In This Article:
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Revenue: First-quarter revenue reached a high-water mark, driven by strong demand.
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Net Income: Exceeded guidance by more than $170 million.
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EBITDA: Reached $1.2 billion, a nearly 40% year-over-year increase.
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Yield Increase: Achieved a 7.3% increase, surpassing guidance.
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Operating Income: Nearly doubled for the quarter.
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Operating and EBITDA Margins: Improved over 400 basis points year over year.
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Customer Deposits: Increased by over $300 million compared to the prior year.
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Interest Expense: Reduced by $13 million due to refinancing efforts.
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Debt Refinancing: $5.5 billion refinanced, reducing interest expense by $145 million annually.
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Total Debt: Reduced by $0.5 billion, ending the quarter at $27 billion.
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Cash Interest Rate: Average rate reduced to 4.6%.
Release Date: March 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Carnival Corp (NYSE:CCL) achieved a robust 7.3% yield increase, surpassing yield guidance and building on last year's 17% improvement.
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The company reported a near doubling of operating income for the quarter, with EBITDA reaching $1.2 billion, marking a 40% year-over-year increase.
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Carnival Corp (NYSE:CCL) has successfully increased its earnings guidance for the year by $185 million, driven by strong first-quarter results.
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The company is on track to meet its 2026 financial targets one year early, with ROIC expected to hit 12% and EBITDA per ALBD more than 50% higher than two years ago.
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Carnival Corp (NYSE:CCL) has made significant progress in refinancing efforts, reducing interest expenses by $100 million for the year and lowering its average cash interest rate to 4.6%.
Negative Points
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Despite strong performance, Carnival Corp (NYSE:CCL) acknowledges heightened macroeconomic and geopolitical volatility, which could impact future results.
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The company faces increased dry-dock costs due to unplanned dry docks, which have affected cruise costs without fuel per ALBD.
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Carnival Corp (NYSE:CCL) has a significant amount of debt, ending the quarter with $27 billion in total debt, although efforts are being made to reduce this.
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The company has limited capacity growth, with only three ships on order over the next four years, which may constrain future revenue growth opportunities.
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Carnival Corp (NYSE:CCL) is not immune to potential consumer demand fluctuations, as indicated by the cautious approach to maintaining yield guidance for the remainder of the year.
Q & A Highlights
Q: Can you provide more color on consumer demand trends since the fourth quarter? A: Josh Weinstein, CEO, noted that the wave season was a success, setting a record for bookings for future years. The company entered the wave season with historic occupancy and pricing, which they used to their advantage. They took price and are well set up for the rest of the year, maintaining yield guidance over 4%. The brands are doing a good job in tackling the current environment.