geopolitical | Wetravel2u's Weblog

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.

Storylines Secures $500M Guarantee; Second Shipyard, Refunds in Focus

Storylines is nearing the completion of a restructuring and recapitalization process that has secured the company access to a $500 million cash-backed bank guarantee, according to CEO and Co-Founder Alister Punton who also addressed pending resident refunds in a video update and confirmed the company is working with a secondary shipyard as a future-proofing and geopolitical backup for its purpose-built vessel, the Narrative.

Launched in 2018, the company aims to offer a residence cruise ship concept onboard the Narrative, previously having switched from a business plan that called for the acquisition of a secondhand ship.

In 2022, the startup announced it had ordered the 1,250-passenger ship from the Brodosplit Shipyard in Croatia and had targeted a start up date of 2025.

In the company’s recent update, Punton said that, in addition to restructuring itself, Storylines is “fully focused on bringing funding together.”

He said that the company is working on recapitalizing as part of a go-shop notice that it has put out, as that the process took longer than anticipated.

“It took a whole lot more work than I anticipated, not only for myself but very much for the legal counsel who has been working around the clock to expedite that and get that done,” Punton said.

With work now in the final stages, the process is expected to be completed soon, he continued, noting that Storylines will then be able to move on to step two of its recapitalization plan.

“This consists of closing on the balance of the funding, which this new partner will be able to achieve for us.”

At their request, the investors will not be revealed until “all goes through,” Punton said, adding that the partnership has already given the company instant access to “some incredible networks and hospitality brands.”

He added that Storylines now has access to a $500 million cash-backed bank guarantee, noting that the company is working to secure a facility to monetize this guarantee.

“We have a couple of options looming over that for the moment, and we’ll keep you posted as that progresses,” Punton continued.

He also mentioned that the entire project is wrapped in insurance with one of the largest insurance groups in the world.

“That, combined with the refund guarantees provided by the shipyard, means we have all of the pieces of the puzzle together now,” Punton added.

“Thank you to those who have been very patient in all of this. That hasn’t gone unnoticed,” he added.

Punton also addressed client refunds, saying that he has limited time to answer repeated emails about the subject.

“For those waiting on refunds outside of the trust account, I just ask that you hold on a little bit longer,” he said, underlining that he was referring primarily to $10,000 refundable deposits.

These amounts will be released once the company goes through its restructuring process, which will either free up or bring more capital to it, he explained.

Passengers who are short on refunds from the mentioned trust account will be contacted by Storylines to start a process that will see the balances returned as well, Punton continued.

He also noted that, earlier this year, Storylines decided to remove all but the core operations and construction teams.

“They were being stood down, so we made the decision to preserve capital and also in preparation for this restructuring process,” he explained, adding that the company’s communications have been more sporadic as a result.

The company has also been working with the shipyard, having completed the hull design of the Narrative through tank testing in Holland.

“By all accounts it was a success; there were a few minor changes that we made, but nothing out of the ordinary that you wouldn’t normally expect,” Punton said.

Storylines is also working with a secondary yard as a future-proofing scenario and geopolitical backup, he added.