Carnival (CCL) - 2025 Q2 - Earnings Call Presentation

Financial Performance Highlights - The company achieved record revenues, net yields, Adjusted EBITDA, Adjusted EBITDA per ALBD, and operating income in the second quarter of 2025[9] - Second quarter 2025 net yields increased by 64% compared to 2024 guidance of approximately 44%[10] - Adjusted net income more than tripled compared to the second quarter of 2024[10] - Adjusted EBITDA for the second quarter of 2025 reached $151 billion, exceeding the guidance of approximately $132 billion[10] - Adjusted net income for the second quarter of 2025 was $470 million, surpassing the guidance of approximately $285 million[10] - Adjusted earnings per share - diluted for the second quarter of 2025 was $035, exceeding the guidance of approximately $022[10] - The company exceeded its 2026 SEA Change financial targets 18 months early[14, 48, 49] - Full year 2025 Adjusted EBITDA is projected to be approximately $69 billion[17, 53] - Full year 2025 Adjusted net income is projected to be approximately $269 billion[17, 53] - Full year 2025 Adjusted earnings per share - diluted is projected to be approximately $197[17, 53] Demand and Booking Trends - 93% of 2025 is already booked, with occupancy for the remainder of the year being the second-highest on record at historically high prices[18] - Customer deposits in the second quarter of 2025 increased by approximately 40% compared to the second quarter of 2019, despite only a 10% capacity growth[22] - Customer deposits reached $85 billion in the second quarter of 2025, a $25 billion increase compared to the prior quarter's record[21] Strategic Initiatives and Investments - The company is continuing to invest in its highest-returning brands[32] - Carnival Cruise Line is launching "Carnival Rewards" in June 2026, a new and improved loyalty program[39] Debt Management and Financial Position - The company prepaid $350 million of 7625% notes due in 2026 and refinanced the remainder with $10 billion of 5875% senior unsecured notes due in 2031, resulting in over $20 million net interest expense reduction through early 2026[44] - Net debt to Adjusted EBITDA improved from 41x in the first quarter of 2025 to 37x in the second quarter of 2025[43]