Royal Caribbean Group (RCL) has reported second quarter earnings per share (EPS) of $4.41 and adjusted EPS of $4.38.
These results were better than the company’s guidance, due to strong close-in demand, lower costs driven primarily by timing, and favourability below the line driven primarily by the out performance of TUI Cruises and lower net interest expense.
RCL has is increased its full year 2025 adjusted EPS guidance from $15.41 to $15.55. This increase in earnings forecast was driven mainly by the stronger than expected 2Q25 performance, lower than expected spend, and continued favourability below the line for the remainder of the year.
“Demand for our portfolio of brands and our industry-leading experiences continues to accelerate. Grounded in our mission to deliver the best vacations responsibly, we remain keenly focused on delivering exceptional value for our guests and shareholders – not just by executing today, but by staying ahead of where demand is going,” said RCL’s President and CEO, Jason Liberty (pictured).
“We are well on our way to achieving our Perfecta financial targets by the end of 2027. As we look beyond 2027, we see another step change in growth as we deepen our moat with a powerful pipeline of incredible new ships, the ramp-up of our highly differentiated new destinations and river cruising, and continued investments in disruptive technology, personalisation and loyalty,” Liberty added.
During 2Q25, the load factor was 110%.
Gross margin yields were up 11% as-reported. Net yields were up 5.3% as-reported and 5.2% in constant currency.
Gross cruise costs per available passenger cruise days (APCD) increased 0.8% as-reported. Net cruise costs (NCC), excluding Fuel, per APCD increased 2.5% as-reported and 2.1% in constant currency.
Total revenues were $4.5 bill, while net income was $1.2 bill or $4.41 per share, Adjusted net income was $1.2 bill or $4.38 per share, and Adjusted EBITDA was $1.9 bill.
For the full year, net yields are expected to increase 3.5% to 4% as-reported and in constant currency.
NCC, excluding fuel, per APCD is expected to increase by around 0.5% as-reported and 0.3% in constant currency.
Adjusted EPS is expected to grow by about 31% year-on-year and be in the range of $15.41 to $15.55.
Second quarter net income was $1.2 bill or $4.41 per share, compared to $0.9 bill or $3.11 per share for the same period in 2024.
Adjusted net income was $1.2 bill or $4.38 per share for the period, compared to an adjusted net income of $0.9 bill or $3.21 per share for 2Q24.
RCL also reported total revenues of $4.5 bill and an adjusted EBITDA of $1.9 bill.
Capacity for the second quarter was up 5.8% y-o-y and the company carried 2.3 mill guests, a 10% increase y-o-y at high guest satisfaction scores.
Gross margin yields increased 11% as-reported, and net yields increased 5.3% as-reported (5.2% in constant currency), when compared to 2Q24.
The load factor for the quarter was 110%, up two percentage points versus 2Q24, driven by contribution of new ships that carry higher loads.
Net yield growth in the quarter was split evenly between new and like for like hardware, and was driven by both ticket pricing and on board spend. Net yield growth exceeded the company’s guidance, mainly due to stronger close-in demand across all key products.
Gross cruise costs per APCD increased 0.8% as-reported, compared to 2Q24. NCC, excluding fuel, per APCD increased 2.5% as-reported (2.1% in constant currency), when compared to the second quarter of 2024.
Cost growth was 180 bps better than the company’s guidance driven entirely by shifting of timing of operating expenses into the second half of the year. In addition, favourability below the line was driven mainly by better than expected income from TUI Cruises and lower net interest expense.
Booked load factors remain in line with previous years and at higher rates for both 2025 and 2026. Bookings have accelerated since the last earnings call, particularly for close-in sailings, leading to second quarter out performance.
RCL said that it continues to experience strong demand across all key products and source markets. Commercial channels, particularly digital channels, are performing exceptionally well for both bookings and pre-cruise purchases.
Guest spending on board and pre-cruise purchases continue to exceed the previous years, driven by greater participation at higher prices.
Bookings for ’Star of the Seas’ and ’Celebrity Xcel’, both delivered this year, are performing extremely well and building on the success of their respective classes.
In addition, Royal Beach Club Paradise Island recently became available for sale, and early demand was very robust.
“The strong demand we are seeing across our new ships and land-based destinations reinforces that our strategy is working and resonating with today’s traveler,” Liberty said:
“As consumer preferences continue to evolve – toward more frequent vacations, closer-in vacation planning, and a greater focus on meaningful, experience-driven travel – our experiences are designed to meet these evolving expectations.
“These trends, combined with our pipeline of bold, guest-centric initiatives, position us not only to create value for our shareholders, but to continue winning share of the growing $2 trill global vacation market,” he said.
As of 30th June, 2025, the company’s liquidity position was $7.1 bill, which includes cash and cash equivalents and undrawn revolving credit facility capacity.
RCL also amended and increased its two unsecured revolving credit facilities during the quarter, bringing the combined revolving credit facilities commitments to $6.4 bill, and extending the maturity of one facility to October, 2030.
The company added that as of 30th June, 2025, the scheduled debt maturities for the remainder of 2025, 2026, 2027, and 2028 were $0.8 bill, $2.9 bill, $2.6 bill and $3.1 bill, respectively.
