Carnival Corporation & plc yesterday announced financial results for the second quarter 2025 and provided an updated outlook for the full year and an outlook for the third quarter 2025.

– Exceeded 2026 SEA Change financial targets 18 months early, with adjusted return on invested capital ("ROIC")1,2 and adjusted EBITDA per available lower berth day ("ALBD")1,2 reaching the highest levels in nearly two decades.
– Improved second quarter net income by nearly $475 million and adjusted net income1 more than tripled compared to 2024, outperforming March guidance by $185 million.
– Delivered record second quarter revenues of $6.3 billion with record net yields1 (in constant currency) significantly outperforming March guidance due to strength in both close-in demand and onboard revenues.
– Cumulative advanced booked position for 2026 is in line with 2025 record levels and at historical high prices (in constant currency).
– Achieved all-time high customer deposits of $8.5 billion.
– Extended and upsized its revolver capacity to $4.5 billion in June, a 50 percent increase.

According to Carnival Corporation & plc's Chief Executive Officer Josh Weinstein, "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 percent net yield growth in the second half, consistent with what we forecasted 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 percent and more than doubling adjusted ROIC to over 12.5 percent in less than two years. We also met our third 2026 SEA Change commitment to cut carbon intensity by 20 percent from 2019 levels. That's a win for the planet and our bottom line," he said.

"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."

Second quarter 2025 results

– Net income was $565 million, or $0.42 diluted EPS, an improvement of nearly $475 million compared to 2024.
– Adjusted net income of $470 million, or $0.35 adjusted EPS1, outperformed March guidance by $185 million led by higher ticket prices, higher onboard spending and the timing of expenses between the quarters.
– Record operating income3 of $934 million.
– Record adjusted EBITDA1,3 of $1.5 billion exceeded 2024 by 26 percent.
– Operating margins and adjusted EBITDA margins1 increased over 500 and 300 basis points, respectively, compared to 2024 and significantly exceeded 2019 levels.
– Record revenues3 of $6.3 billion, up nearly $550 million compared to the prior year.
– Gross margin yields were over 25 percent higher than 2024.
– Record net yields3 (in constant currency) were 6.4 percent higher than 2024 and significantly outperformed March guidance by 200 basis points.
– Cruise costs per ALBD decreased 0.3 percent compared to 2024. Adjusted cruise costs excluding fuel per ALBD1 (in constant currency) increased 3.5 percent compared to 2024 primarily due to higher dry-dock days and was better than March guidance due to the timing of expenses between quarters.
– Fuel consumption per ALBD decreased 6.3 percent compared to the prior year and was better than March guidance by approximately 300 basis points due to the company's efforts and investments to continuously improve the energy efficiency of its operations.
– Total customer deposits reached an all-time high of $8.5 billion.

Bookings

"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 onboard spending levels were incredibly strong for second quarter sailings and our booking curve continues to be the furthest out on record," Weinstein noted.

The company's cumulative advanced booked position for the remainder of the year remains strong with occupancy the second-highest on record and pricing (in constant currency) at historical highs. While early, the company's booked position for 2026 is in line with 2025 record levels (at the same time last year) and at historical high prices (in constant currency).

2025 outlook

For the full year 2025, the company expects:

– Net yields (in constant currency) approximately 5.0 percent higher than strong 2024 levels, which were up 11 percent and 0.3 percentage points better than March guidance.
– Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 3.6 percent compared to 2024, better than March guidance.
– Adjusted net income up over 40 percent compared to 2024 and better than March guidance by $200 million.
– Adjusted EBITDA of approximately $6.9 billion, up over 10 percent compared to 2024 and better than March guidance.
For the third quarter of 2025, the company expects:

– Net yields (in constant currency) up approximately 3.5 percent compared to strong 2024 levels, which were up almost 9 percent.
– Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 7.0 percent compared to the third quarter of 2024 primarily due to operating expenses for the opening of Celebration Key, higher investment in advertising expenses and the impacts of lower 2025 capacity and favorable one-time items in 2024.

Financing

"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 billion of debt already this year at favorable rates. Our success has been recognized with credit rating upgrades that now put us within one notch of achieving investment grade ratings with both S&P and Fitch," commented Carnival Corporation & plc's Chief Financial Officer David Bernstein. "We also recently extended and upsized our revolver capacity by 50 percent on more favorable 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.

The company continued its efforts to proactively manage its debt profile. Since February 28, 2025, the company has:

– Prepaid $350 million of its $1.4 billion 7.625 percent senior unsecured notes due 2026 and refinanced the remainder with $1.0 billion 5.875 percent senior unsecured notes due 2031. These transactions will reduce net interest expense by over $20 million through its original scheduled maturity in 2026.
– Upsized its euro denominated floating rate loan by $112 million, extended its maturity from 2025 to 2029 and amended its margin at a favorable rate.
– Entered into a new $4.5 billion multi-currency revolving credit facility ("New Revolver") in June, which contains an accordion feature allowing for additional commitments up to $1.0 billion. The New Revolver replaced the existing multi-currency revolving credit facility ("Revolving Facility") and will mature in June 2030.
– During the quarter, S&P upgraded the company's credit rating to BB+ with a stable outlook and Fitch upgraded the company to BB+ with a positive outlook. The company believes this is a reflection of its improved leverage metrics and its strong momentum on its continuing journey to investment grade ratings.

The company ended the quarter with $27.3 billion of total debt. As of May 31, 2025, the company's debt maturities for the remainder of 2025 and full year 2026 are $0.7 billion and $1.4 billion. The company achieved a 3.7x net debt to adjusted EBITDA1 ratio as of May 31, 2025, an improvement from 4.1x as of February 28, 2025.

Other recent highlights

– Ordered two newbuilds for AIDA Cruises, scheduled to be delivered in fiscal years 2030 and 2032, introducing a new mid-size class ship and bringing its newbuild pipeline to eight ships through 2033 (learn more here).
– Carnival Cruise Line announced it will launch "Carnival Rewards," a new loyalty program, in June 2026. The program will be a cruise-industry first by tying status, benefits and rewards to spending on cruise fares and onboard activities. It will also add new features, new ways to earn status and new reward categories.
Introduced the Paradise Collection by Carnival, which will include the following:
– Celebration Key, its new exclusive destination on Grand Bahama Island, opening in July 2025, which will feature five portals built for fun offering an abundance of features and amenities for guests.
– RelaxAway, Half Moon Cay, its highly rated and award-winning exclusive destination in the Bahamas, which will be enhanced and expanded to feature a newly constructed pier in the summer of 2026.
– Mahogany Bay, its port destination in Roatan, Honduras, will be renamed to Isla Tropicale in 2026 and expanded to include a pool with a swim up bar and cabanas, beach expansion and a private beach club.
– More enhancements to come for its Caribbean destinations.
– Named one of America's Best Employers for New Grads in 2025 by Forbes (learn more here).
– Sold Costa Fortuna and recorded a gain on the sale. The ship is expected to leave the fleet in September 2026.