CARNIVAL CORPORATION OUTPERFORMS GUIDANCE, DELIVERING BEST EVER REVENUES,
Record bookings provide a strong foundation for 2027 MIAMI (September 29, 2026) - Carnival Corporation (NYSE: CCL) announced financial results for the third quarter 2026 and provided an updated outlook.
Full year outlook operational improvement of more than $150 million in adjusted net income compared to June guidance, overcoming a spike in fuel prices.
Record third quarter customer deposits up nearly seven percent compared to the prior year record, on flat capacity growth.
“We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations. This performance reinforces the underlying trajectory of our business and the consistency of our commercial execution, as evidenced by our sustained track record of high-quality same-ship yield growth.
“Our world-class cruise lines and destinations, exceptional guest experiences delivered by the best team in travel and leisure, and enhanced demand-generation against intentionally measured capacity growth position us to continue driving higher returns. At the same time, we are putting our increasingly durable cash flow to work, reinvesting in our business while returning more capital to shareholders,” said Carnival Corporation’s Chief Executive Officer Josh Weinstein.
• D iluted EPS of $1.40; adjusted EPS 2 of $1.43, in line with prior year despite a $0.10 ($131 million) unfavorable net impact from fuel prices and currency rates.
• Adjusted EBITDA 2 of $3.0 billion, in line with last year’s historic high and $110 million better than June guidance.
• Gross margin yields down 1.3 percent compared to prior year, driven by higher fuel prices. All-time high net yields (in constant currency) up 2.4 percent, over a point better than June guidance.
• Cruise costs per available lower berth day (“ALBD”) increased 4.2 percent compared to prior year, driven by higher fuel prices. Adjusted cruise costs excluding fuel per ALBD 2 (in constant currency) increased 1.8 percent, one point better than June guidance.
• Fuel consumption per ALBD improved 3.8 percent compared to prior year, reflecting the company’s efforts and investments to continuously reduce fuel consumption.
“Our booking trends continued to strengthen throughout the quarter, with volumes meaningfully ahead of last year and far outpacing capacity growth. This momentum underscores the effectiveness of our demand generation efforts and the enduring appeal of our cruise lines,” Weinstein said.
“For full-year 2027, both booked occupancy and pricing 3 are at record levels, providing a strong foundation for another year of solid yield growth. Looking further ahead, 2028 is also off to an excellent start at higher occupancy and prices than last year.”
“Customer deposits, another key leading indicator, also reached a third-quarter record of $7.6 billion, surpassing the prior-year record by $0.5 billion despite flat capacity growth over the next twelve months.”
“Taken together, the ongoing strength we are seeing across our record booking curve, which has extended out even further, reinforces our confidence in the durability of demand for our cruise lines and the earnings power of our business,” Weinstein added.
• Operational improvement of more than $150 million in adjusted net income compared to June guidance, driven by improvements in net yields, adjusted cruise costs excluding fuel per ALBD and fuel consumption per ALBD, overcoming $150 million impact from increased fuel prices.
• Net yields (in constant currency) up approximately 2.3 percent compared to record 2025 levels and 0.5 percentage points better than June guidance. Net yields (in constant currency) up approximately 2.7 percent, after reflecting the impact of the summer 2025 close-in decision to redeploy away from the previously planned first quarter 2026 Arabian Gulf voyages and the impacts of loyalty program accounting for Carnival Cruise Line which requires the deferral of a portion of the ticket price paid by the guest.
• Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 2.2 percent and better than June guidance. Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 1.1 percent, after reflecting the timing of certain expenses between the years, partial year operating expenses from two exclusive destinations and the impact of certain elevated logistics costs as a result of disruption from the Middle East conflict.
For the fourth quarter of 2026, the company expects net yields (in constant currency) up approximately 1.7 percent compared to 2025 record levels. Net yields (in constant currency) up approximately 2.3 percent after reflecting the impact of loyalty program accounting for Carnival Cruise Line.
See “Guidance” for additional information on the company’s 2026 outlook, “Non- GAAP Financial Measures,” “Reconciliation of Forecasted Data” and “Constant Currency.”
“Our strong operating cash flow enabled us to continue strengthening our financial position while advancing our commitment to return value to shareholders,” commented Carnival Corporation’s Chief Financial Officer David Bernstein. “With nearly $1.2 billion of share repurchases so far this year — nearly $800 million since the beginning of the third quarter — and our ongoing dividend program, we are making meaningful progress toward our PROPEL target of distributing cash to our shareholders, responsibly. During the third quarter we were also able to use cash on hand to opportunistically redeem $500 million of seven percent coupon notes, which were among our highest coupon debt. Even with the substantial capital we are returning to shareholders, we continue to expect year-over-year improvement in our balance sheet and leverage metrics.”
During the quarter, S&P upgraded the company's credit rating, making it the second rating agency to award the company an investment grade rating. Following this upgrade, the company does not have any remaining secured debt.
The company distributed $204 million in dividends during the quarter, bringing the year to date total to $618 million.
• Celebration Key commemorated one year of creating memorable guest experiences and a lasting positive impact in Grand Bahama, welcoming almost 2.5 million guests during its first year (learn more here).
• RelaxAway, Half Moon Cay and Isla Tropicale each welcomed more than 250,000 guests, following the completion of their recent enhancements.
• Carnival Cruise Line successfully launched its new Carnival Rewards loyalty program on September 1, generating substantial early engagement with co-branded credit card issuances increasing over 300 percent in the weeks following the launch compared to pre-announcement levels (learn more here).
• Carnival Cruise Line unveiled Carnival Destiny , arriving in 2029, the first ship in its next-generation Ace class (learn more here).
• Holland America Line announced Zuiderdam as the second ship set for major transformation as part of its Evolution program (learn more here).
• Princess Cruises became the first global cruise line to launch a native app in ChatGPT, creating a seamless AI-powered experience for travelers to discover, compare and plan a Princess cruise using real-time pricing and availability (learn more here).
◦ Named to TIME’s World’s Best Companies 2026, recognizing the company for leading with responsibility and resilience (learn more here).
◦ Named to TIME’s America’s Best Companies 2026, recognized for its excellence in employee satisfaction, sustained financial performance and sustainability achievements (learn more here).
◦ Named to Forbes America’s Best Employers for Women for 2026, recognizing the company’s commitment to fostering an environment of well-being, inclusion and belonging (learn more here).
• Released its 16th annual sustainability report, Doing Business Responsibly from Ship to Shore, detailing the
(See “Non-GAAP Financial Measures,” “Reconciliation of Forecasted Data” and “Constant Currency”)
4Q Full 2026 Year 2026 Year over Curr… Cons… Curr… Cons… year Doll… Curr… Doll… Curr… cha… Net Appr… Appr… Appr… Appr… yie… 2.3% 1.7% 3.8% 2.3% Adj… cru… cos… Appr… Appr… Appr… Appr… exc… 1.9% 1.7% 3.5% 2.2% fuel per ALBD
4Q 2026 Full Year 2026 ALBDs(in 24.1 97.4 millions)… Capacity growth compared -0.1 % 1.0 % to prior year Fuel consumpti… metric 0.7 2.7 tons(in millions) Fuel cost per metric ton consumed $ 896 $ 768 (excluding emission allowance… Fuel expense (including emission $ 0.64 $ 2.25 allowances expense)(… billions) Depreciat… and amortizat… $ 0.75 $ 2.92 expense(in billions) Interest expense, net of capitaliz… interest $ 0.26 $ 1.08 and interest income(in billions) Adjusted Approx. Approx. EBITDA(in $1.30 $7.14 billions) Adjusted net Approx. $274 Approx. income(in $3,080 millions) Adjusted earnings Approx. Approx. per share $0.20 $2.24 - diluted Weighted-… shares outstandi… 1,352 1,369 - basic Adjusted weighted-… shares 1,358 1,376 outstandi… - diluted
Sensitivities(impact to adjusted net income in millions) 4Q 2026 ────────────────────────────────────────────────────────── 1% change in net yields $ 49 1% change in adjusted cruise costs $ 30 excluding fuel per ALBD 10% change in fuel cost per metric ton $ 59 (excluding emission allowances) 100 basis point change in variable rate $ 4 debt 1% change in currency exchange rates $ 7
For the fourth quarter of 2026, newbuild capital expenditures are $0.3 billion and non-newbuild capital expenditures are $0.9 billion. These future capital expenditures will fluctuate with foreign currency movements relative to the U.S. Dollar.
The company has scheduled a conference call with analysts at 10:00 a.m. EDT today to discuss its earnings release. This call can be listened to live and additional information including the company’s earnings presentation can be obtained on its website at www.carnivalcorp.com .
Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. Carnival Corporation trades under the ticker symbol CCL on the NYSE and is included in the S&P 500.
Additional information can be found on www.carnivalcorp.com , www.aida.de , www.carnival.com , www.costacruises.com , www.cunard.com , www.hollandamerica.com , www.pocruises.com , www.princess.com , and www.seabourn.com .
To learn more about Carnival Corporation’s purpose and its commitment to sustainability, go to Our Impact.
MEDIA CONTACT INVESTOR RELATIONS CONTACT Jody Venturoni Beth Roberts +1 469 797 6380 +1 305 406 4832
Some of the statements, estimates or projections contained in this document are “forward-looking statements” that involve risks, uncertainties and assumptions with respect to us, including statements concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like “will,” “may,” “could,” “should,” “would,” “believe,” “depends,” “expect,” “goal,” “aspiration,” “anticipate,” “forecast,” “project,” “future,” “intend,” “plan,” “estimate,” “target,” “indicate,” “outlook,” and similar expressions of future intent or the negative of such terms.
Forward-looking statements include, but are not limited to, statements that relate to our outlook and financial position, as well as, statements regarding:
•Revenues •Financial outlook •Costs and expenses •Non-GAAP measures •Capital expenditures •Passenger capacity •Leverage metrics •Demand and booking trends •Shareholder returns •Progress toward achieving our goals and targets
Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward- looking statements and adversely affect our business, results of operations and financial position. These factors include, but are not limited to, the following:
• Events and conditions around the world, including geopolitical uncertainty, war and other military actions, pandemics, inflation, higher interest rates and other general concerns impacting the ability or desire of people to travel could lead to a decline in demand for cruises as well as have significant negative impacts on our financial condition and operations.
• Incidents concerning our ships, guests or the cruise industry may negatively impact the satisfaction of our guests and crew and lead to reputational damage.
• Adverse weather conditions or an increase in the frequency and/or severity of adverse weather conditions could have a material impact on our business and results of operations.
• Our targets, goals, aspirations, initiatives, public statements and disclosures, including those related to sustainability matters, may expose us to risks that may adversely impact our business.
• Cybersecurity incidents and data privacy breaches, as well as disruptions and other damages to our principal and other offices, information technology operations and system networks and failure to keep pace with developments in technology may adversely impact our business operations, the satisfaction of our guests and crew and may lead to fines, penalties and reputational damage.
• Our debt requires a significant amount of cash to service and our ability to generate sufficient cash depends on many factors, some of which may be beyond our control. Our financial condition and operations could be adversely impacted if we are unable to service our debt or satisfy our covenants.
• Increases in fuel costs, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs.
• The loss of key team members, our inability to recruit or retain qualified shoreside and shipboard team members and increased labor costs could have an adverse effect on our business and results of operations.
• We rely on suppliers who are integral to the operations of our businesses. These suppliers and service providers may be unable to deliver on their commitments, which could negatively impact our business.
• Fluctuations in foreign currency exchange rates may adversely impact our financial results.
• Our investments in port destinations and exclusive islands may expose us to additional risks.
• Overcapacity and competition in the cruise and land-based vacation industry may negatively impact our cruise sales, pricing and destination options.
• Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments may adversely impact our business operations and the satisfaction of our guests.
• Changes in and non-compliance with laws and regulations under which we operate, such as those relating to health, environment, safety and security, data privacy and protection, anti-money laundering, anti-corruption, economic sanctions,
trade protection measures, labor and employment, and tax may be costly and lead to litigation, enforcement actions, fines, penalties and reputational damage.
• Factors associated with sustainability and the impact of greenhouse gases and other emissions on the environment could have a material impact on our business and operating results.
The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. There may be additional risks that we consider immaterial or which are unknown. Additional information about the factors that may affect future results is contained in our most recent Annual Report on Form 10-K as well as our other filings with the SEC, all of which are available on the SEC's website at www.sec.gov .
Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
Forward-looking and other statements in this document may also address our sustainability progress, plans, and goals (including emissions and environmental-related matters). In addition, historical, current, and forward- looking sustainability-related statements may be based on standards and tools for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions and predictions that are subject to change in the future and may not be generally shared.
August 31, 2026 November 30, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current Assets Cash and cash equivalents $ 1,220 $ 1,928 Trade and other receivables, 670 678 net Inventories 528 505 Prepaid expenses and other 1,004 1,108 Total current assets 3,421 4,219 Property and Equipment, Net 43,397 43,494 Operating Lease Right-of-Use 1,228 1,328 Assets, Net Goodwill 579 579 Other Intangibles 1,181 1,177 Other Assets 1,166 890 $ 50,971 $ 51,687 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Current portion of long-term $ 2,036 $ 2,603 debt Current portion of operating lease 168 175 liabilities Accounts payable 1,159 1,245 Accrued liabilities and other 1,983 2,239 Customer deposits 7,129 6,831 Total current liabilities 12,475 13,092 Long-Term Debt 21,876 24,037 Long-Term Operating Lease 1,082 1,178 Liabilities Other Long-Term Liabilities 1,333 1,097 Shareholders’ Equity Carnival Corporation Ltd. common shares, $0.01 par value; 1,960 shares authorized; 1,514 shares 15 13 issued at 2026 and 1,298 shares issued at 2025 Carnival plc ordinary shares, $1.66 par value; no shares issued at — 361 2026 and 217 shares issued at 2025 Additional paid-in capital 15,663 17,253 Retained earnings 6,712 4,817 Accumulated other comprehensive income -1,714 -1,810 (loss) Treasury stock, 162 shares at 2026 and 131 shares at 2025 of Carnival Corporation Ltd. and no shares -6,488 -8,364 at 2026 and 72 shares at 2025 of Carnival plc, at cost Total shareholders’ equity attributable 14,188 12,270 to Carnival Corporation Ltd. Noncontrolling interests 19 14 Total shareholders’ equity 14,207 12,284 $ 50,971 $ 51,687
(a) PCD represents the number of cruise passengers on a voyage multiplied by the number of revenue-producing ship operating days for that voyage.
(b) ALBD is a standard measure of passenger capacity for the period that we use to approximate rate and capacity variances, based on consistently applied formulas that we use to perform analyses to determine the main non-capacity driven factors that cause our cruise revenues and expenses to vary. ALBDs assume that each cabin we offer for sale accommodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period.
(c) Occupancy, in accordance with cruise industry practice, is calculated using a numerator of PCDs and a denominator of ALBDs, which assumes two passengers per cabin even though some cabins can accommodate three or more passengers. Percentages in excess of 100% indicate that on average more than two passengers occupied some cabins.
(a) Diluted earnings per share and diluted adjusted earnings per share include the add-back of dilutive interest expense related to the company’s convertible notes of $18 million and $53 million for the three and nine months ended August 31, 2025.
Gross margin yields and net yields were computed by dividing the gross margin and adjusted gross margin by ALBDs as follows:
Cruise costs per ALBD, adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD were computed by dividing cruise costs, adjusted cruise costs and adjusted cruise costs excluding fuel by ALBDs as follows:
We use non-GAAP financial measures and they are provided along with their most comparative U.S. GAAP financial measure:
Non-GAAP Measure U.S. GAAP Measure Use Non-GAAP Measure to Assess •Adjusted net income, •Net income adjusted EBITDA, attributable to adjusted EBITDA per Carnival Corporation •Company Performance ALBD and adjusted Ltd. EBITDA margin •Adjusted earnings per •Earnings per share •Company Performance share •Net debt to adjusted — •Company Leverage EBITDA •Net yields •Gross margin yields •Cruise Segments Performance •Adjusted cruise costs per ALBD and •Cruise Segments adjusted cruise costs •Cruise costs per ALBD Performance excluding fuel per ALBD •Adjusted ROIC — •Company Performance
The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared in accordance with U.S. GAAP. It is possible that our non- GAAP financial measures may not be exactly comparable to the like-kind information presented by other companies, which is a potential risk associated with using these measures to compare us to other companies.
Adjusted net income and adjusted earnings per share provide additional information to us and investors about our future earnings performance. These measures represent net income attributable to Carnival Corporation Ltd., excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance. We believe that gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other gains, losses and expenses are not part of our core operating business and are not an indication of our future earnings performance.
Adjusted EBITDA, adjusted EBITDA per ALBD and adjusted EBITDA margin provide additional information to us and investors about our core operating profitability, including on a per ALBD basis, by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance as well as excluding interest, taxes and depreciation and amortization. In addition, we believe that the presentation of adjusted EBITDA provides additional information to us and investors about our ability to operate our business in compliance with the covenants set forth in our debt agreements. We define adjusted EBITDA as adjusted net income adjusted for (i) interest, (ii) taxes and (iii) depreciation and amortization. There are material limitations to using adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items that directly affect our net income attributable to Carnival Corporation Ltd. These limitations are best addressed by considering the economic effects of the excluded items independently and by considering adjusted EBITDA in conjunction with net income attributable to Carnival Corporation Ltd. as calculated in accordance with U.S. GAAP. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenues.
Net debt to adjusted EBITDA provides additional information to us and investors about our overall leverage. We define net debt to adjusted EBITDA as total debt less cash and cash equivalents divided by twelve-month adjusted EBITDA.
Net yields enable us and investors to measure the performance of our cruise segments on a per ALBD basis. We use adjusted gross margin rather than gross margin to calculate net yields. We believe that adjusted gross margin is a more meaningful measure in determining net yields than gross margin because it reflects the cruise revenues earned net of only our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees.
Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non-GAAP measures provide useful information to us and investors and expanded insight to measure our cost performance. Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD are the measures we use to monitor our ability to control our cruise segments’ costs rather than cruise costs per ALBD. We exclude gains and losses on ship sales, impairment charges, restructuring costs and certain other gains and losses that we believe are not part of our core operating
business as well as excluding our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees. We exclude fuel expense to calculate adjusted cruise costs excluding fuel. The price of fuel, over which we have no control, impacts the comparability of period-to-period cost performance. The adjustment to exclude fuel provides us and investors with supplemental information to understand and assess the company’s non-fuel adjusted cruise cost performance. Substantially all of our adjusted cruise costs excluding fuel are largely fixed, except for the impact of changing prices once the number of ALBDs has been determined.
Adjusted return on invested capital (“ROIC”) provides additional information to us and investors about our operating performance relative to the capital we have invested in the company. We define ROIC as the twelve-month adjusted net income before interest expense and interest income divided by the monthly average of debt plus equity minus construction-in-progress, excess cash, goodwill and intangibles.
We have not provided a reconciliation of forecasted non-GAAP financial measures to the most comparable U.S. GAAP financial measures beca use preparation of meaningful U.S. GAAP forecasts would require unreasonable effort. We are unable to predict, without unreasonable effort, the future movement of foreign exchange rates and fuel prices. We are unable to determine the future impact of gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other non-core gains and losses.
Our operations primarily utilize the U.S. dollar, Australian dollar, euro and sterling as functional currencies to measure results
and financial condition. Functional currencies other than the U.S. dollar subject us to foreign currency translational risk. Our operations also have revenues and expenses that are in currencies other than their functional currency, which subject us to foreign currency transactional risk.
Constant currency reporting removes the impact of changes in exchange rates on the translation of our operations plus the transactional impact of changes in exchange rates from revenues and expenses that are denominated in a currency other than the functional currency.
We report adjusted gross margin, net yields, adjusted cruise costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a “constant currency” basis assuming the current periods’ currency exchange rates have remained constant with the prior periods’ rates. These metrics facilitate a comparative view for the changes in our business in an environment with fluctuating exchange rates.
• The translation of our operations with functional currencies other than U.S. dollar to our U.S. dollar reporting currency results in decreases in reported U.S. dollar revenues and expenses if the U.S. dollar strengthens against these foreign currencies and increases in reported U.S. dollar revenues and expenses if the U.S. dollar weakens against these foreign currencies.
• Our operations have revenue and expense transactions in currencies other than their functional currency. If their functional currency strengthens against these other currencies, it reduces the functional currency revenues and expenses. If the functional currency weakens against these other currencies, it increases the functional currency revenues and expenses.
Full text with the tables
Exhibit 99.1
CARNIVAL CORPORATION OUTPERFORMS GUIDANCE, DELIVERING BEST EVER REVENUES,
NET YIELDS AND NET INCOME
Record bookings provide a strong foundation for 2027
MIAMI (September 29, 2026) - Carnival Corporation (NYSE: CCL) announced
financial results for the third quarter 2026 and provided an updated outlook.
•
All-time high net income
1
of $1.9 billion with adjusted net income
2
of $2.0 billion.
•
All-time high revenues and net yields
2
(in constant currency), demonstrating continued demand strength.
•
Full year outlook operational improvement of more than $150 million in adjusted
net income compared to June guidance, overcoming a spike in fuel prices.
•
Record third quarter customer deposits up nearly seven percent compared to the
prior year record, on flat capacity growth.
•
2027 booked occupancy and pricing at record levels.
•
Completed approximately $1.2 billion of share repurchases year to date.
“We delivered another quarter of top and bottom-line records, with accelerating
demand and even stronger cost discipline driving results ahead of our
expectations. This performance reinforces the underlying trajectory of our
business and the consistency of our commercial execution, as evidenced by our
sustained track record of high-quality same-ship yield growth.
“Our world-class cruise lines and destinations, exceptional guest experiences
delivered by the best team in travel and leisure, and enhanced demand-generation
against intentionally measured capacity growth position us to continue driving
higher returns. At the same time, we are putting our increasingly durable cash
flow to work, reinvesting in our business while returning more capital to
shareholders,” said Carnival Corporation’s Chief Executive Officer Josh
Weinstein.
Third Quarter 2026 Results
• D iluted EPS of $1.40; adjusted EPS 2 of $1.43, in line with prior year
despite a $0.10 ($131 million) unfavorable net impact from fuel prices and
currency rates.
• Adjusted EBITDA 2 of $3.0 billion, in line with last year’s historic high and
$110 million better than June guidance.
• Gross margin yields down 1.3 percent compared to prior year, driven by higher
fuel prices. All-time high net yields (in constant currency) up 2.4 percent,
over a point better than June guidance.
• Cruise costs per available lower berth day (“ALBD”) increased 4.2 percent
compared to prior year, driven by higher fuel prices. Adjusted cruise costs
excluding fuel per ALBD 2 (in constant currency) increased 1.8 percent, one
point better than June guidance.
• Fuel consumption per ALBD improved 3.8 percent compared to prior year,
reflecting the company’s efforts and investments to continuously reduce fuel
consumption.
Advance Sales
“Our booking trends continued to strengthen throughout the quarter, with volumes
meaningfully ahead of last year and far outpacing capacity growth. This momentum
underscores the effectiveness of our demand generation efforts and the enduring
appeal of our cruise lines,” Weinstein said.
“For full-year 2027, both booked occupancy and pricing 3 are at record levels,
providing a strong foundation for another year of solid yield growth. Looking
further ahead, 2028 is also off to an excellent start at higher occupancy and
prices than last year.”
“Customer deposits, another key leading indicator, also reached a third-quarter
record of $7.6 billion, surpassing the prior-year record by $0.5 billion despite
flat capacity growth over the next twelve months.”
“Taken together, the ongoing strength we are seeing across our record booking
curve, which has extended out even further, reinforces our confidence in the
durability of demand for our cruise lines and the earnings power of our
business,” Weinstein added.
1 Net income attributable to Carnival Corporation.
2 See “Non-GAAP Financial Measures” and “Constant Currency.”
3 Pricing in constant currency.
2026 Outlook
For the full year 2026, the company expects:
• Operational improvement of more than $150 million in adjusted net income
compared to June guidance, driven by improvements in net yields, adjusted cruise
costs excluding fuel per ALBD and fuel consumption per ALBD, overcoming $150
million impact from increased fuel prices.
• Net yields (in constant currency) up approximately 2.3 percent compared to
record 2025 levels and 0.5 percentage points better than June guidance. Net
yields (in constant currency) up approximately 2.7 percent, after reflecting the
impact of the summer 2025 close-in decision to redeploy away from the previously
planned first quarter 2026 Arabian Gulf voyages and the impacts of loyalty
program accounting for Carnival Cruise Line which requires the deferral of a
portion of the ticket price paid by the guest.
• Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 2.2 percent and better than June guidance. Adjusted cruise costs
excluding fuel per ALBD (in constant currency) up approximately 1.1 percent,
after reflecting the timing of certain expenses between the years, partial year
operating expenses from two exclusive destinations and the impact of certain
elevated logistics costs as a result of disruption from the Middle East
conflict.
For the fourth quarter of 2026, the company expects net yields (in constant
currency) up approximately 1.7 percent compared to 2025 record levels. Net
yields (in constant currency) up approximately 2.3 percent after reflecting the
impact of loyalty program accounting for Carnival Cruise Line.
See “Guidance” for additional information on the company’s 2026 outlook, “Non-
GAAP Financial Measures,” “Reconciliation of Forecasted Data” and “Constant
Currency.”
Capital Allocation
“Our strong operating cash flow enabled us to continue strengthening our
financial position while advancing our commitment to return value to
shareholders,” commented Carnival Corporation’s Chief Financial Officer David
Bernstein. “With nearly $1.2 billion of share repurchases so far this year —
nearly $800 million since the beginning of the third quarter — and our ongoing
dividend program, we are making meaningful progress toward our PROPEL target of
distributing cash to our shareholders, responsibly. During the third quarter we
were also able to use cash on hand to opportunistically redeem $500 million of
seven percent coupon notes, which were among our highest coupon debt. Even with
the substantial capital we are returning to shareholders, we continue to expect
year-over-year improvement in our balance sheet and leverage metrics.”
During the quarter, S&P upgraded the company's credit rating, making it the
second rating agency to award the company an investment grade rating. Following
this upgrade, the company does not have any remaining secured debt.
The company distributed $204 million in dividends during the quarter, bringing
the year to date total to $618 million.
Other Recent Highlights
• Celebration Key commemorated one year of creating memorable guest experiences
and a lasting positive impact in Grand Bahama, welcoming almost 2.5 million
guests during its first year (learn more here).
• RelaxAway, Half Moon Cay and Isla Tropicale each welcomed more than 250,000
guests, following the completion of their recent enhancements.
• Carnival Cruise Line successfully launched its new Carnival Rewards loyalty
program on September 1, generating substantial early engagement with co-branded
credit card issuances increasing over 300 percent in the weeks following the
launch compared to pre-announcement levels (learn more here).
• Carnival Cruise Line unveiled Carnival Destiny , arriving in 2029, the first
ship in its next-generation Ace class (learn more here).
• Holland America Line announced Zuiderdam as the second ship set for major
transformation as part of its Evolution program (learn more here).
• Princess Cruises became the first global cruise line to launch a native app in
ChatGPT, creating a seamless AI-powered experience for travelers to discover,
compare and plan a Princess cruise using real-time pricing and availability
(learn more here).
• Recognitions:
◦ Named to TIME’s World’s Best Companies 2026, recognizing the company for
leading with responsibility and resilience (learn more here).
◦ Named to TIME’s America’s Best Companies 2026, recognized for its excellence
in employee satisfaction, sustained financial performance and sustainability
achievements (learn more here).
◦ Named to Forbes America’s Best Employers for Women for 2026, recognizing the
company’s commitment to fostering an environment of well-being, inclusion and
belonging (learn more here).
• Released its 16th annual sustainability report, Doing Business Responsibly
from Ship to Shore, detailing the
company’s continued progress towards its sustainability goals.
Guidance
(See “Non-GAAP Financial Measures,” “Reconciliation of Forecasted Data” and
“Constant Currency”)
4Q Full
2026 Year
2026
Year
over Curr… Cons… Curr… Cons…
year Doll… Curr… Doll… Curr…
cha…
Net Appr… Appr… Appr… Appr…
yie… 2.3% 1.7% 3.8% 2.3%
Adj…
cru…
cos… Appr… Appr… Appr… Appr…
exc… 1.9% 1.7% 3.5% 2.2%
fuel
per
ALBD
4Q 2026 Full Year
2026
ALBDs(in 24.1 97.4
millions)…
Capacity
growth
compared -0.1 % 1.0 %
to prior
year
Fuel
consumpti…
metric 0.7 2.7
tons(in
millions)
Fuel cost
per metric
ton
consumed $ 896 $ 768
(excluding
emission
allowance…
Fuel
expense
(including
emission $ 0.64 $ 2.25
allowances
expense)(…
billions)
Depreciat…
and
amortizat… $ 0.75 $ 2.92
expense(in
billions)
Interest
expense,
net of
capitaliz…
interest $ 0.26 $ 1.08
and
interest
income(in
billions)
Adjusted Approx. Approx.
EBITDA(in $1.30 $7.14
billions)
Adjusted
net Approx. $274 Approx.
income(in $3,080
millions)
Adjusted
earnings Approx. Approx.
per share $0.20 $2.24
- diluted
Weighted-…
shares
outstandi… 1,352 1,369
-
basic
Adjusted
weighted-…
shares 1,358 1,376
outstandi…
- diluted
(a) See “Notes to Statistical Information.”
Currencies (USD to 1) 4Q 2026 Full Year 2026
────────────────────────────────────────────────────────────────
AUD $ 0.71 $ 0.70
CAD $ 0.71 $ 0.72
EUR $ 1.15 $ 1.16
GBP $ 1.34 $ 1.35
Sensitivities(impact to adjusted net
income in millions) 4Q 2026
──────────────────────────────────────────────────────────
1% change in net yields $ 49
1% change in adjusted cruise costs $ 30
excluding fuel per ALBD
10% change in fuel cost per metric ton $ 59
(excluding emission allowances)
100 basis point change in variable rate $ 4
debt
1% change in currency exchange rates $ 7
Capital Expenditures
For the fourth quarter of 2026, newbuild capital expenditures are $0.3 billion
and non-newbuild capital expenditures are $0.9 billion. These future capital
expenditures will fluctuate with foreign currency movements relative to the U.S.
Dollar.
Conference Call
The company has scheduled a conference call with analysts at 10:00 a.m. EDT
today to discuss its earnings release. This call can be listened to live and
additional information including the company’s earnings presentation can be
obtained on its website at www.carnivalcorp.com .
Carnival Corporation is the largest global cruise company and among the largest
leisure travel companies, with a portfolio of world-class cruise lines – AIDA
Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O
Cruises, Princess Cruises and Seabourn. Carnival Corporation trades under the
ticker symbol CCL on the NYSE and is included in the S&P 500.
Additional information can be found on www.carnivalcorp.com , www.aida.de ,
www.carnival.com , www.costacruises.com , www.cunard.com ,
www.hollandamerica.com , www.pocruises.com , www.princess.com , and
www.seabourn.com .
To learn more about Carnival Corporation’s purpose and its commitment to
sustainability, go to Our Impact.
MEDIA CONTACT INVESTOR RELATIONS CONTACT
Jody Venturoni Beth Roberts
+1 469 797 6380 +1 305 406 4832
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this document are
“forward-looking statements” that involve risks, uncertainties and assumptions
with respect to us, including statements concerning future results, operations,
strategy, outlooks, plans, goals, reputation, cash flows, liquidity and other
events which have not yet occurred. These statements are intended to qualify for
the safe harbors from liability provided by Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical facts are statements that could
be deemed forward-looking. These statements are based on current expectations,
estimates, forecasts and projections about our business and the industry in
which we operate and the beliefs and assumptions of our management. We have
tried, whenever possible, to identify these statements by using words like
“will,” “may,” “could,” “should,” “would,” “believe,” “depends,” “expect,”
“goal,” “aspiration,” “anticipate,” “forecast,” “project,” “future,” “intend,”
“plan,” “estimate,” “target,” “indicate,” “outlook,” and similar expressions of
future intent or the negative of such terms.
Forward-looking statements include, but are not limited to, statements that
relate to our outlook and financial position, as well as, statements regarding:
•Revenues •Financial outlook
•Costs and expenses •Non-GAAP measures
•Capital expenditures •Passenger capacity
•Leverage metrics •Demand and booking trends
•Shareholder returns •Progress toward achieving our goals and targets
Because forward-looking statements involve risks and uncertainties, there are
many factors that could cause our actual results, performance or achievements to
differ materially from those expressed or implied by our forward-looking
statements. This note contains important cautionary statements of the known
factors that we consider could materially affect the accuracy of our forward-
looking statements and adversely affect our business, results of operations and
financial position. These factors include, but are not limited to, the
following:
• Events and conditions around the world, including geopolitical uncertainty,
war and other military actions, pandemics, inflation, higher interest rates and
other general concerns impacting the ability or desire of people to travel could
lead to a decline in demand for cruises as well as have significant negative
impacts on our financial condition and operations.
• Incidents concerning our ships, guests or the cruise industry may negatively
impact the satisfaction of our guests and crew and lead to reputational damage.
• Adverse weather conditions or an increase in the frequency and/or severity of
adverse weather conditions could have a material impact on our business and
results of operations.
• Our targets, goals, aspirations, initiatives, public statements and
disclosures, including those related to sustainability matters, may expose us to
risks that may adversely impact our business.
• Cybersecurity incidents and data privacy breaches, as well as disruptions and
other damages to our principal and other offices, information technology
operations and system networks and failure to keep pace with developments in
technology may adversely impact our business operations, the satisfaction of our
guests and crew and may lead to fines, penalties and reputational damage.
• Our debt requires a significant amount of cash to service and our ability to
generate sufficient cash depends on many factors, some of which may be beyond
our control. Our financial condition and operations could be adversely impacted
if we are unable to service our debt or satisfy our covenants.
• Increases in fuel costs, changes in the types of fuel consumed and
availability of fuel supply may adversely impact our scheduled itineraries and
costs.
• The loss of key team members, our inability to recruit or retain qualified
shoreside and shipboard team members and increased labor costs could have an
adverse effect on our business and results of operations.
• We rely on suppliers who are integral to the operations of our businesses.
These suppliers and service providers may be unable to deliver on their
commitments, which could negatively impact our business.
• Fluctuations in foreign currency exchange rates may adversely impact our
financial results.
• Our investments in port destinations and exclusive islands may expose us to
additional risks.
• Overcapacity and competition in the cruise and land-based vacation industry
may negatively impact our cruise sales, pricing and destination options.
• Inability to implement our shipbuilding programs and ship repairs, maintenance
and refurbishments may adversely impact our business operations and the
satisfaction of our guests.
• Changes in and non-compliance with laws and regulations under which we
operate, such as those relating to health, environment, safety and security,
data privacy and protection, anti-money laundering, anti-corruption, economic
sanctions,
trade protection measures, labor and employment, and tax may be costly and lead
to litigation, enforcement actions, fines, penalties and reputational damage.
• Factors associated with sustainability and the impact of greenhouse gases and
other emissions on the environment could have a material impact on our business
and operating results.
The ordering of the risk factors set forth above is not intended to reflect our
indication of priority or likelihood. There may be additional risks that we
consider immaterial or which are unknown. Additional information about the
factors that may affect future results is contained in our most recent Annual
Report on Form 10-K as well as our other filings with the SEC, all of which are
available on the SEC's website at www.sec.gov .
Forward-looking statements should not be relied upon as a prediction of actual
results. Subject to any continuing obligations under applicable law or any
relevant stock exchange rules, we expressly disclaim any obligation to
disseminate, after the date of this document, any updates or revisions to any
such forward-looking statements to reflect any change in expectations or events,
conditions or circumstances on which any such statements are based.
Forward-looking and other statements in this document may also address our
sustainability progress, plans, and goals (including emissions and
environmental-related matters). In addition, historical, current, and forward-
looking sustainability-related statements may be based on standards and tools
for measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions and predictions that are
subject to change in the future and may not be generally shared.
CARNIVAL CORPORATION LTD.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except per share data)
Th… Ni…
Mo… Mo…
En… En…
Au… Au…
2026 31, 20… 2026 31, 20…
──────────────────────────────────────────────────────────────────────────────
P… $ 5,… $ 5,4… $ 13… $ 13,…
t…
O…
a… 2,… 2,7… 7,… 6,9…
o…
T… 8,… 8,1… 21… 20,…
R…
C…
a…
t…
o…
e…
C…
t… 988 973 2,… 2,6…
a…
o…
O…
a… 902 883 2,… 2,1…
o…
P…
a… 641 636 2,… 1,9…
r…
F… 615 451 1,… 1,3…
F… 401 398 1,… 1,1…
O… 1,… 1,0… 3,… 2,8…
o…
T…
C…
a… 4,… 4,3… 12… 12,…
t…
o…
e…
S…
a… 834 779 2,… 2,4…
a…
e…
D…
a… 754 717 2,… 2,0…
a…
e…
O… 2,… 2,2… 3,… 3,7…
I…
I… 17 15 41 34
i…
I…
e…
n… -2… -317 -8… -1,…
of
c…
i…
D…
e…
a… -23 -111 -23 -366
m…
c…
O…
i… 10 0 -60 -4
(…
n…
I…
B… 1,… 1,8… 2,… 2,3…
I…
T…
I…
t… -16 -6 -50 -30
e…
n…
N… 1,… 1,8… 2,… 2,3…
I…
L…
n…
i…
a… 3 2 9 10
to
n…
i…
N…
I…
a…
to $ 1,… $ 1,8… $ 2,… $ 2,3…
C…
C…
L…
E…
P…
S…
B… $ 1.… $ 1.41 $ 1.… $ 1.78
D… $ 1.… $ 1.33 $ 1.… $ 1.71
W…
S…
O… 1,3… 1,… 1,3… 1,…
-
B…
W…
S…
O… 1,3… 1,… 1,… 1,…
-
D…
CARNIVAL CORPORATION LTD.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
August 31, 2026 November 30, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current Assets
Cash and cash equivalents $ 1,220 $ 1,928
Trade and other receivables, 670 678
net
Inventories 528 505
Prepaid expenses and other 1,004 1,108
Total current assets 3,421 4,219
Property and Equipment, Net 43,397 43,494
Operating Lease Right-of-Use 1,228 1,328
Assets, Net
Goodwill 579 579
Other Intangibles 1,181 1,177
Other Assets 1,166 890
$ 50,971 $ 51,687
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current Liabilities
Current portion of long-term $ 2,036 $ 2,603
debt
Current portion of operating
lease 168 175
liabilities
Accounts payable 1,159 1,245
Accrued liabilities and other 1,983 2,239
Customer deposits 7,129 6,831
Total current liabilities 12,475 13,092
Long-Term Debt 21,876 24,037
Long-Term Operating Lease 1,082 1,178
Liabilities
Other Long-Term Liabilities 1,333 1,097
Shareholders’ Equity
Carnival Corporation Ltd.
common shares,
$0.01 par value; 1,960 shares
authorized; 1,514 shares 15 13
issued at 2026
and 1,298 shares issued at
2025
Carnival plc ordinary shares,
$1.66 par
value; no shares issued at — 361
2026 and 217
shares issued at 2025
Additional paid-in capital 15,663 17,253
Retained earnings 6,712 4,817
Accumulated other
comprehensive income -1,714 -1,810
(loss)
Treasury stock, 162 shares at
2026 and
131 shares at 2025 of Carnival
Corporation Ltd. and no shares -6,488 -8,364
at 2026
and 72 shares at 2025 of
Carnival plc,
at cost
Total shareholders’ equity
attributable 14,188 12,270
to Carnival Corporation Ltd.
Noncontrolling interests 19 14
Total shareholders’ equity 14,207 12,284
$ 50,971 $ 51,687
CARNIVAL CORPORATION LTD.
OTHER INFORMATION
OTHER BALANCE
SHEET
INFORMATION(in November 30,
millions) August 31, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Debt (current $ 23,912 $ 26,640
and long-term)
Customer
deposits $ 7,639 $ 7,246
(current and
long-term)
Three Nine
CASH Months Months
FLOW Ended Ended
INFORMA… August August
million… 2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash
from $ 1,410 $ 1,383 $ 5,303 $ 4,700
operati…
Capital
expendi…
(Purcha…
of $ 698 $ 648 $ 2,139 $ 2,105
Property
and
Equipme…
Dividen… $ 204 $ — $ 618 $ —
paid
STA…
INF…
Pas…
Cru…
Days
(“P…
mil…
ALB…
mil…
Occ…
per…
(c)
Pas…
car…
mil…
Fuel
con…
in
met…
ton…
mil…
Fuel
con…
in
met…
tons
per
tho…
ALB…
Fuel
cost
per
met…
ton
con…
(ex… 27.9 27.5 78.0 77.1
emi… Three 24.9 24.6 Nine 73.3 72.3
all… Mont… 111.8 111.7 Mon… 106.5 106…
Cur… Ended 3.9 3.8 End… 10.5 10.3
(USD Augu… 0.7 0.7 Aug… 2.1 2.1
to 31, 26.9 28.0 31, 28.0 29.4
1) 2026 826 % 2025 607 % 2026 726 % 2025 621 %
──────────────────────────────────────────────────────────────────────────────
AUD $ 0.70 $ 0.65 $ 0.70 $ 0.64
CAD $ 0.71 $ 0.73 $ 0.72 $ 0.71
EUR $ 1.15 $ 1.16 $ 1.16 $ 1.10
GBP $ 1.34 $ 1.35 $ 1.34 $ 1.30
Notes to Statistical Information
(a) PCD represents the number of cruise passengers on a voyage multiplied by the
number of revenue-producing ship operating days for that voyage.
(b) ALBD is a standard measure of passenger capacity for the period that we use
to approximate rate and capacity variances, based on consistently applied
formulas that we use to perform analyses to determine the main non-capacity
driven factors that cause our cruise revenues and expenses to vary. ALBDs assume
that each cabin we offer for sale accommodates two passengers and is computed by
multiplying passenger capacity by revenue-producing ship operating days in the
period.
(c) Occupancy, in accordance with cruise industry practice, is calculated using
a numerator of PCDs and a denominator of ALBDs, which assumes two passengers per
cabin even though some cabins can accommodate three or more passengers.
Percentages in excess of 100% indicate that on average more than two passengers
occupied some cabins.
CARNIVAL CORPORATION LTD.
NON-GAAP FINANCIAL MEASURES
(in
million… Three Nine
except Months Months
per Ended Ended
share August August
data) 2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
attribu…
to $ 1,920 $ 1,852 $ 2,715 $ 2,338
Carnival
Corpora…
Ltd.
(Gains)
losses
on ship 2 0 2 -101
sales
and
impairm…
Debt
extingu…
and 23 111 23 366
modific…
costs
Restruc… 8 3 8 5
expense
Other 10 17 58 17
Adjusted
net $ 1,963 $ 1,982 $ 2,807 $ 2,625
income
Interest
expense,
net of 285 317 862 1,034
capital…
interest
Interest -17 -15 -41 -34
income
Income
tax 16 -8 50 16
expense,
net
Depreci…
and 746 717 2,164 2,064
amortiz…
expense
Adjusted $ 2,993 $ 2,993 $ 5,842 $ 5,706
EBITDA
Earnings
per
share - $ 1.40 $ 1.33 $ 1.96 $ 1.71
diluted
(a)
Weighte…
shares
outstan… 1,368 1,402 1,382 1,401
-
diluted
(a)
Adjusted
earnings
per $ 1.43 $ 1.43 $ 2.03 $ 1.91
share -
diluted
(a)
Adjusted
weighte…
shares
outstan… 1,368 1,402 1,382 1,401
-
diluted
(a)
(See
Non-GAAP
Financi…
Measure…
(a) Diluted earnings per share and diluted adjusted earnings per share include
the add-back of dilutive interest expense related to the company’s convertible
notes of $18 million and $53 million for the three and nine months ended August
31, 2025.
CARNIVAL CORPORATION LTD.
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Gross margin yields and net yields were computed by dividing the gross margin
and adjusted gross margin by ALBDs as follows:
T… …
… M… …
… E… …
… A… 2… … 2…
… 3… C… … C…
… 2… C… 2… … C… …
──────────────────────────────────────────────────────────────────────────────
… $ 8… $ 8… $ 2… $ 2…
…
…
…
… -… -… -… -…
…
…
…
…
… -… -… -… -…
…
…
… 3… 3… 6… 6…
…
…
…
… -… -… -… -…
…
…
…
… 6… 6… 2… 1…
…
…
… 6… 4… 1… 1…
… 4… 3… 1… 1…
… 1… 1… 3… 2…
…
…
… 7… 7… 2… 2…
…
…
…
… $ 6… $ 6… $ 6… $ 1… $ … $ 1…
…
… 2… 2… 2… … 7… …
…
… $ 1… $ 1… $ 8… $ …
…
…
…
… $ 2… $ 2… $ 2… $ 2… $ … $ …
…
…
…
…
…
CARNIVAL CORPORATION LTD.
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Cruise costs per ALBD, adjusted cruise costs per ALBD and adjusted cruise costs
excluding fuel per ALBD were computed by dividing cruise costs, adjusted cruise
costs and adjusted cruise costs excluding fuel by ALBDs as follows:
(…
m…
e… Th… Ni…
c… Mo… Mo…
p… En… 20… En… 2026
A… Au… Co… Au… Con…
d… 20… 31, Cu… 20… 20… 31, Cur… 2025
──────────────────────────────────────────────────────────────────────────────
C…
a…
t… $ 4,… $ 4,… $ 12… $ 12…
o…
e…
S…
a… 834 779 2,… 2,…
a…
e…
L…
T…
a… -1… -1… -1… -1…
o…
e…
C… 5,… 5,… 15… 14…
c…
L…
C…
t… -9… -9… -2… -2…
a…
o…
O…
a… -9… -8… -2… -2…
o…
c…
G…
(…
on
s… -2 0 -2 101
s…
a…
i…
R… -8 -3 -8 -5
e…
O… -2 -4 -36 -4
A…
c… 3,… 3,… 3,… 10… 10… 9,…
c…
L… -6… -6… -4… -1… -1… -1…
F…
A…
c…
c… $ 2,… $ 2,… $ 2,… $ 8,… $ 8,… $ 8,…
e…
f…
A… 24… 24… 24… 73… 73… 72…
C…
c… $ 21… $ 20… $ 20… $ 19…
p…
A…
A…
c…
c… $ 13… $ 13… $ 13… $ 14… $ 13… $ 13…
p…
A…
A…
c…
c…
e… $ 11… $ 11… $ 11… $ 11… $ 11… $ 11…
f…
p…
A…
(…
N…
F…
M…
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along with their most
comparative U.S. GAAP financial measure:
Non-GAAP Measure U.S. GAAP Measure Use Non-GAAP Measure to
Assess
•Adjusted net income, •Net income
adjusted EBITDA, attributable to
adjusted EBITDA per Carnival Corporation •Company Performance
ALBD and adjusted Ltd.
EBITDA margin
•Adjusted earnings per •Earnings per share •Company Performance
share
•Net debt to adjusted — •Company Leverage
EBITDA
•Net yields •Gross margin yields •Cruise Segments
Performance
•Adjusted cruise costs
per ALBD and •Cruise Segments
adjusted cruise costs •Cruise costs per ALBD Performance
excluding fuel per
ALBD
•Adjusted ROIC — •Company Performance
The presentation of our non-GAAP financial information is not intended to be
considered in isolation from, as a substitute for, or superior to the financial
information prepared in accordance with U.S. GAAP. It is possible that our non-
GAAP financial measures may not be exactly comparable to the like-kind
information presented by other companies, which is a potential risk associated
with using these measures to compare us to other companies.
Adjusted net income and adjusted earnings per share provide additional
information to us and investors about our future earnings performance. These
measures represent net income attributable to Carnival Corporation Ltd.,
excluding certain gains, losses and expenses that we believe are not part of our
core operating business and are not an indication of our future earnings
performance. We believe that gains and losses on ship sales, impairment charges,
debt extinguishment and modification costs, restructuring costs and certain
other gains, losses and expenses are not part of our core operating business and
are not an indication of our future earnings performance.
Adjusted EBITDA, adjusted EBITDA per ALBD and adjusted EBITDA margin provide
additional information to us and investors about our core operating
profitability, including on a per ALBD basis, by excluding certain gains, losses
and expenses that we believe are not part of our core operating business and are
not an indication of our future earnings performance as well as excluding
interest, taxes and depreciation and amortization. In addition, we believe that
the presentation of adjusted EBITDA provides additional information to us and
investors about our ability to operate our business in compliance with the
covenants set forth in our debt agreements. We define adjusted EBITDA as
adjusted net income adjusted for (i) interest, (ii) taxes and (iii) depreciation
and amortization. There are material limitations to using adjusted EBITDA.
Adjusted EBITDA does not take into account certain significant items that
directly affect our net income attributable to Carnival Corporation Ltd. These
limitations are best addressed by considering the economic effects of the
excluded items independently and by considering adjusted EBITDA in conjunction
with net income attributable to Carnival Corporation Ltd. as calculated in
accordance with U.S. GAAP. We define adjusted EBITDA margin as adjusted EBITDA
divided by total revenues.
Net debt to adjusted EBITDA provides additional information to us and investors
about our overall leverage. We define net debt to adjusted EBITDA as total debt
less cash and cash equivalents divided by twelve-month adjusted EBITDA.
Net yields enable us and investors to measure the performance of our cruise
segments on a per ALBD basis. We use adjusted gross margin rather than gross
margin to calculate net yields. We believe that adjusted gross margin is a more
meaningful measure in determining net yields than gross margin because it
reflects the cruise revenues earned net of only our most significant variable
costs, which are travel agent commissions, cost of air and other transportation,
certain other costs that are directly associated with onboard and other revenues
and credit and debit card fees.
Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD
enable us and investors to separate the impact of predictable capacity or ALBD
changes from price and other changes that affect our business. We believe these
non-GAAP measures provide useful information to us and investors and expanded
insight to measure our cost performance. Adjusted cruise costs per ALBD and
adjusted cruise costs excluding fuel per ALBD are the measures we use to monitor
our ability to control our cruise segments’ costs rather than cruise costs per
ALBD. We exclude gains and losses on ship sales, impairment charges,
restructuring costs and certain other gains and losses that we believe are not
part of our core operating
business as well as excluding our most significant variable costs, which are
travel agent commissions, cost of air and other transportation, certain other
costs that are directly associated with onboard and other revenues and credit
and debit card fees. We exclude fuel expense to calculate adjusted cruise costs
excluding fuel. The price of fuel, over which we have no control, impacts the
comparability of period-to-period cost performance. The adjustment to exclude
fuel provides us and investors with supplemental information to understand and
assess the company’s non-fuel adjusted cruise cost performance. Substantially
all of our adjusted cruise costs excluding fuel are largely fixed, except for
the impact of changing prices once the number of ALBDs has been determined.
Adjusted return on invested capital (“ROIC”) provides additional information to
us and investors about our operating performance relative to the capital we have
invested in the company. We define ROIC as the twelve-month adjusted net income
before interest expense and interest income divided by the monthly average of
debt plus equity minus construction-in-progress, excess cash, goodwill and
intangibles.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted non-GAAP financial measures
to the most comparable U.S. GAAP financial measures beca use preparation of
meaningful U.S. GAAP forecasts would require unreasonable effort. We are unable
to predict, without unreasonable effort, the future movement of foreign exchange
rates and fuel prices. We are unable to determine the future impact of gains and
losses on ship sales, impairment charges, debt extinguishment and modification
costs, restructuring costs and certain other non-core gains and losses.
Constant Currency
Our operations primarily utilize the U.S. dollar, Australian dollar, euro and
sterling as functional currencies to measure results
and financial condition. Functional currencies other than the U.S. dollar
subject us to foreign currency translational risk. Our operations also have
revenues and expenses that are in currencies other than their functional
currency, which subject us to foreign currency transactional risk.
Constant currency reporting removes the impact of changes in exchange rates on
the translation of our operations plus the transactional impact of changes in
exchange rates from revenues and expenses that are denominated in a currency
other than the functional currency.
We report adjusted gross margin, net yields, adjusted cruise costs excluding
fuel and adjusted cruise costs excluding fuel per ALBD on a “constant currency”
basis assuming the current periods’ currency exchange rates have remained
constant with the prior periods’ rates. These metrics facilitate a comparative
view for the changes in our business in an environment with fluctuating exchange
rates.
Examples:
• The translation of our operations with functional currencies other than U.S.
dollar to our U.S. dollar reporting currency results in decreases in reported
U.S. dollar revenues and expenses if the U.S. dollar strengthens against these
foreign currencies and increases in reported U.S. dollar revenues and expenses
if the U.S. dollar weakens against these foreign currencies.
• Our operations have revenue and expense transactions in currencies other than
their functional currency. If their functional currency strengthens against
these other currencies, it reduces the functional currency revenues and
expenses. If the functional currency weakens against these other currencies, it
increases the functional currency revenues and expenses.