Core Insights - Carnival Corporation & plc (CCL) is entering a new phase of recovery, focusing on free cash flow (FCF) as a key part of its operations, benefiting from record profitability, firmer pricing, and improved cost execution [1][2] - The company reported record net income of $2 billion for the third quarter of fiscal 2025, driven by a 4.6% same-ship net yield growth and operational efficiencies [2] - Customer deposits reached $7.1 billion, indicating strong advanced bookings, with nearly half of 2026 bookings secured at higher prices [3][10] Financial Performance - CCL's fiscal third-quarter performance highlighted strong same-ship demand and broad-based pricing gains, contributing to the highest quarterly profitability in nearly two decades [2] - EBITDA is projected to exceed $7 billion in fiscal 2025, indicating a shift towards a more stable FCF profile supported by ongoing cost efficiencies [3] - The stock trades at a forward price-to-earnings ratio of 10.91, significantly below the industry average of 16 [12] Competitive Landscape - Carnival's main competitors, Royal Caribbean Cruises Ltd. (RCL) and Norwegian Cruise Line Holdings Ltd. (NCLH), are focusing on capacity-driven growth, which presents a competitive challenge for CCL [4][7] - RCL is experiencing strong demand and pricing, with a 6% capacity growth entering 2026, while NCLH is also showing strong EBITDA performance despite higher costs [5][6] Market Outlook - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings suggests a year-over-year increase of 52.8% and 10.8%, respectively, with EPS estimates having risen in the past 60 days [15]