Carnival Corporation & plc (NYSE: CCL) (NYSE: CUK) reported record third-quarter 2025 results, posting net income of $1.9 billion, or $1.33 per diluted share, up from $1.7 billion a year earlier. Adjusted net income was $2.0 billion, or $1.43 per diluted share, topping analyst expectations of $1.32.
Revenue rose to $8.153 billion, beating the $8.101 billion consensus estimate and increasing from $7.9 billion last year. Adjusted EBITDA reached $3.0 billion.
Net yields in constant currency increased 4.6% year over year, while gross margin yields improved 6.4%. Cruise costs per available lower berth day (ALBD) rose 4.6% from 2024, but adjusted cruise costs excluding fuel increased 5.5%, 1.5 points better than guidance.
Also Read: Top Wall Street Forecasters Revamp Carnival Expectations Ahead Of Q3 Earnings
Fuel consumption per ALBD fell 5.2% due to efficiency investments. Passenger cruise days totaled 27.5 million, with occupancy steady at 112%.
Customer deposits reached a record $7.1 billion as of Aug. 31. Cash from operations was $1.38 billion in the quarter and $4.7 billion year-to-date, while capital expenditures totaled $648 million in the quarter.
Liquidity stood at $6.26 billion, and total debt was $26.5 billion. The company improved its net debt-to-adjusted EBITDA ratio to 3.6x from 4.7x a year earlier.
Chief Executive Officer Josh Weinstein said, “This was a phenomenal quarter delivering all-time high net income and our tenth consecutive quarter of record revenues. Strong demand and onboard spending drove a 4.6% improvement in net yields (in constant currency), all of which was achieved on a same ship basis.” He added that adjusted return on invested capital reached 13% for the first time in nearly 20 years.
“Since May, booking trends have continued to strengthen with higher booking volumes than last year and far outpacing capacity growth. This momentum affirms the success of our brands’ demand generation efforts and the amazing experiences we continue to deliver, driving excess demand and ongoing pricing strength. With nearly half of 2026 booked, which is in line with 2025 record levels (at the same time last year) but now at historical high prices (in constant currency) for both our North America and Europe segments, we have built a strong base of business for next year. Looking further ahead, 2027 is already off to a great start, achieving record booking volumes during the third quarter,” Weinstein noted.
The company refinanced $4.5 billion of debt and prepaid $700 million during the quarter, while issuing new senior unsecured notes totaling $4.2 billion. Moody’s upgraded its credit rating and maintained a positive outlook. Debt maturities are $0.3 billion for the fourth quarter and $1.4 billion in 2026.
Advanced bookings for 2026 remain in line with 2025’s record levels at historically high prices, while 2027 volumes set a new record during the quarter. The company also opened Celebration Key, a new exclusive destination in the Bahamas, and highlighted recent recognition across its portfolio, including Travel + Leisure and Condé Nast awards.
Outlook
The company raised full year 2025 outlook for the third time this year. For the full year 2025, Carnival projects adjusted their net income to about $2.93 billion, or $2.14 per diluted share, above the $2.00 estimate, and adjusted their EBITDA to roughly $7.05 billion. Net yields are expected to increase 5.3% year over year in constant currency, while adjusted cruise costs excluding fuel per ALBD are set to rise 3.3%.
For the fourth quarter, the company forecasts adjusted EPS of about 23 cents, ahead of the 20 cents estimate, and adjusted EBITDA of $1.34 billion. Net yields are expected to increase 4.3% year over year in constant currency, while adjusted cruise costs excluding fuel per ALBD are set to rise 3.2%.
Price Action: CCL shares were trading lower by 5.44% to $28.96 at last check Monday. CUK was down 5.40%.
Read Next:
Beyond Meat (BYND) Stock Dives On Debt Restructuring: What Investors Need To Know
Image via Shutterstock