ROYAL CARIBBEAN CRUISES LTD (RCL) Earnings History

ROYAL CARIBBEAN CRUISES LTD - Q3 FY2025 Earnings

Filed at: Oct 27, 2025, 8:00 PM EDT|Read from source

EXECUTIVE SUMMARY

Royal Caribbean Group reported strong third quarter results, exceeding guidance due to robust demand and cost control, leading to an increase in full-year guidance. The company is also expanding its vacation ecosystem with new destination offerings.

POSITIVE HIGHLIGHTS

  • •

    Third quarter EPS of $5.74 and Adjusted EPS of $5.75 exceeded company guidance.

    positive
  • •

    Full year 2025 Adjusted EPS guidance increased to $15.58 - $15.63, representing 32% year-over-year growth.

    positive
  • •

    Net Yields increased 2.8% as-reported (2.4% in Constant Currency) in Q3 2025.

    positive
  • •

    Announced new exclusive destination, Royal Beach Club Santorini, set to open in summer 2026.

    positive

CONCERNS & RISKS

  • •

    Net Cruise Costs (NCC), excluding Fuel, per APCD increased 4.8% as-reported (4.3% in Constant Currency) in Q3 2025.

    attention
  • •

    Fourth quarter Net Yields are expected to increase 2.6% to 3.1% as-reported, on top of 7.3% growth in Q4 2024.

    attention
  • •

    Fourth quarter NCC, excluding Fuel, per APCD is expected to decrease (6.2%) to (5.7%) as-reported, indicating potential cost pressures or changes in operational efficiency.

    attention
  • •

    Unplanned extension of the temporary closure of the exclusive destination in Labadee, Haiti had a minimal impact on Q4 guidance.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$5.14B
+5.2%
Prior year: $4.89B
Annual (YTD)
$13.68B
N/A
Prior year: $12.72B
Net Income
Quarterly
$1.57B
+41.8%
Prior year: $1.11B
Annual (YTD)
$3.51B
N/A
Prior year: $2.33B
EPS (Diluted)
Quarterly
$5.74
+36.3%
Prior year: $4.21
Annual (YTD)
$12.83
N/A
Prior year: $8.91
Operating Income
Quarterly
$1.70B
+4.2%
Prior year: $1.63B
Annual (YTD)
$3.98B
N/A
Prior year: $3.48B
EPS (Basic)
Quarterly
$5.79
+37.2%
Prior year: $4.22
Annual (YTD)
$12.97
N/A
Prior year: $8.98

MARGIN ANALYSIS

Gross Margin
Current Quarter
43.3%
Prior Year
42.7%
YoY Change
+60 bps
Operating Margin
Current Quarter
33.1%
Prior Year
33.5%
YoY Change
-40 bps
Net Margin
Current Quarter
30.7%
Prior Year
22.7%
YoY Change
+800 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY 2025

Adjusted EPS
$15.58—$15.63
Mid-point: $15.61
"Represents 32% year-over-year growth."

Q4 2025

Adjusted EPS
$2.74—$2.79
Mid-point: $2.77
Net Yields
2.6—3.1
Mid-point: 2.85
"As-reported basis."
Net Cruise Costs excluding Fuel per APCD
-6.2—-5.7
Mid-point: -5.95
"As-reported basis."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

MANAGEMENT COMMENTARY

Strong momentum driven by accelerated demand, growing loyalty, and all-time high guest satisfaction.

— ROYAL CARIBBEAN CRUISES LTD, Q3 FY2025 2025 Earnings Call

Commercial flywheel combining innovative ships, distinctive destinations, and world-class brands drives sustained growth.

— ROYAL CARIBBEAN CRUISES LTD, Q3 FY2025 2025 Earnings Call

Confident for 2026 and beyond due to strong booked position and proven formula of moderate yield growth, strong cost controls, and disciplined capital allocation.

— ROYAL CARIBBEAN CRUISES LTD, Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Load Factor
112.1
+1.0% YoY
Prior year: 111
percent
Passengers Carried
2.5M
+6.7% YoY
Prior year: 2.3M
passengers

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

Related Research

Analysis

RCL 10-K Analysis: Royal Caribbean Improved Leverage 53% Without Paying Down Debt