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Investing.com -- Carnival (NYSE:CCL) Corp. saw its shares jump around 5% ahead of Tuesday market open after the cruise operator reported second-quarter earnings and revenue that exceeded analyst estimates.
The company posted Q2 earnings per share (EPS) $0.35, topping the analyst expectations by $0.24. Revenue reached $6.33 billion, up nearly $550 million compared to the prior year, and ahead of the $6.21 billion consensus estimate.
"Our amazing team delivered yet another phenomenal quarter, more than tripling adjusted net income driven by record net yields (in constant currency) and strong close-in demand," Carnival Corporation CEO Josh Weinstein said in the release.
"We also remain on track for a strong 4 percent net yield growth in the second half, consistent with what we forecasted back in December which was before the complex macroeconomic and geopolitical backdrop we have all experienced in the last few months. Combined, this has enabled us to raise full year guidance again."
"On top of this, thanks to our consistent track record of significant outperformance, we have already exceeded our 2026 SEA Change financial targets a full 18 months early, increasing adjusted EBITDA per ALBD by 52 percent and more than doubling adjusted ROIC to over 12.5 percent in less than two years," he added.
"We also met our third 2026 SEA Change commitment to cut carbon intensity by 20 percent from 2019 levels. That’s a win for the planet and our bottom line."
Looking to the third quarter of 2025, the company expects constant-currency net yields to rise about 3.5% year over year, building on a nearly 9% increase in the same period of 2024.
Adjusted cruise costs excluding fuel per available lower berth day (ALBD) are projected to increase approximately 7%, reflecting "operating expenses for the opening of Celebration Key, higher investment in advertising expenses and the impacts of lower 2025 capacity and favorable one-time items in 2024."
For the full year, Carnival expects net yields in constant currency to rise roughly 5.0% from 2024’s already strong levels, which were up 11%. That figure is also 30 basis points above the company’s previous guidance from March.
Adjusted cruise costs excluding fuel per ALBD are expected to climb around 3.6%, an improvement versus prior forecasts.
Full-year adjusted net income is now projected to grow by more than 40% compared to 2024, exceeding March guidance by $200 million.
Adjusted EBITDA is projected to reach approximately $6.9 billion, up more than 10% year over year and above the prior outlook.