Core Insights - Major indexes have shown significant gains in 2025, with the S&P 500 up approximately 12% and the Nasdaq Composite up around 15% [1][2] - Despite record highs for top indexes, some companies have seen their share prices decline over 50% from peak levels [2] Company Overview: Carnival Corporation - Carnival is the largest cruise company globally, currently facing challenges due to high debt accumulated during the pandemic [4] - The stock is 57% off its all-time highs but has increased nearly 100% over the past year, indicating a strong business rebound and effective debt management [5] - The company is investing in fleet and destination enhancements, including the launch of Celebration Key and a new ship, Carnival Festivale, set to debut in 2027 [6] Financial Performance - In the fiscal second quarter of 2025, Carnival exceeded guidance for net yields, adjusted EBITDA, and adjusted net income, reporting record revenue and operating income [7] - Deposits reached an all-time high of $8.5 billion, with 93% of 2025 occupancy booked at high ticket prices [7] - Carnival's management achieved its SEA change strategy goals ahead of schedule and raised guidance across various metrics for the full year [8] Debt Management - Carnival ended the quarter with over $27 billion in debt, significantly above pre-pandemic levels, but has made progress in reducing this debt [9] - The company has refinanced $7 billion in debt this year and prepaid $350 million of $1.4 billion due next year [9] - Lower interest rates are expected to facilitate further debt repayment, enhancing the company's financial stability [10]