Key Takeaways RCL missed Q4 EPS and revenue estimates, but the stock rose 6.2% premarket on strong 2026 guidance.RCL reported record booking momentum, with about two-thirds of 2026 sailings already booked at higher prices.RCL sees double-digit revenue and earnings growth, supported by new ships and expanded destinations.Royal Caribbean Cruises Ltd. (RCL) reported fourth-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. However, the top and bottom lines increased ...

Core Insights - Royal Caribbean Group reported a strong performance in 2025, with earnings per share (EPS) of $15.61 and adjusted EPS of $15.64, exceeding guidance due to favorable revenue and joint venture performance [1][4] - The company anticipates continued growth in 2026, projecting adjusted EPS between $17.70 and $18.10, representing a compound annual growth rate (CAGR) of 23% over the first two years of its Perfecta program [1][8] Financial Performance - For Q4 2025, net income was $0.8 billion or $2.76 per share, compared to $0.6 billion or $2.02 per share in Q4 2024, with adjusted net income also showing significant growth [6][8] - Total revenues for 2025 reached $17.9 billion, with adjusted EBITDA of $7.0 billion, indicating strong operational performance [8][49] Revenue and Yield Growth - Gross margin yields increased by 9.2% and net yields by 3.1% in Q4 2025 compared to Q4 2024, with a load factor of 108% [7][8] - The company expects net yields to increase by 2.1% to 4.1% in 2026, driven by higher capacity and anticipated yield growth [8][12] Capacity and Expansion Plans - Royal Caribbean is expanding its vacation portfolio with the introduction of the new Discovery Class ships and an additional 10 ships for Celebrity River Cruises, aiming to enhance guest experiences and long-term growth [3][14][15] - Capacity for 2026 is expected to increase by 6.7% compared to 2025, with further growth projected for 2027, 2028, and 2029 [8][24] Booking Trends and Onboard Revenue - The onset of the WAVE season has led to record booking weeks, with approximately two-thirds of 2026 capacity already booked at record rates [10] - Onboard revenue continues to exceed prior years, with nearly 50% of onboard revenue in 2025 booked pre-cruise, primarily through digital channels [10][11] Liquidity and Capital Expenditures - As of December 31, 2025, the company's liquidity position was $7.2 billion, including cash and undrawn credit facilities [20] - Capital expenditures for 2026 are projected to be around $5 billion, primarily related to new ship orders and private destination developments [22][23]

Core Insights - Royal Caribbean Group has announced agreements with Chantiers de l'Atlantique for the construction of its new Discovery Class ships, including two firm orders and options for four additional ships, with the first ship set to debut in 2029 and the second in 2032 [1][2] Group 1: Company Strategy and Vision - The Discovery Class ships are designed to enhance guest experiences through innovative design and immersive moments, showcasing the future of vacations [2][3] - Royal Caribbean Group aims to disrupt the vacation industry with bold offerings and innovative shipbuilding, leveraging a partnership with Chantiers de l'Atlantique [5] Group 2: Shipbuilding and Technology - Chantiers de l'Atlantique has a long-standing relationship with Royal Caribbean, having built 21 ships over the past four decades, and is currently constructing two additional ships [4] - The collaboration emphasizes sustainability and cutting-edge technology in shipbuilding, reinforcing Royal Caribbean's global shipbuilding network [7] Group 3: Future Developments - Royal Caribbean Group is expanding its vacation offerings, including a pipeline of ocean and river ships over the next three years and increasing its private destinations from three to eight by 2028 [6][9] - The company plans to enter river cruising in 2027 with Celebrity River Cruises, further diversifying its portfolio [9]