Core Insights - Royal Caribbean Cruises has demonstrated exemplary returns for shareholders over the past five years, distinguishing itself in a challenging industry [1] - The company has ambitious plans to sustain its growth momentum and has been selected as the first stock in a new investment portfolio for 2026 [2] Strategy and Financial Goals - Royal Caribbean's strategy focuses on moderate capacity growth, yield growth, and disciplined cost control to enhance shareholder value [4] - The company aims for an average annual growth rate of 20% in earnings per share from now until 2027, while maintaining a high investment-grade bond rating to control financing costs [5] Fleet Expansion and New Destinations - The company is launching an ambitious schedule of new cruise ships, including the Star of the Seas and Celebrity Xcel in 2025, and several others through 2028, catering to a diverse range of travelers [6][8] - Royal Caribbean plans to expand its exclusive destination resorts, adding new locations such as Royal Beach Club resorts in the Bahamas and Mexico, and properties in Chile for expeditions to Antarctica [8] Investment Appeal - The strong business execution of Royal Caribbean, particularly its successful strategy prior to the pandemic, positions the company favorably for future growth [11]

WSJ reporter Jacob Passy boarded the Celebrity Xcel for its “shakedown cruise”—a final test run new ships often go through before making their public debuts. 🔗 https://t.co/BwXb8mAP5J https://t.co/u5Bqui4A9d ...

Core Insights - Virgin Voyages has been named the 'Best Ocean Cruise Line' in the 2025 Cruise Critic Best in Cruise Awards, highlighting its innovative approach and exceptional onboard experiences [1] - The cruise industry is projected to see nearly 40 million travelers in 2026, indicating significant growth and increasing demand for cruise travel options [1] - The awards are based on expert insights and traveler ratings, ensuring a comprehensive evaluation of cruise lines [1] Ocean Awards - **Best Ocean Cruise Line:** Virgin Voyages, recognized for redefining cruising with innovative offerings and nearly all-inclusive fares [1] - **Best New Ship:** Celebrity Xcel, noted for its elevated experience and fresh approach to Celebrity Cruises' Edge-class [1] - **Best Value for Money:** Carnival Cruise Line, praised for its competitive pricing and inclusive offerings [1] River Awards - **Best River Cruise Line:** Avalon Waterways, distinguished for its well-thought-out offerings and diverse itineraries [1] - **Best New River Ship:** AmaMagdalena, designed for Colombia's Magdalena River, showcasing local craftsmanship [1] Luxury Awards - **Best Luxury Cruise Line:** Explora Journeys, recognized for setting new standards in luxury cruising with its boutique vessels [1] - **Best New Luxury Ship:** Oceania Allura, acclaimed for its exquisite design and culinary excellence [1] Expedition Awards - **Best Expedition Cruise Line:** National Geographic-Lindblad Expeditions, noted for its commitment to redefining exploration [1] - **Best for Adventure:** Quark Expeditions, recognized for providing adrenaline-pumping experiences in polar regions [1] Cruisers' Choice Awards - **Top-Rated Ocean Cruise Lines:** Margaritaville at Sea, Virgin Voyages, and Celebrity Cruises [2] - **Top-Rated River Cruise Lines:** Avalon Waterways, Viking, and Emerald Cruises [2] - **Top-Rated Luxury Cruise Lines:** Viking, Explora Journeys, and The Ritz-Carlton Yacht Collection [2]

Industry Operations - The cruise industry conducts "shakedowns" before a ship's debut, allowing employees to assess final preparations [1] Media Coverage - WSJ's Jacob Passy boarded the Celebrity Xcel to observe the final preparations [1]

Core Insights - Royal Caribbean Cruises Ltd. (RCL) reported mixed third-quarter 2025 results, with adjusted EPS exceeding expectations while revenues fell slightly short [1][9] - The company experienced year-over-year growth in key metrics, driven by strong demand for cruise vacations and robust close-in bookings [1][10] Financial Performance - Adjusted earnings per share reached $5.75, an 11% increase from the previous year [2] - Revenues amounted to $5.14 billion, reflecting a 5% year-over-year growth [2] - The company delivered nearly 2.5 million vacations during the quarter, supported by higher capacity and strong booking trends [2][10] Market Position and Stock Performance - RCL's shares have increased by 7.3% year-to-date, outperforming the Zacks Leisure and Recreation Services industry's decline of 7.5% [6] - The stock has also outperformed the S&P 500's growth of 14.5% during the same period [6] - Despite solid demand and growth, RCL's stock dropped by 15.5% following the earnings report, highlighting concerns about future performance [7][26] Booking Trends and Demand - The company reported strong booking momentum, with accelerated bookings for both new and existing ships, particularly for close-in sailings [11] - Booked load factors for 2025 and 2026 are at record levels, with 2026 pricing tracking at the high end of historical norms [11] - Royal Caribbean anticipates continued strong booking momentum across brands and regions [11] Fleet Expansion and Innovation - RCL is advancing a strategic fleet expansion plan focused on innovation and guest experience, with new vessels designed for high-margin amenities and improved fuel efficiency [12] - Upcoming ships, including Star of the Seas and Celebrity Xcel, are expected to drive double-digit capacity growth in late 2025 [13] - The introduction of Legend of the Seas in 2026 and a long-term shipbuilding agreement with Meyer Turku reinforce the company's commitment to sustainable growth [14] Digital Engagement and Onboard Spending - Digital engagement has become a significant revenue driver, with nearly 90% of onboard revenues booked pre-cruise through digital channels [15][16] - The company reported double-digit growth in e-commerce visits and conversion rates, enhancing guest satisfaction and spending trends [16] Earnings Estimates and Analyst Confidence - For 2025, adjusted EPS is expected to be between $15.58 and $15.63, an increase from previous estimates [17] - The Zacks Consensus Estimate for RCL's 2025 and 2026 earnings implies year-over-year increases of 32.5% and 14.6%, respectively [18] Cost Pressures and Operational Challenges - Net cruise costs excluding fuel rose by 4.3% in Q3 2025, reflecting higher operating expenses and investments in new destinations [20] - Projected fuel expenses for 2025 are estimated at $1.14 billion, alongside increased dry dock activity planned for 2026 [21] - The company noted a more promotional environment in the Caribbean due to broader industry capacity growth [21] Valuation and Investment Outlook - RCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 13.98X, below the industry average of 15.48X, indicating an attractive investment opportunity [22] - The stock's post-earnings pullback is attributed to near-term headwinds rather than a decline in demand fundamentals [26] - Analysts suggest holding RCL shares as earnings visibility for 2026 improves, while new investors may wait for a more favorable entry point [27]

Core Insights - Celebrity Xcel, the fifth ship in Celebrity Cruises' Edge Series, has officially launched, introducing seven new experiences aimed at enhancing the vacation experience for guests [2][5] - The ship was developed with input from the Xcel Dream Makers program, allowing vacationers to influence various aspects of the onboard experience [4] New Experiences - Celebrity Xcel features a unique three-story space called The Bazaar, which transforms daily to blend onboard and in-port experiences through food, activities, and live music [3][8] - Two new dining venues, Mosaic and Spice Cafe, along with The Market showcasing local artisan products, are part of the new offerings [3][8] - The ship includes a vibrant games lounge, Attic at The Club, which is open 24/7 and features retro games and activities [8] Design and Amenities - The Spa on Celebrity Xcel is the most expansive yet, featuring the first-ever Hydra Room and an outdoor Vitamin D Deck for relaxation [8] - The Celebrity Pool Club offers enhanced poolside experiences with services like pool valet and private cabanas [8] Itineraries - Celebrity Xcel is currently sailing from Fort Lauderdale on seven-night itineraries to destinations including The Bahamas, Mexico, and the Cayman Islands, with plans for a European season starting in Summer 2026 [5]

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 - Celebrity Cruises has announced its 2027 and 2028 itineraries, featuring voyages across the Caribbean, Asia, and South America, covering 131 destinations in 42 countries [2][16]. Caribbean Itineraries - Eight ships will operate from four Florida ports, visiting 65 destinations, providing guests with access to some of the world's best beaches and landscapes [4]. - Year-round, seven-night sailings on Celebrity Beyond will include a dedicated program to Grand Turk, Turks and Caicos, and visits to Perfect Day at CocoCay, Aruba, Bonaire, and Curacao [5]. - Celebrity Xcel will offer seven-night sailings throughout the eastern and western Caribbean, with unique experiences at ports like Grand Cayman and St. Thomas [7]. Asia Itineraries - Celebrity Solstice will embark on its second season in Asia, featuring overnight stays in major cities like Hong Kong, allowing guests to experience local culture and nightlife [2][11]. - The itineraries will include 123 port days with over 10 hours of exploration time in various Asian destinations [7][11]. - Guests can enjoy modernized offerings on Celebrity Solstice, with sailings to 49 destinations across seven countries, including Indonesia and Singapore [10]. South America and Antarctica Itineraries - From November 2027 to February 2028, Celebrity Equinox will offer 14-night itineraries to 17 destinations across seven countries in South America and Antarctica [12]. - The itineraries will feature breathtaking landscapes, including the Chilean Fjords and Iguazu Falls, along with unique culinary experiences [13][14]. - Guests will have opportunities for outdoor activities and cultural experiences, such as Patagonian-style barbecue and whale watching [14]. Unique Experiences - The Bazaar will provide guests with local cuisine, entertainment, and activities inspired by the ports visited [8]. - Celebrity Cruises emphasizes immersive connections to destinations both on and off the ship, enhancing the overall guest experience [2][7].

Group 1 - The stock price of Royal Caribbean Cruises (RCL.US) fell over 8% to $294.6 despite better-than-expected Q3 earnings and an upward revision of annual guidance, as revenue and outlook for the next quarter and new fiscal year fell short of market expectations [1] - Carnival Corporation (CCL.US) dropped over 4.7%, Norwegian Cruise Line (NCLH.US) fell over 4.8%, and Viking Holdings (VIK.US) decreased over 2.5% due to the decline in Royal Caribbean's stock [1] - In Q3, key operational metrics improved with passenger capacity, number of passengers, and average cruise days increasing year-over-year; total revenue grew 4.3% to $5.14 billion, slightly below market consensus of $5.17 billion [1] Group 2 - The company reported a Q3 EPS of $5.75, an 11% year-over-year increase, and adjusted EBITDA of $2.3 billion, a 7% increase year-over-year, benefiting from controlled labor, dining, and fuel costs [1] - Ending liquidity was $6.8 billion, a slight decrease from $7.1 billion in the previous quarter, sufficient to cover upcoming debt obligations; however, due to increased debt, the annual interest expense guidance was raised from $930-940 million to $945-955 million [1] Group 3 - For Q4, Royal Caribbean expects a 10.3% increase in capacity driven by the delivery of the "Star of the Seas" and the inaugural sailing of "Celebrity Xcel," while costs are anticipated to decrease by 5.7%-6.2% year-over-year [2] - The company projects adjusted Q4 EPS of $2.74–$2.79, nearly doubling from last year but below market estimates of $2.90 [2] - Annual earnings guidance was raised to $15.58–$15.63 (previously $15.41–$15.55), still below market expectations of $15.69; CEO Jason Liberty expressed confidence in strong bookings for 2026 and beyond, forecasting EPS over $17 for that year, although market consensus for 2026 is higher at over $18.21 [2]

Core Viewpoint - Royal Caribbean's stock price fell over 8% despite better-than-expected Q3 earnings and an upward revision of annual guidance, primarily due to revenue and outlook for the next quarter and new fiscal year falling short of market expectations [1][2] Group 1: Q3 Performance - Royal Caribbean reported a 4.3% increase in total revenue to $5.14 billion, slightly below market consensus of $5.17 billion [1] - Key operational metrics improved, with passenger capacity, number of passengers, and average cruise days all rising compared to last year [1] - Earnings per share (EPS) for the quarter increased to $5.75, an 11% year-over-year growth, exceeding market expectations by $0.07 [1] - Adjusted EBITDA reached $2.3 billion, a 7% year-over-year increase [1] - Liquidity at the end of the quarter was $6.8 billion, down from $7.1 billion in the previous quarter, but sufficient to cover upcoming debt obligations [1] - The company raised its full-year interest expense guidance from $930-940 million to $945-955 million due to increased debt [1] Group 2: Q4 and Future Outlook - For Q4, Royal Caribbean expects a 10.3% increase in capacity driven by the delivery of the "Star of the Seas" and the inaugural sailing of "Celebrity Xcel" [2] - The company anticipates a year-over-year cost reduction of 5.7%-6.2% [2] - Adjusted EPS for Q4 is projected to be between $2.74 and $2.79, nearly doubling from last year but below market estimates of $2.90 [2] - Full-year earnings guidance has been raised to $15.58-$15.63, up from $15.41-$15.55, but still below market expectations of $15.69 [2] - CEO Jason Liberty expressed confidence in strong booking trends, projecting EPS of over $17 for 2026, although market consensus for 2026 is higher at over $18.21 [2]