Royal Caribbean Group (NYSE: RCL) has reported its 2025 earnings per share ("EPS") of $15.61 and adjusted EPS of $15.64. These results exceed the company's guidance, primarily due to more favorable revenue and better performance from joint ventures. Looking ahead, the company expects adjusted EPS to be in the range of $17.70 to $18.10 per share in 2026, representing a compound annual growth rate (CAGR) of 23% over the first two years of its "Perfecta" financial program targeting 20% earnings CAGR from 2024 to 2027.
In terms of financial performance, gross margin yields increased 8.5% as-reported, and net yields increased 3.8% as-reported and 3.7% in constant currency in 2025. Total revenues were $17.9 billion, net income was $4.3 billion or $15.61 per share, adjusted net income was $4.3 billion or $15.64 per share, and adjusted EBITDA was $7.0 billion.
Looking at the fourth quarter of 2025, net income was $0.8 billion or $2.76 per share, compared to net income of $0.6 billion or $2.02 per share for the same period in the prior year. Adjusted net income was $0.8 billion or $2.80 per share for the fourth quarter of 2025, compared to adjusted net income of $0.4 billion or $1.63 per share for the same period in the prior year. Total revenues for the fourth quarter were $4.3 billion, and adjusted EBITDA was $1.5 billion.
The company's net yields are expected to increase 2.1% to 4.1% as-reported and 1.5% to 3.5% in constant currency in 2026. Additionally, net cruise costs ("NCC"), excluding fuel, per APCD, are expected to be 0.4% to 1.4% as-reported and flat to up 1.0% in constant currency.
Royal Caribbean's liquidity position as of December 31, 2025, was $7.2 billion, which includes cash and cash equivalents and undrawn revolving credit facility capacity. The company also repurchased 1.8 million of its shares for a total of $504 million during the fourth quarter of 2025.
Looking ahead to the first quarter of 2026, net yields are expected to increase 2.4% to 2.9% as-reported and 1.0% to 1.5% in constant currency. NCC, excluding fuel, per APCD, is expected to increase 1.7% to 2.2% as-reported and 0.9% to 1.4% in constant currency compared to 2025.
In terms of expansion, Royal Caribbean announced agreements with the Chantiers de l'Atlantique shipyard in Saint Nazaire, France, to secure the construction of its highly anticipated discovery class ships and celebrity cruises announced a commitment for 10 new ships that will expand its river cruise fleet to 20 vessels by 2031.
Following these announcements, the company's shares moved -0.76%, and are now trading at a price of $276.01. If you want to know more, read the company's complete 8-K report here.
