Street Calls of the Week
MIAMI - Carnival Corporation & plc (NYSE/LSE:CCL; NYSE:CUK) reported record third quarter net income of $1.9 billion on Monday, marking its tenth consecutive quarter of record revenues as strong demand and onboard spending drove financial performance.
The cruise operator posted adjusted net income of $2 billion, or $1.43 per share, exceeding its June guidance by $182 million. Revenue reached an all-time high of $8.2 billion, up over $250 million compared to the prior year despite lower capacity.
Net yields in constant currency increased 4.6% compared to 2024, outperforming the company’s June guidance by 1.1 percentage points. Adjusted EBITDA hit a record $3 billion for the quarter.
"This was a phenomenal quarter delivering all-time high net income and our tenth consecutive quarter of record revenues," said Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein in a press release statement.
The company reported strong booking trends for future cruises, with 2026 bookings in line with 2025 record levels but at historically high prices in constant currency. Customer deposits reached a record third quarter level of $7.1 billion.
During the quarter, Carnival refinanced $4.5 billion of debt and prepaid an additional $0.7 billion, reducing secured debt by nearly $2.5 billion. The company’s net debt to adjusted EBITDA ratio improved to 3.6x as of August 31, 2025, compared to 4.7x a year earlier.
Carnival raised its full-year 2025 outlook for the third time this year, now expecting adjusted net income to increase nearly 55% compared to 2024. The company forecasts net yields in constant currency to rise approximately 5.3% for the full year.
For the fourth quarter of 2025, Carnival expects net yields in constant currency to increase approximately 4.3% compared to 2024 levels, with adjusted net income projected to rise over 60% from the fourth quarter of 2024.
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