ROYAL CARIBBEAN GROUP REPORTS THIRD QUARTER RESULTS ABOVE EXPECTATIONS AND
ROYAL CARIBBEAN GROUP REPORTS THIRD QUARTER RESULTS ABOVE EXPECTATIONS AND RAISES FULL YEAR GUIDANCE
– Royal Caribbean Group (NYSE: RCL) today reported third quarter Earnings per Share ("EPS") of $6.45 and Adjusted EPS of $6.57. These results were better than the company's guidance, driven by strong close-in demand and lower costs due to timing. The company now expects full year Adjusted EPS to be in the range of $17.85 to $17.95. The increase in earnings expectations reflects the stronger- than-expected third quarter performance partially offset by higher than anticipated fuel costs (based on current at-the-pump rates) and currency exchange rates.
“Our third quarter results reflect continued strong consumer demand for our vacation experiences and the accelerated momentum across our industry leading brands,” said Jason Liberty, Chairman and CEO, Royal Caribbean Group. “Our strategy to turn the vacation of a lifetime into a lifetime of vacations is propelling our business by leveraging our leading brands, differentiated experiences, loyalty platform and technology capabilities to deepen guest relationships, increase vacation frequency and capture a greater share of the growing global vacation market. Taking further advantage of our leading vacation platform, the recently announced partnership with Sandals and Beaches Resorts is intended to drive significant shareholder value as we expand our vacation ecosystem, giving guests more ways to vacation with us across more occasions.”
“Demand for our leading vacation experiences remains strong, and while it is still early, 2027 bookings are pacing ahead of historical levels at higher rates,” Liberty continued. “2027 also marks the final year of our Perfecta target period. The underlying business is performing well ahead of our initial expectations, and based on the forward fuel curve, we remain on track to achieve our Perfecta goals of delivering 20% Adjusted EPS CAGR from 2024 through 2027, or a $20-handle in 2027. We are currently already above our ROIC target.”
Total revenue was $5.6 billion, a 9% increase year over year. Load factor in the third quarter was 112%.
Gross Margin Yields decreased 0.8% as-reported. Net Yields increased 0.9% as- reported and 0.6% in Constant Currency, driven by better-than-expected close-in demand in Europe and the Caribbean.
Gross Cruise Costs per Available Passenger Cruise Days ("APCD") decreased 0.7% as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD decreased 1.9% as-reported and 1.8% in Constant Currency, due to the timing of expenses that shifted into the fourth quarter.
Net Income was $1.7 billion or $6.45 per share, Adjusted Net Income was $1.8 billion or $6.57 per share, and Adjusted EBITDA was $2.5 billion.
• Revenue is expected to grow 9% year over year. Net Yields are expected to increase approximately 2.7% as-reported and approximately 2.1% in Constant Currency.
• NCC, exclud ing Fuel, per APCD are expected to increase approximately 0.4% as- reported and be approximately flat in Constant Currency.
In September, Royal Caribbean Group announced an agreement to acquire a 50% interest in Sandals and Beaches Resorts, expanding the company’s vacation platform into the all-inclusive resort category. The Sandals and Beaches Resorts' portfolio includes 18 resorts across the Caribbean and three resorts under development. It also includes over 1,000 acres of undeveloped land in the Caribbean, including acreage adjacent to existing resorts, creating a meaningful runway for continued growth.
Sandals and Beaches are leading brands in the all-inclusive resort category, with high brand awareness, strong guest satisfaction and a loyal customer base. The portfolio has benefited from significant investment in recent years, including physical upgrades across the resorts and continued enhancements to the guest experience. The partnership will preserve the identity, operating leadership, and Caribbean character of the brands, while providing additional resources and capabilities to support continued value creation. Approximately 30% of Royal Caribbean Group guests also take all-inclusive vacations, while a similar
percentage of Sandals and Beaches guests also cruise, creating a significant opportunity to introduce each portfolio to new guests and capture a greater share of the vacations they already take.
“Our mission is to deliver the best vacation experiences responsibly. Sandals and Beaches Resorts extend our platform into an attractive adjacent category, unlocking more ways to deliver on that mission,” said Jason Liberty, Chairman and CEO, Royal Caribbean Group. “Underpinned by the strength and significant growth opportunities of our core business, this investment accelerates our strategy to capture a greater share of the rapidly growing vacation market. By bringing together Sandals and Beaches’ hospitality and Caribbean expertise with our global commercial reach, loyalty and technology capabilities, we see meaningful opportunities to reach new guests, increase vacation frequency, and leverage our combined scale to create additional synergies and value over time.”
The investment is expected to close in early 2027, subject to customary closing conditions and regulatory approvals. The company's share of earnings from Sandals and Beaches Resorts is expected to be immediately accretive, with contribution in 2027 dependent on the timing of the transaction close. The investment is expected to be accounted for under the equity method, with results reported on a one-quarter lag. The expected contribution from Sandals and Beaches Resorts will be incorporated into the company’s 2027 guidance, along with related detail, upon closing.
Net Income for the third quarter of 2026 was $1.7 billion or $6.45 per share compared to Net Income of $1.6 billion or $5.74 per share for the same period in the prior year. Adjusted Net Income was $1.8 billion or $6.57 per share for the third quarter of 2026 compared to Adjusted Net Income of $1.6 billion or $5.75 per share for the same period in the prior year. The company also reported total revenues of $5.6 billion and Adjusted EBITDA of $2.5 billion.
Capacity for the third quarter was up 8% year over year and the company delivered memorable vacations to 2.7 million guests, a 9% increase year over year. Total revenue increased 9% year over year. Gross Margin Yields decreased 0.8% as-reported, and Net Yields increased 0.9% as-reported (0.6% in Constant Currency), when compared to the third quarter of 2025. Load factor for the quarter was 112%. Net Yield
growth exceeded the company’s guidance primarily driven by better than expected close-in demand in Europe and the Caribbean.
Gross Cruise Costs per APCD decreased 0.7% as-reported, compared to the third quarter of 2025. NCC, excluding Fuel, per APCD decreased 1.9% as-reported (and decreased 1.8% in Constant Currency), when compared to the third quarter of 2025. The better-than-expected cost performance in the third quarter was due to the timing of expenses that shifted into the fourth quarter.
Since the last earnings call, booking volumes have increased in the mid-teens across all major channels, with bookings for 2027 sailings up in the high teens, demonstrating strong demand as booking activity builds for 2027.
The company continues to see strong engagement across the vacation journey. Third quarter pre-cruise and onboard revenue rates were ahead of prior year, and fourth quarter pre-cruise revenue rates are also booked ahead of last year. The company’s expanding range of products and services, together with its technology capabilities, is enabling more relevant and personalized engagement by connecting guests with the right experiences at the right time.
In line with the company's prior expectation, Net Yields are expected to be 4.4% to 4.9% as-reported and 4.2% to 4.7% in Constant Currency as compared to 2025. Net Yield growth is driven by strong demand, a more favorable year-over-year comparison, deployment mix, and the timing of dry docks. Total revenue is expected to grow 9%.
NCC, excluding Fuel, per APCD is expected to decrease 1.5% to 1.0% as-reported and 1.4% to 0.9% in Constant Currency as compared to 2025.
Based on current fuel pricing, interest rates, currency exchange rates and the factors detailed above, the company expects fourth quarter Adjusted EPS to be in the range of $3.48 to $3.58.
Bunker pricing, net of hedging, for the third quarter was $778 per metric ton and consumption was 446,000 metric tons.
The company does not forecast fuel prices and its fuel cost calculations are based on current at-the-pump prices, net of hedging impacts. Based on current fuel prices, the company has included $379 million of fuel expense in its fourth quarter guidance, which is 58% hedged via swaps at a forecasted consumption of 463,000 metric tons.
Forecasted consumption is 58%, 53%, 29%, and 14% hedged via swaps for 2026, 2027, 2028, and 2029 respectively. The annual average cost per metric ton of the hedge portfolio is approximately $471, $405, $424, and $451 for 2026, 2027, 2028, and 2029 respectively.
The company provided the following guidance for the fourth quarter and full year 2026:
FUEL STATISTICS Fourth Quarter 2026 Full Year 2026 Fuel Consumption (metric 463,000 1,763,000 tons) Fuel Expenses $379 million $1,345 million Fourth Quarter 2026 Remainder of Year 2026 Percent Hedged (fwd. 58.0% 58.0% consumption)
GUIDANCE As-Reported Constant Currency Fourth Quarter 2026 Net Yields vs. 2025 4.4% to 4.9% 4.2% to 4.7% Net Cruise Costs per 1.9% to 2.4% 2.0% to 2.5% APCD vs. 2025 Net Cruise Costs per APCD ex. Fuel vs. -1.5%) to (1.0% -1.4%) to (0.9% 2025 Full Year 2026 Net Yields vs. 2025 Approximately 2.7% Approximately 2.1% Net Cruise Costs per Approximately 1.8% Approximately 1.5% APCD vs. 2025 Net Cruise Costs per APCD ex. Fuel vs. Approximately 0.4% Approximately Flat 2025 GUIDANCE Fourth Quarter 2026 Full Year 2026 APCDs 14.7 million 56.8 million Capacity change vs. 2025 5.0% 6.6% Depreciation and $460 to $470 million $1,870 to $1,890 million amortization Net Interest, excluding loss on $255 to $265 million $995 to $1,005 million extinguishment of debt Adjusted EPS $3.48 to $3.58 $17.85 to $17.95
SENSITIVITY Fourth Quarter 2026 Full Year 2026 1% Change in Net Yields $37 million $155 million 1% Change in NCC excluding $19 million $73 million Fuel Fourth Quarter 2026 Remainder of Year 2026 1% Change in Currency $6 million $6 million 10% Change in Fuel prices $15 million $15 million 100 basis pt. Change in $0.3 million $0.3 million SOFR Exchange rates used in guidance calculations GBP $1.32 AUD $0.70 CAD $0.70 EUR $1.12
As of September 30, 2026, the company's liquidity position was $7.4 billion, which includes cash and cash equivalents and undrawn revolving credit facility capacity. During the quarter, the company issued $1.25 billion of 5.550% senior unsecured notes due 2034. The proceeds were used to repay a portion of the company’s floating-rate term loan facilities and debt maturing in 2027.
In October, the company entered into a $400 million delayed-draw term loan with Export Development Canada (EDC), Canada's export credit agency, representing a new source of capital. The facility includes terms and covenants that are generally consistent with the company’s existing revolving credit facility. In addition, the company increased its revolving credit facility by $50 million, for a total capacity of $6.65 billion.
The company noted that as of September 30, 2026, the scheduled debt maturities for 2026, 2027, 2028, 2029 and 2030 were $0.6 billion, $2.4 billion, $3.2 billion, $1.1 billion, and $1.1 billion respectively.
Capital expenditures for the full year 2026 are expected to be approximately $4.6 billion, based on current foreign exchange rates, and are predominantly related to the company's new ship order book and land-based destination initiatives. Non-new ship related capital expenditures are expected to be $1.5 billion.
Capacity changes for 2026 are expected to be 6.6% compared to 2025. Capacity changes for 2027, 2028, and 2029 are expected to be approximately 4.5%, 6.0%, and 6.5%, respectively. These figures do not include potential ship sales or additions that the company may elect in the future. Page 2
The company has scheduled a conference call at 10 a.m. Eastern Time today. This call can be heard, either live or on a delayed basis, on the company's investor relations website at www.rclinvestor.com .
Adjusted Earnings per Share ("Adjusted EPS") is a non-GAAP measure that represents Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. (as defined below) divided by basic weighted average shares outstanding or by diluted weighted average shares outstanding, as applicable. We believe that this non-GAAP measure is meaningful when assessing our performance on a comparative basis.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below) excluding certain items that we believe adjusting for is meaningful whe n assessing our profitability on a comparative basis. For the periods presented , these items included (i) other (income) expense; (ii) restructuring charges and other initiative expenses; and (iii) equity investment impairment, (recovery) of losses and other.
Adjusted EBITDA Margin is a non-GAAP measure that represents Adjusted EBITDA (as defined above) divided by total revenues.
Adjusted Gross Margin represents Gross Margin, adjusted for payroll and related, food, fuel, other operating, and depreciation and amortization expenses. Gross Margin is calculated pursuant to GAAP as total revenues less total cruise operating expenses, and depreciation and amortization expenses.
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd., excluding certain items that we believe adjusting for is meaningful when assessing our performance on a comparative basis. For the periods presented, these items included (i) loss on extinguishment of debt and inducement expense; (ii) restructuring charges and other initiative expenses; (iii) the amortization of the Silversea intangible assets resulting from the Silversea acquisition; (iv) gain on sale of noncontrolling interest; and (v) equity investment impairment, (recovery) of losses, and other.
Adjusted Operating Income is a non-GAAP measure that represents operating income including income from equity investments and provision for income taxes but excluding certain items for which we believe adjusting for is meaningful when assessing our operating performance on a comparative basis. We use this non-GAAP measure to calculate ROIC (as defined below). Available Passenger Cruise Days ( “APCD” ) is our measurement of capacity and represents double occupancy per cabin multiplied by the number of cruise days for the period, which excludes canceled cruise days and cabins not available for sale. We use this measure to perform capacity and rate analysis to identify our main non-capacity drivers that cause our cruise revenue and expenses to vary. Constant Currency is a significant measure for our revenues and expenses, which are denominated in currencies other than the U.S. Dollar. Because our reporting currency is the U.S. Dollar, the value of these revenues and expenses in U.S. Dollar will be affected by changes in currency exchange rates. Although such changes in local currency prices are just one of many elements impacting our revenues and expenses, it can be an important element. For this reason, we also monitor our revenues and expenses in "Constant Currency" - i.e., as if the current period's currency exchange rates had remained constant with the comparable prior period's rates. We calculate "Constant Currency" by applying the average of the prior period exchange rates for each of the corresponding months, of the reported and/or forecasted period, so as to calculate what the results would have been had exchange rates been the same throughout both periods. We do not make predictions about future exchange rates and use current exchange rates for calculations of future periods. It should be emphasized that the use of Constant Currency is primarily used by us for comparing short-term changes and/or projections. Over the longer term, changes in guest sourcing and shifting the amount of purchases between currencies can significantly change the impact of the purely currency-based fluctuations.
EBITDA is a non-GAAP measure that represents Net Income attributable to Royal Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net of interest capitalized; (iii) depreciation and amortization expenses; and (iv) provision for income taxes. We believe that this non-GAAP measure is meaningful when assessing our operating performance on a comparative basis.
Gross Cruise Costs represent the sum of total cruise operating expenses plus marketing, selling and administrative expenses.
Invested Capital represents the most recent five-quarter average of total debt (i.e., Current portion of long-term debt plus Long-term debt) plus the most recent five-quarter average of Total shareholders' equity. We use this measure to calculate ROIC (as defined below).
Net Cruise Costs and Net C ruise Costs excluding Fuel are non-GAAP measures that represent Gross Cruise Costs excluding commissions, transportation and other expenses, and onboard and other expenses and, in the case of Net Cruise Costs excluding Fuel, fuel expenses. In measuring our ability to control costs in a manner that positively impacts net income, we believe changes in Net Cruise Costs and Net Cruise Costs excluding Fuel to be the most relevant indicators of our cost performance. For the periods presented, Net Cruise Costs and Net Cruise Costs excluding Fuel exclude restructuring charges and other initiative expenses .
Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross Margin and Net Yields to manage our business on a day-to-day basis as we believe that they are the most relevant measures of our pricing performance because they reflect the cruise revenues earned by us net of our most significant variable costs, which are commissions, transportation and other expenses, and onboard and other expenses.
Occupancy ("Load factor") , in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.
Passenger Cruise Days ("PCD") represent the number of passengers carried for the period multiplied by the number of days of their respective cruises.
Perfecta Program refers to the multi-year Adjusted EPS and ROIC goals we are seeking to achieve by end of 2027. Under our Perfecta Program, we are targeting 20% compound annual growth rate in Adjusted EPS compared to 2024 and ROIC of 17% or higher by the end of 2027.
Return on Invested Capital ("ROIC") represents Adjusted Operating Income divided by Invested Capital. We believe ROIC is a meaningful measure because it quantifies how efficiently we generated operating income relative to the capital we have invested in the business.
Royal Caribbean Group is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 71 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands - Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises which operates the Mein Schiff and Hapag-Lloyd brands .
The Group is expanding its portfolio of private destinations through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations.
Named to the Fortune World’s Most Admired Companies 2026 list and to Forbes’ 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly. For more information, visit www.royalcaribbeangroup.com.
Certain statements in this press release relating to, among other things, our future performance estimates, forecasts and projections constitute forward- looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: statements regarding the benefits and expected impact of the proposed joint venture with Sandals and Beaches Resorts, including the timing of the closing of the transaction, earnings impact, and anticipated growth, expansion and future opportunities for the joint venture; statements regarding revenues, costs and financial results for 2026 and beyond; anticipated timing for launch of private destinations; our progress toward achievement of our Perfecta program; demand for our brands; expectations on river cruise offerings; future capital expenditures; and expectations regarding our credit profile and fuel expenses. Words such as "anticipate," "believe," "committed," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "encouraged," "project," "shaping up," "position," "allows," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management’s current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and
other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment, including changing tariffs and the related uncertainty thereof, on key aspects of our business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service; disease outbreaks and increased concern about the risk of illness on our ships or when travelling to or from our ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; incidents or adverse publicity concerning our ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on our business; risks related to our sustainability activities; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity and overcapacity; inability to manage our cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market our cruises; reliance on third- party service providers; potential unavailability of insurance coverage; the risks and costs related to cyber security attacks, data breaches, protecting our systems and maintaining data integrity and security; uncertainties of a foreign legal system as we are not incorporated in the United States; our ability to obtain sufficient financing or capital to fund our capital expenditures, operations, debt repayments and other financing needs; our expectation and ability to pay a cash dividend on our common stock in the future; changes to our dividend policy; growing anti-tourism sentiments and environmental concerns; changes in U.S. or other countries' foreign travel policy; impact of new or changing legislation and regulations (including environmental regulations) or governmental orders on our business; fluctuations in foreign currency exchange rates, fuel prices and interest rates; further impairments of our goodwill, long-lived assets, equity investments and notes receivable; an inability to source our crew or our provisions and supplies from certain places; our ability to recruit, develop and retain high quality personnel; and pending or threatened litigation, investigations and enforcement actions.
More information about factors that could affect our operating results is included under the caption “Risk Factors” in our most recent annual report on Form 10-K, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at www.rclinvestor.com or the SEC’s website at www.sec.gov . Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This press release includes certain adjusted financial measures defined as non- GAAP financial measures under Securities and Exchange Commission rules, which we believe provide useful information to investors as a supplement to our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles, or U.S. GAAP.
The presentation of adjusted financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. These measures may be different from adjusted measures used by other companies. In addition, these adjusted measures are not based on any comprehensive set of accounting rules or principles. Adjusted
measures have limitations in that they do not reflect all of the amounts associated with our results of operations as do the corresponding U.S. GAAP measures.
A reconciliation to the most comparable U.S. GAAP measure of all adjusted financial measures included in this press release can be found in the tables included at the end of this press release. We have not provided a quantitative reconciliation of the projected non-GAAP financial measures to the most comparable GAAP financial measures because preparation of meaningful U.S. GAAP projections would require unreasonable effort. Due to significant uncertainty, we are unable to predict, without unreasonable effort, the future movement of foreign exchange rates, fuel prices and interest rates inclusive of our related hedging programs. In addition, we are unable to determine the future impact of non-core business related gains and losses which may result from strategic initiatives. These items are uncertain and could be material to our results of operations in accordance with U.S. GAAP. Due to this uncertainty, we do not believe that reconciling information for such projected figures would be meaningful. Page 3
ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED BALANCE SHEETS (in millions, except share As of data) September Assets 30, Current 2026 December 31, assets (unaudited) 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 851 $ 825 equivalents Trade and other 409 317 receivables, net Inventories 304 264 Prepaid expenses and 750 690 other assets Derivative financial 160 115 instruments Total current 2,474 2,211 assets Property and equipment, 38,297 35,696 net Operating lease 751 620 right-of-use assets Goodwill 808 808 Other assets 2,483 2,284 Total assets $ 44,813 $ 41,619 Liabilities and Shareholder… Equity Current liabilities Current portion of $ 2,239 $ 3,180 long-term debt Current portion of operating 71 90 lease liabilities Accounts 979 953 payable Accrued expenses and 1,983 2,026 other liabilities Derivative financial 107 67 instruments Customer 6,034 5,739 deposits Total current 11,413 12,055 liabilities Long-term 20,116 18,165 debt Long-term operating 744 600 lease liabilities Other long-term 627 554 liabilities Total 32,900 31,374 liabilities Shareholder… equity Preferred stock ($0.01 par value; 20,000,000 — — shares authorized; none outstanding) Common stock ($0.01 par value; 500,000,000 shares authorized; 303,899,853 and 3 3 303,054,848 shares issued, at September 30, 2026 and December 31, 2025, respectivel… Paid-in 7,916 7,964 capital Retained 8,512 5,925 earnings Accumulated other -384 -604 comprehensi… loss Treasury stock (36,429,278 and 32,631,826 common shares at -4,334 -3,251 cost, at September 30, 2026 and December 31, 2025, respectivel… Total shareholder… equity attributable 11,713 10,037 to Royal Caribbean Cruises Ltd. Noncontroll… 200 208 Interest Total shareholder… 11,913 10,245 equity Total liabilities and $ 44,813 $ 41,619 shareholder… equity
ROYAL CARIBBEAN CRUISES LTD. CONSOLIDATED STATEMENTS OF CASH FLOW Nine Months Ended (unaudited; in millions) September 30, Operating Activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net Income $ 3,821 $ 3,529 Adjustments: Depreciation and 1,415 1,265 amortization Net deferred income tax (benefit) -5 15 expense Loss (Gain) on derivative instruments 4 -45 not designated as hedges Share-based compensation 94 136 expense Equity investment income -328 -313 Amortization of debt issuance costs, 16 72 discounts and premiums Loss on extinguishment of debt and 105 10 inducement expense Changes in operating assets and liabilities: Increase in trade and other receivables, -109 -34 net Increase in inventories -40 -4 Increase in prepaid expenses and other -112 -42 assets Decrease in accounts -60 -100 payable (Decrease) increase in accrued expenses -220 19 and other liabilities Increase in customer 295 108 deposits Dividends received from unconsolidated 309 263 affiliates Other, net 89 -37 Net cash provided by operating 5,274 4,842 activities Investing Activities Purchases of property -3,880 -3,722 and equipment Cash received on settlement of 122 144 derivative financial instruments Cash paid on settlement of derivative -27 -12 financial instruments Investments in and loans to -49 -94 unconsolidated affiliates Cash received on loans from — 126 unconsolidated affiliates Other, net 2 25 Net cash used in -3,832 -3,533 investing activities Financing Activities Debt proceeds 7,227 3,162 Debt issuance costs -124 -100 Repayments of debt -6,236 -3,075 Repurchase of common -1,035 -655 stock Dividends paid -1,075 -552 Payments of withholding tax on stock -191 -63 awards Other, net 19 11 Net cash used in -1,415 -1,272 financing activities Effect of exchange rate changes on cash -1 7 and cash equivalents Net increase in cash and cash 26 44 equivalents Cash and cash equivalents at beginning 825 388 of period Cash and cash equivalents at end of $ 851 $ 432 period Supplemental Disclosure Cash paid during the period for: Interest, net of amount $ 739 $ 709 capitalized Non-cash Investing Activities Purchase of property and equipment included in accounts $ 137 $ 83 payable and accrued expenses and other liabilities
(1) These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). Page 9
ROY… CAR… CRU… LTD. NON… REC… INF… (un… EBI… Adj… EBI… and Adj… EBI… Mar… are cal… as fol… (in mil… exc… APCD and per APCD dat… Cer… amo… may not add or cal… due to the use of rou… num…
(1) These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). Page 10
ROYAL CARIBB… CRUISES LTD. NON-GA… RECONC… INFORM… (unaud… Adjust… Net Income attrib… to Royal Caribb… Cruises Ltd., and Adjust… Earnin… per Share are calcul… as follows (in millio… except per share data. Certain amounts may not add or calcul… due to the use of rounded number…
Quarter Nine Ended Months September Ended 30, Septemb… 30, 2026 2025 2026 2025 Net Income attrib… to $ 1,728 $ 1,575 $ 3,798 $ 3,514 Royal Caribb… Cruises Ltd. Loss on exting… of debt and 21 — 50 10 induce… expense (1) Restru… charges and other 9 1 11 7 initia… expens… (2) Amorti… of Silver… intang… assets 2 2 5 5 result… from the Silver… acquis… Gain on sale of noncon… — — — -11 intere… (3) Equity invest… impair… (recov… — — — -1 of losses and other Adjust… Net Income attrib… to $ 1,760 $ 1,577 $ 3,865 $ 3,523 Royal Caribb… Cruises Ltd. Earnin… per Share - $ 6.45 $ 5.74 $ 14.12 $ 12.83 Diluted (4) Adjust… Earnin… per $ 6.57 $ 5.75 $ 14.36 $ 12.83 Share - Diluted (5) Weight… Shares Outsta… 268 274 269 275 - Diluted
(1) For 2026, includes the loss on extinguishment of debt associated with the February and August redemptions of debt. For 2025, includes $10 million of inducement expense related to the settlements of the 2025 6.00% convertible notes. These amounts are included in Interest expense, net of interest capitalized within our consolidated statements of comprehensive income (loss).
(2) These amounts are included in Marketing, selling and administrative expenses within our consolidated statements of comprehensive income (loss). (3) For 2025, represents gain on sale of noncontrolling interest of Floating Docks and Grand Bahama Shipyard. These amounts are included in Other income (expense) within our consolidated statements of comprehensive income (loss).
(4) For 2025, diluted EPS includes the add-back of dilutive inducement and interest expense related to our convertible notes of $16 million for the nine months ended September 30, 2025.
(5) For 2025, Adjusted Diluted EPS includes the add-back of dilutive interest expense related to our convertible notes of $6 million for the nine months ended September 30, 2025. Page 11
Full text with the tables
Exhibit 99.1
FOR IMMEDIATE RELEASE
ROYAL CARIBBEAN GROUP REPORTS THIRD QUARTER RESULTS ABOVE EXPECTATIONS AND
RAISES FULL YEAR GUIDANCE
MIAMI – October 27, 2026
– Royal Caribbean Group (NYSE: RCL) today reported third quarter Earnings per
Share ("EPS") of $6.45 and Adjusted EPS of $6.57. These results were better than
the company's guidance, driven by strong close-in demand and lower costs due to
timing. The company now expects full year Adjusted EPS to be in the range of
$17.85 to $17.95. The increase in earnings expectations reflects the stronger-
than-expected third quarter performance partially offset by higher than
anticipated fuel costs (based on current at-the-pump rates) and currency
exchange rates.
“Our third quarter results reflect continued strong consumer demand for our
vacation experiences and the accelerated momentum across our industry leading
brands,” said Jason Liberty, Chairman and CEO, Royal Caribbean Group. “Our
strategy to turn the vacation of a lifetime into a lifetime of vacations is
propelling our business by leveraging our leading brands, differentiated
experiences, loyalty platform and technology capabilities to deepen guest
relationships, increase vacation frequency and capture a greater share of the
growing global vacation market. Taking further advantage of our leading vacation
platform, the recently announced partnership with Sandals and Beaches Resorts is
intended to drive significant shareholder value as we expand our vacation
ecosystem, giving guests more ways to vacation with us across more occasions.”
“Demand for our leading vacation experiences remains strong, and while it is
still early, 2027 bookings are pacing ahead of historical levels at higher
rates,” Liberty continued. “2027 also marks the final year of our Perfecta
target period. The underlying business is performing well ahead of our initial
expectations, and based on the forward fuel curve, we remain on track to achieve
our Perfecta goals of delivering 20% Adjusted EPS CAGR from 2024 through 2027,
or a $20-handle in 2027. We are currently already above our ROIC target.”
Third Quarter 2026:
•
Total revenue was $5.6 billion, a 9% increase year over year. Load factor in the
third quarter was 112%.
•
Gross Margin Yields decreased 0.8% as-reported. Net Yields increased 0.9% as-
reported and 0.6% in Constant Currency, driven by better-than-expected close-in
demand in Europe and the Caribbean.
•
Gross Cruise Costs per Available Passenger Cruise Days ("APCD") decreased 0.7%
as-reported. Net Cruise Costs ("NCC"), excluding Fuel, per APCD decreased 1.9%
as-reported and 1.8% in Constant Currency, due to the timing of expenses that
shifted into the fourth quarter.
•
Net Income was $1.7 billion or $6.45 per share, Adjusted Net Income was $1.8
billion or $6.57 per share, and Adjusted EBITDA was $2.5 billion.
Full Year 2026 Outlook:
• Revenue is expected to grow 9% year over year. Net Yields are expected to
increase approximately 2.7% as-reported and approximately 2.1% in Constant
Currency.
• NCC, exclud ing Fuel, per APCD are expected to increase approximately 0.4% as-
reported and be approximately flat in Constant Currency.
• Adjusted EPS is expected to be in the range of $17.85 to $17.95.
Sandals and Beaches Resorts Partnership
In September, Royal Caribbean Group announced an agreement to acquire a 50%
interest in Sandals and Beaches Resorts, expanding the company’s vacation
platform into the all-inclusive resort category. The Sandals and Beaches
Resorts' portfolio includes 18 resorts across the Caribbean and three resorts
under development. It also includes over 1,000 acres of undeveloped land in the
Caribbean, including acreage adjacent to existing resorts, creating a meaningful
runway for continued growth.
Sandals and Beaches are leading brands in the all-inclusive resort category,
with high brand awareness, strong guest satisfaction and a loyal customer base.
The portfolio has benefited from significant investment in recent years,
including physical upgrades across the resorts and continued enhancements to the
guest experience. The partnership will preserve the identity, operating
leadership, and Caribbean character of the brands, while providing additional
resources and capabilities to support continued value creation. Approximately
30% of Royal Caribbean Group guests also take all-inclusive vacations, while a
similar
percentage of Sandals and Beaches guests also cruise, creating a significant
opportunity to introduce each portfolio to new guests and capture a greater
share of the vacations they already take.
“Our mission is to deliver the best vacation experiences responsibly. Sandals
and Beaches Resorts extend our platform into an attractive adjacent category,
unlocking more ways to deliver on that mission,” said Jason Liberty, Chairman
and CEO, Royal Caribbean Group. “Underpinned by the strength and significant
growth opportunities of our core business, this investment accelerates our
strategy to capture a greater share of the rapidly growing vacation market. By
bringing together Sandals and Beaches’ hospitality and Caribbean expertise with
our global commercial reach, loyalty and technology capabilities, we see
meaningful opportunities to reach new guests, increase vacation frequency, and
leverage our combined scale to create additional synergies and value over time.”
The investment is expected to close in early 2027, subject to customary closing
conditions and regulatory approvals. The company's share of earnings from
Sandals and Beaches Resorts is expected to be immediately accretive, with
contribution in 2027 dependent on the timing of the transaction close. The
investment is expected to be accounted for under the equity method, with results
reported on a one-quarter lag. The expected contribution from Sandals and
Beaches Resorts will be incorporated into the company’s 2027 guidance, along
with related detail, upon closing.
Third Quarter 2026 Results
Net Income for the third quarter of 2026 was $1.7 billion or $6.45 per share
compared to Net Income of $1.6 billion or $5.74 per share for the same period in
the prior year. Adjusted Net Income was $1.8 billion or $6.57 per share for the
third quarter of 2026 compared to Adjusted Net Income of $1.6 billion or $5.75
per share for the same period in the prior year. The company also reported total
revenues of $5.6 billion and Adjusted EBITDA of $2.5 billion.
Capacity for the third quarter was up 8% year over year and the company
delivered memorable vacations to 2.7 million guests, a 9% increase year over
year. Total revenue increased 9% year over year. Gross Margin Yields decreased
0.8% as-reported, and Net Yields increased 0.9% as-reported (0.6% in Constant
Currency), when compared to the third quarter of 2025. Load factor for the
quarter was 112%. Net Yield
growth exceeded the company’s guidance primarily driven by better than expected
close-in demand in Europe and the Caribbean.
Gross Cruise Costs per APCD decreased 0.7% as-reported, compared to the third
quarter of 2025. NCC, excluding Fuel, per APCD decreased 1.9% as-reported (and
decreased 1.8% in Constant Currency), when compared to the third quarter of
2025. The better-than-expected cost performance in the third quarter was due to
the timing of expenses that shifted into the fourth quarter.
Demand, Bookings and Vacation Platform
Since the last earnings call, booking volumes have increased in the mid-teens
across all major channels, with bookings for 2027 sailings up in the high teens,
demonstrating strong demand as booking activity builds for 2027.
The company continues to see strong engagement across the vacation journey.
Third quarter pre-cruise and onboard revenue rates were ahead of prior year, and
fourth quarter pre-cruise revenue rates are also booked ahead of last year. The
company’s expanding range of products and services, together with its technology
capabilities, is enabling more relevant and personalized engagement by
connecting guests with the right experiences at the right time.
Fourth Quarter 2026
In line with the company's prior expectation, Net Yields are expected to be 4.4%
to 4.9% as-reported and 4.2% to 4.7% in Constant Currency as compared to 2025.
Net Yield growth is driven by strong demand, a more favorable year-over-year
comparison, deployment mix, and the timing of dry docks. Total revenue is
expected to grow 9%.
NCC, excluding Fuel, per APCD is expected to decrease 1.5% to 1.0% as-reported
and 1.4% to 0.9% in Constant Currency as compared to 2025.
Based on current fuel pricing, interest rates, currency exchange rates and the
factors detailed above, the company expects fourth quarter Adjusted EPS to be in
the range of $3.48 to $3.58.
Fuel Expense
Bunker pricing, net of hedging, for the third quarter was $778 per metric ton
and consumption was 446,000 metric tons.
The company does not forecast fuel prices and its fuel cost calculations are
based on current at-the-pump prices, net of hedging impacts. Based on current
fuel prices, the company has included $379 million of fuel expense in its fourth
quarter guidance, which is 58% hedged via swaps at a forecasted consumption of
463,000 metric tons.
Forecasted consumption is 58%, 53%, 29%, and 14% hedged via swaps for 2026,
2027, 2028, and 2029 respectively. The annual average cost per metric ton of the
hedge portfolio is approximately $471, $405, $424, and $451 for 2026, 2027,
2028, and 2029 respectively.
The company provided the following guidance for the fourth quarter and full year
2026:
FUEL STATISTICS Fourth Quarter 2026 Full Year 2026
Fuel Consumption (metric 463,000 1,763,000
tons)
Fuel Expenses $379 million $1,345 million
Fourth Quarter 2026 Remainder of Year 2026
Percent Hedged (fwd. 58.0% 58.0%
consumption)
GUIDANCE As-Reported Constant Currency
Fourth Quarter 2026
Net Yields vs. 2025 4.4% to 4.9% 4.2% to 4.7%
Net Cruise Costs per 1.9% to 2.4% 2.0% to 2.5%
APCD vs. 2025
Net Cruise Costs per
APCD ex. Fuel vs. -1.5%) to (1.0% -1.4%) to (0.9%
2025
Full Year 2026
Net Yields vs. 2025 Approximately 2.7% Approximately 2.1%
Net Cruise Costs per Approximately 1.8% Approximately 1.5%
APCD vs. 2025
Net Cruise Costs per
APCD ex. Fuel vs. Approximately 0.4% Approximately Flat
2025
GUIDANCE Fourth Quarter 2026 Full Year 2026
APCDs 14.7 million 56.8 million
Capacity change vs. 2025 5.0% 6.6%
Depreciation and $460 to $470 million $1,870 to $1,890 million
amortization
Net Interest, excluding
loss on $255 to $265 million $995 to $1,005 million
extinguishment of debt
Adjusted EPS $3.48 to $3.58 $17.85 to $17.95
SENSITIVITY Fourth Quarter 2026 Full Year 2026
1% Change in Net Yields $37 million $155 million
1% Change in NCC excluding $19 million $73 million
Fuel
Fourth Quarter 2026 Remainder of Year 2026
1% Change in Currency $6 million $6 million
10% Change in Fuel prices $15 million $15 million
100 basis pt. Change in $0.3 million $0.3 million
SOFR
Exchange rates used in
guidance
calculations
GBP $1.32
AUD $0.70
CAD $0.70
EUR $1.12
Page 1
Exhibit 99.1
Liquidity
As of September 30, 2026, the company's liquidity position was $7.4 billion,
which includes cash and cash equivalents and undrawn revolving credit facility
capacity. During the quarter, the company issued $1.25 billion of 5.550% senior
unsecured notes due 2034. The proceeds were used to repay a portion of the
company’s floating-rate term loan facilities and debt maturing in 2027.
In October, the company entered into a $400 million delayed-draw term loan with
Export Development Canada (EDC), Canada's export credit agency, representing a
new source of capital. The facility includes terms and covenants that are
generally consistent with the company’s existing revolving credit facility. In
addition, the company increased its revolving credit facility by $50 million,
for a total capacity of $6.65 billion.
The company noted that as of September 30, 2026, the scheduled debt maturities
for 2026, 2027, 2028, 2029 and 2030 were $0.6 billion, $2.4 billion, $3.2
billion, $1.1 billion, and $1.1 billion respectively.
Capital Expenditures and Capacity Guidance
Capital expenditures for the full year 2026 are expected to be approximately
$4.6 billion, based on current foreign exchange rates, and are predominantly
related to the company's new ship order book and land-based destination
initiatives. Non-new ship related capital expenditures are expected to be $1.5
billion.
Capacity changes for 2026 are expected to be 6.6% compared to 2025. Capacity
changes for 2027, 2028, and 2029 are expected to be approximately 4.5%, 6.0%,
and 6.5%, respectively. These figures do not include potential ship sales or
additions that the company may elect in the future.
Page 2
Conference call scheduled
The company has scheduled a conference call at 10 a.m. Eastern Time today. This
call can be heard, either live or on a delayed basis, on the company's investor
relations website at www.rclinvestor.com .
Definitions
Selected Operational and Financial Metrics
Adjusted Earnings per Share ("Adjusted EPS") is a non-GAAP measure that
represents Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. (as
defined below) divided by basic weighted average shares outstanding or by
diluted weighted average shares outstanding, as applicable. We believe that this
non-GAAP measure is meaningful when assessing our performance on a comparative
basis.
Adjusted EBITDA is a non-GAAP measure that represents EBITDA (as defined below)
excluding certain items that we believe adjusting for is meaningful whe n
assessing our profitability on a comparative basis. For the periods presented ,
these items included (i) other (income) expense; (ii) restructuring charges and
other initiative expenses; and (iii) equity investment impairment, (recovery) of
losses and other.
Adjusted EBITDA Margin is a non-GAAP measure that represents Adjusted EBITDA (as
defined above) divided by total revenues.
Adjusted Gross Margin represents Gross Margin, adjusted for payroll and related,
food, fuel, other operating, and depreciation and amortization expenses. Gross
Margin is calculated pursuant to GAAP as total revenues less total cruise
operating expenses, and depreciation and amortization expenses.
Adjusted Net Income attributable to Royal Caribbean Cruises Ltd. is a non-GAAP
measure that represents Net Income attributable to Royal Caribbean Cruises Ltd.,
excluding certain items that we believe adjusting for is meaningful when
assessing our performance on a comparative basis. For the periods presented,
these items included (i) loss on extinguishment of debt and inducement expense;
(ii) restructuring charges and other initiative expenses; (iii) the amortization
of the Silversea intangible assets resulting from the Silversea acquisition;
(iv) gain on sale of noncontrolling interest; and (v) equity investment
impairment, (recovery) of losses, and other.
Adjusted Operating Income is a non-GAAP measure that represents operating income
including income from equity investments and provision for income taxes but
excluding certain items for which we believe adjusting for is meaningful when
assessing our operating performance on a comparative basis. We use this non-GAAP
measure to calculate ROIC (as defined below).
Available Passenger Cruise Days ( “APCD” ) is our measurement of capacity and
represents double occupancy per cabin multiplied by the number of cruise days
for the period, which excludes canceled cruise days and cabins not available for
sale. We use this measure to perform capacity and rate analysis to identify our
main non-capacity drivers that cause our cruise revenue and expenses to vary.
Constant Currency is a significant measure for our revenues and expenses, which
are denominated in currencies other than the U.S. Dollar. Because our reporting
currency is the U.S. Dollar, the value of these revenues and expenses in U.S.
Dollar will be affected by changes in currency exchange rates. Although such
changes in local currency prices are just one of many elements impacting our
revenues and expenses, it can be an important element. For this reason, we also
monitor our revenues and expenses in "Constant Currency" - i.e., as if the
current period's currency exchange rates had remained constant with the
comparable prior period's rates. We calculate "Constant Currency" by applying
the average of the prior period exchange rates for each of the corresponding
months, of the reported and/or forecasted period, so as to calculate what the
results would have been had exchange rates been the same throughout both
periods. We do not make predictions about future exchange rates and use current
exchange rates for calculations of future periods. It should be emphasized that
the use of Constant Currency is primarily used by us for comparing short-term
changes and/or projections. Over the longer term, changes in guest sourcing and
shifting the amount of purchases between currencies can significantly change the
impact of the purely currency-based fluctuations.
EBITDA is a non-GAAP measure that represents Net Income attributable to Royal
Caribbean Cruises Ltd. excluding (i) interest income; (ii) interest expense, net
of interest capitalized; (iii) depreciation and amortization expenses; and (iv)
provision for income taxes. We believe that this non-GAAP measure is meaningful
when assessing our operating performance on a comparative basis.
Gross Cruise Costs represent the sum of total cruise operating expenses plus
marketing, selling and administrative expenses.
Gross Margin Yield represent Gross Margin per APCD.
Invested Capital represents the most recent five-quarter average of total debt
(i.e., Current portion of long-term debt plus Long-term debt) plus the most
recent five-quarter average of Total shareholders' equity. We use this measure
to calculate ROIC (as defined below).
Net Cruise Costs and Net C ruise Costs excluding Fuel are non-GAAP measures that
represent Gross Cruise Costs excluding commissions, transportation and other
expenses, and onboard and other expenses and, in the case of Net Cruise Costs
excluding Fuel, fuel expenses. In measuring our ability to control costs in a
manner that positively impacts net income, we believe changes in Net Cruise
Costs and Net Cruise Costs excluding Fuel to be the most relevant indicators of
our cost performance. For the periods presented, Net Cruise Costs and Net Cruise
Costs excluding Fuel exclude restructuring charges and other initiative expenses
.
Net Yields represent Adjusted Gross Margin per APCD. We utilize Adjusted Gross
Margin and Net Yields to manage our business on a day-to-day basis as we believe
that they are the most relevant measures of our pricing performance because they
reflect the cruise revenues earned by us net of our most significant variable
costs, which are commissions, transportation and other expenses, and onboard and
other expenses.
Occupancy ("Load factor") , in accordance with cruise vacation industry
practice, is calculated by dividing Passenger Cruise Days (as defined below) by
APCD. A percentage in excess of 100% indicates that three or more passengers
occupied some cabins.
Passenger Cruise Days ("PCD") represent the number of passengers carried for the
period multiplied by the number of days of their respective cruises.
Perfecta Program refers to the multi-year Adjusted EPS and ROIC goals we are
seeking to achieve by end of 2027. Under our Perfecta Program, we are targeting
20% compound annual growth rate in Adjusted EPS compared to 2024 and ROIC of 17%
or higher by the end of 2027.
Return on Invested Capital ("ROIC") represents Adjusted Operating Income divided
by Invested Capital. We believe ROIC is a meaningful measure because it
quantifies how efficiently we generated operating income relative to the capital
we have invested in the business.
For additional information see “Adjusted Measures of Financial Performance”
below.
About Royal Caribbean Group
Royal Caribbean Group is a leading global vacation company spanning cruise,
exclusive destinations, and land-based vacation experiences. The company
operates 71 ships sailing to more than 1,000 destinations across all seven
continents through its three wholly owned brands - Royal Caribbean, Celebrity
Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises which
operates the Mein Schiff and Hapag-Lloyd brands .
The Group is expanding its portfolio of private destinations through its Perfect
Day and Royal Beach Club collections, and the company will enter river cruising
in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced
technology, and an industry-leading loyalty program, the company has built a
connected vacation ecosystem, turning the vacation of a lifetime into a lifetime
of vacations.
Named to the Fortune World’s Most Admired Companies 2026 list and to Forbes’
2026 Best American Companies lists, Royal Caribbean Group is guided by its
mission to deliver the best vacations responsibly. For more information, visit
www.royalcaribbeangroup.com.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release relating to, among other things, our
future performance estimates, forecasts and projections constitute forward-
looking statements under the Private Securities Litigation Reform Act of 1995.
These statements include, but are not limited to: statements regarding the
benefits and expected impact of the proposed joint venture with Sandals and
Beaches Resorts, including the timing of the closing of the transaction,
earnings impact, and anticipated growth, expansion and future opportunities for
the joint venture; statements regarding revenues, costs and financial results
for 2026 and beyond; anticipated timing for launch of private destinations; our
progress toward achievement of our Perfecta program; demand for our brands;
expectations on river cruise offerings; future capital expenditures; and
expectations regarding our credit profile and fuel expenses. Words such as
"anticipate," "believe," "committed," "could," "driving," "estimate," "expect,"
"goal," "intend," "may," "plan," "encouraged," "project," "shaping up,"
"position," "allows," "seek," "should," "will," "would," "considering," and
similar expressions are intended to help identify forward-looking statements.
Forward-looking statements reflect management’s current expectations, are based
on judgments, are inherently uncertain and are subject to risks, uncertainties
and
other factors, which could cause our actual results, performance or achievements
to differ materially from the future results, performance or achievements
expressed or implied in those forward-looking statements. Examples of these
risks, uncertainties and other factors include, but are not limited to, the
following: the impact of the economic and geopolitical environment, including
changing tariffs and the related uncertainty thereof, on key aspects of our
business, such as the demand for cruises, passenger spending, and operating
costs; changes in operating costs; the unavailability or cost of air service;
disease outbreaks and increased concern about the risk of illness on our ships
or when travelling to or from our ships, which could cause a decrease in demand,
guest cancellations, and ship redeployments; incidents or adverse publicity
concerning our ships, port facilities, land destinations and/or passengers or
the cruise vacation industry in general; the effects of weather, climate events
and/or natural disasters on our business; risks related to our sustainability
activities; the impact of issues at shipyards, including ship delivery delays,
ship cancellations or ship construction cost increases; shipyard unavailability;
unavailability of ports of call; vacation industry competition and increase in
industry capacity and overcapacity; inability to manage our cost and capital
allocation strategies; the uncertainties of conducting business globally and
expanding into new markets and new ventures, including potential acquisitions;
issues with travel advisers that sell and market our cruises; reliance on third-
party service providers; potential unavailability of insurance coverage; the
risks and costs related to cyber security attacks, data breaches, protecting our
systems and maintaining data integrity and security; uncertainties of a foreign
legal system as we are not incorporated in the United States; our ability to
obtain sufficient financing or capital to fund our capital expenditures,
operations, debt repayments and other financing needs; our expectation and
ability to pay a cash dividend on our common stock in the future; changes to our
dividend policy; growing anti-tourism sentiments and environmental concerns;
changes in U.S. or other countries' foreign travel policy; impact of new or
changing legislation and regulations (including environmental regulations) or
governmental orders on our business; fluctuations in foreign currency exchange
rates, fuel prices and interest rates; further impairments of our goodwill,
long-lived assets, equity investments and notes receivable; an inability to
source our crew or our provisions and supplies from certain places; our ability
to recruit, develop and retain high quality personnel; and pending or threatened
litigation, investigations and enforcement actions.
More information about factors that could affect our operating results is
included under the caption “Risk Factors” in our most recent annual report on
Form 10-K, as well as our other filings with the SEC, copies of which may be
obtained by visiting our Investor Relations website at www.rclinvestor.com or
the SEC’s website at www.sec.gov . Undue reliance should not be placed on the
forward-looking statements in this release, which are based on information
available to us on the date hereof. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Adjusted Measures of Financial Performance
This press release includes certain adjusted financial measures defined as non-
GAAP financial measures under Securities and Exchange Commission rules, which we
believe provide useful information to investors as a supplement to our
consolidated financial statements, which are prepared and presented in
accordance with generally accepted accounting principles, or U.S. GAAP.
The presentation of adjusted financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with U.S. GAAP. These measures
may be different from adjusted measures used by other companies. In addition,
these adjusted measures are not based on any comprehensive set of accounting
rules or principles. Adjusted
measures have limitations in that they do not reflect all of the amounts
associated with our results of operations as do the corresponding U.S. GAAP
measures.
A reconciliation to the most comparable U.S. GAAP measure of all adjusted
financial measures included in this press release can be found in the tables
included at the end of this press release. We have not provided a quantitative
reconciliation of the projected non-GAAP financial measures to the most
comparable GAAP financial measures because preparation of meaningful U.S. GAAP
projections would require unreasonable effort. Due to significant uncertainty,
we are unable to predict, without unreasonable effort, the future movement of
foreign exchange rates, fuel prices and interest rates inclusive of our related
hedging programs. In addition, we are unable to determine the future impact of
non-core business related gains and losses which may result from strategic
initiatives. These items are uncertain and could be material to our results of
operations in accordance with U.S. GAAP. Due to this uncertainty, we do not
believe that reconciling information for such projected figures would be
meaningful.
Page 3
ROYAL
CARIBB…
CRUISES
LTD.
CONSOL…
STATEM…
OF
COMPRE…
INCOME
(LOSS)
(unaud…
in
millio…
except
per
share
data)
Passen…
ticket
revenu…
Onboard
and
other
revenu…
Total
revenu…
Cruise
operat…
expens…
Commis…
transp…
and
other
Onboard
and
other
Payroll
and
related
Food
Fuel
Other
operat…
Total
cruise
operat…
expens…
Market…
selling
and
admini…
expens…
Deprec…
and
amorti…
expens…
Operat…
Income
Other
income
(expen…
Intere…
income
Intere…
expens…
net of
intere…
capita…
Equity
invest…
income
Other
income
(expen…
Income
before
income
taxes
Provis…
for
income 3,885 3,637 10,250 9,579
taxes 1,706 1,502 4,625 4,097
Net 5,591 5,139 14,876 13,676
Income 735 696 1,921 1,823
Less: 338 312 838 775
Net 399 342 1,204 1,010
Income 287 264 813 750
attrib… 347 297 966 854
to 606 569 1,763 1,630
noncon… 2,711 2,479 7,506 6,841
intere… 519 522 1,615 1,593
Net 490 435 1,415 1,265
Income 1,871 1,702 4,340 3,977
attrib… 5 3 15 17
to (291) (248) (805) (725)
Royal 176 158 328 313
Caribb… 1 (2) Nine 10 13
Cruises Quarter 1,762 1,612 Months 3,887 3,596
Ltd. Ended (27) (34) Ended (66) (67)
Earnin… Septem… 1,735 1,579 Septemb… 3,821 3,529
per 30, 7 4 30, 23 15
Share: 2026 1,728 2025 1,575 2026 3,798 2025 3,514
──────────────────────────────────────────────────────────────────────────────
Basic $ 6.46 $ 5.79 $ 14.15 $ 12.97
Diluted $ 6.45 $ 5.74 $ 14.12 $ 12.83
Weight…
Shares
Outsta…
Basic 267 272 268 271
Diluted 268 274 269 275
Compre…
Income
(Loss)
Net $ 1,735 $ 1,579 $ 3,821 $ 3,529
Income
Other
compre…
income
(loss):
Foreign
curren… -6 -2 -6 -28
transl…
adjust…
Change
in
defined 7 -2 11 -2
benefit
plans
Gain
(loss)
on cash 131 -5 215 304
flow
deriva…
hedges
Total
other
compre… 133 -9 220 274
income
(loss)
Compre… 1,868 1,570 4,042 3,803
Income
Less:
Compre…
Income
attrib… 7 4 23 15
to
noncon…
intere…
Compre…
Income
attrib…
to $ 1,861 $ 1,566 $ 4,018 $ 3,788
Royal
Caribb…
Cruises
Ltd.
__________________________________________________
Certain amounts may not add or calculate due to use of rounded numbers.
Page 4
ROY…
CAR…
CRU…
LTD.
STA…
(un…
Quar… Nine
Ended Mont…
Ended
Sept… Sept…
30, 30,
2026 2025 2026 2025
Pas… 2,67… 2,4… 7,5… 6,96…
Car…
Pas…
Cru… 16,6… 15,… 46,… 43,4…
Days
APCD 14,8… 13,… 42,… 39,2…
Occ… 112.4 % 112… % 110… % 110.4 %
Page 5
ROYAL
CARIBBEAN
CRUISES LTD.
CONSOLIDATED
BALANCE
SHEETS
(in
millions,
except share As of
data) September
Assets 30,
Current 2026 December 31,
assets (unaudited) 2025
──────────────────────────────────────────────────────────────────────────────
Cash and
cash $ 851 $ 825
equivalents
Trade and
other 409 317
receivables,
net
Inventories 304 264
Prepaid
expenses and 750 690
other assets
Derivative
financial 160 115
instruments
Total
current 2,474 2,211
assets
Property and
equipment, 38,297 35,696
net
Operating
lease 751 620
right-of-use
assets
Goodwill 808 808
Other assets 2,483 2,284
Total assets $ 44,813 $ 41,619
Liabilities
and
Shareholder…
Equity
Current
liabilities
Current
portion of $ 2,239 $ 3,180
long-term
debt
Current
portion of
operating 71 90
lease
liabilities
Accounts 979 953
payable
Accrued
expenses and 1,983 2,026
other
liabilities
Derivative
financial 107 67
instruments
Customer 6,034 5,739
deposits
Total
current 11,413 12,055
liabilities
Long-term 20,116 18,165
debt
Long-term
operating 744 600
lease
liabilities
Other
long-term 627 554
liabilities
Total 32,900 31,374
liabilities
Shareholder…
equity
Preferred
stock ($0.01
par value;
20,000,000 — —
shares
authorized;
none
outstanding)
Common stock
($0.01 par
value;
500,000,000
shares
authorized;
303,899,853
and 3 3
303,054,848
shares
issued, at
September
30, 2026 and
December 31,
2025,
respectivel…
Paid-in 7,916 7,964
capital
Retained 8,512 5,925
earnings
Accumulated
other -384 -604
comprehensi…
loss
Treasury
stock
(36,429,278
and
32,631,826
common
shares at -4,334 -3,251
cost, at
September
30, 2026 and
December 31,
2025,
respectivel…
Total
shareholder…
equity
attributable 11,713 10,037
to Royal
Caribbean
Cruises Ltd.
Noncontroll… 200 208
Interest
Total
shareholder… 11,913 10,245
equity
Total
liabilities
and $ 44,813 $ 41,619
shareholder…
equity
Page 6
ROYAL CARIBBEAN CRUISES
LTD.
CONSOLIDATED STATEMENTS
OF CASH FLOW Nine Months Ended
(unaudited; in millions) September 30,
Operating Activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net Income $ 3,821 $ 3,529
Adjustments:
Depreciation and 1,415 1,265
amortization
Net deferred income tax
(benefit) -5 15
expense
Loss (Gain) on
derivative instruments 4 -45
not designated as hedges
Share-based compensation 94 136
expense
Equity investment income -328 -313
Amortization of debt
issuance costs, 16 72
discounts and premiums
Loss on extinguishment
of debt and 105 10
inducement expense
Changes in operating
assets and
liabilities:
Increase in trade and
other receivables, -109 -34
net
Increase in inventories -40 -4
Increase in prepaid
expenses and other -112 -42
assets
Decrease in accounts -60 -100
payable
(Decrease) increase in
accrued expenses -220 19
and other liabilities
Increase in customer 295 108
deposits
Dividends received from
unconsolidated 309 263
affiliates
Other, net 89 -37
Net cash provided by
operating 5,274 4,842
activities
Investing Activities
Purchases of property -3,880 -3,722
and equipment
Cash received on
settlement of 122 144
derivative financial
instruments
Cash paid on settlement
of derivative -27 -12
financial instruments
Investments in and loans
to -49 -94
unconsolidated
affiliates
Cash received on loans
from — 126
unconsolidated
affiliates
Other, net 2 25
Net cash used in -3,832 -3,533
investing activities
Financing Activities
Debt proceeds 7,227 3,162
Debt issuance costs -124 -100
Repayments of debt -6,236 -3,075
Repurchase of common -1,035 -655
stock
Dividends paid -1,075 -552
Payments of withholding
tax on stock -191 -63
awards
Other, net 19 11
Net cash used in -1,415 -1,272
financing activities
Effect of exchange rate
changes on cash -1 7
and cash equivalents
Net increase in cash and
cash 26 44
equivalents
Cash and cash
equivalents at beginning 825 388
of period
Cash and cash
equivalents at end of $ 851 $ 432
period
Supplemental Disclosure
Cash paid during the
period for:
Interest, net of amount $ 739 $ 709
capitalized
Non-cash Investing
Activities
Purchase of property and
equipment
included in accounts $ 137 $ 83
payable and accrued
expenses and other
liabilities
Page 7
R…
C…
C…
L…
N…
R…
I…
(…
G…
M…
Y…
N…
Y…
a…
A…
G…
M…
p…
P…
a…
c…
as
f…
(…
m…
e…
A…
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Y…
a…
A…
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a…
or
c…
d…
to
t…
u…
of
r…
n…
Qu… Ni…
En… Mo…
Se… En…
30, Se…
30,
20… 2026
On On a
20… a 20… 20… Con… 2025
Co… Cur…
Cu… Bas…
Ba…
T… $ 5,… $ 5,… $ 5,… $ 14… $ 14… $ 13…
r…
L…
C…
o… 2,… 2,… 2,… 7,… 7,… 6,…
e…
D…
a… 490 490 435 1,… 1,… 1,…
a…
e…
G… 2,… 2,… 2,… 5,… 5,… 5,…
M…
A…
P…
a… 399 399 342 1,… 1,… 1,…
r…
F… 287 287 264 813 813 750
F… 347 347 297 966 967 854
O… 606 609 569 1,… 1,… 1,…
o…
D…
a… 490 490 435 1,… 1,… 1,…
a…
e…
A…
G… $ 4,… $ 4,… $ 4,… $ 12… $ 12… $ 11…
M…
A… 14… 14… 13… 42… 42… 39…
P…
C… 16… 16… 15… 46… 46… 43…
D…
G…
M… $ 16… $ 15… $ 16… $ 14… $ 13… $ 14…
Y…
N… $ 30… $ 30… $ 30… $ 28… $ 28… $ 28…
Y…
A…
G…
M… $ 27… $ 26… $ 26… $ 26… $ 25… $ 25…
p…
P…
Page 8
R…
C…
C…
L…
N…
R…
I…
(…
G…
C…
C…
N…
C…
C…
a…
N…
C…
C…
e…
F…
a…
c…
as
f…
(…
m…
e…
A…
a…
c…
p…
A…
C…
a…
m…
n…
a…
or
c…
d…
to
t…
u…
of
r…
n…
Qu… Ni…
En… Mo…
Se… En…
30, Se…
30,
20… 2026
On On a
20… a 20… 20… Con… 2025
Co… Cur…
Cu… Bas…
Ba…
T…
c… $ 2,… $ 2,… $ 2,… $ 7,… $ 7,… $ 6,…
o…
e…
M…
s…
a… 519 519 522 1,… 1,… 1,…
a…
e…
G…
C… 3,… 3,… 3,… 9,… 9,… 8,…
C…
L…
C…
t… 735 735 696 1,… 1,… 1,…
a…
o…
O…
a… 338 338 312 838 837 775
o…
N…
C…
C… 2,… 2,… 1,… 6,… 6,… 5,…
i…
o…
c…
L…
R…
c…
a…
o… 9 9 1 11 11 7
i…
e…
(…
N…
C… 2,… 2,… 1,… 6,… 6,… 5,…
C…
L…
F… 347 347 297 966 967 854
N…
C…
C… $ 1,… $ 1,… $ 1,… $ 5,… $ 5,… $ 4,…
e…
F…
A… 14… 14… 13… 42… 42… 39…
G…
C…
C… $ 21… $ 21… $ 21… $ 21… $ 21… $ 21…
p…
A…
N…
C…
C… $ 14… $ 14… $ 14… $ 15… $ 15… $ 14…
p…
A…
N…
C…
C…
e… $ 12… $ 12… $ 12… $ 12… $ 12… $ 12…
F…
p…
A…
(1) These amounts are included in Marketing, selling and administrative expenses
within our consolidated statements of comprehensive income (loss).
Page 9
ROY…
CAR…
CRU…
LTD.
NON…
REC…
INF…
(un…
EBI…
Adj…
EBI…
and
Adj…
EBI…
Mar…
are
cal…
as
fol…
(in
mil…
exc…
APCD
and
per
APCD
dat…
Cer…
amo…
may
not
add
or
cal…
due
to
the
use
of
rou…
num…
Quar… Nine
Ended Mont…
Sept… Ended
30, Sept…
30,
2026 2025 2026 2025
Net
Inc…
att…
to $ 1,728 $ 1,5… $ 3,7… $ 3,514
Roy…
Car…
Cru…
Ltd.
Int… -5 -3 -15 -17
inc…
Int…
exp…
net 291 248 805 725
of
int…
cap…
Dep…
and 490 435 1,4… 1,265
amo…
exp…
Pro…
for 27 34 66 67
inc…
tax…
EBI… 2,531 2,2… 6,0… 5,553
Oth…
(in… -1 2 -10 -13
exp…
Res…
cha…
and
oth… 9 1 11 7
ini…
exp…
(1)
Equ…
inv…
imp…
(re… — — — -1
of
los…
and
oth…
Adj… $ 2,539 $ 2,2… $ 6,0… $ 5,545
EBI…
Tot… $ 5,591 $ 5,1… $ 14,… $ 13,6…
rev…
APCD 14,8… 13,… 42,… 39,2…
Net
Inc…
att…
to
Roy… $ 116.… $ 114… $ 90.… $ 89.42
Car…
Cru…
Ltd.
per
APCD
Adj…
EBI… $ 171.… $ 167… $ 144… $ 141.…
per
APCD
Adj…
EBI… 45.4 % 44.6 % 40.8 % 40.5 %
Mar…
(1) These amounts are included in Marketing, selling and administrative expenses
within our consolidated statements of comprehensive income (loss).
Page 10
ROYAL
CARIBB…
CRUISES
LTD.
NON-GA…
RECONC…
INFORM…
(unaud…
Adjust…
Net
Income
attrib…
to
Royal
Caribb…
Cruises
Ltd.,
and
Adjust…
Earnin…
per
Share
are
calcul…
as
follows
(in
millio…
except
per
share
data.
Certain
amounts
may not
add or
calcul…
due to
the use
of
rounded
number…
Quarter Nine
Ended Months
September Ended
30, Septemb…
30,
2026 2025 2026 2025
Net
Income
attrib…
to $ 1,728 $ 1,575 $ 3,798 $ 3,514
Royal
Caribb…
Cruises
Ltd.
Loss on
exting…
of debt
and 21 — 50 10
induce…
expense
(1)
Restru…
charges
and
other 9 1 11 7
initia…
expens…
(2)
Amorti…
of
Silver…
intang…
assets 2 2 5 5
result…
from
the
Silver…
acquis…
Gain on
sale of
noncon… — — — -11
intere…
(3)
Equity
invest…
impair…
(recov… — — — -1
of
losses
and
other
Adjust…
Net
Income
attrib…
to $ 1,760 $ 1,577 $ 3,865 $ 3,523
Royal
Caribb…
Cruises
Ltd.
Earnin…
per
Share - $ 6.45 $ 5.74 $ 14.12 $ 12.83
Diluted
(4)
Adjust…
Earnin…
per $ 6.57 $ 5.75 $ 14.36 $ 12.83
Share -
Diluted
(5)
Weight…
Shares
Outsta… 268 274 269 275
-
Diluted
(1) For 2026, includes the loss on extinguishment of debt associated with the
February and August redemptions of debt. For 2025, includes $10 million of
inducement expense related to the settlements of the 2025 6.00% convertible
notes. These amounts are included in Interest expense, net of interest
capitalized within our consolidated statements of comprehensive income (loss).
(2) These amounts are included in Marketing, selling and administrative expenses
within our consolidated statements of comprehensive income (loss).
(3) For 2025, represents gain on sale of noncontrolling interest of Floating
Docks and Grand Bahama Shipyard. These amounts are included in Other income
(expense) within our consolidated statements of comprehensive income (loss).
(4) For 2025, diluted EPS includes the add-back of dilutive inducement and
interest expense related to our convertible notes of $16 million for the nine
months ended September 30, 2025.
(5) For 2025, Adjusted Diluted EPS includes the add-back of dilutive interest
expense related to our convertible notes of $6 million for the nine months ended
September 30, 2025.
Page 11