Royal Caribbean Cruises

RCL Q1 2025 Earnings

Reported Apr 29, 2025 at 6:31 AM ET · SEC Source

Q1 25 EPS

$2.71

BEAT +7.02%

Est. $2.53

Q1 25 Revenue

$4.00B

MISS 0.42%

Est. $4.02B

vs S&P Since Q1 25

-2.3%

TRAILING MARKET

RCL +27.7% vs S&P +30.0%

Market Reaction

Did RCL Beat Earnings? Q1 2025 Results

Royal Caribbean Cruises delivered a convincing first quarter for 2025, posting adjusted EPS of $2.71 against a consensus estimate of $2.53, a beat of 7.02%, even as revenue of $4.00 billion came in fractionally below the $4.02 billion forecast, risin… Read more Royal Caribbean Cruises delivered a convincing first quarter for 2025, posting adjusted EPS of $2.71 against a consensus estimate of $2.53, a beat of 7.02%, even as revenue of $4.00 billion came in fractionally below the $4.02 billion forecast, rising 7.3% year over year. The earnings strength traced directly to stronger-than-expected close-in pricing demand and favorable cost timing, with Net Yields climbing 4.7% as-reported and Gross Cruise Costs per APCD actually declining 1.1%, a combination that pushed Adjusted EBITDA to $1.40 billion and expanded margins to 35.1% from 31.5% a year earlier. The company carried 2.2 million guests during the quarter, up 9% year over year, with load factor reaching a robust 109%. Record WAVE season bookings and continued strength in close-in demand have given management enough confidence to raise full-year 2025 Adjusted EPS guidance to a range of $14.55 to $15.55, representing roughly 28% year-over-year growth, though the range was widened to reflect broader macroeconomic uncertainty.

Key Takeaways

  • Stronger than expected pricing on close-in demand
  • Lower costs mainly due to timing
  • Net Yield growth of 4.7% as-reported (5.6% in constant currency)
  • Load factor of 109%
  • 9% increase in guests carried year over year to 2.2 million
  • 3% capacity increase year over year
  • Interest expense declined significantly from $424M to $249M year over year
  • Adjusted EBITDA margin expanded to 35.1% from 31.5%
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RCL YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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RCL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver. As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control -- delivering the best vacation experiences, optimizing revenue, and managing costs, while continuing to invest in our future and drive further differentiation. With our industry-leading brands, state-of-the-art ships, exclusive destinations, and a fortified balance sheet, we will continue dreaming and innovating to win a greater share of the growing $2 trillion global vacation market.”

— Jason Liberty, Q1 2025 Earnings Press Release