Royal Caribbean Group reports third quarter results above expectations

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 28 October 2026 28 October 2026

Royal Caribbean Group yesterday reported third quarter Earnings per Share ("EPS") of $6.45 and Adjusted EPS of $6.57. These results were better than the company's guidance, driven by strong close-in demand and lower costs due to timing. The company now expects full year Adjusted EPS to be in the range of $17.85 to $17.95. The increase in earnings expectations reflects the stronger-than-expected third quarter performance partially offset by higher than anticipated fuel costs (based on current at-the-pump rates) and currency exchange rates.

"Our third quarter results reflect continued strong consumer demand for our vacation experiences and the accelerated momentum across our industry leading brands," said Jason Liberty, Chairman and CEO, Royal Caribbean Group. "Our strategy to turn the vacation of a lifetime into a lifetime of vacations is propelling our business by leveraging our leading brands, differentiated experiences, loyalty platform and technology capabilities to deepen guest relationships, increase vacation frequency and capture a greater share of the growing global vacation market. Taking further advantage of our leading vacation platform, the recently announced partnership with Sandals and Beaches Resorts is intended to drive significant shareholder value as we expand our vacation ecosystem, giving guests more ways to vacation with us across more occasions."

"Demand for our leading vacation experiences remains strong, and while it is still early, 2027 bookings are pacing ahead of historical levels at higher rates," Liberty continued. "2027 also marks the final year of our Perfecta target period. The underlying business is performing well ahead of our initial expectations, and based on the forward fuel curve, we remain on track to achieve our Perfecta goals of delivering 20% Adjusted EPS CAGR from 2024 through 2027, or a $20-handle in 2027. We are currently already above our ROIC target."

Third quarter 2026:

– Total revenue was $5.6 billion, a 9% increase year over year. Load factor in the third quarter was 112%.
– Gross Margin Yields decreased 0.8% as-reported. Net Yields increased 0.9% as-reported and 0.6% in Constant Currency, driven by better-than-expected close-in demand in Europe and the Caribbean.
– Gross Cruise Costs per Available Passenger Cruise Days ("APCD") decreased 0.7% as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD decreased 1.9% as-reported and 1.8% in Constant Currency, due to the timing of expenses that shifted into the fourth quarter.
– Net Income was $1.7 billion or $6.45 per share, Adjusted Net Income was $1.8 billion or $6.57 per share, and Adjusted EBITDA was $2.5 billion.

Full year 2026 outlook:

– Revenue is expected to grow 9% year over year. Net Yields are expected to increase approximately 2.7% as-reported and approximately 2.1% in Constant Currency.
– NCC, excluding Fuel, per APCD are expected to increase approximately 0.4% as-reported and be approximately flat in Constant Currency.
– Adjusted EPS is expected to be in the range of $17.85 to $17.95.

Sandals and Beaches Resorts partnership

In September, Royal Caribbean Group announced an agreement to acquire a 50% interest in Sandals and Beaches Resorts, expanding the company's vacation platform into the all-inclusive resort category. The Sandals and Beaches Resorts' portfolio includes 18 resorts across the Caribbean and three resorts under development. It also includes over 1,000 acres of undeveloped land in the Caribbean, including acreage adjacent to existing resorts, creating a meaningful runway for continued growth.

Sandals and Beaches are leading brands in the all-inclusive resort category, with high brand awareness, strong guest satisfaction and a loyal customer base. The portfolio has benefited from significant investment in recent years, including physical upgrades across the resorts and continued enhancements to the guest experience. The partnership will preserve the identity, operating leadership, and Caribbean character of the brands, while providing additional resources and capabilities to support continued value creation. Approximately 30% of Royal Caribbean Group guests also take all-inclusive vacations, while a similar percentage of Sandals and Beaches guests also cruise, creating a significant opportunity to introduce each portfolio to new guests and capture a greater share of the vacations they already take.

"Our mission is to deliver the best vacation experiences responsibly. Sandals and Beaches Resorts extend our platform into an attractive adjacent category, unlocking more ways to deliver on that mission," said Jason Liberty, Chairman and CEO, Royal Caribbean Group. "Underpinned by the strength and significant growth opportunities of our core business, this investment accelerates our strategy to capture a greater share of the rapidly growing vacation market. By bringing together Sandals and Beaches' hospitality and Caribbean expertise with our global commercial reach, loyalty and technology capabilities, we see meaningful opportunities to reach new guests, increase vacation frequency, and leverage our combined scale to create additional synergies and value over time."

The investment is expected to close in early 2027, subject to customary closing conditions and regulatory approvals. The company's share of earnings from Sandals and Beaches Resorts is expected to be immediately accretive, with contribution in 2027 dependent on the timing of the transaction close. The investment is expected to be accounted for under the equity method, with results reported on a one-quarter lag. The expected contribution from Sandals and Beaches Resorts will be incorporated into the company's 2027 guidance, along with related detail, upon closing.

Third quarter 2026 results

Net Income for the third quarter of 2026 was $1.7 billion or $6.45 per share compared to Net Income of $1.6 billion or $5.74 per share for the same period in the prior year. Adjusted Net Income was $1.8 billion or $6.57 per share for the third quarter of 2026 compared to Adjusted Net Income of $1.6 billion or $5.75 per share for the same period in the prior year. The company also reported total revenues of $5.6 billion and Adjusted EBITDA of $2.5 billion.

Capacity for the third quarter was up 8% year over year and the company delivered memorable vacations to 2.7 million guests, a 9% increase year over year. Total revenue increased 9% year over year. Gross Margin Yields decreased 0.8% as-reported, and Net Yields increased 0.9% as-reported (0.6% in Constant Currency), when compared to the third quarter of 2025. Load factor for the quarter was 112%. Net Yield growth exceeded the company's guidance primarily driven by better than expected close-in demand in Europe and the Caribbean.

Gross Cruise Costs per APCD decreased 0.7% as-reported, compared to the third quarter of 2025. NCC, excluding Fuel, per APCD decreased 1.9% as-reported (and decreased 1.8% in Constant Currency), when compared to the third quarter of 2025. The better-than-expected cost performance in the third quarter was due to the timing of expenses that shifted into the fourth quarter.

Demand, bookings and Vacation Platform

Since the last earnings call, booking volumes have increased in the mid-teens across all major channels, with bookings for 2027 sailings up in the high teens, demonstrating strong demand as booking activity builds for 2027.

The company continues to see strong engagement across the vacation journey. Third quarter pre-cruise and onboard revenue rates were ahead of prior year, and fourth quarter pre-cruise revenue rates are also booked ahead of last year. The company's expanding range of products and services, together with its technology capabilities, is enabling more relevant and personalized engagement by connecting guests with the right experiences at the right time.

Fourth quarter 2026

In line with the company's prior expectation, Net Yields are expected to be 4.4% to 4.9% as-reported and 4.2% to 4.7% in Constant Currency as compared to 2025. Net Yield growth is driven by strong demand, a more favorable year-over-year comparison, deployment mix, and the timing of dry docks. Total revenue is expected to grow 9%.

NCC, excluding Fuel, per APCD is expected to decrease 1.5% to 1.0% as-reported and 1.4% to 0.9% in Constant Currency as compared to 2025.

Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be in the range of $3.48 to $3.58.

Fuel expense

Bunker pricing, net of hedging, for the third quarter was $778 per metric ton and consumption was 446,000 metric tons.

The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel prices, the company has included $379 million of fuel expense in its fourth quarter guidance, which is 58% hedged via swaps at a forecasted consumption of 463,000 metric tons.

Forecasted consumption is 58%, 53%, 29%, and 14% hedged via swaps for 2026, 2027, 2028, and 2029 respectively. The annual average cost per metric ton of the hedge portfolio is approximately $471, $405, $424, and $451 for 2026, 2027, 2028, and 2029 respectively.

Explora Journeys and Fincantieri celebrate two milestones in Sestri Ponente shipyard

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 28 October 2026 28 October 2026

Explora Journeys and Fincantieri earlier this week marked two major milestones at the Sestri Ponente shipyard. The MSC Group’s luxury ocean travel brand and the global leader in high-complexity shipbuilding celebrated two highly symbolic maritime traditions: the float-out of Explora V and the coin ceremony for Explora VI.

Following the delivery of Explora III at the end of July, construction of the Explora Journeys fleet, entrusted entirely to Fincantieri, continues at full pace. In less than two years, the fleet will reach its planned six ships: Explora IV and Explora V will both be delivered in 2027, in the spring and towards the end of the year respectively, while Explora VI will enter service in time for summer 2028.

The first three ships in the MSC luxury brand’s fleet are already sailing at full capacity across the world’s oceans, underlining the international success of the Explora Journeys concept, inspired by its Ocean State of Mind vision. This approach is redefining standards in ocean travel, combining global itineraries, iconic destinations and lesser-known ports with distinctive and refined onboard experiences, particularly across gastronomy, entertainment and wellness.

The double event was attended by numerous institutions and authorities, including Regional Councilor Federico Bogliolo, representing the President of the Liguria Region, Marco Bucci; Emilio Robotti, Councilor for Sustainable Mobility and Public Transport for the Municipality of Genoa, representing the Mayor of Genoa, Silvia Salis; the President of the Western Ligurian Sea Port Authority, Matteo Paroli; and Commander Paolo Ferrero of the Genoa Harbour Master’s Office.

Guests at the ceremony were welcomed by Pierfrancesco Vago, Executive Chairman of MSC Group’s Cruise Division; Anna Nash, President of Explora Journeys; Pierroberto Folgiero, Chief Executive Officer and Managing Director of Fincantieri; Luigi Matarazzo, General Manager of Fincantieri’s Merchant Ships Division, and Massimo Canesin, Director of Fincantieri Genoa Sestri Fincantieri Shipyard.

Anna Nash, President of Explora Journeys, and Camilla Ronco, an employee in the hull pre-assembly workshop at Fincantieri’s Sestri Ponente shipyard, served as godmothers for the Explora VI coin ceremony. Following maritime tradition, they placed two coins inside the ship’s hull as a symbol of good luck. Consuelo Brunelli, an employee in Fincantieri’s planning department, served as godmother for the ribbon-cutting ceremony marking the float out of Explora V.

Pierfrancesco Vago, Executive Chairman of the Cruise Division of the MSC Group, stated: "Today marks a fundamental milestone in the construction of the Explora Journeys fleet, which will be fully operational with all six vessels in less than two years. Built in Italy, these ships are an important expression of our long-term commitment to the country, which equally extends to the 19 Italian destinations already visited today by Explora Journeys. Through these calls, we are bringing international travellers to an increasingly broad and diverse range of Italian territories, thereby further showcasing the extraordinary beauty and riches that Italy has to offer".

Pierroberto Folgiero, Chief Executive Officer and Managing Director of Fincantieri, stated: “Fincantieri’s challenge is to evolve shipbuilding into an increasingly high-tech business by integrating new technologies into an industry traditionally characterized by high labour intensity. At Sestri Ponente, we are working to bring this transformation directly into our construction processes through artificial intelligence, robotics and automation. This journey builds on the expertise of our workforce and relies on collaboration with our industrial partners, both of which are essential to translating technological progress into practical applications. In this context, Explora V exemplifies the ability to combine beauty, functionality and innovation, introducing advanced industrial and environmental solutions in a complex sector such as shipbuilding.”

All six Explora Journeys ships are being built in Italy by Fincantieri and represent a total investment by MSC of more than €3.5 billion, which in turn is generating an economic impact of more than €15 billion in Italy, delivering significant benefits across the supply chain and supporting thousands of jobs, particularly in Genoa and Liguria, where much of the shipbuilding takes place. The construction of each ship requires more than seven million working hours and provides employment for an average of 2,500 people over a period of two to three years.

At the forefront of design, naval technology and energy efficiency, the Explora Journeys ships represent the best of Made in Italy, serving as ambassadors for Italian excellence across the world’s oceans. Their environmental technologies are particularly advanced. All ships are equipped with shore power connectivity, allowing their engines to be switched off while in port and thereby eliminating emissions from the engines while alongside.

In terms of fuel versatility, Explora V and Explora VI, like the two ships preceding them, are powered by liquefied natural gas (LNG) and are designed to operate with renewable and next-generation fuels including bio-LNG, synthetic LNG and biofuels. Explora VI will also be equipped with fuel cell technology, while Explora V is designed to accommodate this solution. These capabilities support Explora Journeys’ contribution to MSC Cruises’ long-term decarbonisation strategy.

The construction of these ships confirms Fincantieri's role as a system integrator for a broad and highly specialized industrial supply chain, which involves approximately 7,000 suppliers in Italy, largely small and medium-sized enterprises, and helps support over 90,000 jobs. Within this system, Liguria plays a strategic role, counting around 800 suppliers and over 3,600 direct employees of the Group. A local center of excellence is the Sestri Ponente shipyard, specialized in cruise ship construction, which has built 19 units since 2003 and boasts an order book stretching to 2037. The Explora Journeys program further enhances the skills of the shipyard and the local supply chain, representing the technological and industrial excellence of "Made in Italy".

Villa Vie Residences suspends operations in Cambodia as it pursues restructuring and recapitalization

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 27 October 2026 27 October 2026

Villa Vie Residences today announced that it has suspended operations in Cambodia as the company works to address extraordinary increases in fuel costs and evaluate restructuring and recapitalization alternatives.

Fuel costs have risen sharply in the regions where the company has been operating. On an equivalent per-cabin basis, monthly fuel expense that historically averaged approximately $1,800 has recently reached an estimated $6,000 to $8,000 in parts of Asia. The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure.

The company is working with residents to coordinate disembarkation and identify temporary living arrangements. Villa Vie Residences recognizes that this is a difficult and disruptive period for residents, crew members, and employees, and is working to support those affected as plans develop.

"Since the conflict began in late February, we have taken significant steps to reduce fuel consumption, including slowing the itinerary and spending more time in port. Those measures have not been enough to offset the extraordinary increase in fuel costs, and we have been unable to continue carrying the resulting operating losses. Passing the full increase on to residents is not a realistic solution. Our focus now is on supporting residents, crew, and employees while we work toward restructuring and recapitalization over the next 60 days. That work is ongoing, and no outcome is assured."

Villa Vie Residences continues to evaluate potential paths forward, but no financing or transaction has been finalized.

The company will provide further updates as material developments occur.

TUI Cruises statement on Mein Schiff 3 incident

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Written by Teijo Niemelä Teijo Niemelä

Category: More News More News

Published: 26 October 2026 26 October 2026

TUI Cruises provided the following statement on Mein Schif 3 collision yesterday:

"We confirm that there was a collision with two container ships during the sailing of the Mein Schiff 3 in the late afternoon of October 25 in Bremerhaven. The safety of our guests and crew is our highest priority. Therefore, we are very relieved that, according to the latest information, no one has been injured.

The Mein Schiff 3 is currently at the pier in Bremerhaven. Immediately after the incident, technical teams and experts began to comprehensively examine the ship. The identified damage requires immediate repair work in a shipyard.

In light of this, we have decided to cancel the planned trip to the Canaries. This decision is extremely difficult for us. We know how much our guests have looked forward to this trip and deeply regret the associated inconveniences. At the same time, we are convinced that this is the only responsible decision to ensure our high safety standards.

Our focus now is to inform our guests as best as possible, to support them, and to assist them in the next steps. We will provide further information proactively once there is reliable information."