Royal Caribbean Group shares slipped Tuesday after the cruise operator reported third-quarter 2025 earnings that beat profit expectations but slightly missed revenue forecasts, leaving investors cautious despite upbeat full-year guidance.

The results highlighted resilient travel demand and strong onboard spending, but also reflected higher operating costs and currency headwinds.

The company reported earnings per share of $5.74 and adjusted EPS of $5.75, topping the $5.67 analyst estimate. Revenue came in at $5.139 billion, just below expectations of $5.163 billion.

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Net income for the quarter was $1.6 billion, compared with $1.1 billion. Adjusted net income rose to $1.6 billion, from $1.4 billion in the prior-year period. Adjusted EBITDA reached $2.3 billion.

Key Operating and Cost Metrics

Gross margin yields grew 3.8% as-reported, while net yields advanced 2.8% (or 2.4% in constant currency). Load factor reached 112%, up one percentage point from the previous year. Capacity increased 2.9% year over year, with 2.5 million guests, a 7% increase.

Gross cruise costs per available passenger cruise day rose 2.7%, while net cruise costs excluding fuel increased 4.8% as reported and 4.3% in constant currency. Cost growth came in nearly 200 basis points lower than guidance, reflecting continued operational discipline.

Bookings remained strong, with load factors and pricing at record levels for 2025 and 2026. About 50% of onboard revenue during the quarter was booked pre-cruise, with 90% of those purchases made digitally.

Liquidity, Shareholder Returns, and Fuel Expense

As of Sept. 30, liquidity stood at $6.8 billion, including cash, equivalents, and available credit facilities. The company repurchased about 1.3 million shares during the quarter, with $345 million remaining under its current authorization. The board approved a 33% dividend increase to $1.00 per share.

Fuel expense totaled $694 per metric ton on consumption of 428,000 metric tons, with fourth-quarter fuel expense projected at $286 million on 438,000 metric tons of consumption, 68% hedged via swaps.

CEO Commentary

CEO Jason Liberty said the company continues to see “strong momentum across our business, powered by accelerated demand, growing loyalty, and guest satisfaction that is at all-time highs.” He added that 2026 earnings per share are expected “to have a $17 handle,” positioning Royal Caribbean to meet its 2027 Perfecta targets.

The company also announced plans for Royal Beach Club Santorini, set to open in 2026, expanding its land-based destinations from two to eight by 2028.

Outlook

For the fourth quarter, Royal Caribbean expects capacity to increase 10.3% year over year, with net yields projected to rise 2.6% to 3.1% as reported and 2.2% to 2.7% in constant currency.

Adjusted EPS is expected to be between $2.74 and $2.79, which is below the $2.89 analyst estimate.

The company raised its full-year 2025 adjusted EPS guidance from $15.41–$15.55 to $15.58–$15.63, representing roughly 32% year-over-year growth, though slightly under the $15.67 consensus.

Net yields are expected to increase 3.5% to 4%, while net cruise costs excluding fuel per available passenger cruise day should remain roughly flat in constant currency.

Price Action: RCL shares were trading lower by 9.72% to $289.15 premarket at last check Tuesday.

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