Cruising: Royal Caribbean Posts Another Strong Quarter

Royal Caribbean Group shares fell yesterday after the cruise operator’s revenue expectation for the third quarter came up short, despite a better-than-expected quarterly profit and an improved outlook for the full-year.

Financial analyst expectations aside, Royal Caribbean Group is doing just fine thanks.

The company is raising its full year 2025 Adjusted Earnings Per Share guidance, forecasting 32% year-over-year growth. It says the increase is mainly driven by better-than-expected third quarter performance, which is more than offsetting the minimal impact in the fourth quarter from recent adverse weather and the unplanned extension of the temporary closure of one of the company’s exclusive destinations in Labadee, Haiti.

“We continue to see strong momentum across our business, powered by accelerated demand, growing loyalty, and guest satisfaction that is at all-time highs,” said Royal Caribbean Group President and CEO Jason Liberty. 

“Looking ahead, while it’s still early in the planning process, our strong booked position gives us confidence for 2026 and beyond. With our proven formula of moderate yield growth, strong cost controls, and disciplined capital allocation, we expect 2026 earnings per share to have a $17 handle, positioning us well to achieve our 2027 Perfecta targets.”

“Today’s announcement of the new Royal Beach Club Santorini, opening in 2026, reflects our vision to redefine how the world vacations and increases our land-based destination portfolio from two to eight by 2028,” added Liberty. 

“We are focused on building for the future through innovative ships, a growing portfolio of exclusive destinations, technology, and AI that enhance every step of the guest journey. Together, these investments strengthen guest loyalty and attract new travellers, positioning us to win more share of the fast-growing $2 trillion vacation market and further setting us up for robust shareholder returns well beyond the Perfecta target period.”

Third Quarter 2025 Highlights: 

Load factor was 112%.

Gross Margin Yields were up 3.8% as-reported. 

Net Yields were up 2.8% as-reported and 2.4% in Constant Currency.

Total revenues were $5.1 billion, Net Income was $1.6 billion or $5.74 per share, Adjusted Net Income was $1.6 billion or $5.75 per share, and Adjusted EBITDA was $2.3 billion.