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Dec 31, 2024
Royal Caribbean Q4 2024 Earnings Report
Royal Caribbean's Q4 2024 performance was driven by stronger than expected close-in demand, leading to results exceeding guidance. The company launched Celebrity River Cruises to expand vacation offerings and is seeing a record start to WAVE season, setting the stage for strong 2025 momentum.
Key Takeaways
Royal Caribbean Group reported Net Income of $0.6 billion, or $2.02 per share, and Adjusted Net Income of $0.4 billion, or $1.63 per share, on total revenues of $3.8 billion. The load factor for the quarter was 108%. The company is optimistic about 2025, with Adjusted EPS expected to be in the range of $14.35 to $14.65.
Stronger than expected close-in demand drove fourth quarter results.
WAVE season is off to a record start, propelling 2025 momentum.
Adjusted EPS in 2025 are expected to be $14.35 to $14.65.
Celebrity River Cruises was launched to expand vacation offerings.
Royal Caribbean
Royal Caribbean
Royal Caribbean Revenue by Segment
Revenue by Segment
Passenger Ticket Revenue
CapyFin.comOnboard and Other Revenue
CapyFin.com Forward Guidance
The company expects Net Yields to increase 2.5% to 4.5% in Constant Currency and 1.8% to 3.8% as-reported for the full year 2025. Adjusted EPS is expected to be in the range of $14.35 to $14.65 for the full year 2025.
Positive Outlook
- WAVE season bookings are off to a record start, with booked load factors in line with prior years and at higher rates.
- Net Yields are expected to increase 2.5% to 4.5% in Constant Currency and 1.8% to 3.8% as-reported for the full year 2025.
- NCC, excluding Fuel, per APCD are expected to be flat to up 1.0% in Constant Currency and (0.3%) to 0.7% as-reported for the full year 2025.
- Adjusted EPS is expected to be in the range of $14.35 to $14.65 for the full year 2025.
- First Quarter 2025 Net Yields are expected to increase 4.75% to 5.25% in Constant-Currency (3.9% to 4.4% as-reported) compared to 2024.
Challenges Ahead
- NCC, excluding Fuel, per APCD, is expected to increase 1.6% to 2.1% in Constant-Currency (1.3% to 1.8% as-reported) compared to 2024 for the first quarter of 2025.
- The guidance range includes a headwind of $0.65 related to foreign exchange and fuel rates, compared to the last earnings call.
- Fuel Expenses for full year 2025 are expected to be $1,172 million.
- Net Interest, excluding loss on extinguishment of debt, is expected to be $935 to $945 million for the full year 2025.
- Capital expenditures for the full year 2025 are expected to be approximately $5 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income