24th Jun 2025 14:58
(Alliance News) - Carnival PLC & Corp shares jumped on Tuesday as it reported its highest-ever second quarter operating results, and said it expects to continue to take its results higher over time.
Shares in the Miami, US-based cruise operator rose 13% to 1,742.06 pence each in London on Tuesday afternoon.
In the three months to the end of May, Carnival reported net income of USD565 million, multiplied from USD92 million a year prior.
Revenue rose 9.5% to USD6.33 billion from USD5.78 billion.
Adjusted net income of USD470 million, or USD0.35 per share, outperformed March guidance by USD185 million due to higher ticket prices, higher onboard spending and the timing of expenses between the quarters.
"Our amazing team delivered yet another phenomenal quarter, more than tripling adjusted net income driven by record net yields (in constant currency) and strong close-in demand," said Chief Executive Officer Josh Weinstein.
"We also remain on track for a strong 4% net yield growth in the second half, consistent with what we forecasted back in December which was before the complex macroeconomic and geopolitical backdrop we have all experienced in the last few months. Combined, this has enabled us to raise full year guidance again."
The company noted that it has exceeded its 2026 SEA Change financial targets 18 months early, by increasing adjusted earnings before interest, tax, depreciation and amortisation per available lower berth day by 52% and more than doubling adjusted return on invested capital to over 12.5% in less than two years.
For 2025, Carnival expects net yields in constant currency to rise 5.0% compared to 2024, around 60 basis points better than its March guidance.
It sees adjusted cruise costs excluding fuel per available lower berth day around 3.6% better than last year.
Carnival also forecasts adjusted Ebitda of USD6.9 billion, up 13% from USD6.1 billion in 2024 and USD200 million ahead of March's forecast.
Adjusted net income is forecast at around USD2.69 billion, better than the March guidance by around USD200 million.
"Our strong results, booked position and outlook are a testament to the success of our ongoing strategy to deliver same-ship, high-margin revenue growth. We continue to set ourselves up well for 2026 and beyond, with so much more potential to take our margins, returns and results even higher over time," CEO Weinstein said.
The firm said its cumulative advanced booked position "remains strong" with the second-highest occupancy on record, with pricing at historical highs.
It said the booked position for 2026 is in line with 2025's record levels and is also at historical high prices.
By Michael Hennessey, Alliance News reporter
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