Carnival Corporation (CCL) Q2 2025 earnings summary

Executive summary

• Achieved record second quarter revenues of $6.3 billion, highest-ever operating results, and all-time high customer deposits, up over $250 million year-over-year, with net income more than tripling year-over-year and exceeding guidance by $185 million.

• Surpassed 2026 financial and sustainability targets, including EBITDA per berth day (52% above 2023 baseline), ROIC (over 12.5%), and carbon intensity reduction (20% vs. 2019), all 18 months ahead of schedule.

• Cumulative advanced bookings for 2026 align with 2025 record levels at historically high prices.

• Capacity increased 3.1% year-over-year, with occupancy at 104% for the quarter.

Financial highlights

• Adjusted EBITDA reached $1.51 billion, up 26% year-over-year and exceeding guidance; operating income rose to $934 million, with EBITDA margins 200 basis points above 2019, highest in nearly 20 years.

• Net income for Q2 2025 was $565 million ($0.42 diluted EPS), up from $92 million in Q2 2024; adjusted net income was $470 million ($0.35 adjusted EPS), more than tripling prior year and exceeding guidance.

• Net yields increased 6.4% year-over-year, beating guidance by 200 basis points; cruise costs without fuel per ALBD up 3.5% year-over-year, 200 basis points better than guidance.

• Full-year EBITDA guidance raised to $6.9 billion, a 13% increase over 2024, driven by same-store revenue growth with only 1% capacity increase.

• Interest expense for Q2 2025 decreased 24% year-over-year to $341 million due to lower debt and rates.

Outlook and guidance

• Full-year 2025 net yields (constant currency) expected to be ~5% higher than 2024, with adjusted net income up over 40%; full-year EBITDA guidance raised to $6.9 billion.

• Q3 2025 net yields (constant currency) expected up ~3.5% year-over-year; adjusted cruise costs excluding fuel per ALBD up ~7%.

• New Carnival Rewards loyalty program launches June 2026, expected to be cash flow positive from day one but will defer revenue recognition, impacting yields by about half a point in 2026, neutral by 2028, and accretive thereafter.

• 93% of 2025 capacity already booked at historically high prices; 2026 bookings in line with 2025.

• Management expects continued volatility in fuel costs and increased regulatory expenses related to greenhouse gas emissions.