In its second quarter 2025 presentation, Carnival Corp said it had exceeded 2026 SEA Change financial targets 18 months early, as the adjusted return on invested capital (ROIC) and adjusted EBITDA per available lower berth day (ALBD) reached their highest levels in nearly two decades.
Second quarter net income improved by nearly $475 mill and adjusted net income more than tripled, compared to 2024, outperforming March guidance by $185 mill.
Carnival delivered record 2Q25 revenues of $6.3 bill with record net yields (in constant currency) significantly outperforming March guidance, due to strength in both close-in demand and on board revenues.
The cumulative advanced booked position for 2026 is in line with 2025 record levels and at historical high prices (in constant currency).
At the same time, Carnival achieved all-time high customer deposits of $8.5 bill and extended and upsized its revolver capacity to $4.5 bill in June, a 50% increase.
Carnival Corp’s CEO, Josh Weinstein (pictured), said, “Our amazing team delivered yet another phenomenal quarter, more than tripling adjusted net income driven by record net yields (in constant currency) and strong close-in demand.
“We also remain on track for a strong 4% net yield growth in the second half, consistent with what we forecast back in December, which was before the complex macroeconomic and geopolitical backdrop we have all experienced in the last few months. Combined, this has enabled us to raise full year guidance again.
“On top of this, thanks to our consistent track record of significant outperformance, we have already exceeded our 2026 SEA Change financial targets a full 18 months early, increasing adjusted EBITDA per ALBD by 52% and more than doubling adjusted ROIC to over 12.5% in less than two years.
“We also met our third 2026 SEA Change commitment to cut carbon intensity by 20% from 2019 levels. That’s a win for the planet and our bottom line.
“Our strong results, booked position and outlook are a testament to the success of our ongoing strategy to deliver same-ship, high-margin revenue growth. We continue to set ourselves up well for 2026 and beyond, with so much more potential to take our margins, returns and results even higher over time,” he said.
Net income was $565 mill in 2Q25, or $0.42 diluted EPS, an improvement of nearly $475 mill, compared to 2024.
Adjusted net income was $470 mill, or $0.35 adjusted EPS1, outperforming March guidance by $185 mill led by higher ticket prices, higher on board spending and the timing of expenses between the quarters.
Carnival also reported record operating income of $934 mill and a record adjusted EBITDA of $1.5 bill, exceeded the 2024 figure by 26%.
Operating margins and adjusted EBITDA margins increased over 500 and 300 basis points, respectively, compared to 2024 and significantly exceeded 2019 levels.
Record revenues of $6.3 bill were up nearly $550 mill, compared to the previous year.
Gross margin yields were over 25% higher than 2024, while record net yields (in constant currency) were 6.4% higher than 2024 and significantly outperformed March guidance by 200 basis points.
Cruise costs per ALBD decreased 0.3%, compared to 2024. Adjusted cruise costs excluding fuel per ALBD (in constant currency) increased 3.5%, compared to 2024 primarily due to higher drydocking days and was better than March guidance, due to the timing of expenses between quarters.
“Our guests continue to look to us as their preferred vacation choice given the amazing experiences our cruise lines provide. Even with the price increases we have achieved over the last few years, our tremendous value compared to land-based alternatives has supported our ability to continue demonstrating remarkable resilience amid heightened volatility.
“In fact, close-in demand and on board spending levels were incredibly strong for second quarter sailings and our booking curve continues to be the furthest out on record,” Weinstein added.
For the full year 2025, Carnival expected:
- Net yields (in constant currency) of around 5% higher than strong 2024 levels, which were up 11% and 0.3 percentage points better than March guidance.
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up about 3.6%, compared to 2024, better than March guidance.
- Adjusted net income up over 40%, compared to 2024 and better than March guidance by $200 mill.
- Adjusted EBITDA of around $6.9 bill, up over 10%, compared to 2024 and better than March guidance.
For 3Q25, the company forecast:
- Net yields (in constant currency) up around 3.5%, compared to strong 2024 levels, which were up almost 9%.
- Adjusted cruise costs, excluding fuel per ALBD (in constant currency) up about 7%, compared to 3Q24, primarily due to operating expenses for the opening of Celebration Key, higher investment in advertising expenses and the impacts of lower 2025 capacity and favourable one-time items in 2024.
“We continued rebuilding an investment grade balance sheet, working aggressively to reduce interest expense, simplify our capital structure and manage our future debt maturities — refinancing nearly $7 bill of debt already this year at favourable rates.
“Our success has been recognised with credit rating upgrades that now put us within one notch of achieving investment grade ratings with both S&P and Fitch,” commented Carnival Corp’s CFO, David Bernstein.
“We also recently extended and upsized our revolver capacity by 50% on more favourable terms, meaningfully enhancing our liquidity. This, coupled with our well managed near-term maturity towers, enables us to opportunistically accelerate our debt reduction efforts,” Bernstein added.
Carnival ended the quarter with $27.3 bill of total debt.
