Carnival (CCL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results in revenues ($5.8B), operating income ($560M), customer deposits ($8.3B), and booking levels, surpassing guidance on all measures.

• Net income improved by nearly $500 million year-over-year to $92 million; adjusted net income was $134 million, outperforming guidance by $170 million.

• Yields increased over 12% year-over-year, with per diem growth up over 6% and occupancy at historical levels.

• Booking momentum remains strong, with 2024 and early 2025 cumulative booked positions at record highs in both price and occupancy.

• Announced integration of P&O Cruises Australia into Carnival Cruise Line, effective March 2025.

Financial highlights

• Adjusted EBITDA reached $1.2B in Q2 2024, $150M above guidance and the highest Q2 mark in over 15 years.

• Net yields up 12% year-over-year in Q2 2024; net per diems up over 6%; occupancy reached 104%, up from 98% in Q2 2023.

• Net income for Q2 2024: $92M (EPS $0.07), compared to net loss of $407M (EPS $(0.32)) in Q2 2023.

• Cash from operations was $2.0B in Q2; adjusted free cash flow was $1.3B for the quarter.

• Interest expense decreased 17% year-over-year to $450M for the quarter, reflecting lower debt and rates.

Outlook and guidance

• Full year 2024 net yields (constant currency) expected up ~10.25% year-over-year, 75 bps above prior guidance.

• Full year adjusted net income guidance raised by $275M to ~$1.55B; adjusted EBITDA expected at ~$5.83B.

• Third quarter 2024 net yields (constant currency) expected up ~8% year-over-year; adjusted EBITDA of ~$2.66B.

• 2025 bookings and pricing already ahead of last year, with less inventory remaining.

• Adjusted ROIC for 2024 projected at ~10%, with a long-term target of 12%.