Royal Caribbean Group has reported a robust third quarter for 2025, surpassing financial expectations and prompting an upward revision of its full-year guidance. The cruise giant also announced the development of a significant new exclusive destination in Europe, signaling continued strategic expansion and a strong outlook for the business.
Stellar Third Quarter Performance
The company announced third-quarter net income of $1.6 billion, or $5.74 per share, a notable increase from the previous year. Adjusted Earnings Per Share (EPS) reached $5.75. Total revenues for the quarter amounted to $5.1 billion, with Adjusted EBITDA standing at $2.3 billion. These strong financial results were primarily driven by higher-than-expected close-in demand and effective cost management. The load factor for the quarter stood at an impressive 112%, and capacity saw a 2.9% year-over-year increase, with the company hosting 2.5 million guests, a 7% rise. Gross Margin Yields increased by 3.8% as-reported, while Net Yields saw a 2.8% increase on an as-reported basis.
Increased Full-Year Guidance
Buoyed by its exceptional third-quarter performance, Royal Caribbean Group has raised its full-year 2025 Adjusted EPS guidance to a range of $15.58 to $15.63. This represents a significant 32% year-over-year growth. The company attributed this enhanced outlook to the strong quarterly results, which more than offset minor impacts from recent adverse weather events and the extended temporary closure of its destination in Labadee, Haiti. Full-year Net Yields are now projected to increase between 3.5% and 4.0% on both an as-reported and constant currency basis. This optimistic forecast underscores the sustained momentum across Royal Caribbean’s business, fueled by accelerated demand and high guest satisfaction.
Unveiling Royal Beach Club Santorini
In a strategic move to further enhance its vacation ecosystem, Royal Caribbean Group announced the upcoming debut of Royal Beach Club Santorini, set to open in summer 2026. This marks the cruise line’s first exclusive destination in Europe, located in the Vlychada area of the iconic Greek island. The new beach club will be accessible to guests sailing on Royal Caribbean and Celebrity Cruises, offering a curated experience that blends the island’s stunning volcanic beaches with the company’s signature service and local Grecian culture. This development is part of a broader vision to expand the company’s land-based destination portfolio from two to eight by 2028. The initiative aims not only to provide guests with unique vacation opportunities but also to manage cruise guest flow, reduce congestion on the island, and support the local community.
Strategic Vision and Future Outlook
Royal Caribbean Group President and CEO Jason Liberty expressed confidence in the company’s trajectory, citing strong momentum powered by demand, loyalty, and guest satisfaction. The company’s integrated strategy, combining innovative ships, distinctive destinations, and world-class brands, continues to drive sustained growth. Looking ahead, Royal Caribbean holds a strong booked position for 2026 and beyond, with expectations for 2026 earnings per share to reach a “$17 handle.” This forward-looking approach, coupled with disciplined cost controls and capital allocation, positions the company well to achieve its long-term financial targets and continue its leadership in the global cruise industry. This news forms a significant chapter in the ongoing business narrative for the travel sector.