This article first appeared on GuruFocus.
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Net Income: $454 million, nearly 2.5x the prior year, exceeding guidance by $154 million.
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Yield Growth: Up 5.4% compared to the prior year, 110 basis points better than guidance.
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Cruise Costs Without Fuel: Up 0.5% compared to the previous year, 2.7 points better than the guide.
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Deleveraging and Refinancing: Achieved investment grade net debt to adjusted EBITDA ratio of 3.4x.
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Debt Reduction: More than $10 billion down from the peak of less than 3 years ago.
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2026 Yield Guide: An expected increase of around 2.5%.
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2026 Cruise Costs Excluding Fuel: Expected to increase around 3.25%.
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2026 Net Income Guide: More than $3.45 billion, an improvement of more than 12% against 2025.
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2026 Start: Projected to be $7.6 billion.
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Continuation of dividends: Initial rate of $ 0.15 per quarter.
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Repurchase of a Share: 18 million shares taken by calling the end of convertible debt.
Release Date: December 19, 2025
For the full transcript of the earnings call, please refer to the full transcript of the earnings call.
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Carnival Corp (NYSE:CCL) delivered fourth quarter all-time highs for revenue, yields, operating income, and EBITDA, and achieved record results for the full year 2025.
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The company achieved a 60% increase in net income over 2024, exceeding initial guidance by more than 30%.
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Carnival Corp (NYSE:CCL) successfully managed costs, bringing unit costs more than 1 point better than initial guidance, despite inflation and higher basin costs.
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The company reintroduced its dividend at an initial rate of $0.15 per quarter, reflecting confidence in cash generation and balance sheet improvement.
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Carnival Corp (NYSE:CCL) achieved an investment-grade leverage ratio of 3.4x at year-end, ahead of schedule, and plans to further reduce leverage while allowing for opportunistic share repurchases.
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Carnival Corp (NYSE:CCL) is facing increased volatility and geopolitical uncertainties, which affect deployment changes and potentially affect future performance.
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The company anticipates a 3.25% increase in unfueled cruise costs per ALBD for 2026, driven by inflation, higher advertising costs, and basin costs.
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The implementation of Carnival Cruise Line’s new loyalty program is expected to negatively impact returns in 2026.
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The company is navigating a 14% increase in non-Carnival Corporation capacity growth in the Caribbean, which could put pressure on pricing and occupancy.
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Carnival Corp (NYSE:CCL) is dealing with regulatory costs related to emission allowances and higher income taxes, which affect net income.