Royal Caribbean stock drop as revenue misses expectations

Published 29/07/2025, 11:44
© Reuters

Investing.com -- Royal Caribbean Group reported second-quarter earnings that beat analyst estimates, but shares fell over 4% as revenue came in slightly below expectations despite strong demand across its cruise portfolio.

The cruise operator posted adjusted earnings per share of $4.38 for the second quarter, exceeding the analyst estimate of $4.08. However, revenue of $4.54 billion missed the consensus estimate of $4.55 billion, despite representing significant growth from the same period last year. The company delivered vacations to 2.3 million guests during the quarter, a 10% increase YoY, with load factors reaching 110%.

"Demand for our portfolio of brands and our industry-leading experiences continues to accelerate," said Royal Caribbean (NYSE:RCL) Group President and CEO Jason Liberty. "We remain keenly focused on delivering exceptional value for our guests and shareholders - not just by executing today, but by staying ahead of where demand is going."

The company raised its full-year 2025 adjusted EPS guidance to a range of $15.41 to $15.55, compared to the analyst consensus of $15.45. The improved outlook stems from stronger-than-expected second-quarter performance, lower spending, and continued favorability below the line for the remainder of the year.

Net yields increased 5.3% as-reported compared to the second quarter of 2024, driven equally by new and existing ships, with growth in both ticket pricing and onboard spending. The company’s capacity increased 5.8% YoY during the quarter.

Looking ahead, Royal Caribbean expects third quarter adjusted EPS between $5.55 and $5.65, with net yields projected to increase 2.3% to 2.8% as-reported compared to the same period last year.

 

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