Carnival (CCL) Q4 2025 earnings summary

Executive summary

• Achieved record full-year adjusted net income of $3.1 billion, up over 60% year-over-year, with net income exceeding $3 billion and adjusted ROIC over 13%, the highest in nearly 20 years.

• Delivered record revenues, yields, operating income, and EBITDA for 2025, outperforming guidance for both the fourth quarter and full year.

• Reinstated quarterly dividend at $0.15 per share and initiated share repurchases, reflecting strong cash flow and investment grade leverage metrics.

• Announced plans to unify dual-listed structure and redomicile to Bermuda, with shareholder meetings planned for April and completion targeted for Q2 2026.

• Welcomed new ship Star Princess and received multiple industry awards for service, itineraries, and marketing.

Financial highlights

• Full-year adjusted EBITDA reached a record $7.2 billion, exceeding guidance by about $600 million, with operating and EBITDA margins up over 250 basis points year-over-year.

• Fourth quarter 2025 net income was $454 million, nearly 2.5x prior year and $154 million above guidance.

• Record customer deposits of $7.2 billion at year-end, up 7% year-over-year.

• ROIC exceeded 13%, the highest in 19 years.

• Set all-time high revenues of $26.6 billion and operating income of $4.5 billion.

Outlook and guidance

• 2026 adjusted net income expected to rise 12% to $3.5 billion, with adjusted EBITDA forecasted at $7.63 billion.

• Net yields projected up 2.5% (3.0% normalized) for 2026, marking the fourth consecutive year of low- to mid-single-digit per diem growth.

• Unit cost growth guided at 3.25% for 2026, with normalized net cruise cost ex-fuel per ALBD up about 2.5%.

• Targeting net debt to EBITDA ratio under 3x by year-end 2026, even with four dividend payments.

• Capacity growth for 2026 expected to be less than 1%.