Core Insights - Royal Caribbean has announced its new lineup of European holidays for the 2027 season, featuring the Royal Beach Club Santorini and the return of Legend of the Seas for 7-night Mediterranean adventures [1][3][10] European Holiday Highlights - The Royal Beach Club Santorini will offer a unique experience combining the island's volcanic beaches with Royal Caribbean's signature offerings, including local cuisine and cultural exploration [2][4] - Legend of the Seas will provide 7-night Western Mediterranean cruises from Barcelona and Rome, featuring 28 dining options and new entertainment, including Roald Dahl's "Charlie and the Chocolate Factory" [6][10] - Mariner of the Seas will debut in Southampton, offering 2- to 9-night getaways, including first-time visits to Porto, Portugal [4][7] Onboard Experiences - Royal Caribbean ships will feature a variety of dining options, entertainment, and activities, including the largest waterpark at sea, adrenaline-pumping attractions, and serene adults-only spaces [5][6] - Families can enjoy diverse dining experiences, live music, and thrilling activities such as the FlowRider surf simulator and rock-climbing walls [5][10] Additional Destinations and Itineraries - Rhapsody of the Seas will return to the Mediterranean with 7-night holidays to destinations like Tangier, Morocco, and Istanbul, Turkey, including visits to the Royal Beach Club Santorini [10] - Explorer of the Seas will offer 7-night journeys across Italy, France, Spain, Croatia, Montenegro, and the Greek Isles, featuring various onboard activities and dining options [10][11] - Odyssey of the Seas will provide 7-night Greek Isles vacations, including stops at Mykonos and Santorini, with a focus on high-tech entertainment and diverse dining [10]

Core Insights - Royal Caribbean Group reported third-quarter adjusted EPS of $5.75, exceeding estimates of $5.69, while revenue of $5.14 billion fell short of expectations of $5.17 billion, leading to a more than 7% drop in shares intra-day [1] - The company served 2.5 million guests, a 7% increase year-over-year, with load factors at 112%, up one point from the previous year, and net yields increased by 2.8% as reported [1] Financial Performance - Adjusted EPS for the full year 2025 is raised to a range of $15.58–$15.63, indicating a 32% year-over-year growth but slightly below the consensus estimate of $15.69 [2] - The quarterly outperformance was attributed to "higher than expected close-in demand and lower costs" [2] Strategic Developments - Management announced the Royal Beach Club Santorini, an exclusive destination set to open in summer 2026, as part of the expansion of its land-based portfolio from two to eight locations by 2028 [2]

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]

Core Insights - Royal Caribbean Group is expanding its vacation offerings by introducing the Royal Beach Club Santorini, set to open in summer 2026, as part of a strategy to grow its land-based destinations from two to eight by 2028 [3][6] - The new beach club aims to enhance the guest experience by providing a unique blend of Santorini's cultural and natural attractions, alongside Royal Caribbean's signature services [3][4] - The company is also implementing innovative measures to manage guest distribution on the island, reducing congestion and maximizing visitor enjoyment [4] Expansion Plans - The Royal Beach Club Santorini will be the latest addition to Royal Caribbean's growing portfolio of exclusive land-based destinations, which includes Perfect Day at CocoCay in The Bahamas and several other upcoming locations [5][6] - The overall pipeline includes Royal Beach Club Paradise Island in The Bahamas (2025), The Cormorant in Chile (2026), Royal Beach Club Cozumel in Mexico (2026), Perfect Day Mexico (2027), and Royal Beach Club South Pacific in Lelepa (2028) [6] Company Overview - Royal Caribbean Group operates a global fleet of 68 ships across five brands, serving millions of guests annually and focusing on delivering responsible and innovative vacation experiences [7]

Core Insights - Royal Caribbean Group reported strong third quarter results with an Earnings per Share (EPS) of $5.74 and an Adjusted EPS of $5.75, exceeding guidance due to higher demand and lower costs [1][3] - The company raised its full year 2025 Adjusted EPS guidance to a range of $15.58 to $15.63, indicating a 32% year-over-year growth [1][12] - The introduction of the Royal Beach Club Santorini, set to open in 2026, expands the company's land-based destination portfolio from two to eight by 2028 [2][11] Financial Performance - For Q3 2025, net income was $1.6 billion, up from $1.1 billion in Q3 2024, with total revenues reaching $5.1 billion and Adjusted EBITDA of $2.3 billion [3][12] - Capacity increased by 2.9% year-over-year, serving 2.5 million guests, a 7% increase, with a load factor of 112% [4][12] - Gross Margin Yields rose by 3.8% and Net Yields increased by 2.8% as-reported [4][12] Cost Management - Gross Cruise Costs per Available Passenger Cruise Days (APCD) increased by 2.7% year-over-year, while Net Cruise Costs excluding fuel per APCD rose by 4.8% [5][12] - Cost growth was lower than guidance, reflecting strong operational execution and disciplined cost management [5] Future Outlook - The company anticipates a 10.3% capacity increase in Q4 2025 compared to Q4 2024, driven by new ship introductions [8][12] - Expected Net Yields for Q4 2025 are projected to increase by 2.6% to 3.1% as-reported [8][12] - The company is confident in its booked position for 2026, projecting earnings per share to have a $17 handle [2][12] Strategic Initiatives - The Royal Beach Club Santorini aims to enhance the vacation experience by combining local culture with the company's offerings, contributing to the expansion of the vacation ecosystem [10][11] - The company is focused on innovative ships and technology to improve guest experiences and strengthen loyalty [2][14] Shareholder Returns - The company repurchased approximately 1.3 million shares during the third quarter, with $345 million remaining for future repurchases [19] - A 33% increase in the quarterly dividend to $1.00 per share was authorized, reflecting a commitment to returning capital to shareholders [19]