Royal Caribbean Group shared impressive financial news. The company announced its fourth-quarter and full-year 2025 results. It also provided an optimistic outlook for 2026. Investors reacted very positively to this business news. The stock price surged following the announcement.
2025: An Outstanding Year
2025 was an outstanding year for Royal Caribbean. The company delivered a record 9.4 million vacations. Total revenue reached nearly $18 billion. This marks an 8.8% increase from 2024. Adjusted EBITDA surpassed $7 billion. This represents a 17.6% increase from the previous year.
Furthermore, adjusted earnings per share (EPS) grew by 33%. Full-year adjusted EPS hit $15.64. This figure surpassed prior company guidance. Operating cash flow also remained strong. It generated $6.4 billion during the year.
Q4 Earnings Details
In the fourth quarter of 2025, Royal Caribbean reported strong revenue. Total revenue was $4.26 billion. This met analyst expectations closely. Passenger ticket revenues saw an increase. Onboard and other revenues also grew year-over-year. Adjusted EPS for the quarter was $2.80. This also aligned with consensus estimates. Adjusted EBITDA for the quarter exceeded some expectations. Net yields grew 2.5% on a constant currency basis.
2026 Outlook and Guidance
Royal Caribbean projects another strong year in 2026. The company anticipates double-digit revenue growth. Adjusted EPS is forecast between $17.70 and $18.10. This represents approximately 14% year-over-year growth. The midpoint of this guidance exceeds analyst estimates.
Total capacity is expected to increase by 6.7% in 2026. Net yields are projected to grow between 1.5% and 3.5%. Operating cash flow is expected to exceed $7 billion. Chairman and CEO Jason Liberty stated, “2025 was an outstanding year, and the momentum is further accelerating into 2026”.
Growth and Expansion Plans
The company is investing in future growth. This includes new ships. Royal Caribbean will launch its new Discovery Class ships. It also plans to expand its river cruise offerings. Celebrity River Cruises will add 10 more ships. This expansion aims for 20 vessels by 2031. The company is also enhancing its exclusive destinations portfolio.
Strong Demand and Booking Trends
Consumer demand remains robust. Royal Caribbean noted a record start to the WAVE season. This period runs from January to March. The company recorded its highest seven booking weeks in history. About two-thirds of 2026 capacity is already booked. Bookings are occurring at record rates. Spending onboard and pre-cruise purchases are also exceeding prior years.
Caribbean Market Strength
The Caribbean remains a key market. Royal Caribbean plans to deploy 57% of its capacity to this region in 2026. This represents an 8% increase year-over-year. Caribbean yields have grown significantly since 2019. Management expects continued yield growth in 2026. This growth is anticipated despite increased industry capacity in the region.
Looking Ahead
Royal Caribbean is positioned for continued success. Strong financial results for 2025 set a solid foundation. The optimistic outlook for 2026, driven by high demand and strategic investments, paints a bright future for the business. The company’s expansion plans and focus on delivering exceptional vacation experiences are key drivers. This strategic approach aims to turn vacations of a lifetime into a lifetime of vacations.