Royal Caribbean Cruises (RCL) Q4 2024 earnings summary

Executive summary

• Delivered record 2024 results with 8.6 million vacations, Adjusted EPS of $11.80, and 11.6% net yield growth, driven by strong demand and high occupancy (108% load factor).

• Achieved Trifecta financial goals (Adjusted EBITDA per APCD, Adjusted EPS, ROIC) 18 months early, with ROIC at 16.1% and investment-grade metrics.

• Announced entry into river cruising with Celebrity River Cruises, ordering 10 ships for 2027 and beyond, targeting high-margin, high-ROIC growth.

• Re-initiated dividend at $0.55 per share and improved credit profile to investment grade.

• Launched new ships and private destinations, including Icon of the Seas, Utopia of the Seas, Silver Ray, and advanced Perfect Day Mexico and Royal Beach Clubs.

Financial highlights

• 2024 total revenues reached $16.5B; operating cash flow exceeded $5.3B; Adjusted EBITDA was $6.0B, up 31% year-over-year.

• Adjusted EPS grew 74% year-over-year to $11.80; net income was $2.9B.

• Fourth quarter 2024 net yield growth was 7.3%, 200 bps above guidance midpoint.

• Adjusted EBITDA margin for 2024 was 36.2%; Adjusted EBITDA per APCD was $118.13.

• Gross margin yield and net yields improved year-over-year on a constant currency basis.

Outlook and guidance

• 2025 capacity expected to grow 5.4% year-over-year, with net yield growth guidance of 2.5%-4.5%.

• Adjusted EPS for 2025 expected between $14.35 and $14.65, including a $0.65 headwind from FX and fuel.

• Adjusted EBITDA projected to grow 13% in 2025, with 150 bps margin expansion.

• Q1 2025 net yields expected up 4.75%-5.25%; adjusted EPS $2.43-$2.53.

• Net cruise costs excluding fuel expected to be flat to up 1% in 2025.