Royal Caribbean Reports Strong 2025 Results, Issues Robust 2026 Guidance, and Announces Major Fleet Expansion
Summary
Royal Caribbean Group reported better-than-expected 2025 results, issued robust 2026 guidance with double-digit growth, and announced major fleet expansion plans for both ocean and river cruises, supported by record bookings.
Key Events
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Exceeded 2025 Financial Guidance
Reported full-year 2025 Adjusted EPS of $15.64, surpassing previous guidance, with Net Yields increasing 3.8% and Adjusted EBITDA reaching $7.0 billion.
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Robust 2026 Earnings Outlook
Issued strong 2026 Adjusted EPS guidance of $17.70 to $18.10, anticipating double-digit revenue and earnings growth driven by 6.7% higher capacity.
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Record Booking Momentum
Experienced the highest seven booking weeks in company history during the recent 'WAVE season,' with approximately two-thirds of 2026 capacity booked at record rates.
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Strategic Fleet and Portfolio Expansion
Announced two firm orders for new 'Discovery Class' ships for Royal Caribbean (debuting 2029, 2032) and a commitment for 10 new Celebrity River Cruises vessels, expanding its fleet to 20 by 2031.
Analysis
Royal Caribbean Group delivered strong financial results for 2025, exceeding its guidance with Adjusted EPS of $15.64, driven by favorable revenue and joint venture performance. The company provided a very positive outlook for 2026, projecting Adjusted EPS between $17.70 and $18.10, representing double-digit revenue and earnings growth. This optimistic guidance is supported by a record-breaking 'WAVE season' with the highest seven booking weeks in company history and two-thirds of 2026 capacity already booked at record rates. Furthermore, the company announced significant strategic investments, including two firm orders for new 'Discovery Class' ships for Royal Caribbean and a commitment for 10 new Celebrity River Cruises vessels, signaling substantial long-term growth and expansion of its vacation portfolio. The company also continued its share repurchase program, buying back $504 million in Q4 2025. These combined factors indicate strong operational momentum, effective capital allocation, and a clear growth trajectory, reinforcing investor confidence.
At the time of this filing, RCL was trading at $311.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $79.5B. The 52-week trading range was $164.01 to $366.50. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.