Royal Caribbean Cruises (RCL) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered record results with net income of $1.6 billion, adjusted EPS of $5.75, and adjusted EBITDA of $2.3 billion, driven by strong close-in demand, high occupancy (112%), and lower costs.

• Capacity increased 2.9%-3%, with 2.47 million to 2.5 million guests carried, a 7% year-over-year rise.

• Net yields grew 2.4% year-over-year in constant currency, and guest satisfaction and loyalty remained high, supported by digital engagement and new initiatives like Royal Beach Club Santorini.

• Announced expansion into river cruising and exclusive land-based destinations, with new ships and destinations planned through 2028.

• Digital and e-commerce channels saw double-digit growth in visits and conversion rates, fueling onboard and pre-cruise revenue.

Financial highlights

• Q3 2025 total revenue was $5.1 billion, with passenger ticket revenue of $3.6 billion and onboard revenue of $1.5 billion.

• Adjusted EBITDA margin for Q3 was 44.6%, and operating cash flow was $1.5 billion.

• Full-year 2025 adjusted EPS guidance is $15.58–$15.63, a 32% year-over-year increase.

• Net yields for Q3 2025 were $301.58 per APCD, up from $293.46 in Q3 2024.

• Net cruise costs excluding fuel per APCD were $123.75 in Q3 2025.

Outlook and guidance

• Full-year 2025 net yield growth expected at 3.5%-4% in constant currency; Q4 2025 capacity up 10.3% and net yield growth of 2.2%-3.1%.

• Q4 2025 adjusted EPS guidance is $2.74–$2.79.

• 2026 earnings per share expected to have a $17 handle, with 6% capacity growth and continued moderate yield growth.

• Booked load factors for 2026 remain within historical ranges at record rates, with APD growth at the high end of historical ranges.

• 2025 capital expenditures expected at $5 billion, primarily for new ships and land-based initiatives.