What were the key takeaways from Carnival’s earnings call?

What were the key takeaways from Carnival's earnings call?

What factors drove the changes in Carnival's revenue and profit?

What is Carnival's latest dividend and current dividend yield?

What does Carnival do and what are its main business segments?

What is Carnival's gross profit margin?

What guidance did Carnival's management provide for the next earnings period?

What is the revenue and EPS growth rate for Carnival year over year?

- **Record Financials**: Q3 net income of $2 billion, 10% above pre-pause levels, with 13% ROIC.
- **Booking Strength**: 2026 bookings 50% complete at higher prices, 2027 bookings at record pace.
- **Debt Reduction**: $11 billion refinanced, targeting 3.5x net debt/EBITDA for capital returns.
- **Celebration Key Success**: 0.5 million guests in first 2 months, full utilization by 2026.
- **Growth Drivers**: Caribbean destinations to capture 8 million guest visits in 2026, 4x competitors' total.


**【CEO Summary Section】**
- Delivered record Q3 2025 results with $2 billion net income, surpassing pre-pause levels by 10%.
- Achieved 4.6% same-ship yield growth, driven by close-in demand and onboard spending.
- ROIC reached 13%, a 20-year high, with net debt/EBITDA at 3.6x.
- 2026 bookings are nearly 50% complete at higher prices, with Celebration Key and Caribbean expansions driving growth.
- Refinanced $11 billion in debt, reducing secured debt to $3.1 billion.
- Called $500 million convertible notes, improving net debt by $600 million.

**【CFO Financial Commentary】**
- Q3 net income exceeded guidance by $182 million, driven by 1.1% yield beat and 1.5% cost savings.
- Customer deposits hit $7.1 billion, up 4% year-over-year.
- Full year 2025 guidance raised by $235 million to $2.9 billion net income.
- 2026 capacity growth limited to 0.8%, with headwinds from loyalty program (0.5% yield impact) and dry dock costs (1% margin impact).
- Targeting investment-grade metrics with net debt/EBITDA below 3x.

**【Q&A Highlights】**
- **Celebration Key Impact**: Meeting expectations with 0.5 million guests in first 2 months, tracking for full utilization.
- **Booking Trends**: 2026 bookings 50% complete at higher prices, 2027 bookings at record pace.
- **Capital Return**: Plan to pivot to shareholder returns at 3.5x net debt/EBITDA, prioritizing dividend reinstatement.
- **Loyalty Program**: Carnival Rewards to launch June 2026, cash flow positive from day 1 with 0.5% yield impact.
- **Dry Docks**: 2026 costs to impact margins by 1%, 2027 dry dock days expected to decrease.
- **Competitive Edge**: Caribbean destinations capture 8 million guest visits in 2026, vs. 4 million for rest of industry.


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