Royal Caribbean Earnings Lift Stock After Strong Guidance

Royal Caribbean Group reported stronger full-year 2025 results and issued bullish 2026 guidance on Jan. 29, 2026. The company cited record WAVE-season bookings and elevated onboard spending as key drivers supporting its forecast for double-digit revenue and earnings growth.

Strong 2025 Results and 2026 Outlook

Royal Caribbean Group (NYSE: RCL) said in a press release that adjusted earnings per share (EPS) for 2025 reached $15.64, surpassing prior guidance. Total revenue was $17.9 billion, adjusted EBITDA was $7.0 billion, and net income totaled $4.3 billion. Management attributed the results to a favorable revenue mix and stronger joint-venture performance.

In the fourth quarter, revenue rose 13.2% year over year to $4.3 billion, including $2.9 billion in passenger-ticket revenue and $1.3 billion in onboard and other revenue, up from $1.2 billion a year earlier. Net income was $754 million, adjusted EPS was $2.80, and adjusted EBITDA totaled $1.5 billion. The load factor reached 108%, net yields increased 3.1% as reported (2.5% on a constant-currency basis), and non-fuel costs per available passenger-cruise-day (NCC ex-fuel per APCD) declined 5.8% as reported (6.3% constant currency).

The company set 2026 adjusted EPS guidance between $17.70 and $18.10, projecting double-digit revenue and earnings growth. It forecast net-yields growth of 1.5% to 3.5% on a constant-currency basis, noting a roughly 30-basis-point headwind from China itineraries. CEO Jason Liberty said, "2025 was an outstanding year, and the momentum is further accelerating into 2026." The results and outlook lifted shares as investors responded to the upbeat forecast.

Record Bookings and Fleet Expansion

About two-thirds of 2026 capacity was already booked at record rates, with the company posting its seven strongest booking weeks following Cyber Sales and the start of the WAVE season. Nearly half of 2025 onboard revenue had been pre-booked, with approximately 90% of those bookings made through digital channels.

Royal Caribbean projects capacity growth of 6.7% in 2026, 4% in 2027, 6% in 2028, and 7% in 2029. Capital expenditures for 2026 are expected to total about $5.0 billion, primarily for new ships, plus $1.8 billion for non-ship investments including private-destination development.

Expansion plans include new Discovery Class ships for Royal Caribbean and ten additional Celebrity River Cruises vessels, increasing that river fleet to 20 ships by 2031 with launches starting in 2027. The company also plans to expand private destinations to eight by 2028.

The delivery of Legend of the Seas is scheduled for the second quarter of 2026, with committed financing in place. This handover marks the next milestone in the company’s fleet expansion and capital-spend program supporting its growth plans.