Key points

• Q3 revenue USD 5.6 billion (+9%); net income USD 1.7 billion; adjusted EPS USD 6.57 (USD 5.75 in Q3 2025)
• Adjusted EBITDA USD 2.5 billion, margin 45.4% (44.6%)
• 2.7 million guests (+9%), capacity +8%, load factor 112%
• 50% Sandals and Beaches Resorts deal expected to close in early 2027
• Liquidity USD 7.4 billion; new USD 400 million loan from Export Development Canada
• 2026 capex about USD 4.6 billion; capacity growth of 6.6% (2026), 4.5% (2027), 6.0% (2028), 6.5% (2029)

Capacity was up 8% and the group carried 2.7 million guests, 9% more than a year earlier, at a load factor of 112%. Net yields grew 0.9% as reported and 0.6% in constant currency, which the company attributes to stronger-than-expected close-in demand in Europe and the Caribbean. Net cruise costs excluding fuel per available passenger cruise day (APCD) fell 1.9% as reported, as some expenses shifted into the fourth quarter.

The group now expects full-year adjusted EPS of USD 17.85 to USD 17.95, up from the USD 17.73 to USD 17.87 range given in July. The company said the stronger quarter is partly offset by higher-than-anticipated fuel costs and currency exchange rates. Revenue is forecast to grow 9% in 2026, with net yields up approximately 2.7% as reported. For the fourth quarter, Royal Caribbean Group expects adjusted EPS of USD 3.48 to USD 3.58 and net yield growth of 4.4% to 4.9% as reported.

Since the previous earnings call, booking volumes have risen in the mid-teens across all major channels, with bookings for 2027 sailings up in the high teens. Chairman and CEO Jason Liberty said that “2027 bookings are pacing ahead of historical levels at higher rates”. He added that the group remains on track for its Perfecta targets of 20% compound annual growth in adjusted EPS from 2024 to 2027, corresponding to adjusted EPS of at least USD 20 in 2027, and that it is already above its return on invested capital target.

In September, the group agreed to acquire a 50% interest in Sandals and Beaches Resorts, whose portfolio includes 18 resorts across the Caribbean, three resorts under development and over 1,000 acres of undeveloped land. The transaction is expected to close in early 2027, subject to regulatory approvals, and will be accounted for under the equity method. Its expected contribution will be included in the 2027 guidance once the deal has closed.

Liquidity stood at USD 7.4 billion at 30 September. During the quarter, the group issued USD 1.25 billion of 5.550% senior unsecured notes due 2034, using the proceeds to repay part of its floating-rate term loans and debt maturing in 2027. In October, it signed a USD 400 million delayed-draw term loan with Export Development Canada and increased its revolving credit facility by USD 50 million to USD 6.65 billion.

Capital expenditure for 2026 is expected to be about USD 4.6 billion, mainly related to the newbuilding order book and land-based destinations. Capacity is set to grow 6.6% in 2026, followed by approximately 4.5%, 6.0% and 6.5% in 2027, 2028 and 2029 respectively.

Royal Caribbean Group operates 71 ships under the Royal Caribbean, Celebrity Cruises and Silversea brands and holds a 50% stake in TUI Cruises, which operates the Mein Schiff and Hapag-Lloyd brands. The group will enter river cruising in 2027 with Celebrity River Cruises.

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