Royal Caribbean Cruises (RCL) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, delivering over 30% earnings growth with adjusted EPS of $15.64, driven by strong demand, high occupancy, and robust revenue.

• Generated $6.5 billion in operating cash flow and returned $2 billion to shareholders via dividends and buybacks.

• Expanded vacation ecosystem with new Discovery Class ships, exclusive destinations, and a commitment to 10 additional Celebrity River Cruise ships, aiming for 20 vessels by 2031.

• Embedded AI and digital innovation across operations, driving efficiency, personalization, and a 25% increase in app users.

• On track to meet Perfecta Program goals by 2027, targeting 20% EPS CAGR and high teens ROIC.

Financial highlights

• 2025 total revenue reached $17.9 billion, adjusted EBITDA was $7.03 billion (39.2% margin), and adjusted EPS was $15.64, a 33% increase over 2024.

• Fourth quarter 2025 adjusted EPS was $2.80, with net yield growth of 2.5% and load factor of 108%.

• Net cruise costs excluding fuel were nearly flat for 2025 and down 5.8% in Q4; gross cruise costs per APCD fell 0.6% in 2025.

• Operating cash flow for the year reached $6.5 billion; investment-grade balance sheet achieved.

• ROIC for 2025 was 18.0%; liquidity at year-end was $7.2 billion.

Outlook and guidance

• 2026 capacity expected to rise 6.7% year-over-year, with double-digit revenue and EPS growth projected; adjusted EPS guidance is $17.70–$18.10.

• Full-year net yield growth forecasted at 1.5%–4.1%; adjusted EBITDA for 2026 projected just under $8 billion, with margin slightly above 40%.

• First quarter 2026 capacity up 8.5%; net yields up 1%–1.5%; adjusted EPS guidance $3.18–$3.28.

• $5 billion capital investment planned for 2026, including $1.8 billion for non-ship assets and fleet modernization.

• WAVE season and Cyber Sales drove record bookings, with two-thirds of 2026 capacity already booked at record rates.