Royal Caribbean Group reported strong first-quarter results that exceeded expectations, driven by favorable revenue, lower costs, and improved joint venture performance. The company is experiencing robust demand and has updated its full-year guidance, reflecting higher fuel costs but also benefits from cost management and share repurchases.
First quarter EPS of $3.48 and Adjusted EPS of $3.60 exceeded company guidance.
positiveTotal revenue increased 11% year over year to $4.5 billion.
positiveNet Yields increased 3.6% as-reported (2.0% in Constant Currency), exceeding guidance due to higher pricing.
positiveAdjusted EBITDA was $1.7 billion, a 23% increase year over year.
positiveThe company returned approximately $1.1 billion to shareholders through share repurchases ($836 million) and dividends ($270 million).
positiveFull year 2026 revenue is expected to grow roughly 10% year over year.
positiveFull year guidance reflects higher than anticipated fuel costs, expected to be approximately $1.3 billion, $0.62 per share higher than prior guidance.
attentionBookings for Mediterranean and West Coast of Mexico itineraries moderated in March and early April due to geopolitical developments, though they have since recovered.
attentionSecond quarter Net Cruise Costs per APCD are expected to increase 4.9% to 5.4% as-reported, impacted by increased drydock days and elevated crew movement costs.
attentionNet Cruise Costs excluding Fuel, per APCD increased 0.6% as-reported in Q1 2026, though decreased 0.5% in Constant Currency.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Strong first quarter results and record WAVE season demonstrate the exceptional appeal and compelling value proposition of our trusted brands, industry-leading ships, and destinations.
Demand for our experiences continues to be strong, and we remain focused on delivering the best vacations responsibly, accelerating revenue growth, and managing costs, all while continuing to invest in our future and drive further differentiation.
We expect another year of double-digit revenue and earnings growth, driven by consumers’ preference for our leading brands and expanding portfolio - all supported by our strong booked position, leading margin profile, and fortified balance sheet.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.