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

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

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

What is the market's earnings forecast for Carnival next quarter?

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

Did Carnival beat or miss consensus estimates last quarter?

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

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

- **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.


Carnival Corporation & plc (CCL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CCL

CCL fundamentals

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