Royal Caribbean Group posted solid fourth-quarter results on Thursday as strong demand, higher yields, and cost controls supported year-over-year earnings growth to close out the year.

The cruise operator reported adjusted earnings of $2.80 per share, in line with expectations, on revenue of $4.259 billion, which missed the $4.262 billion consensus estimate. GAAP EPS for the quarter was $2.76, compared with $2.02 a year earlier.

Net income rose to $0.8 billion from $0.6 billion, while adjusted EBITDA totaled $1.5 billion.

Quarterly revenue increased from $3.761 billion in the prior-year period, supported by a load factor of 108%. Gross Margin Yields increased 9.2% as reported, while Net Yields rose 3.1% year over year.

Net Cruise Costs, excluding fuel, per APCD, declined 5.8% year over year, as reported, compared with the fourth quarter of 2024.

Full-Year Results

For the full-year 2025, Royal Caribbean reported GAAP EPS of $15.61 and adjusted EPS of $15.64. Total revenue rose to $17.935 billion from $16.484 billion in 2024, while net income totaled $4.3 billion and adjusted EBITDA reached $7.0 billion. Operating cash flow for the year was $6.465 billion.

Full-year occupancy was 109.7%, with 9.45 million passengers carried. Gross Margin Yields increased 8.5% as reported, and Net Yields rose 3.8%. Net Cruise Costs excluding fuel per APCD were down slightly on a constant-currency basis.

The company said Cyber Sales and the start of WAVE season produced the “highest seven booking weeks in the company’s history.” About two-thirds of 2026 capacity is booked at record rates, with continued strength in close-in demand.

Onboard and pre-cruise spending exceeded prior years, with nearly 50% of 2025 onboard revenue booked pre-cruise.

Liquidity and Capital Allocation

Liquidity stood at $7.2 billion as of Dec. 31, 2025, including cash and undrawn revolver capacity, with cash and equivalents of $825 million.

During the fourth quarter, the company repurchased 1.8 million shares for $504 million, completing a $1 billion repurchase program and leaving $1.8 billion remaining under current authorization. Scheduled debt maturities were outlined through 2030.

Outlook

Royal Caribbean guided for first-quarter 2026 adjusted EPS of $3.18 to $3.28, above the $2.92 estimate. For full-year 2026, the company expects adjusted EPS of $17.70 to $18.10, compared with the $17.66 consensus, driven by 6.7% higher capacity and yield growth.

Guidance includes a 30-basis-point headwind from itinerary modifications in China, and management cited risks tied to tariffs, fuel prices, currency, and interest rates.

“WAVE is off to a great start and we continue to see strong and growing preference for our leading brands and differentiated vacation experiences. We expect another strong year of financial performance with both revenue and earnings  growing double digits, and we remain on track to achieve our Perfecta goals by 2027,” commented Jason Liberty, Chairman and CEO, Royal Caribbean Group.

Portfolio Expansion

Separately, Celebrity River Cruises announced commitments for 10 additional river ships, expanding its fleet to 20 vessels by 2031, and opened bookings for its 2028 European deployment featuring an 80% increase in destinations versus its inaugural 2027 season.

Celebrity Cruises is headquartered in Miami and is part of Royal Caribbean Group.

Royal Caribbean also announced agreements with Chantiers de l’Atlantique for its new Discovery Class ships, including two firm orders with options for four more. The first ship is scheduled to debut in 2029, followed by a second delivery in 2032.

RCL Price Action: Royal Caribbean shares were up 8.11% at $315.25 during premarket trading on Thursday, according to Benzinga Pro data.

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