Tag Archives: Cruising

Royal Caribbean 2026 Q2 Results Strong; Company Raises Full Year Guidance

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Royal Caribbean 2026 Q2 Results Strong; Company Raises Full Year Guidance

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 said in a press release.

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.

Zuiderdam Sets Sail on Holland America’s Voyage of the Vikings

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Zuiderdam Sets Sail on Holland America’s Voyage of the Vikings

The Zuiderdam sailed from Boston recently to kick off Holland America Line’s 35-night “Voyage of the Vikings.”

The 2002-built ship is now scheduled to visit destinations in Canada, New England, Greenland, Iceland, the United Kingdom and Scandinavia before returning to its homeport in North America.

As part of Holland America’s Legendary Voyages program, the cruise is highlighted by an overnight call to Rotterdam in the Netherlands, as well as stops in off-the-beaten-path destinations.

Among the lesser-visited ports welcoming the Zuiderdam are Red Bay in Canada, Paamiut in Greenland, Husavik in Iceland and Douglas in the Isle of Man.

After visits to a total of 20 destinations, the 82,305-ton ship is scheduled to return to Boston, ending the Legendary Voyage on August 20, 2026.

Following the cruise, the Zuiderdam is scheduled to spend the remainder of the summer season offering itineraries in Canada and New England.

With cruises sailing between Boston and Quebec City, the deployment runs through late October, when the ship is scheduled to reposition to Florida.

Before the end of the year, the vessel offers a series of seven- to 10-night cruises to the Caribbean departing from PortMiami.

In early 2027, the ship repositions to the West Coast for cruises to the Mexican Riviera and Baja Peninsula regions.

Holland America recently confirmed that the Zuiderdam will be the second ship to undergo a refurbishment as part of the company’s Evolution refit program.

Following the Oosterdam, the Vista-class ship will introduce new and updated features, including a series of solo staterooms with balconies.

The 1,900-passenger ship will also welcome a Grand Dutch Café, a coffee shop inspired by the European café culture that first debuted on Pinnacle-class ships.

Described as the largest fleet investment in the company’s 153-year history, the Evolution program will also include refits for four additional vessels: the Westerdam, the Noordam, the Eurodam and the Nieuw Amsterdam.

Carnival and Fincantieri Celebrate 30 Years of Partnership

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Carnival and Fincantieri Celebrate 30 Years of Partnership

Carnival and Fincantieri recently celebrated three decades of collaboration between the two companies.

The partnership was highlighted during the steel-cutting ceremony for the new Carnival Destiny, which will be built at Fincantieri’s Monfalcone yard.

Carnival’s relationship with the shipbuilder started with the original Carnival Destiny, which was delivered in 1996.

“Carnival contacted us about a new ship design they had in mind, which they were calling ‘the ship of the future’,” said Maurizio Cergol, designer of the vessel.

“The Carnival Destiny certainly set a precedent at the time with its configuration, having its public spaces amidships, near the lifeboats.”

Cergol said that the design allowed for a larger number of balcony staterooms, creating a new standard for the industry.

“The market responded extremely positively to the possibility of taking cruises in a cabin where you could not only see the sea but also smell it, feel it and feel the breeze,” he continued.

Cergol said that the ship had an adequate, powerful name, as it tied together the fate of Fincantieri and Carnival.

For Fincantieri’s President Biaggio Mazzotta, the event marked both a beginning and an anniversary, highlighting the steel cutting of the new Carnival Destiny.

Introducing a new design to Carnival’s fleet, the new ship will be built at the Monfalcone shipyard, with delivery scheduled for mid-2029.

“With the cutting of the first metal sheet for this new vessel, this next-generation ship starts to take shape,” he said.

Mazzotta noted that the ship will be the largest in Carnival’s fleet, adding that the ceremony marked the “first spark” of a project that will accompany the shipyard for years to come.

“This is not a point of arrival but a point of departure,” he continued, noting that the project has a special meaning, taking place exactly 30 years after the delivery of the original Carnival Destiny.

“Thirty years is not just a milestone but a measure of trust that has been renewed order after order, ship after ship, in a business where decisions are made by looking at decades in the future,” Mazzotta added.

He also highlighted the human element of the collaboration between the companies, noting that “behind every hull and technological breakthrough there is the work of men and women, including designers, engineers, technicians and workers.”

“All the companies in our supply chain have made this partnership a shared heritage,” Mazzotta said, thanking all the involved parties.

“This collaboration tells the story of what Italy does best: combine tradition, innovation, craftsmanship and technology.”

Giorgio Gomiero, senior vice president of operations for Fincantieri, noted that shipbuilding is a complex business and that the partnership with Carnival allowed the yard to grow.

“Carnival was a challenge that allowed Fincantieri to reach where it is today. There were certainly a number of difficult moments,” he explained.

“Critical moments arise during the construction period,” Gomiero added, noting that the original Carnival Destiny was the largest cruise ship in the world when it debuted in 1996.

“It was the first passenger ship in the world to exceed 100,000 tons of gross tonnage. Now, in 2026, we are starting the construction of a vessel with a gross tonnage of 230,000 tons,” he continued.

“Each time there’s an evolution, not only for the shipowner, Carnival, but these projects also create the conditions to do better and raise the bar, allowing us to set new goals together.”

Having started his relationship with Carnival as Project Manager for the Carnival Breeze construction, SVP Shipyard Director Marco Lunardi said that collaboration between the cruise line and Fincantieri has allowed the yard to push boundaries.

“Carnival has been a driving force. I still remember the phrase ‘make it happen,’ which we were told time and time again when we faced challenges from the client,” he said.

“Yet this served as the incentive to push beyond those limits, and through ingenuity, flexibility and even imagination, we found solutions that allowed us to make the product we created a model of excellence,” Lunardi added.

Luigi Matarazzo, general manager of the shipyard’s merchant ships division, said that the relationship between the two companies is based on mutual trust.

He highlighted that Fincantieri built 65 ships for Carnival in the past 30 years, with a further eight currently in the pipeline.

“We’ll reach 73 but my hope is to reach 100 ships, which will further strengthen the strong bond we have,” Matarazzo added.