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California State Teachers Retirement System raised its stake in shares of Royal Caribbean Cruises Ltd. (NYSE:RCL – Free Report) by 34,251.2% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 118,498,068 shares of the company’s stock after purchasing an additional 118,153,108 shares during the period. California State Teachers Retirement System owned 44.31% of Royal Caribbean Cruises worth $37,626,692,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Capital International Investors increased its stake in Royal Caribbean Cruises by 9.8% during the fourth quarter. Capital International Investors now owns 36,165,358 shares of the company’s stock worth $10,088,156,000 after acquiring an additional 3,215,382 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Royal Caribbean Cruises in the 2nd quarter valued at about $6,549,422,000. Capital Research Global Investors lifted its stake in shares of Royal Caribbean Cruises by 4.8% in the 4th quarter. Capital Research Global Investors now owns 20,176,544 shares of the company’s stock valued at $5,627,669,000 after purchasing an additional 920,042 shares in the last quarter. State Street Corp grew its holdings in shares of Royal Caribbean Cruises by 0.8% during the 3rd quarter. State Street Corp now owns 10,576,751 shares of the company’s stock worth $3,433,052,000 after purchasing an additional 84,202 shares during the period. Finally, Geode Capital Management LLC increased its position in Royal Caribbean Cruises by 2.3% during the 4th quarter. Geode Capital Management LLC now owns 7,054,191 shares of the company’s stock worth $1,961,758,000 after purchasing an additional 155,491 shares in the last quarter. 87.53% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling In other news, CEO Michael Bayley sold 12,811 shares of the company’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the completion of the transaction, the chief executive officer directly owned 45,297 shares of the company’s stock, valued at approximately $14,313,399.03. This represents a 22.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.44% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth Several research firms recently commented on RCL. Citigroup raised their price target on shares of Royal Caribbean Cruises from $327.00 to $362.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Truist Financial dropped their price objective on shares of Royal Caribbean Cruises from $318.00 to $297.00 and set a “hold” rating for the company in a research report on Friday, May 22nd. Loop Capital assumed coverage on shares of Royal Caribbean Cruises in a research note on Monday, June 1st. They issued a “hold” rating and a $304.00 target price on the stock. William Blair reaffirmed an “outperform” rating on shares of Royal Caribbean Cruises in a research report on Tuesday, July 28th. Finally, Susquehanna increased their price target on Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a “positive” rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Royal Caribbean Cruises presently has a consensus rating of “Moderate Buy” and an average price target of $353.40. Get Our Latest Stock Report on RCL

Royal Caribbean Cruises Trading Down 0.1% NYSE RCL opened at $265.02 on Monday. The stock has a market cap of $70.88 billion, a P/E ratio of 16.38, a PEG ratio of 0.95 and a beta of 1.74. The company’s fifty day simple moving average is $297.09 and its 200-day simple moving average is $287.50. The company has a current ratio of 0.21, a quick ratio of 0.19 and a debt-to-equity ratio of 2.03. Royal Caribbean Cruises Ltd. has a 52 week low of $232.10 and a 52 week high of $362.79.

Royal Caribbean Cruises (NYSE:RCL – Get Free Report) last announced its earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.98 by $0.23. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The company had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.82 billion. During the same period in the prior year, the company posted $4.38 EPS. Royal Caribbean Cruises’s quarterly revenue was up 6.5% on a year-over-year basis. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. Equities research analysts predict that Royal Caribbean Cruises Ltd. will post 17.78 EPS for the current fiscal year.

Royal Caribbean Cruises Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Investors of record on Thursday, September 17th will be given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Thursday, September 17th. Royal Caribbean Cruises’s dividend payout ratio is currently 37.08%.

(Free Report)

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.

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The ocean cruising industry can use a lifeboat. All three of the largest players are currently sporting double-digit percentage declines over the past year. Royal Caribbean (RCL -0.54%) -- the second-largest operator by revenue but the largest by market cap -- is faring the best with its 14% decline. The stock is also down 20% from last summer's all-time high.

The overall market is naturally higher at that time. The industry that seemed so resilient a year ago -- one of the more impressive turnaround stories in the travel sector -- is starting to take on water.

Let's take a look at the momentum reversal at Royal Caribbean and then head to the port of potential opportunity.

Image source: Getty Images.

Crashing waves Royal Caribbean led the way out of the COVID-19 crisis. After having to shut down most of its operations for more than a year -- and a gradual ramp-up of its sailings -- Royal Caribbean became the first to achieve full-year profitability in 2023. It was also the first cruise line to reinstate its quarterly dividend.

The initial surge in pent-up demand would eventually cool down. It happened to other travel stocks that didn't face the same regulatory obstacles the cruise lines did.

However, this year's war with Iran has hurt Royal Caribbean in two substantial ways. The biggest culprit is the rise in oil prices, a major cost component on sailings. Harder to quantify, a second obstacle is the rising concern about safety. The lion's share of Royal Caribbean's sailings takes place in the sunny Caribbean, far from the contentious Strait of Hormuz, but it's still a potential detriment to bookings.

Royal Caribbean's latest quarter was a mixed bag. Revenue rose a modest 6%, its second-weakest top-line growth since resuming operations five years ago. Adjusted earnings declined for the first time since returning to profitability, held back by an 11% jump in operating expenses. Higher fuel prices, as well as rising food and labor costs, led to a contraction in margins.

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Opportunity is knocking on your cabin door The quarter wasn't as bad as it could've been. Royal Caribbean actually raised its earnings guidance following the report. It did pare back its full-year revenue target, but demand remains buoyant. Bookings for next year remain ahead of historical levels.

Royal Caribbean's outlook for all of 2026 calls for revenue to climb 9%. Even after the step back on the bottom line in the second quarter, Royal Caribbean is targeting adjusted earnings per share between $17.73 and $17.87, a 14% increase at the midpoint.

The growth forecast is impressive, especially heading into the third quarter, seasonally the strongest for the industry. The business keeps growing, notching record highs even if the stock can't. Trailing revenue is up 71% from its pre-pandemic 2019 peak. Net income has more than tripled.

You can buy Royal Caribbean for 16 times the midpoint of this year's adjusted earnings guidance. The stock's dividend -- raised four times since being reinstated -- yields a respectable 1.7%. Capital appreciation remains the ultimate goal, but the quarterly distributions will help patient investors ride out the current correction storm.

, /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has completed its registered public offering of $1.25 billion aggregate principal amount of 5.550% senior unsecured notes due 2034 (the "Notes"). The Notes will mature on January 20, 2034, unless earlier redeemed or repurchased.

The Company intends to use the net proceeds from the sale of the Notes to repay a portion of the outstanding borrowings under its floating rate term loan facilities and any remaining net proceeds to repay or refinance other existing indebtedness.

BNP Paribas Securities Corp., BofA Securities, Inc. and Citigroup Global Markets Inc. acted as lead book-running managers for the offering.

The Notes were offered and sold pursuant to an automatic shelf registration statement (including a prospectus) that was filed by the Company with the Securities and Exchange Commission on February 29, 2024, and became effective upon filing.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Special Note Regarding Forward-Looking Statements

Certain statements in this press release relating to, among other things, the offering and sale of the Notes constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to: statements regarding terms of the offering of the Notes and the intended use of proceeds. Words such as "anticipate," "believe," "committed," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "encouraged," "project," "shaping up," "position," "allows," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause the Company's actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment on key aspects of the Company's business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service; incidents or adverse publicity concerning the Company's ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on the Company's business; risks related to the Company's sustainability activities; the impact of issues at shipyards, including ship delivery delays or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity; inability to manage the Company's cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market the Company's cruises; reliance on third-party service providers; potential unavailability of insurance coverage; disease outbreaks and increased concern about the risk of illness on the Company's ships or when travelling to or from the Company's ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; the risks and costs related to cyber security attacks, data breaches, protecting the Company's systems and maintaining data integrity and security; uncertainties of a foreign legal system as the Company is not incorporated in the United States; the Company's ability to obtain sufficient financing or capital to fund its capital expenditures, operations, debt repayments and other financing needs; the Company's expectation and ability to pay a cash dividend on its common stock in the future; changes to the Company's dividend policy; growing anti-tourism sentiments and environmental concerns; changes in U.S. or other countries' foreign travel policy; impact of new or changing legislation and regulations (including environmental regulations) or governmental orders on the Company's business; fluctuations in foreign currency exchange rates, fuel prices and interest rates; further impairments of the Company's goodwill, long-lived assets, equity investments and notes receivable; an inability to source crew or provisions and supplies from certain places; the Company's ability to recruit, develop and retain high quality personnel; and pending or threatened litigation, investigations and enforcement actions.

Forward-looking statements should not be relied upon as predictions of actual results. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the Company on the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Royal Caribbean Group

Royal Caribbean Group is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 71 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands - Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises, which operates the Mein Schiff and Hapag-Lloyd brands.

SOURCE Royal Caribbean Group

Key Takeaways RCL beat Q2 profit and revenue estimates, supported by stronger revenues, lower costs and joint ventures.RCL sees 2027 bookings ahead of historical levels, with elevated loads and higher year-over-year pricing.RCL held its 2026 yield view as Mediterranean softness offset strong close-in demand and Caribbean pricing. Royal Caribbean Cruises Ltd. (RCL - Free Report) framed its second-quarter call around resilient demand, stronger close-in bookings and a higher full-year earnings outlook. Management said geopolitical disruption is limiting Mediterranean yield upside.

Investor attention shifted to Caribbean pricing, the 2027 booking curve and the company’s ability to expand its vacation ecosystem while maintaining cost discipline.

RCL Raises Outlook on Broad-Based ExecutionRCL reported adjusted earnings of $4.21 per share, above the Zacks Consensus Estimate of $3.97. Revenues of $4.83 billion topped the $4.81 billion consensus figure.

Executive vice president and chief financial officer (CFO) Naftali Holtz said stronger revenues, lower costs and favorable joint-venture performance drove the result. Net yields rose 1.2% in constant currency as capacity increased 5%.

The CFO said cost favorability was mainly timing-related, with expenses shifting later. Adjusted EBITDA reached $1.8 billion.

Royal Caribbean Sees Demand Holding FirmChairman and chief executive officer (CEO) Jason Liberty said consumers remain focused on travel and experiences, though some are choosing closer destinations and booking nearer departure dates for flexibility.

The CEO said June and July demand was strong after a modest May slowdown. The 2026 and 2027 book positions remain at record pricing, while onboard spending and pre-cruise purchases exceed the prior-year levels.

Executive vice president and CFO Naftali Holtz said 2027 bookings are pacing ahead of historical levels, including affected itineraries. Management emphasized that higher volumes are being secured at higher prices.

RCL Keeps Yield View as Europe WeighsRCL maintained its 2026 constant-currency net yield growth outlook of 1.75% to 2.25%. Revenues are expected to rise 9% as capacity grows 6.6%, while net cruise costs excluding fuel remain roughly flat.

Jason Liberty said Mediterranean demand remains healthy but below earlier expectations because the Middle East conflict has persisted. Without that pressure, management would have raised its second-half yield outlook.

Naftali Holtz projected roughly flat third-quarter yields, 8.5% capacity growth and adjusted earnings of $6.26 to $6.36 per share. He expects fourth-quarter yields to reaccelerate as deployment mix and dry-dock timing reverse a roughly two-point third-quarter headwind.

Royal Caribbean Deepens Guest EngagementLiberty highlighted loyalty and technology as central to raising repeat rates and lifetime guest value. The Royal ONE card has exceeded sign-up and spending expectations, while Points Choice and Status Match generated more than 500,000 enrollments.

The CEO also said more than 90% of guests use the app, and more than half of onboard revenues are purchased before embarkation. That data supports more relevant recommendations across dining, entertainment and destinations.

The connected platform also includes new ships, private destinations and Celebrity River Cruises. The CEO said stakeholder discussions are expected to affect Mahahual’s prior timeline, though RCL remains committed to the development.

RCL Defends Caribbean Pricing in Q&AA Stifel analyst asked whether heavier competitor promotions were affecting Caribbean pricing. Liberty said differentiated ships, destinations, loyalty tools and high guest satisfaction provide insulation, with demand remaining strong into 2027.

A UBS analyst pressed management on 2027 load factors and pricing. Holtz and Liberty said booked load is near elevated historical levels, while pricing is higher year over year.

A Morgan Stanley analyst asked whether later booking behavior could soften load factors. The CEO said RCL prioritizes price integrity and may accept lower loads in disrupted markets, but close-in demand has supported higher pricing rather than discounting.

Royal Caribbean Stays Focused on ReturnsManagement’s closing posture combined growth investment with balance-sheet and capital-return discipline. RCL ended the quarter with $6.9 billion of liquidity and leverage below three times.

The company returned more than $600 million through dividends and repurchases. The CEO and CFO tied 2027 ambitions to moderate yield growth, cost control and selective capital deployment rather than ideal market conditions.

Zacks Signals Show a Mixed but Balanced SetupRCL carries a Zacks Rank #3 (Hold). Its Value and Growth Score is C each, while the Momentum Score is A and the VGM Score is B, indicating stronger momentum and a favorable combined style profile alongside middling value and growth characteristics.

Style Scores complement the Zacks Rank, with the strongest historical combinations centered on Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks paired with A or B scores. RCL’s current setup is less decisive, and the Zacks Rank can change as earnings estimates are revised after the reported results. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Royal Caribbean pairs record pricing with fleet growth, private destinations and new river cruises.Capacity is set to rise 6.6% in 2026, 4% in 2027 and 6% in 2028 as newer ships join the fleet.2026 revenues are expected to grow 9%, while adjusted EPS is projected at $17.73-$17.87. Royal Caribbean Cruises Ltd. (RCL - Free Report) is pairing record pricing with a broader vacation platform built around ships, destinations, loyalty and technology.

The central question for investors is whether these initiatives can widen RCL’s addressable market while supporting earnings growth and cash generation through a heavy investment cycle.

Royal Caribbean Demand Holds at Record PricingIn the second quarter of 2026, capacity increased 5% year over year, and Royal Caribbean carried nearly 2.4 million guests. Constant-currency net yields rose 1.2%, coming in ahead of guidance.

Close-in demand was better than expected, led by Caribbean products and onboard revenue. RCL’s 2026 booked position remains in line with prior years at record pricing, while early 2027 bookings are pacing ahead of historical levels.

RCL Expands Its Fleet and Vacation PortfolioFleet expansion remains a core growth lever. Royal Caribbean took delivery of Legend of the Seas in the second quarter, adding another Icon-class platform to its portfolio.

The orderbook includes additional Icon-class, Oasis-class and Discovery-class ships. Capacity is expected to rise 6.6% in 2026, followed by 4%, 6% and 7% in 2027, 2028 and 2029, respectively, giving RCL a measured expansion runway.

Newer ships support premium pricing, onboard spending and repeat travel by adding differentiated experiences. Carnival Corporation Ltd. (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) also compete for vacation spending, making product distinction an important part of the cruise investment debate.

Royal Caribbean Builds a Private Destination EdgeRoyal Caribbean plans to expand its private destination portfolio from three locations to eight by 2028. These assets are becoming a larger part of its effort to control more of the vacation experience.

Perfect Day is expected to draw nearly four million guests in 2026, while Royal Beach Club Nassau has become the company’s highest-rated Bahamas experience. Private destinations can help RCL differentiate itineraries, retain more guest spending and connect ship and shore experiences under one ecosystem.

RCL Adds River Cruises to Its Growth PlatformCelebrity River Cruises gives Royal Caribbean another vacation occasion rather than a replacement for ocean cruising. Management has described river cruising as incremental to its existing platform.

The first vessels, Celebrity Compass and Celebrity Seeker, are scheduled for delivery in 2027, followed by additional ships in 2028. RCL can use its distribution, loyalty infrastructure and customer data to market these trips to existing Celebrity and Royal Caribbean guests.

Royal Caribbean Targets Higher Earnings and Cash FlowRoyal Caribbean expects 2026 revenues to grow 9%, supported by capacity growth and constant-currency net yield gains. Adjusted earnings per share are projected to rise 14% year over year to $17.73-$17.87.

The company ended the second quarter with $6.9 billion of liquidity, while leverage was below three times. RCL also returned more than $600 million to shareholders during the quarter through dividends and share repurchases.

Still, execution discipline matters. Capital expenditures are expected to be approximately $4.7 billion in 2026, mainly tied to the new ship orderbook and land-based destination initiatives.

RCL Signals Balanced Growth With a Hold RatingRoyal Caribbean has several visible growth drivers, including record pricing, private destinations, newer ships, digital engagement and river cruising. The offset is that major fleet and destination investments require careful timing, cost control and demand resilience.

The stock currently carries a Zacks Rank #3 (Hold). That rank points to a balanced near-term setup, with strong operating momentum weighed against execution risks and recent estimate movement.

RCL has a Momentum Score of A and a VGM Score of B, signaling favorable share-price and combined style characteristics. Its Value Score of C and Growth Score of C suggest a more neutral profile on those individual measures, keeping the overall investment case balanced rather than one-sided.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Royal Caribbean Group (NYSE: RCL) today reported second quarter Earnings per Share ("EPS") of $4.20 and Adjusted EPS of $4.21. These results were better than the company's guidance, driven by strong close-in demand, lower costs, and favorable performance from joint ventures. The company now expects full year Adjusted EPS to be in the range of $17.73 to $17.87. The increase in earnings expectations reflects the stronger-than-expected second quarter performance and an improved outlook for the remainder of the year. This outlook incorporates a modest booking impact for select itineraries primarily due to prolonged geopolitical activity.

"The strong second quarter performance demonstrates the continued strength of our brands, the appeal of our vacation experiences, and the momentum in our business," said Jason Liberty, Chairman and CEO, Royal Caribbean Group. "We expect another year of approximately double-digit growth in revenue and earnings, driven by consumers' preference for our leading brands and supported by our strong booked position, leading margin profile, and fortified balance sheet."

"We continue to expand, elevate and differentiate our portfolio of vacation experiences," Liberty added. "Legend of the Seas, which launched earlier this month as the third ship in our Icon class, is part of a platform that is reshaping the cruising experience and delivering exceptional returns. Its successful debut represents another important milestone in the execution of our innovation pipeline as we continue to redefine the vacation experience. At the same time, we are deepening guest engagement through our loyalty and technology platforms - strengthening our relationships with guests, increasing repeat rates, and positioning us to capture a greater share of the growing $2 trillion global vacation market."

Second Quarter 2026:

Total revenue was $4.8 billion, a 6% increase year over year. Load factor in the second quarter was 110%. Gross Margin Yields decreased 5.6% as-reported. Net Yields increased 1.9% as-reported and 1.2% in Constant Currency. Gross Cruise Costs per Available Passenger Cruise Days ("APCD") increased 4.5% as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD increased 4.4% as-reported and 3.9% in Constant Currency. Net Income was $1.1 billion or $4.20 per share, Adjusted Net Income was $1.1 billion or $4.21 per share, and Adjusted EBITDA was $1.8 billion. Full Year 2026 Outlook:

Revenue is expected to grow 9% year over year. Net Yields are expected to increase 2.35% to 2.85% as-reported and 1.75% to 2.25% 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 $17.73 to $17.87, representing 14% year over year growth, and a 23% CAGR over the first two years of the company's Perfecta program, which targets a 20% earnings CAGR from 2024 to 2027 and ROIC in the high teens by 2027. Second Quarter 2026 Results
Net Income for the second quarter of 2026 was $1.1 billion or $4.20 per share compared to Net Income of $1.2 billion or $4.41 per share for the same period in the prior year. Adjusted Net Income was $1.1 billion or $4.21 per share for the second quarter of 2026 compared to Adjusted Net Income of $1.2 billion or $4.38 per share for the same period in the prior year. The company also reported total revenues of $4.8 billion and Adjusted EBITDA of $1.8 billion.

Capacity for the second quarter was up 5% year over year and the company delivered memorable vacations to 2.4 million guests, a 6% increase year over year. Total revenue increased 6% year over year. Gross Margin Yields decreased 5.6% as-reported, and Net Yields increased 1.9% as-reported (1.2% in Constant Currency), when compared to the second quarter of 2025. Load factor for the quarter was 110%. Net Yield growth exceeded the company's guidance primarily driven by better than expected close-in demand.

Gross Cruise Costs per APCD increased 4.5% as-reported, compared to the second quarter of 2025. NCC, excluding Fuel, per APCD increased 4.4% as-reported (and 3.9% in Constant Currency), when compared to the second quarter of 2025. The better-than-expected cost performance in the second quarter was primarily driven by favorable timing of expenses.

Update on Bookings and Onboard Revenue
The overall demand environment remains strong, supported by consumers' continued preference for the company's differentiated experiences. Since the last earnings call, the company has experienced a modest, near-term impact on bookings for select itineraries, primarily due to prolonged geopolitical activity. The company remains booked at record prices, booking volumes are above last year's levels, and load factors remain robust across its vacation portfolio. The company continues to benefit from strong guest engagement and demand for onboard and destination experiences, supported by ongoing enhancements to its product offerings and more targeted pre-cruise engagement.

"Consumer demand for our vacation experiences is strong, and guests continue to demonstrate a desire to spend on memorable experiences with us," said Naftali Holtz, Chief Financial Officer, Royal Caribbean Group. "As we build a broader vacation platform, we are giving guests more reasons to vacation with Royal Caribbean across more occasions, while reinforcing our ability to drive higher engagement and spend over time. While still very early, booking trends for 2027 are encouraging and pacing ahead of historical levels, including for itineraries where demand was impacted by geopolitical developments this year."

Third Quarter 2026
Net Yields are expected to be approximately flat as-reported and in Constant Currency as compared to 2025, reflecting continued healthy demand and pricing at record levels leading to expected total revenue growth of 8%.

NCC, excluding Fuel, per APCD, is expected to decrease 1.7% to 1.2% as-reported and 1.6% to 1.1% 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 third quarter Adjusted EPS to be in the range of $6.26 to $6.36.

Fuel Expense
Bunker pricing, net of hedging, for the second quarter was $839 per metric ton and consumption was 422,000 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 $362 million of fuel expense in its third quarter guidance at a forecasted consumption of 441,000 metric tons, which is 58% hedged via swaps.

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 $474, $405, $424, and $451 for 2026, 2027, 2028, and 2029 respectively.

The company provided the following guidance for the third quarter and full year 2026:

FUEL STATISTICS

Third Quarter 2026

Full Year 2026

Fuel Consumption (metric tons)

441,000

1,756,000

Fuel Expenses

$362 million

$1,338 million

Third Quarter 2026

Remainder of Year 2026

Percent Hedged (fwd. consumption)

58.0 %

58.0 %

GUIDANCE

As-Reported

Constant Currency

Third Quarter 2026

Net Yields vs. 2025

Approximately Flat

Approximately Flat

Net Cruise Costs per APCD vs. 2025

0.3% to 0.8%

0.4% to 0.9%

Net Cruise Costs per APCD ex. Fuel vs. 2025

(1.7)% to (1.2)%

(1.6)% to (1.1)%

Full Year 2026

Net Yields vs. 2025

2.35% to 2.85%

1.75% to 2.25%

Net Cruise Costs per APCD vs. 2025

Approximately 1.7%

Approximately 1.4%

Net Cruise Costs per APCD ex. Fuel vs. 2025

Approximately 0.4%

Approximately Flat

GUIDANCE

Third Quarter 2026

Full Year 2026

APCDs

14.9 million

56.9 million

Capacity change vs. 2025

8.5 %

6.6 %

Depreciation and amortization

$485 to $495 million

$1,905 to $1,915 million

Net Interest, excluding loss on extinguishment of debt

$255 to $265 million

$980 to $990 million

Adjusted EPS

$6.26 to $6.36

$17.73 to $17.87

SENSITIVITY

Third Quarter 2026

Full Year 2026

1% Change in Net Yields

$45 million

$156 million

1% Change in NCC excluding Fuel

$18 million

$73 million

Third Quarter 2026

Remainder of Year 2026

1% Change in Currency

$8 million

$14 million

10% Change in Fuel prices

$13 million

$26 million

100 basis pt. Change in SOFR

$0.2 million

$1.8 million

Exchange rates used in guidance calculations

GBP

$1.34

AUD

$0.70

CAD

$0.71

EUR

$1.14

Liquidity
As of June 30, 2026, the Group's liquidity position was $6.9 billion, which includes cash and cash equivalents and undrawn revolving credit facility capacity. In July, the company increased its revolving credit facility capacity by $250 million, through the accordion feature, to a total capacity of $6.6 billion.

During the second quarter, the company returned over $600 million to shareholders through $199 million of share repurchases, totaling 0.8 million shares, and $404 million of dividend payments. The company has $805 million remaining under its current share repurchase program authorization.

The company noted that as of June 30, 2026, the scheduled debt maturities for 2026, 2027, 2028, 2029 and 2030 were $0.9 billion, $2.7 billion, $3.4 billion, $1.2 billion, and $1.3 billion respectively.

Capital Expenditures and Capacity Guidance
Capital expenditures for the full year 2026 are expected to be approximately $4.7 billion, based on current foreign exchange rates and are predominantly related to the company's new ship order book and land-based destination initiatives. The company took delivery of Legend of the Seas during the second quarter. In April the company also announced orders for Icon VI and Icon VII, with committed financing in place. Non-new ship related capital expenditures are expected to be $1.6 billion.

Capacity changes for 2026 are expected to be 6.6% compared to 2025. Capacity changes for 2027, 2028, and 2029 are expected to be 4%, 6%, and 7%, respectively. These figures do not include potential ship sales or additions that the company may elect in the future.

Conference call scheduled
The company has scheduled a conference call at 10 a.m. Eastern Time today. This call can be heard, either live or on a delayed basis, on the company's investor relations website at www.rclinvestor.com. 

Definitions
Selected Operational and Financial Metrics

Adjusted Earnings per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. (as defined below) divided by weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis.

Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful when assessing our profitability on a comparative basis. For the periods presented, these items included (i) other income; (ii) restructuring charges and other initiative expenses; and (iii) equity investment impairment, (recovery) of losses and other.

Adjusted EBITDA Margin is a non-GAAP measure that represents Adjusted EBITDA (as defined above) divided by total revenues.

Adjusted Gross Margin represents Gross Margin, adjusted for payroll and related, food, fuel, other operating, and depreciation and amortization expenses. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization.

Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd., excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense; (ii) restructuring charges and other initiative expenses; (iii) the amortization of the Silversea intangible assets resulting from the Silversea acquisition; (iv) gain on sale of noncontrolling interest; and (v) equity investment impairment, recovery of losses, and other.

Adjusted Operating Income is a non-GAAP measure that represents operating income including income from equity investments and provision for income taxes but excluding certain items for which we believe adjusting for is meaningful when assessing our operating performance on a comparative basis. We use this non-GAAP measure to calculate ROIC (as defined below).

Available Passenger Cruise Days ("APCD") is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period, which excludes canceled cruise days and cabins not available for sale. We use this measure to perform capacity and rate analysis to identify our main non-capacity drivers that cause our cruise revenue and expenses to vary.

Constant Currency is a significant measure for our revenues and expenses, which are denominated in currencies other than the U.S. Dollar. Because our reporting currency is the U.S. Dollar, the value of these revenues and expenses in U.S. Dollar will be affected by changes in currency exchange rates. Although such changes in local currency prices are just one of many elements impacting our revenues and expenses, it can be an important element. For this reason, we also monitor our revenues and expenses in "Constant Currency" - i.e., as if the current period's currency exchange rates had remained constant with the comparable prior period's rates. We calculate "Constant Currency" by applying the average of the prior period exchange rates for each of the corresponding months, of the reported and/or forecasted period, so as to calculate what the results would have been had exchange rates been the same throughout both periods. We do not make predictions about future exchange rates and use current exchange rates for calculations of future periods. It should be emphasized that the use of Constant Currency is primarily used by us for comparing short-term changes and/or projections. Over the longer term, changes in guest sourcing and shifting the amount of purchases between currencies can significantly change the impact of the purely currency-based fluctuations.

EBITDA is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) provision for income taxes. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis.

Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.

Gross Margin Yield represent Gross Margin per APCD.

Invested Capital represents the most recent five-quarter average of total debt (i.e., Current portion of long-term debt plus Long-term debt) plus the most recent five-quarter average of Total shareholders' equity. We use this measure to calculate ROIC (as defined below).

Net Cruise Costs and Net Cruise Costs excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs excluding Fuel, fuel expenses. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs excluding Fuel to be the most relevant indicators of our cost performance. For the periods presented, Net Cruise Costs and Net Cruise Costs excluding Fuel excludes restructuring charges and other initiative expenses.

Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.

Occupancy ("Load factor"), in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.

Passenger Cruise Days ("PCD") represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.

Perfecta Program refers to the multi-year Adjusted EPS and ROIC goals we are seeking to achieve by end of 2027. Under our Perfecta Program, we are targeting 20% compound annual growth rate in Adjusted EPS compared to 2024 and ROIC of 17% or higher by the end of 2027.

Return on Invested Capital ("ROIC") represents Adjusted Operating Income divided by Invested Capital. We believe ROIC is a meaningful measure because it quantifies how efficiently we generated operating income relative to the capital we have invested in the business.

For additional information see "Adjusted Measures of Financial Performance" below.

About Royal Caribbean Group
Royal Caribbean Group is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 71 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands -Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises which operates the Mein Schiff and Hapag-Lloyd brands.

The Group is expanding its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations.

Named to the Fortune World's Most Admired Companies 2026 list and to Forbes' 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly. For more information, visit www.royalcaribbeangroup.com. 

Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release relating to, among other things, our future performance estimates, forecasts and projections constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: statements regarding revenues, costs and financial results for 2026 and beyond; anticipated timing for launch of private destinations, our progress toward achievement of our Perfecta program; demand for our brands; expectations on river cruise offerings; future capital expenditures; and expectations regarding our credit profile and fuel expenses. Words such as "anticipate," "believe," "committed," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "encouraged," "project," "shaping up," "position," "allows," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment, including changing tariffs and the related uncertainty thereof, on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service; disease outbreaks and increased concern about the risk of illness on our ships or when travelling to or from our ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on our business; risks related to our sustainability activities; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity and overcapacity; inability to manage our cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market our cruises; reliance on third-party service providers; potential unavailability of insurance coverage; the risks and costs related to cyber security attacks, data breaches, protecting our systems and maintaining data integrity and security; uncertainties of a foreign legal system as we are not incorporated in the United States; our ability to obtain sufficient financing or capital to fund our capital expenditures, operations, debt repayments and other financing needs; our expectation and ability to pay a cash dividend on our common stock in the future; changes to our dividend policy; growing anti-tourism sentiments and environmental concerns; changes in U.S. or other countries' foreign travel policy; impact of new or changing legislation and regulations (including environmental regulations) or governmental orders on our business; fluctuations in foreign currency exchange rates, fuel prices and interest rates; further impairments of our goodwill, long-lived assets, equity investments and notes receivable; an inability to source our crew or our provisions and supplies from certain places; our ability to recruit, develop and retain high quality personnel; and pending or threatened litigation, investigations and enforcement actions.

More information about factors that could affect our operating results is included under the caption "Risk Factors" in our most recent annual report on Form 10-K, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures defined as non-GAAP financial measures under Securities and Exchange Commission rules, which we believe provide useful information to investors as a supplement to our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles, or U.S. GAAP.

The presentation of adjusted financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. These measures may be different from adjusted measures used by other companies. In addition, these adjusted measures are not based on any comprehensive set of accounting rules or principles. Adjusted measures have limitations in that they do not reflect all of the amounts associated with our results of operations as do the corresponding U.S. GAAP measures.

A reconciliation to the most comparable U.S. GAAP measure of all adjusted financial measures included in this press release can be found in the tables included at the end of this press release. We have not provided a quantitative reconciliation of the projected non-GAAP financial measures to the most comparable GAAP financial measures because preparation of meaningful U.S. GAAP projections would require unreasonable effort. Due to significant uncertainty, we are unable to predict, without unreasonable effort, the future movement of foreign exchange rates, fuel prices and interest rates inclusive of our related hedging programs. In addition, we are unable to determine the future impact of non-core business related gains and losses which may result from strategic initiatives. These items are uncertain and could be material to our results of operations in accordance with U.S. GAAP. Due to this uncertainty, we do not believe that reconciling information for such projected figures would be meaningful.

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in millions, except per share data)

Quarter Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Passenger ticket revenues

$         3,344

$       3,199

$      6,365

$      5,942

Onboard and other revenues

1,488

1,339

2,919

2,595

Total revenues

4,832

4,538

9,284

8,537

Cruise operating expenses:

Commissions, transportation and other

622

606

1,186

1,128

Onboard and other

288

262

501

463

Payroll and related

405

329

806

669

Food

262

246

526

486

Fuel

355

279

619

557

Other operating

615

561

1,157

1,061

Total cruise operating expenses

2,547

2,283

4,795

4,362

Marketing, selling and administrative expenses

513

508

1,095

1,071

Depreciation and amortization expenses

464

417

925

829

Operating Income

1,307

1,329

2,469

2,275

Other income (expense):

Interest income

5

12

10

15

Interest expense, net of interest capitalized

(236)

(228)

(514)

(477)

Equity investment income

67

107

151

155

Other income

7

11

9

15

Income before income taxes

1,150

1,232

2,126

1,983

Provision for income taxes

(14)

(17)

(39)

(33)

Net Income

1,136

1,214

2,086

1,950

Less: Net Income attributable to noncontrolling interest

8

5

16

10

Net Income attributable to Royal Caribbean Cruises Ltd.

$         1,128

$       1,210

$      2,070

$      1,940

Earnings per Share:

Basic

$          4.21

$        4.45

$       7.70

$       7.17

Diluted

$          4.20

$        4.41

$       7.68

$       7.10

Weighted-Average Shares Outstanding:

Basic

268

272

269

270

Diluted

268

275

270

275

Comprehensive Income (Loss)

Net Income

$         1,136

$       1,214

$      2,086

$      1,950

Other comprehensive income (loss):

Foreign currency translation adjustments

—

(9)

—

(26)

Change in defined benefit plans

6

4

4

—

(Loss) gain on cash flow derivative hedges

(137)

181

84

309

Total other comprehensive (loss) income

(131)

176

88

283

Comprehensive Income

1,005

1,391

2,174

2,233

Less: Comprehensive Income attributable to noncontrolling interest

8

5

16

10

Comprehensive Income attributable to Royal Caribbean Cruises Ltd.

$           997

$       1,386

$      2,158

$      2,222

__________________________________________________

Certain amounts may not add or calculate due to use of rounded numbers.

ROYAL CARIBBEAN CRUISES LTD.

STATISTICS

(unaudited)

Quarter Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Passengers Carried

2,399,066

2,254,057

4,908,738

4,495,730

Passenger Cruise Days

14,962,211

14,277,894

29,835,410

28,046,226

APCD

13,572,396

12,942,385

27,275,099

25,600,377

Occupancy

110.2 %

110.3 %

109.4 %

109.6 %

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

As of

June 30,

December 31,

2026

2025

(unaudited)

Assets

Current assets

Cash and cash equivalents

$                875

$                825

Trade and other receivables, net

441

317

Inventories

267

264

Prepaid expenses and other assets

803

690

Derivative financial instruments

47

115

Total current assets

2,433

2,211

Property and equipment, net

38,251

35,696

Operating lease right-of-use assets

618

620

Goodwill

808

808

Other assets

2,534

2,284

Total assets

$             44,644

$             41,619

Liabilities and Shareholders' Equity

Current liabilities

Current portion of long-term debt

$              1,573

$              3,180

Current portion of operating lease liabilities

71

90

Accounts payable

1,093

953

Accrued expenses and other liabilities

2,165

2,026

Derivative financial instruments

17

67

Customer deposits

6,736

5,739

Total current liabilities

11,655

12,055

Long-term debt

21,263

18,165

Long-term operating lease liabilities

611

600

Other long-term liabilities

654

554

Total liabilities

34,183

31,374

Shareholders' equity

Preferred stock ($0.01 par value; 20,000,000 shares authorized; none outstanding)

—

—

Common stock ($0.01 par value; 500,000,000 shares authorized; 303,877,626  and 303,054,848 shares issued, June 30, 2026
and December 31, 2025, respectively)

3

3

Paid-in capital

7,896

7,964

Retained earnings

7,187

5,925

Accumulated other comprehensive loss

(516)

(604)

Treasury stock (36,429,278 and 32,631,826 common shares at cost, at June 30, 2026  and December 31, 2025, respectively)

(4,334)

(3,251)

Total shareholders' equity attributable to Royal Caribbean Cruises Ltd.

10,236

10,037

Noncontrolling Interest

225

208

Total shareholders' equity

10,461

10,245

Total liabilities and shareholders' equity

$             44,644

$             41,619

ROYAL CARIBBEAN CRUISES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOW

(unaudited; in millions)

Six Months Ended June 30,

2026

2025

Operating Activities

Net Income

$           2,086

$           1,950

Adjustments:

Depreciation and amortization

925

829

Net deferred income tax (benefit) expense

(2)

4

Loss (Gain) on derivative instruments not designated as hedges

8

(56)

Share-based compensation expense

68

92

Equity investment income

(151)

(155)

Amortization of debt issuance costs, discounts and premiums

14

46

Loss on extinguishment of debt and inducement expense

60

10

Changes in operating assets and liabilities:

Increase in trade and other receivables, net

(138)

(51)

(Increase) decrease in inventories

(3)

17

Increase in prepaid expenses and other assets

(133)

(142)

Increase in accounts payable

6

24

Decrease in accrued expenses and other liabilities

(107)

(21)

Increase in customer deposits

996

883

Other, net

65

(57)

Net cash provided by operating activities

3,694

3,373

Investing Activities

Purchases of property and equipment

(3,237)

(1,264)

Cash received on settlement of derivative financial instruments

109

111

Cash paid on settlement of derivative financial instruments

(18)

(11)

Investments in and loans to unconsolidated affiliates

(43)

(77)

Cash received on loans from unconsolidated affiliates

—

70

Other, net

(13)

25

Net cash used in investing activities

(3,202)

(1,146)

Financing Activities

Debt proceeds

5,716

730

Debt issuance costs

(103)

(28)

Repayments of debt

(4,193)

(1,945)

Repurchase of common stock

(1,035)

(241)

Dividends paid

(674)

(348)

Payments of withholding tax on stock awards

(191)

(62)

Other, net

39

7

Net cash used in financing activities

(441)

(1,887)

Effect of exchange rate changes on cash and cash equivalents

(1)

7

Net increase in cash and cash equivalents

50

347

Cash and cash equivalents at beginning of period

825

388

Cash and cash equivalents at end of period

$            875

$            735

Supplemental Disclosure

Cash paid during the period for:

Interest, net of amount capitalized

$            431

$            443

Non-cash Investing Activities

Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities

$            248

$             61

ROYAL CARIBBEAN CRUISES LTD.

NON-GAAP RECONCILING INFORMATION

(unaudited)

Gross Margin Yields, Net Yields and Adjusted Gross Margin per PCD are calculated as follows (in millions, except APCD, PCD, Yields, and Adjusted Gross Margin per PCD. Certain amounts may not add or calculate due to the use of rounded numbers):

Quarter Ended June 30,

Six Months Ended June 30,

2026

2026 On a
Constant
Currency Basis

2025

2026

2026 On a
Constant
Currency Basis

2025

Total revenues

$         4,832

$         4,802

$         4,538

$         9,284

$         9,188

$         8,537

Less:

Cruise operating expenses

2,547

2,538

2,283

4,795

4,763

4,362

Depreciation and amortization expenses

464

464

417

925

929

829

Gross Margin

1,820

1,801

1,838

3,564

3,495

3,345

Add:

Payroll and related

405

405

329

806

805

669

Food

262

262

246

526

526

486

Fuel

355

355

279

619

619

557

Other operating

615

609

561

1,157

1,139

1,061

Depreciation and amortization expenses

464

464

417

925

929

829

Adjusted Gross Margin

$         3,922

$         3,896

$         3,670

$         7,597

$         7,515

$         6,946

APCD

13,572,396

13,572,396

12,942,385

27,275,099

27,275,099

25,600,377

Passenger Cruise Days

14,962,211

14,962,211

14,277,894

29,835,410

29,835,410

28,046,226

Gross Margin Yields

$       134.11

$       132.66

$       142.00

$       130.69

$       128.15

$       130.67

Net Yields

$       288.95

$       287.05

$       283.56

$       278.54

$       275.51

$       271.33

Adjusted Gross Margin per PCD

$       262.11

$       260.39

$       257.03

$       254.64

$       251.87

$       247.67

ROYAL CARIBBEAN CRUISES LTD.

NON-GAAP RECONCILING INFORMATION

(unaudited)

Gross Cruise Costs, Net Cruise Costs and Net Cruise Costs excluding Fuel are calculated as follows (in millions, except APCD and costs per APCD. Certain amounts may not add or calculate due to the use of rounded numbers):

Quarter Ended June 30,

Six Months Ended June 30,

2026

2026 On a
Constant
Currency Basis

2025

2026

2026 On a
Constant
Currency Basis

2025

Total cruise operating expenses

$         2,547

$         2,538

$         2,283

$         4,795

$         4,763

$         4,362

Marketing, selling and administrative expenses

513

511

508

1,095

1,086

1,071

Gross Cruise Costs

3,060

3,049

2,791

5,890

5,849

5,433

Less:

Commissions, transportation and other

622

619

606

1,186

1,174

1,128

Onboard and other

288

288

262

501

499

463

Net Cruise Costs including other costs

2,150

2,142

1,923

4,203

4,175

3,842

Less:

Restructuring charges and other initiatives expenses (1)

—

—

3

3

3

6

Net Cruise Costs

2,150

2,142

1,920

4,200

4,173

3,837

Less:

Fuel

355

355

279

619

619

557

Net Cruise Costs excluding Fuel

$         1,796

$         1,788

$         1,641

$         3,581

$         3,554

$         3,280

APCD

13,572,396

13,572,396

12,942,385

27,275,099

27,275,099

25,600,377

Gross Cruise Costs per APCD

$       225.48

$       224.62

$       215.68

$        215.95

$       214.44

$        212.22

Net Cruise Costs per APCD

$       158.42

$       157.83

$       148.34

$        154.00

$       152.99

$        149.88

Net Cruise Costs excluding Fuel per APCD

$       132.30

$       131.71

$       126.76

$        131.30

$       130.29

$        128.14

(1) These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).

ROYAL CARIBBEAN CRUISES LTD.

NON-GAAP RECONCILING INFORMATION

(unaudited)

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are calculated as follows (in millions, except APCD and per APCD data. Certain amounts may not add or calculate due to the use of rounded numbers):

Quarter Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net Income attributable to Royal Caribbean Cruises Ltd.

$         1,128

$         1,210

$        2,070

$        1,940

Interest income

(5)

(12)

(10)

(15)

Interest expense, net of interest capitalized

236

228

514

477

Depreciation and amortization expenses

464

417

925

829

Provision for income taxes

14

17

39

33

EBITDA

1,837

1,860

3,538

3,264

Other income

(7)

(11)

(9)

(15)

Restructuring charges and other initiative expenses (1)

—

3

3

6

Equity investment impairment, (recovery) of losses and other

—

(1)

—

(1)

Adjusted EBITDA

$         1,830

$         1,851

$        3,532

$        3,252

Total revenues

$         4,832

$         4,538

$        9,284

$        8,537

APCD

13,572,396

12,942,385

27,275,099

25,600,377

Net Income attributable to Royal Caribbean Cruises Ltd. per APCD

$         83.13

$         93.47

$        75.89

$        75.76

Adjusted EBITDA per APCD

$       134.84

$       143.00

$      129.50

$      127.04

Adjusted EBITDA Margin

37.9 %

40.8 %

38.0 %

38.1 %

(1)  These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).

ROYAL CARIBBEAN CRUISES LTD.

NON-GAAP RECONCILING INFORMATION

(unaudited)

Adjusted Net Income attributable to Royal Caribbean Cruises Ltd., and Adjusted Earnings per Share are calculated as follows (in millions, except per share data. Certain amounts may not add or calculate due to the use of rounded numbers):

Quarter Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net Income attributable to Royal Caribbean Cruises Ltd.

$           1,128

$           1,210

$          2,070

$          1,940

Loss on extinguishment of debt and inducement expense (1)

—

—

29

10

Restructuring charges and other initiative expenses (2)

—

3

3

6

Amortization of Silversea intangible assets resulting from the Silversea acquisition (3)

2

2

3

3

Gain on sale of noncontrolling interest (4)

—

(11)

—

(11)

Equity investment impairment, (recovery) of losses and other

—

(1)

—

(1)

Adjusted Net Income attributable to Royal Caribbean Cruises Ltd.

$           1,130

$           1,202

$          2,105

$          1,946

Earnings per Share - Diluted (5)

$            4.20

$            4.41

$           7.68

$           7.10

Adjusted Earnings per Share - Diluted (6)

$            4.21

$            4.38

$           7.81

$           7.09

Weighted-Average Shares Outstanding - Diluted

268

275

270

275

(1)

For 2026, includes the loss on extinguishment of debt associated with redemptions of the senior notes maturing in 2026. For 2025, includes $10 million of inducement expense related to the settlements of the 2025 6.00% convertible notes. These amounts are included in Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss).

(2)

These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss).

(3)

Represents the amortization of the Silversea intangible assets resulting from the 2018 Silversea acquisition.

(4)

For 2025, represents gain on sale of noncontrolling interest of Floating Docks and Grand Bahama Shipyard. These amounts are included in Other income within our consolidated statements of comprehensive income (loss).

(5)

For 2025, diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $1 million and $16 million for the quarter and for the six months ended June 30, 2025, respectively.

(6)

For 2025, Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $1 million and $6 million for the quarter and six months ended June 30, 2025, respectively.

SOURCE Royal Caribbean Group

Key Takeaways RCL opened Royal Beach Club Santorini, where strong demand supports its destination-led strategy.RCL expects Cozumel in early 2028, with Perfect Day Mexico and Costa Maya due in late 2027.RCL expects Perfect Day Mexico, Royal Beach Club Cozumel and Icon-class ships to strengthen Galveston demand. Royal Caribbean Cruises Ltd. (RCL - Free Report) is expanding its private-destination portfolio as part of a broader effort to support multi-year yield growth through differentiated vacation experiences. The strategy can strengthen itinerary appeal across key cruise markets and support pricing power over time.

Following the launch of Royal Beach Club Paradise Island, RCL recently opened Royal Beach Club Santorini, a core element of its “ultimate Santorini Day” experience. Strong demand for the beach club underscores the value of proprietary destinations in enhancing the company’s vacation offering and reinforcing its competitive positioning.

The next phase of the pipeline is concentrated in the Caribbean and Mexico. Royal Beach Club Cozumel is expected to open in early 2028, while Perfect Day Mexico and Costa Maya are expected to open in late 2027 and ramp in early 2028. These projects are expected to further differentiate RCL’s itinerary portfolio and contribute to yield growth over time.

Perfect Day Mexico also gives RCL a larger opportunity in the Gulf and Texas markets. The project, together with Royal Beach Club Cozumel and Icon-class ships, is expected to strengthen the company’s position in Galveston and expand its reach across drivable markets. Texas remains underpenetrated relative to Florida, giving RCL room to build demand over time.

Royal Caribbean’s ability to extend this momentum will likely depend on whether its private destinations can support stronger guest demand and improve monetization as new assets open and ramp. If the portfolio scales successfully, destination-led differentiation could become a meaningful driver of RCL’s multi-year yield growth.

How RCL’s Destination Strategy Compares With PeersCarnival Corporation Ltd. (CCL - Free Report) is building its destination strategy around scale, capacity and itinerary differentiation. The company has enhanced Celebration Key’s capacity profile through a pier expansion, enabling the destination to accommodate up to four ships and more than 13,000 guests per day. RelaxAway, Half Moon Cay can accommodate two of CCL’s largest ships at the same time. Together, these assets allow CCL to offer two differentiated beach experiences within a single itinerary, strengthening its Caribbean value proposition.

CCL’s strategy also extends beyond individual destinations. Its Paradise Collection is expected to welcome more than 9 million guest visits next year. About 85% of CCL’s Caribbean itineraries are expected to include at least one exclusive destination, while nearly half are expected to include two or more of these destinations on the same sailing. The company is also leveraging Isla Tropicale in Roatán, Puerta Maya in Cozumel and its integrated Alaska land-and-sea platform, creating a broad destination footprint across both beach and experiential cruise markets.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is pursuing a more focused destination upgrade strategy through Great Stirrup Cay. Great Tides Waterpark is expected to enhance the island’s offering, improve the guest experience and become a demand driver moving into 2027. NCLH also expects fourth-quarter net yields to improve from the third quarter, partly supported by the waterpark opening by the end of the third quarter.

Against this backdrop, RCL’s private-destination strategy remains highly relevant but increasingly competitive. CCL is using scale and destination density to strengthen Caribbean itinerary appeal, while NCLH is upgrading Great Stirrup Cay to support demand and yield improvement. For RCL, Royal Beach Club Cozumel, Perfect Day Mexico, Costa Maya and its beach-club platform will likely be important in sustaining itinerary differentiation, pricing power and multi-year yield growth.

RCL’s Price Performance, Valuation & EstimatesShares of Royal Caribbean have gained 16.1% in the past three months compared with the industry’s 13.9% growth.

RCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, RCL trades at a forward price-to-earnings (P/E) ratio of 17.11, below the industry’s average of 17.22.

RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year uptick of 10.4%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of RCL Stock
Image Source: Zacks Investment Research

RCL’s Zacks RankRCL stock currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Royal Caribbean Cruises Today

RCL

Royal Caribbean Cruises

$323.96 +14.43 (+4.66%)

As of 09:53 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$232.10▼

$366.50Dividend Yield1.85%

P/E Ratio19.63

Price Target$345.58

The cruise industry is rising, and Royal Caribbean Cruises NYSE: RCL is sailing along with it.

The Miami-based company, which reported double-digit increases in this year’s first three months, is projecting further growth through the end of this year.

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Analysts are positive on the direction of the stock. And the company is investing in the future with new destinations and a giant, new ship.

The combination of strong results and forward confidence is what most growth-oriented investors want to see.

But after a remarkable runup in share price over the past few years, is the timing right to get into the stock, or has the easy money already been made?

Royal Caribbean Delivers Another Strong QuarterSo far this year, the numbers are convincing. Royal Caribbean reported that net income in the first three months came in at $950 million, or $3.48 per diluted share, an increase of nearly 30% year-over-year.

Adjusted earnings were $1 billion, or $3.60 per share, topping analysts’ projections, thanks to strong demand and last-minute bookings coming in better than expected. Costs also ran slightly below forecast. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $1.7 billion from $1.4 billion in the year-ago period.

Overall revenue also saw a notable increase, rising 11% year-over-year, though slightly below analysts’ expectations. For the first quarter, revenue hit $4.45 billion, up from $4 billion a year earlier, and just under the $4.46 billion that analysts had projected.

Importantly, there was little sign that Royal Caribbean was filling its ships through aggressive discounting, which can help it hit revenue targets but erode profit margins in the process. Royal Caribbean’s numbers showed premium pricing holding firm and onboard spending, such as excursions, restaurants, and spa services, adding to the bottom line.

Management Expects Growth to ContinueWith the first quarter results, management continued to project growth for the year. 2025 was already impressive as the company reported adjusted net income of $4.3 billion, or earnings per share of $15.64, an increase of over 30% from the year before. Adjusted EBITDA was $7 billion, up 18% for the year.

Growth for this year is already evident. The company said passengers carried for the first quarter rose to 2.5 million, from 2.24 million a year earlier. Passenger cruise days were up to 14.9 million from 13.8 million. And the increase in passengers is expected to continue.

For full-year 2026, the company said it’s now looking at adjusted earnings per share in a range of $17.10 to $17.50 per share, representing likely double-digit growth. On a constant-currency net yield basis—an important measure in the industry to gauge revenue efficiency—the company is expecting growth of 1.5% to 2.5% for the full year.

Expansion Plans Support Long-Term StrategyPlans for further growth are also moving ahead. Royal Caribbean, already one of the world’s largest cruise vacation brands, has a fleet of 69 ships and is adding to that number. The company recently began work on a seventh Oasis-class ship, the largest class of cruise vessels, signaling confidence that demand for premium ocean travel will remain strong well into the next decade.

In addition, the company is pushing into more branded experiences that passengers can’t find with other cruise lines or by staying at premium, all-inclusive resorts. It is increasingly investing in private island destinations and branded experiences, including a hotel to help service Antarctica.

Analysts Still See More UpsideWall Street generally likes what it sees. Even with a significant increase in the price of the stock, analysts generally believe the earnings story has more room to run. The stock is up 12% this year and 16% over the past 12 months.

Of the 21 analysts following the stock, the overall consensus rates it a Moderate Buy. Fifteen analysts have tagged it a Buy, five suggest Hold, and one recommends Sell. With an average 12-month price target of $345.53, investors are looking at just over a 10% jump assuming the target is met. Other analysts, however, are tagging the target as high as $425, while the lowest price target is $280.

Valuation Leaves Less Room for ErrorRoyal Caribbean Cruises Dividend PaymentsDividend Yield1.93%

Annual Dividend$6.00

Dividend Increase Track Record1 Year

Annualized 5-Year Dividend Growth35.02%

Dividend Payout Ratio36.61%

Next Dividend PaymentJul. 2

RCL Dividend History

That potentially limited one-year upside is precisely the factor that investors should consider. The recovery story, post-pandemic, has already played out. Royal Caribbean shares are up a whopping 250% over the past five years.

The dividend yield sits just below 2%, which means this is not a stock to buy for income. It’s a company whose value depends on earnings growth, brand strength, and continued execution.

Risks for the industry are also ever-present. Cruises are planned for months in advance, which means any demand slowdown can show up in bookings well before it hits earnings. If U.S. consumers pull back on discretionary spending, whether because of job concerns, credit stress, or general uncertainty, premium bookings can compress very quickly.

Current projections have already been scaled back slightly for 2026 compared with the guidance the company gave at the start of the year. Changes and uncertainties in the global outlook, potential currency fluctuations, and evolving booking patterns led to the adjustment.

Growth Story Remains Strong, But Risks PersistStill, a leading company with revenue growth in the double digits, adjusted earnings per share of $3.60 beating guidance, and a healthy full-year outlook is not easy to ignore. These achievements are not simple for a company already operating from near-record highs.

And for growth investors comfortable with cycles, Royal Caribbean is among the better-run alternatives. The company’s pricing power, branded destination strategy, and continued earnings growth make it one of the more attractive stories in the travel sector.

But the current valuation already reflects the good news. Competition in the consumer discretionary sector from other major cruise lines, including Carnival NYSE: CCL and Norwegian Cruise Line NYSE: NCLH, is always steep. And the future spending power of consumers is forever prone to change. The question for investors is whether this is a stock whose ship has already sailed.

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