CCL Reports Record $2.0 Billion Adjusted Net Income in Q3 2025, Exceeding Guidance

Carnival (CCL.US) reported record financial results for the third quarter of 2025, with adjusted net income reaching an all-time high of $2.0 billion, or $1.43 adjusted EPS. This performance surpassed June guidance by $182 million, driven by strong close-in demand and effective cost management. Net income for the quarter stood at $1.9 billion, an improvement of $116 million compared to 2024.

The company also achieved record revenues of $8.2 billion, marking its tenth consecutive quarter of record revenues. Adjusted EBITDA reached a record $3.0 billion for the quarter, reflecting robust operational execution.

Record Revenue and Net Yields

Third-quarter revenues hit a record $8.2 billion, an increase of over $250 million compared to the prior year, despite lower capacity. Gross margin yields were 6.4% higher than 2024, contributing to the strong financial performance.

Net yields in constant currency achieved an all-time high, rising 4.6% compared to 2024 and outperforming June guidance by 1.1 points. This growth was primarily attributed to strong close-in demand and robust onboard spending across its brands.

Optimistic Management Outlook and Booking Trends

For the full year 2025, management has raised its adjusted net income guidance for the third consecutive quarter, now expecting an increase of nearly 55% year-over-year. Adjusted EBITDA is projected to reach approximately $7.05 billion, up 15% compared to 2024 and exceeding June guidance.

Booking trends continue to strengthen, with booking volumes for 2026 at record levels and historical high prices in constant currency. The company also noted a strong start for 2027 bookings, achieving record volumes during the third quarter.

Strategic Debt Reduction and Operational Highlights

Carnival continued its strategy to strengthen its balance sheet, refinancing $4.5 billion of debt and prepaying an additional $0.7 billion during the quarter. The company aims to achieve investment-grade leverage metrics and reduce its net debt to adjusted EBITDA ratio to under 3x.

Operational highlights include the successful opening of Celebration Key, a new exclusive destination, which hosted nearly half a million guests. Princess Cruises also welcomed Star Princess, further expanding its fleet offerings.