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, and financial results exceeding expectations due to strong close-in demand and the best wave season in company history.

• Net income attributable to Royal Caribbean Cruises Ltd. rose to $730 million for Q1 2025, up from $360 million in Q1 2024, driven by higher capacity, ticket prices, and onboard spending.

• Adjusted net income was $744 million, and adjusted EBITDA reached $1.4 billion, up 20% year-over-year, reflecting strong operational performance and margin expansion.

• Bookings for 2025 and 2026 are outpacing prior years, with robust demand across all products and channels, especially direct-to-consumer.

• S&P upgraded the company to investment grade, reflecting improved financial strength.

Financial highlights

• Q1 2025 total revenue was $4.0 billion, up from $3.7 billion in Q1 2024, with net income of $730 million and adjusted EPS of $2.71, up 35% year-over-year.

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

• Net yield grew 5.6% year-over-year in constant currency, driven by strong ticket pricing.

• Net cruise costs excluding fuel per APCD were $129.54, with gross cruise costs per APCD at $208.68.

• Q1 2025 occupancy (load factor) was 108.8%, up from 107.0% in Q1 2024.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $14.55–$15.55, up 28% year-over-year, with net yield growth expected at 2.6%–4.6% in constant currency.

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

• 2025 capacity expected to grow 5.5% over 2024; capital expenditures for 2025 expected at $5 billion.

• Guidance ranges expanded to reflect macroeconomic complexity and external factors.

• Company anticipates sufficient liquidity to fund obligations for at least the next twelve months, with $4.5 billion in liquidity as of March 31, 2025.