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Royal Caribbean Cruises Ltd. RCL reported mixed first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Post the results, the cruise stock climbed 3.7% in the pre-market trading session. Positive investor sentiments were witnessed as the company reported better-than-expected earnings guidance for 2025. The improved forecast is likely to be supported by favorable currency exchange movements and lower fuel costs.
RCL’s Q1 Earnings & Revenues
In the first quarter, the company reported adjusted earnings per share (EPS) of $2.71, which beat the Zacks Consensus Estimate of $2.53 by 7.1%. In the prior-year quarter, RCL recorded an adjusted EPS of $1.77. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Quarterly revenues of $4 billion missed the consensus mark by 0.2%. However, the reported value was up 7.3% year over year from $3.72 billion.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
Royal Caribbean’s Quarterly Highlights
Passenger ticket revenues amounted to $2.74 billion, up from $2.54 billion in the prior-year quarter. Our estimate for Passenger ticket revenues was $2.74 billion.
Onboard and other revenues increased to $1.26 billion from $1.19 billion reported in the year-ago quarter. Our estimate for the metric was $1.21 billion.
Total cruise operating expenses amounted to $2.08 billion, up 1.1% year over year. Our estimate for the metric was $2.14 billion.
Net yields rose 5.6% on a constant currency basis (cc) and 4.7% on a reported basis compared with the first-quarter 2024 level. Net cruise costs, excluding fuel, per Available Passenger Cruise Day (APCD) decreased 0.1% on a cc basis and 0.3% on a reported basis from last year's quarter figure.
Other Financial Information of RCL
As of March 31, 2025, Royal Caribbean reported cash and cash equivalents of $386 million compared with $388 million in 2024-end. As of the end of the first quarter of 2025, long-term debt decreased to $17.99 billion from $18.47 billion reported in 2024-end. The current portion of long-term debt at the end of the quarter was $1.39 billion, down from $1.6 billion recorded in 2024-end.
Booking Update of Royal Caribbean
During the first quarter, the company witnessed solid booking trends with respect to the WAVE season. April bookings exceeded levels from the same period last year, backed by a robust close-in demand. Booked load factors remain consistent with historical trends but at higher pricing levels, while onboard spending and pre-cruise purchases continue to exceed prior years, driven by increased participation and elevated price points.
The company stated that 2025 bookings remain on track, with cancellation levels within normal ranges and strong last-minute demand continuing. As of March 31, 2025, RCL had $6.33 billion in customer deposits compared with $5.5 billion in the prior-year period.
Management highlighted that ongoing consumer enthusiasm tied to new offerings — including Star of the Seas, Celebrity Xcel and the Royal Beach Club Paradise Island — is generating strong consumer interest, setting the stage for continued yield growth throughout 2025. The company is optimistic about the arrival of Star of the Seas in late summer and the related ramp-up of load factors.