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• Adjusted Earnings Per Share (EPS): $2.71, 9% higher than the midpoint of guidance.

• Net Yield Increase: 5.6% in constant currency compared to Q1 2024.

• Net Cruise Costs (Excluding Fuel): Increased 0.1% in constant currency.

• Adjusted EBITDA Margin: 35%, 360 basis points better than last year.

• Operating Cash Flow: $1.6 billion.

• Full-Year Yield Growth Guidance: 2.6% to 4.6%.

• Full-Year Adjusted EPS Guidance: $14.55 to $15.55, approximately 28% growth.

• Capacity Growth for 2025: Expected to grow 5.5%.

• Second Quarter Capacity Increase: 6% year over year.

• Second Quarter Net Yield Growth: 4.3% to 4.8%.

• Second Quarter Net Cruise Costs (Excluding Fuel): Expected to be up 3.7% to 4.2%.

• Second Quarter Adjusted EPS Guidance: $4 to $4.10.

• Liquidity: Ended the quarter with $4.5 billion.

• Share Repurchase: 1 million shares repurchased during the quarter.

• Credit Rating Upgrade: S&P Global Ratings upgraded to investment grade.

• Warning! GuruFocus has detected 3 Warning Sign with KHC.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Royal Caribbean Group (NYSE:RCL) delivered over 2 million vacations with exceptional guest satisfaction scores in the first quarter.

• The company experienced the best WAVE season in its history, leading to a strong booking position for the remainder of the year and 2026.

• Adjusted earnings per share of $2.71 exceeded guidance by $0.23, driven by better-than-expected revenue and favorable timing of expenses.

• Onboard spending and pre-cruise purchases continue to exceed prior years, driven by increased participation in onboard activities.

• The introduction of new ships like Star of the Seas and Celebrity Xcel is driving strong pricing and load factors, contributing to yield growth.

Negative Points

• There is heightened uncertainty in the macroeconomic environment, which could impact consumer behavior and the broader economy.

• The timing of new ship deliveries in the third quarter presents a headwind of approximately 140 basis points on yield growth.

• Net cruise costs, excluding fuel, are expected to increase in the second and third quarters due to higher dry dock days and timing of expenses.

• The company faces challenges in maintaining price integrity while managing promotional activities to stimulate demand.

• Despite strong bookings, there is a risk of potential pressure on onboard spending and close-in pricing due to macroeconomic uncertainties.

Q & A Highlights

Q: Jason, could you speak to the drivers of the better-than-planned performance in the first quarter and elaborate on business in April? A: Jason Liberty, President, CEO, and Director, explained that the strong first-quarter performance was driven by robust close-in demand, allowing for price increases. The company has seen continuous demand uplift close to the sailing dates, with high-quality customers spending well onboard. Investments in loyalty programs and technology have facilitated easier bookings, contributing to this trend. Despite macroeconomic uncertainties, the value gap between cruise and land-based vacations provides a buffer, and the company remains focused on delivering exceptional vacation experiences.