Royal Caribbean Cruises (RCL) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 Adjusted EPS reached $4.38, up 36% year-over-year and above guidance, driven by strong demand, expense timing, and joint venture outperformance.

• Load factor for Q2 was 110.3%, with 2.3 million guests carried, a 10% increase year-over-year, and high guest satisfaction.

• Strategic investments in new ships, private destinations, and digital innovation are accelerating growth and supporting long-term financial targets.

• Operating cash flow for Q2 was $1.7 billion; all three major credit agencies awarded investment-grade ratings.

• Amended and restated credit agreements executed in May 2025 for financing ICON 2 and ICON 3 vessels, reflecting increased contract prices and updated loan terms.

Financial highlights

• Q2 2025 Net Income was $1.2 billion ($4.41 per share), up from $0.9 billion ($3.11 per share) in Q2 2024.

• Adjusted EBITDA for Q2 2025 was $1.9 billion, up 19% year-over-year, with a margin of 40.8%.

• Net yield grew 5.2% year-over-year in constant currency, with gross margin yield at $142.00 per APCD and net yield at $283.56 per APCD.

• Net cruise costs excluding fuel increased 2.1% year-over-year, 180 basis points lower than initial guidance.

• Onboard revenue and pre-cruise purchases exceeded prior years, with half of onboard spend booked pre-sailing.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $15.41–$15.55, reflecting 31% year-over-year growth.

• Net yield expected to grow 3.5%–4.0% for the year in constant currency; NCCx growth at approximately 0.3%.

• Q3 2025 adjusted EPS guidance is $5.55–$5.65, with net yield growth of 2.0%–2.8%.

• Capacity for Q3 2025 to increase 2.9% year-over-year, with Q3 APCDs at 13.7 million.

• Long-term targets include 20% EPS CAGR and high teens ROIC by 2027 under the Perfecta Program.