Royal Caribbean Group's 2025 Financial Report: A Year of Strong Performance and Future Growth
The cruise industry giant, Royal Caribbean Group, has released its 2025 financial report, showcasing a remarkable year of achievements. With an impressive EPS of $15.61 and Adjusted EPS of $15.64, the company exceeded its own guidance, thanks to favorable revenue trends and strong joint venture performance.
Looking ahead, the future looks bright. Royal Caribbean Group predicts a solid 2026 with Adjusted EPS expected to range from $17.70 to $18.10, representing a significant 23% CAGR over the first two years of its Perfecta program. This ambitious financial initiative aims to achieve a 20% earnings CAGR from 2024 to 2027 and a high-teen ROIC by 2027.
The company's success can be attributed to its innovative approach, investing in game-changing vacation experiences. The introduction of the Discovery Class for Royal Caribbean and the expansion of Celebrity River Cruises are set to redefine the cruise experience. Additionally, the development of five new exclusive destinations by 2028 further strengthens the company's long-term growth trajectory.
In 2025, Royal Caribbean Group achieved a Gross Margin Yield increase of 8.5% (as-reported) and a Net Yield increase of 3.8% (as-reported, 3.7% in Constant Currency). Gross Cruise Costs per Available Passenger Cruise Day (APCD) decreased slightly, while Net Cruise Costs (NCC), excluding Fuel, per APCD remained stable in Constant Currency.
The company's total revenues reached $17.9 billion, with a Net Income of $4.3 billion and an Adjusted Net Income of $4.3 billion. Adjusted EBITDA stood at $7.0 billion.
The fourth quarter of 2025 demonstrated continued growth, with Net Income of $0.8 billion and Adjusted Net Income of $0.8 billion. Gross Margin Yields and Net Yields increased compared to the previous year, and the load factor reached an impressive 108%.
One of the key highlights is the booking trend. Since the last earnings call, Royal Caribbean Group has experienced its highest seven booking weeks ever, with approximately two-thirds of 2026 capacity already booked at record rates. This success is attributed to the Cyber Sales and the WAVE season, which have driven elevated close-in bookings and increased guest spending onboard and pre-cruise purchases.
Looking forward, the company expects Net Yields to increase by 2.1% to 4.1% (as-reported) and 1.5% to 3.5% (in Constant Currency) in 2026. NCC, excluding Fuel, per APCD is projected to be 0.4% to 1.4% (as-reported) and flat to up 1.0% (in Constant Currency).
Royal Caribbean Group's commitment to innovation and expansion is evident in its recent agreements with Chantiers de l’Atlantique shipyard. The construction of the Discovery Class ships will redefine the cruise experience, while the expansion of Celebrity River Cruises will bring premium river cruise vacations to life, launching in 2027.
In summary, Royal Caribbean Group's 2025 financial report showcases a year of exceptional performance and a promising future. With a strong focus on innovation, growth, and customer satisfaction, the company is poised for continued success in the cruise industry.
