Carnival Corp achieved a record high net income of $1.9 bill and adjusted net income of $2 bill during the third quarter of this year.
As a result, the group raised its full year 2025 adjusted net income guidance for the third quarter in a row, due to improved net yields and effective cost and balance sheet management; now expected to be up nearly 55% year-on-year.
In 3Q25, Carnival also delivered record revenues of $8.2 bill, the highest for the 10th consecutive quarter, and all-time high net yields (in constant currency) outperforming June guidance, due to strong close-in demand.
Adjusted 3Q25 EBITDA was $3 bill.
Cumulative advanced booked position for 2026 remained strong, in line with 2025 record levels and at historical high prices (in constant currency).
During the period, the group refinanced $4.5 bill of debt, simplifying its capital structure and prepaid an additional $0.7 bill of debt.
“This was a phenomenal quarter, delivering all-time high net income and our 10th consecutive quarter of record revenues.
“Strong demand and on board spending drove a 4.6% improvement in net yields (in constant currency), all of which was achieved on a same ship basis,” said Carnival Corp’s CEO, Josh Weinstein (pictured).
“Adjusted return on invested capital reached 13% for the first time in nearly 20 years, a clear testament to the continued improvement in our operational execution—driven not only by consistently strong performance from Carnival Cruise Line and AIDA, but also great advancement across the rest of our portfolio of world class brands.
“We also welcomed our game changing new exclusive destination, Celebration Key, to rave guest reviews and overwhelming media coverage. It joins our unparalleled footprint of seven Caribbean gems that are set to host 8 mill guest visits next year.
“And as beaches are the number one preferred destination for vacationing Americans, our miles upon miles of some of the most beautiful beaches in the world are well-positioned to attract even more first-time cruisers while offering our loyal guests yet another great reason to come back soon.
“Even with our rapid progress, we believe we have ample opportunity to increase same ship net yields and further close the unbelievable price-to-value gap versus land based vacation alternatives, pushing margins and returns even higher over time,” Weinstein said.
Gross margin yields were 6.4% higher than 2024, while record high net yields (in constant currency) were 4.6% higher than the year before and outperformed June guidance by 1.1 points.
Cruise costs per available lower berth day (ALBD) increased 4.6%, compared to 2024. Adjusted cruise costs excluding fuel per ALBD (in constant currency) increased 5.5%, compared to 2024, some 1.5 points better than June guidance.
Fuel consumption per ALBD decreased 5.2%, compared to the previous year, due to the company’s efforts and investments to continuously improve the energy efficiency of its operations.
In addition, record third quarter customer deposits of $7.1 bill surpassed the previous record as at 31st August, 2024.
“Since May, booking trends have continued to strengthen with higher booking volumes than last year and far outpacing capacity growth.
“This momentum affirms the success of our brands’ demand generation efforts and the amazing experiences we continue to deliver, driving excess demand and ongoing pricing strength.
“With nearly half of 2026 booked, which is in line with 2025 record levels (at the same time last year) but now at historical high prices (in constant currency) for both our North America and Europe segments, we have built a strong base of business for next year.
“Looking further ahead, 2027 is already off to a great start, achieving record booking volumes during the third quarter,” Weinstein added.
For the full year 2025, the company forecast:
- Net yields (in constant currency) up around 5.3%, compared to 2024, 0.3 percentage points better than June guidance.
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up about 3.3%, compared to 2024, better than June guidance.
- Adjusted net income up nearly 55%, compared to 2024 and better than June guidance by $235 mill.
- Adjusted EBITDA of about $7.05 bill, up 15%, compared to 2024 and better than June guidance.
For the fourth quarter of 2025, the company predicted:
- Net yields (in constant currency) up around 4.3%, compared to record 2024 levels, consistent with the company’s previous expectation.
- Adjusted net income up over 60%, compared to 4Q24.
“With our current refinancing strategy nearly complete, we’ve continued taking decisive actions to strengthen our balance sheet by simplifying our capital structure, reducing interest expense and managing our future debt maturities,” commented Carnival Corp’s CFO, David Bernstein. “This year alone, we’ve opportunistically refinanced over $11 bill of debt and prepaid another $1 bill.
“With that and today’s redemption notice for all our outstanding convertible notes, which if converted will be settled with a mix of cash and equity, we’re closing in on our near-term target of reaching investment grade leverage metrics.
“Our focus is now on driving our net debt to adjusted EBITDA ratio to under 3x, as we continue boosting our financial strength,” he said.
During 3Q25, the company continued its refinancing strategy to reduce interest expense and manage its maturity towers, while reducing secured debt by nearly $2.5 bill.
The company issued two senior unsecured notes: $1.2 bill at 4.125%, due in 2031 and $3 bill at 5.75%, due in 2032. In addition, the company entered into a $400 mill loan agreement.
The combined proceeds from these financings, together with cash on hand, were used to repay over $5 bill of debt.
These transactions reflect the company’s continued focus on strengthening its capital structure and enhancing its financial flexibility, Carnival said.
Carnival ended the quarter with total debt of $26.5 bill. As of 31st August , 2025, the company’s debt maturities for 4Q25 and full year 2026 are $0.3 bill and $1.4 bill, respectively.
The company achieved a 3.6x net debt to adjusted EBITDA ratio as of the end of August, an improvement from 4.7x as at 31st August, 2024.
Subsequently, on 30th September, Carnival Corp announced that it had priced its private offering of $1.25 bill aggregate principal amount of 5.125% senior unsecured notes, due 2029.
The company expects to use the proceeds from the notes offering, together with cash on hand, to redeem its $2 bill 6% senior unsecured notes, due 2029, after the closing of the notes offering.
This transaction is a continuation of the company’s strategy to reduce interest expense. In addition, the indenture that will govern the notes will have investment grade-style covenants.
The notes offering is expected to close on 15th October, 2025, subject to customary closing conditions.
They will pay interest semi-annually on 1st May and November each year, beginning in May, 2026 at a rate of 5.125% per year.
The notes will be unsecured and will mature on 1st May, 2029.
They will be fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by Carnival and certain of the company’s and Carnival’s subsidiaries that also guarantee the first-priority secured debt, certain of the other unsecured notes and the convertible notes.
