Royal Caribbean Group 8-K
PositiveEarningsGuidance raised
Close-in cruise demand and cost timing drive a Q2 beat and higher FY2026 adjusted EPS guidance; geopolitical activity weighs on select-itinerary bookings.
Filed 2026-07-28 06:32 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 and FY2026 guidance. Adjusted EPS guidance for FY2026 was raised to $17.73–$17.87; Q2 results were better than the company’s guidance, driven by strong close-in demand, lower costs and favorable joint-venture performance. The company cited a modest near-term booking impact on select itineraries from prolonged geopolitical activity.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $4.83B | $4.54B | 6.5% |
| Operating income | $1.31B | $1.33B | (1.7)% |
| Net income attributable to Royal Caribbean Cruises Ltd. | $1.13B | $1.21B | (6.8)% |
| Adjusted net income attributable to Royal Caribbean Cruises Ltd. (non-GAAP) | $1.13B | $1.20B | (6.0)% |
| Diluted EPS | $4.20 | $4.41 | (4.8)% |
| Adjusted diluted EPS (non-GAAP) | $4.21 | $4.38 | (3.9)% |
| Adjusted EBITDA (non-GAAP) | $1.83B | $1.85B | (1.1)% |
- Net yields increased 1.9% as-reported (1.2% in constant currency); gross margin yields decreased 5.6%. Net cruise costs excluding fuel per available passenger cruise day increased 4.4% as-reported (3.9% in constant currency), with better-than-expected cost performance mainly from expense timing.
- Capacity increased 5%; the company carried 2.4M guests, up 6%, at 110% occupancy.
- June 30 liquidity was $6.9B, including cash and undrawn revolver capacity; July’s $250M accordion increase brought total revolver capacity to $6.6B. Q2 shareholder returns included $199M of repurchases (0.8M shares) and $404M of dividends; $805M remained under the repurchase authorization.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue growth Y/Y | Q3 2026 | 8% | — | — |
| Net yields vs 2025, as-reported / constant currency | Q3 2026 | Approximately flat / approximately flat | — | — |
| Net cruise costs per available passenger cruise day vs 2025, as-reported / constant currency | Q3 2026 | 0.3%–0.8% increase / 0.4%–0.9% increase | — | — |
| Net cruise costs excluding fuel per available passenger cruise day vs 2025, as-reported / constant currency | Q3 2026 | 1.7%–1.2% decrease / 1.6%–1.1% decrease | — | — |
| Adjusted EPS (non-GAAP) | Q3 2026 | $6.26–$6.36 | — | — |
| Available passenger cruise days; capacity change vs 2025 | Q3 2026 | 14.9M; 8.5% | — | — |
| Depreciation and amortization | Q3 2026 | $485M–$495M | — | — |
| Net interest, excluding loss on extinguishment of debt | Q3 2026 | $255M–$265M | — | — |
| Fuel expense; consumption | Q3 2026 | $362M; 441,000 metric tons | — | — |
| Revenue growth Y/Y | FY2026 | 9% | — | — |
| Net yields vs 2025, as-reported / constant currency | FY2026 | 2.35%–2.85% / 1.75%–2.25% increase | — | — |
| Net cruise costs per available passenger cruise day vs 2025, as-reported / constant currency | FY2026 | Approximately 1.7% / 1.4% increase | — | — |
| Net cruise costs excluding fuel per available passenger cruise day vs 2025, as-reported / constant currency | FY2026 | Approximately 0.4% increase / approximately flat | — | — |
| Adjusted EPS (non-GAAP) | FY2026 | $17.73–$17.87 | — | Raised |
| Available passenger cruise days; capacity change vs 2025 | FY2026 | 56.9M; 6.6% | — | — |
| Depreciation and amortization | FY2026 | $1.905B–$1.915B | — | — |
| Net interest, excluding loss on extinguishment of debt | FY2026 | $980M–$990M | — | — |
| Fuel expense; consumption | FY2026 | $1.338B; 1.756M metric tons | — | — |
| Capital expenditures; non-new-ship capital expenditures | FY2026 | Approximately $4.7B; $1.6B | — | — |
| Capacity change vs 2025 | 2027 / 2028 / 2029 | 4% / 6% / 7% | — | — |
| Fuel consumption hedged via swaps; average hedge portfolio cost per metric ton | 2026 / 2027 / 2028 / 2029 | 58% / $474; 53% / $405; 29% / $424; 14% / $451 | — | — |
| Perfecta program targets: Adjusted EPS CAGR vs 2024; ROIC by end of 2027 | Through 2027 | 20%; 17% or higher | — | — |
Investor Takeaways
- Q3 results will show whether healthy demand and record pricing deliver the guided revenue growth and adjusted EPS despite geopolitical booking pressure and cost trends.
- Booking trends for 2027 were pacing ahead of historical levels; continued strength would support the company’s longer-term growth outlook.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3