Carnival (CCL) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter revenues of $5.8 billion, with all-time highs in EBITDA per ALBD, operating income, and customer deposits, surpassing guidance due to strong demand, higher ticket prices, and increased onboard spending.

• Booking volumes for 2026 and beyond reached all-time highs at higher prices, with over 80% of the year already booked and the booking curve at a record length.

• Outperformed December guidance on net yields, adjusted net income, and adjusted EBITDA, driven by robust demand and cost control.

• Major marketing initiatives and new asset launches, including Celebration Key opening in July 2025 and Denali Lodge expansion.

Financial highlights

• First quarter adjusted EBITDA reached $1.2 billion, up nearly 40% year-over-year and exceeding guidance; operating income nearly doubled to $543 million.

• Net income exceeded guidance by over $170 million, with adjusted net income of $174 million ($0.13 EPS), and net loss narrowed to $78 million year-over-year.

• Customer deposits hit a record $7.3 billion, up from $7.0 billion in 1Q'24 and $4.9 billion in 1Q'19.

• Passenger ticket revenue increased 6% to $3.8 billion; onboard and other revenue up 11% to $2.0 billion year-over-year.

• Operating expenses rose 1.7% to $3.8 billion, mainly due to capacity growth, partially offset by lower fuel and maintenance costs.

Outlook and guidance

• Full year 2025 net yields (constant currency) expected up 4.7% year-over-year, 0.5 points above prior guidance; adjusted EBITDA guidance raised to $6.7 billion.

• Adjusted net income for 2025 projected to rise over 30% from 2024, $185 million above prior guidance; adjusted EPS to $1.83.

• 2025 yield growth projected to outpace historical rates and cost growth, adding about $600 million to the bottom line.

• On track to achieve 2026 SEA Change financial targets (ROIC ~12%, EBITDA per ALBD up 50% from two years ago) one year early.

• Second quarter 2025 net yields expected up 4.4% year-over-year; adjusted cruise costs excluding fuel per ALBD to increase approx. 5.5%.