Royal Caribbean Cruises (RCL) Q2 2025 earnings summary

Executive summary

• Second quarter Adjusted EPS reached $4.38, up 36% year-over-year and surpassing guidance, driven by strong demand, disciplined cost management, and favorable below-the-line items such as TUI Cruises outperformance and reduced net interest expense.

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

• Bookings and onboard spend remain robust, with digital channels and new ship launches supporting growth.

• Strategic investments in new ships, private destinations, and digital innovation are accelerating growth and margin expansion.

• Amended and restated credit agreements executed for ICON 2 and ICON 3 vessels, increasing loan capacity and updating terms to support fleet expansion.

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 Net Income was $1.2 billion ($4.38 per share).

• Total revenues for Q2 2025 were $4.54 billion, up from $4.11 billion in Q2 2024; Adjusted EBITDA was $1.9 billion, up 19% year-over-year.

• Adjusted EBITDA margin reached 40.8%, up from 37.8% in Q2 2024.

• Net yield grew 5.2% year-over-year in constant currency, 70 basis points above guidance.

• Net cruise costs excluding fuel rose 2.1% year-over-year, 180 basis points below initial guidance due to expense timing.

Outlook and guidance

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

• Net yield for 2025 expected to grow 3.5%–4.0% in constant currency; NCC excluding fuel per APCD expected to rise ~0.3%.

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

• Capacity to grow 5.5%–6% for the full year and 2.9%–3% in Q3; Q4 capacity growth expected at 10%.

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