Royal Caribbean Cruises (RCL) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered over 2 million vacations, with guest satisfaction and load factors at record highs, adjusted EPS of $2.71, and adjusted EBITDA of $1.4 billion, both up significantly year-over-year, exceeding guidance due to strong demand and lower costs.

• Net income attributable to Royal Caribbean Cruises Ltd. rose to $730 million, with total revenues of $4.0 billion, driven by higher capacity, ticket prices, and onboard spending.

• S&P Global Ratings upgraded the company to investment grade, reflecting improved financial strength and supporting access to capital.

• Bookings for 2025 and 2026 are outpacing prior years, with strong demand across all products, especially for new ships and destinations.

• The company remains focused on delivering superior guest experiences, optimizing revenue, managing costs, and executing long-term strategies amid macroeconomic uncertainty.

Financial highlights

• Q1 2025 total revenue was $4.0 billion, with net income of $730 million and adjusted net income of $744 million.

• Adjusted EBITDA margin reached 35.1%, up from 31.5% in Q1 2024; operating cash flow was $1.6 billion.

• Net yield increased 5.6% year-over-year in constant currency, with most growth from ticket pricing.

• Onboard and pre-cruise spending exceeded prior years, with higher participation and pricing.

• Interest expense, net of capitalized interest, decreased to $249 million, aided by proactive refinancing.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $14.55–$15.55, reflecting a 28% increase, supported by Q1 outperformance, FX, and fuel rates.

• Net yield growth for 2025 expected at 2.6%–4.6% in constant currency; NCCx growth projected at (0.1)% to 0.9%.

• Q2 2025 adjusted EPS guidance is $4.00–$4.10, with net yield growth of 4.3%–4.9%.

• Capacity for 2025 to increase 5.5% over 2024; capital expenditures for 2025 expected at ~$5 billion.

• Guidance ranges expanded to reflect macroeconomic complexity and uncertainty.