Carnival (CCL) Q3 2024 earnings summary

Executive summary

• Achieved record-setting Q3 2024 results, with net income of $1.7B, up over 60% year-over-year, and revenues at an all-time high of $7.9B, exceeding prior guidance.

• Operating income reached $2.2B, up $554M from 2023, and adjusted EBITDA was $2.82B, up over 25% year-over-year and $160M above guidance.

• Raised full-year 2024 adjusted EBITDA guidance to ~$6.0B, up over 40% from 2023, and improved cost guidance.

• Advanced bookings for 2025 and 2026 are at historical highs in both occupancy and price, with strong demand and record customer deposits of $6.8B.

• Onboard spending per diems and new-to-cruise and repeat guests increased double digits year-over-year.

Financial highlights

• Q3 2024 net income: $1.7B ($1.26 diluted EPS), up $662M from 2023; adjusted net income: $1.8B ($1.27 adjusted EPS), $170M above June guidance.

• Q3 revenues: $7.9B, up $1.0B year-over-year; record net yields (constant currency) up 8.7%, gross margin yields up 19%.

• Onboard revenue per diem grew 6% year-over-year in Q3 2024.

• Record customer deposits of $6.8B, up $1.9B from Q3 2023.

• Cruise costs excluding fuel per ALBD decreased year-over-year and beat guidance.

Outlook and guidance

• Full-year 2024 net yields (constant currency) expected up ~10.4% vs. 2023; adjusted EBITDA guidance raised to ~$6.0B.

• Adjusted net income for 2024 projected at $1.76B, with adjusted EPS of $1.33.

• Q4 2024 net yields expected up ~5% year-over-year; adjusted cruise costs ex-fuel per ALBD up ~8%.

• Bookings for 2025 and 2026 are robust, with higher prices and less inventory remaining for sale than prior year.

• Celebration Key, a new Bahamian destination, launches July 2025, expected to provide a premium and impact costs by about half a point in 2025.