Royal Caribbean Cruises (RCL) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with over 30% earnings growth, adjusted EPS of $15.64, and nearly $18 billion in revenue, driven by strong demand, high occupancy, and robust joint venture performance.

• Returned $2 billion to shareholders via dividends and buybacks, while investing in strategic priorities and expanding the vacation ecosystem across ocean, river, and land.

• Announced expansion of Celebrity River Cruises with 10 new ships and launch of Discovery Class ships for Royal Caribbean, reinforcing innovation and growth.

• Opened Royal Beach Club Paradise Island and delivered new ships, including Star of the Seas and Celebrity Xcel, supporting brand differentiation.

• 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, up 72% year-over-year; Q4 adjusted EBITDA was $1.48 billion.

• Generated $6.5 billion in operating cash flow and ended 2025 with $7.2 billion in liquidity.

• Net yields grew 3.7% for 2025 and 2.5% in Q4; net cruise costs excluding fuel were nearly flat for 2025 and down 5.8% in Q4.

• Load factor for 2025 was 110%, with Q4 at 108%.

Outlook and guidance

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

• Net yield growth for 2026 projected at 1.5%–3.5%; adjusted EBITDA expected just under $8 billion.

• Operating cash flow projected to exceed $7 billion in 2026; $5 billion planned capital investment, including $1.8 billion in non-ship capital for private destinations and fleet modernization.

• First quarter 2026 capacity up 8.5% year-over-year; adjusted EPS guidance $3.18–$3.28.

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