company is seeing strong demand across all commercial channels, particularly in direct-to-consumer channels [11] - Europe is expected to account for 15% of capacity for the year, while Alaska will account for 6% [23] - Consumer sentiment around leisure vacations remains positive, with 70% of surveyed consumers intending to spend the same or more on leisure travel over the next twelve months [12][13] Company Strategy and Development Direction - The company aims for a 20% compound annual growth rate in adjusted earnings per share through 2027, focusing on moderate capacity and yield growth along with strong cost control [16][24] - Investments are being made in new ships and exclusive destinations to enhance guest experiences and drive loyalty [18][19] - The company is focused on maintaining price integrity while optimizing revenue through a global yield management platform [64] Management's Comments on Operating Environment and Future Outlook - Management acknowledges heightened macroeconomic uncertainty but remains confident in the company's ability to deliver strong financial performance [6][7] - The company is well-positioned to capitalize on the growing $2 trillion vacation market, with a strong balance sheet and cash flow generation [7][15] - Recent booking trends and disciplined cost management are expected to support another year of strong earnings growth [15][28] Other Important Information - The company ended the quarter with $4.5 billion in liquidity and received an investment-grade credit rating upgrade from S&P Global Ratings [30][31] - Share repurchase programs are ongoing, with $1 billion authorized for repurchases, and the company has repurchased 1 million shares [31][32] Q&A Session Summary Question: Drivers of better than planned performance in Q1 - Management noted strong close-in demand and the ability to raise pricing during this period, alongside high-quality customer spending [38][39] Question: Areas of guidance expansion due to macro backdrop - Management expanded guidance ranges to account for broader external factors while maintaining confidence in long-term growth strategies [46][48] Question: Pricing strategy for new ships and potential headwinds - New ships entering service later in the year may create a temporary headwind due to lower average passenger cruise days [54][56] Question: Onboard spending and close-in pricing outlook - Management remains optimistic about consumer spending and has not seen significant changes in cancellation rates or customer behavior [60][62] Question: Capital allocation and share repurchase strategy - The company is focused on maintaining a strong balance sheet while also returning capital to shareholders through dividends and share repurchases [92][94]