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- **Revenue Beat**: Q3 EPS $5.75 (11% YoY), full-year guidance $15.58-$15.63. 
- **Strategic Growth**: 8 exclusive destinations by 2028, Celebrity River sold out in minutes. 
- **2026 Outlook**: $17 EPS handle, 6% cap growth, moderate yield growth. 
- **Cost Efficiency**: Anemic NCC growth (low single-digit), 290bps EBITDA margin expansion. 
- **Balance Sheet Strength**: $6.8B liquidity, <3x leverage, $1.6B capital returned since July 2024.

**【CEO Summary Section】**
- **Revenue and Growth**: Q3 revenue exceeded expectations, driven by 7% year-over-year (YoY) increase in vacations delivered and 2.4% net yield growth. Full-year net yield is expected to grow 3.5%-4%, up 25bps from initial guidance. 
- **Strategic Initiatives**: 
  - Launched Royal Beach Club, Santorini, expanding exclusive destinations from 2 to 8 by 2028. 
  - Celebrity River cruise line sold out within minutes, targeting new customer segments. 
  - Signed 10-year shipbuilding agreement for 7 Icon-class ships, positioning for future growth. 
- **2026 Outlook**: Anticipated $17 EPS handle, supported by 6% capacity growth and moderate yield growth. 
- **Consumer Demand**: Booked load factors remain within historical ranges at record rates, with 2026 APD growth at high end of historical ranges. 

**【CFO Financial Commentary】**
- **Q3 Financials**: 
  - Adjusted EPS: $5.75 (11% YoY growth). 
  - Operating cash flow: $1.5B. 
  - Full-year adjusted EPS guidance: $15.58-$15.63 (32% YoY growth). 
- **2025 Guidance**: 
  - Q4 net yield growth: 2.2%-2.7%. 
  - NCC (excluding fuel): -6.6% to -6.1% YoY. 
  - Fuel expense: $1.14B (68% hedged below market rates). 
- **2026 Outlook**: 
  - Capacity growth: 6%. 
  - EBITDA margin expansion: 290bps YoY. 
  - Strong balance sheet ($6.8B liquidity, <3x leverage). 
- **Cost Management**: Anemic NCC growth (low single-digit) through scale leverage and AI-driven efficiency. 

**【Q&A Highlights】**
- **2026 Bookings**: 
  - APD growth at high end of historical ranges. 
  - Shorter itineraries driving close-in demand. 
- **Caribbean Dynamics**: 
  - 57% of 2025 capacity in Caribbean, 10% Q4 growth. 
  - Yield resilience despite supply increase. 
- **River Cruise Expansion**: 
  - 10 ships on order, targeting accretive ROI. 
- **Regulatory Impact**: 
  - EU ETS compliance costs offsetting efficiency gains. 
  - Global minimum tax increase (~100bps margin impact).

Royal Caribbean Cruises (RCL)-28 Oct 25-2025 Q3 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

RCL

RCL fundamentals

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