Royal Caribbean Cruises (RCL) Q2 2024 earnings summary

Executive summary

• Achieved Trifecta financial targets 18 months ahead of schedule, including triple-digit Adjusted EBITDA per APCD, double-digit Adjusted EPS, and mid-teens ROIC.

• Reinstated a quarterly dividend of $0.40 per share, reflecting strong balance sheet and capital allocation discipline.

• Delivered approximately 2 million vacations in Q2 2024 with exceptional guest satisfaction and robust demand across all brands and itineraries.

• Delivered three new ships in 2024, supporting 8.0% capacity growth year-over-year.

• Net income for Q2 2024 was $854 million, up from $459 million in Q2 2023; total revenues increased 16.7% year-over-year to $4.1 billion.

Financial highlights

• Q2 2024 Adjusted EPS was $3.21, up from $1.82 in Q2 2023, and $0.51 above guidance midpoint.

• Adjusted EBITDA reached $1.6 billion with a 37.8% margin; net yield growth of 13.3% year-over-year.

• Operating cash flow for Q2 2024 was $1.6 billion; liquidity at $3.8 billion as of June 30, 2024.

• Load factor reached 108.2% in Q2 2024, up from 105% in Q2 2023, indicating strong occupancy.

• Passenger ticket revenues grew 18.1% year-over-year in Q2 2024; onboard and other revenues rose 13.3%.

Outlook and guidance

• Raised full-year 2024 net yield growth expectations to 10.4%-10.9% and Adjusted EPS to $11.35-$11.45, a 68% year-over-year increase.

• Q3 2024 Adjusted EPS guidance of $4.90-$5.00; net yields expected to grow 6.5%-7.0%.

• Full-year net cruise costs (excluding fuel) expected to rise ~6%, driven by higher non-cash stock-based compensation.

• 2025 bookings are ahead of 2024 at this point, with pricing trends continuing to accelerate.

• Full-year 2024 capital expenditures expected to be approximately $3.5 billion, mainly for new ships.