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 Utopia of the Seas and Silver Ray, supporting 8.0% capacity growth and expanding offerings in short Caribbean and ultra-luxury segments.

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

• Booking and pricing environment remains strong, with 2024 bookings outpacing last year and higher pricing across key products.

Financial highlights

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

• Net income for Q2 2024 was $854 million, up from $459 million in Q2 2023.

• Adjusted EBITDA reached $1.6 billion with a 37.8% margin in Q2 2024.

• Total revenue for Q2 2024 was $4.11 billion, compared to $3.52 billion in Q2 2023.

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

Outlook and guidance

• Full-year 2024 Adjusted EPS guidance raised to $11.35–$11.45, up $0.60 from prior guidance and representing 68% year-over-year growth.

• Raised full-year net yield growth expectations to 10.4%–10.9%.

• Q3 2024 net yields expected to rise 6.5%–7% year-over-year; adjusted EPS forecasted at $4.90–$5.00.

• Capacity for 2024 expected to increase 8.0% over 2023.

• NCC excluding fuel per APCD expected to rise ~6.0% for 2024, driven by higher stock-based compensation.