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Dec 31, 2025
Royal Caribbean Q4 2025 Earnings Report
Royal Caribbean Group reported strong fourth quarter 2025 results, exceeding guidance with double-digit revenue and earnings growth, driven by robust demand and strategic investments.
Key Takeaways
Royal Caribbean Group delivered an outstanding fourth quarter and full year 2025, surpassing guidance with Net Income of $0.8 billion and Adjusted EPS of $2.80 for the quarter. The company experienced strong demand, record-breaking WAVE season bookings, and significant growth in both revenue and earnings, positioning it for continued double-digit growth in 2026.
Fourth quarter 2025 results exceeded guidance, contributing to over 30% earnings growth for the full year 2025.
The WAVE season started strong, setting a record for booking weeks and propelling momentum into 2026.
Adjusted EPS for 2026 are projected to be between $17.70 and $18.10, indicating continued strong financial performance.
The company is expanding its vacation portfolio with new Discovery Class ships for Royal Caribbean and 10 additional ships for Celebrity River Cruises, alongside five new exclusive destinations by 2028.
Revenue by Segment
Forward Guidance
Royal Caribbean Group anticipates continued strong performance in 2026, with double-digit revenue and Adjusted EPS growth, driven by increased capacity and yield growth. The company expects Adjusted EPS to be in the range of $17.70 to $18.10 per share for the full year 2026.
Positive Outlook
- Adjusted EPS for 2026 are expected to be $17.70 to $18.10, representing a 23% CAGR over the first two years of Perfecta.
- Double-digit revenue and Adjusted EPS growth are expected in 2026, supported by 6.7% higher capacity.
- Net Yields are projected to increase 2.1% to 4.1% as-reported and 1.5% to 3.5% in Constant Currency for the full year 2026.
- The company is on track to achieve its Perfecta goals by 2027, targeting 20% earnings CAGR and ROIC in the high teens.
- New Discovery Class ships and expansion of Celebrity River Cruises, along with five new exclusive destinations, are expected to strengthen long-term growth.
Challenges Ahead
- Net Yields for 2026 include a 30 bps headwind from itinerary modifications in China.
- NCC, excluding Fuel, per APCD, is expected to increase 0.4% to 1.4% as-reported and flat to up 1.0% in Constant Currency for the full year 2026.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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