Recently, Royal Caribbean Group announced its Q3 2025 financial results, with earnings per share of $5.74 and adjusted earnings per share of $5.75.
Benefiting from sustained strong near-term vacation demand and lower costs, Royal Caribbean Group’s performance exceeded expectations. Meanwhile, the Group raised its full-year 2025 adjusted EPS guidance to $15.58 – $15.63, a 32% year-over-year increase. This upward revision is primarily due to the better-than-expected Q3 performance, which is sufficient to offset the slight impact from recent adverse weather and the extended temporary closure of the private destination Labadee in the fourth quarter.
Royal Caribbean Group President and CEO Jason Liberty stated: “Driven by accelerating market demand, increasing customer loyalty, and record-breaking guest satisfaction, the Group’s various businesses continue to maintain strong momentum. The business flywheel formed by our innovative fleet, unique destinations, and world-class brands not only continues to drive the company’s steady performance growth but also further solidifies guests’ trust in Royal Caribbean’s corporate mission of ‘Responsibly Delivering Exceptional Vacation Experiences’. Looking ahead, although planning for 2026 is still in its early stages, strong bookings give us confidence in next year’s and long-term future performance. Based on a proven appropriate yield growth strategy, strong cost control, and a disciplined capital allocation model, we expect 2026 EPS to be in the $17 range, laying a solid foundation for achieving the 2027 Perfecta Plan*.”
He added: “Today, we announced the exciting news that the new ‘Royal Beach Club Santorini’ will officially open in 2026. This not only means our portfolio of land-based private destinations will expand from the current two to eight by 2028, but also fully reflects our vision of reshaping global vacation styles. Royal Caribbean is actively planning for future development through innovative fleet construction, the expansion and deployment of private destinations, and technology and AI that enhance the guest vacation experience throughout the entire journey. We believe these strategic investments will not only enhance guest loyalty and attract more new guests but also help us capture a larger share of the global $2 trillion vacation market. Furthermore, they will create favorable conditions for delivering continued growing returns to shareholders after achieving the Perfecta Plan*.”
In the third quarter of this year, Royal Caribbean Group’s load factor was 112%. Gross Yield revenue increased by 3.8% (as reported). Net Yield revenue increased by 2.4% in constant currency (2.8% as reported). Gross Cruise Costs per Available Passenger Cruise Day increased by 2.7% as reported. Net Cruise Costs (excluding fuel) increased by 4.3% in constant currency (4.8% as reported). Total revenue reached $5.1 billion, net income was $1.6 billion, or $5.74 per share, adjusted net income was $1.6 billion, or $5.75 per share, and adjusted EBITDA was $2.3 billion.
Q3 2025 net income was $1.6 billion, or $5.74 per share. Net income for the same period last year was $1.1 billion, or $4.21 per share. Adjusted net income for Q3 2025 was $1.6 billion, or $5.75 per share, compared to adjusted net income of $1.4 billion, or $5.20 per share, for the same period last year. The company’s total revenue for the quarter was $5.1 billion, and adjusted EBITDA was $2.3 billion.
In Q3 2025, Royal Caribbean Group’s capacity increased by 2.9% year-over-year, and it provided unforgettable vacation experiences for 2.5 million guests, a 7% increase compared to the same period last year. Compared to Q3 2024, Gross Yield revenue increased by 3.8% (as reported), and Net Yield revenue increased by 2.4% in constant currency (2.8% as reported). The load factor for Q3 2025 was 112%, up one percentage point year-over-year, primarily driven by the higher load capacity of new ships and improved overall performance of the existing fleet. As expected, the Net Yield growth this quarter was primarily driven by the performance of the existing fleet, also benefiting from overall improvements in ticket pricing and onboard revenue.
Compared to Q3 2024, Gross Cruise Costs per Available Passenger Cruise Day increased by 2.7% as reported. Net Cruise Costs (excluding fuel) increased by 4.3% in constant currency (4.8% as reported). Notably, the cost increase this quarter was nearly 200 basis points better than the company’s guidance.
Royal Caribbean remains optimistic about the market demand for its vacation products and the pricing environment. Booked load factors for both 2025 and 2026 are at record highs within historical ranges. Since the last quarterly earnings report, bookings have increased for both new and existing ships, with close-in sailings performing particularly well. Booking prices for 2026 are significantly higher year-over-year, with the rate of increase at the high end of the historical range. Driven by both higher participation and pricing, guest onboard spending and pre-cruise purchases continue to exceed prior year levels. In the third quarter, approximately 50% of onboard revenue was booked before sailing, and nearly 90% of pre-cruise purchases were made through digital channels.
“Looking ahead, as consumers increasingly value vacation experiences, our various brands and their unique vacation offerings are demonstrating strong growth momentum,” said Jason Liberty. “From the inaugural voyage of ‘Star of the Seas’, to the swift sell-out market response of the first ‘Celebrity River’ itineraries, to the upcoming debut of ‘Celebrity Xcel’ and ‘Royal Beach Club Paradise Island’—these landmark investment projects fully demonstrate Royal Caribbean’s commitment to continuously raising the standard of guest experience and expanding the vacation industry ecosystem.”
Royal Caribbean Group expects full-year 2025 Net Yield revenue to increase by 3.5% to 4.0% year-over-year, consistent on both an as-reported and constant currency basis; Net Cruise Costs (excluding fuel) per Available Passenger Cruise Day to decrease by approximately 0.1% in constant currency (increase by approximately 0.1% as reported); and adjusted EPS to increase by approximately 32% year-over-year, in the range of $15.58 to $15.63.
Concurrently, Royal Caribbean announced plans to create the ultimate holiday experience on the island of Santorini. The new “Royal Beach Club Santorini” is expected to open in Summer 2026 for Royal Caribbean International and Celebrity Cruises guests. This new destination masterfully blends Greece’s iconic volcanic beach scenery, Royal Caribbean’s signature vacation experiences, and vibrant Greek flair and culture to create the ultimate Santorini holiday experience. As a key part of the “Santorini Select Day Tour,” the “Royal Beach Club Santorini” will offer guests a rich exploration of the island—from the whitewashed houses and blue-domed churches of Oia, to the shops, cafes, and art galleries in the streets of Fira. Guests can not only check off these ‘bucket list’ destinations but also enjoy the Mediterranean vibe and relaxing atmosphere at the beach club.
New Private Destination – “Royal Beach Club Santorini”
With the first Royal Beach Club project officially opening to guests in The Bahamas this December, the launch of the “Royal Beach Club Santorini” will mark the further expansion of Royal Caribbean’s land-based private destination portfolio. This series of iconic destinations also includes the highly acclaimed “Perfect Day at CocoCay”—a private destination that has not only set a new industry benchmark but also defined the future of cruise vacations. With this new destination announcement, Royal Caribbean plans to expand its portfolio of land-based private destinations from two to eight by 2028.
This series of exciting land-based projects signifies a further deepening of Royal Caribbean Group’s strategic layout: extending brand influence from sea to land, continuously deepening emotional connections with guests, and creating long-term value for local communities. These initiatives consistently revolve around Royal Caribbean’s corporate mission of continuously and responsibly delivering exceptional vacation experiences for guests.
