Carnival PLC - Carnival Corporation 2Q 2025 Earnings
MIAMI,
-- Exceeded 2026 SEA Change financial targets 18 months early, with
adjusted return on invested capital ("ROIC")1,2and adjusted EBITDA per
available lower berth day ("ALBD")1,2reaching the highest levels in
nearly two decades.
-- Improved second quarter net income by nearly $475 million and adjusted
net income1more than tripled compared to 2024, outperforming March
guidance by $185 million .
-- Delivered record second quarter revenues of $6.3 billion with record net
yields1(in constant currency) significantly outperforming March guidance
due to strength in both close-in demand and onboard revenues.
-- Cumulative advanced booked position for 2026 is in line with 2025 record
levels and at historical high prices (in constant currency).
-- Achieved all-time high customer deposits of $8.5 billion .
-- Extended and upsized its revolver capacity to $4.5 billion in June, a 50
percent increase.
According to
"On top of this, thanks to our consistent track record of significant outperformance, we have already exceeded our 2026
"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."
Second Quarter 2025 Results
-- Net income was $565 million , or $0.42 diluted EPS, an improvement of
nearly $475 million compared to 2024.
-- Adjusted net income of $470 million , or $0.35 adjusted EPS1,
outperformed March guidance by $185 million led by higher ticket prices,
higher onboard spending and the timing of expenses between the quarters.
-- Record operating income3 of $934 million .
-- Record adjusted EBITDA1,3 of $1.5 billion exceeded 2024 by 26 percent.
-- Operating margins and adjusted EBITDA margins1 increased over 500 and
300 basis points, respectively, compared to 2024 and significantly
exceeded 2019 levels.
-- Record revenues3 of $6.3 billion , up nearly $550 million compared to the
prior year.
-- Gross margin yields were over 25 percent higher than 2024.
-- Record net yields3 (in constant currency) were 6.4 percent
higher than 2024 and significantly outperformed March guidance
by 200 basis points.
-- Cruise costs per ALBD decreased 0.3 percent compared to 2024. Adjusted
cruise costs excluding fuel per ALBD1 (in constant currency) increased
3.5 percent compared to 2024 primarily due to higher dry-dock days and
was better than March guidance due to the timing of expenses between
quarters.
-- Fuel consumption per ALBD decreased 6.3 percent compared to the prior
year and was better than March guidance by approximately 300 basis
points due to the company's efforts and investments to continuously
improve the energy efficiency of its operations.
-- Total customer deposits reached an all-time high of $8.5 billion .
Bookings
"Our guests continue to look to us as their preferred vacation choice given the amazing experiences our cruise lines provide. Even with the price increases we have achieved over the last few years, our tremendous value compared to land-based alternatives has supported our ability to continue demonstrating remarkable resilience amid heightened volatility. In fact, close-in demand and onboard spending levels were incredibly strong for second quarter sailings and our booking curve continues to be the furthest out on record," Weinstein noted.
The company's cumulative advanced booked position for the remainder of the year remains strong with occupancy the second-highest on record and pricing (in constant currency) at historical highs. While early, the company's booked position for 2026 is in line with 2025 record levels (at the same time last year) and at historical high prices (in constant currency).
2025 Outlook
For the full year 2025, the company expects:
-- Net yields (in constant currency) approximately 5.0 percent higher than
strong 2024 levels, which were up 11 percent and 0.3 percentage points
better than March guidance.
-- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 3.6 percent compared to 2024, better than March guidance.
-- Adjusted net income up over 40 percent compared to 2024 and better than
March guidance by $200 million .
-- Adjusted EBITDA of approximately $6.9 billion , up over 10 percent
compared to 2024 and better than March guidance.
For the third quarter of 2025, the company expects:
-- Net yields (in constant currency) up approximately 3.5 percent compared
to strong 2024 levels, which were up almost 9 percent.
-- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 7.0 percent compared to the third quarter of 2024
primarily due to operating expenses for the opening of Celebration Key,
higher investment in advertising expenses and the impacts of lower 2025
capacity and favorable one-time items in 2024.
See "Guidance" for additional information on the company's 2025 outlook, "Non-GAAP Financial Measures" and "Reconciliation of Forecasted Data."
Financing
"We continued rebuilding an investment grade balance sheet, working aggressively
to reduce interest expense, simplify our capital structure and manage our future debt maturities —
refinancing nearly
The company continued its efforts to proactively manage its debt profile. Since
-- Prepaid $350 million of its $1.4 billion 7.625 percent senior unsecured
notes due 2026 and refinanced the remainder with $1.0 billion 5.875
percent senior unsecured notes due 2031. These transactions will reduce
net interest expense by over $20 million through its original scheduled
maturity in 2026.
-- Upsized its euro denominated floating rate loan by $112 million ,
extended its maturity from 2025 to 2029 and amended its margin at a
favorable rate.
-- Entered into a new $4.5 billion multi-currency revolving credit facility
("New Revolver") in June, which contains an accordion feature allowing
for additional commitments up to $1.0 billion . The New Revolver replaced
the existing multi-currency revolving credit facility ("Revolving
Facility") and will mature in June 2030 .
During the quarter, S&P upgraded the company's credit rating to BB+ with a stable outlook and Fitch upgraded the company to BB+ with a positive outlook. The company believes this is a reflection of its improved leverage metrics and its strong momentum on its continuing journey to investment grade ratings.
The company ended the quarter with
1 See "Non-GAAP Financial Measures." 2 Trailing 12-months. 3 Second quarter record.
Other Recent Highlights
-- Ordered two newbuilds for AIDA Cruises , scheduled to be delivered in
fiscal years 2030 and 2032, introducing a new mid-size class ship and
bringing its newbuild pipeline to eight ships through 2033 (learn more
here).
-- Carnival Cruise Line announced it will launch "Carnival Rewards," a new
loyalty program, in June 2026 . The program will be a cruise-industry
first by tying status, benefits and rewards to spending on cruise fares
and onboard activities. It will also add new features, new ways to earn
status and new reward categories (learn more here).
-- Introduced the Paradise Collection by Carnival, which will include the
following (learn more here):
-- Celebration Key, its new exclusive destination on Grand Bahama
Island , opening in July 2025 , which will feature five portals
built for fun offering an abundance of features and amenities
for guests.
-- RelaxAway, Half Moon Cay , its highly rated and award-winning
exclusive destination in the Bahamas , which will be enhanced and
expanded to feature a newly constructed pier in the summer of
2026.
-- Mahogany Bay , its port destination in Roatan, Honduras , will be
renamed to Isla Tropicale in 2026 and expanded to include a pool
with a swim up bar and cabanas, beach expansion and a private
beach club.
-- More enhancements to come for its Caribbean destinations.
-- Named one of America's Best Employers for New Grads in 2025 by Forbes
(learn more here).
-- Sold Costa Fortuna and recorded a gain on the sale. The ship is expected
to leave the fleet in September 2026 .
Guidance
(See "Non-GAAP Financial Measures" and "Reconciliation of Forecasted Data")
3Q 2025 Full Year 2025
Year over year change Current Constant Current Constant
Dollars Currency Dollars Currency
Net yields Approx. 5.2% Approx. 3.5% Approx. 5.6% Approx. 5.0%
Adjusted cruise costs Approx. 8.9% Approx. 7.0% Approx. 4.4% Approx. 3.6%
excluding fuel per ALBD
3Q 2025 Full Year 2025
ALBDs (in millions)(a) 24.6 96.5
Capacity growth compared to prior (2.4) % 1.0 %
year
Fuel consumption in metric tons 0.7 2.9
(in millions)
Fuel cost per metric ton consumed
(excluding European Union $ 619 $ 624
Allowance ("EUA"))
Fuel expense (including EUA $ 0.48 $ 1.88
expense) (in billions)
Depreciation and amortization (in $ 0.72 $ 2.79
billions)
Interest expense, net of
capitalized interest and interest $ 0.33 $ 1.38
income (in billions)
Adjusted EBITDA (in billions) Approx. $2.87 Approx. $6.9
Adjusted net income (loss) (in Approx. $1,800 Approx. $2,690
millions )
Adjusted earnings per share - Approx. $1.30 Approx. $1.97
diluted (b)
Weighted-average shares 1,313 1,312
outstanding - basic
Adjusted weighted-average shares 1,402 1,401
outstanding - diluted (b)
(a) See "Notes to Statistical Information"
Diluted adjusted earnings per share includes the add-back of dilutive
(b) interest expense related to the company's convertible notes of $18 million
for the third quarter of 2025 and $71 million for full year 2025.
Currencies (USD to 1) 3Q 2025 Full Year 2025
AUD $ $ 0.64
0.65
CAD $ $ 0.73
0.73
EUR $ $ 1.11
1.15
GBP $ $ 1.31
1.34
Sensitivities (impact to
adjusted net income (loss) in 3Q 2025 Remainder of 2025
millions)
1% change in net yields $ $ 104
60
1% change in adjusted cruise $ $ 55
costs excluding fuel per ALBD 27
10% change in fuel cost per $ $ 88
metric ton (excluding EUA) 44
100 basis point change in
variable rate debt (including — $ 24
derivatives)
1% change in currency exchange $ $ 16
rates 10
Capital Expenditures
For the remainder of 2025, newbuild capital expenditures are
Conference Call
The company has scheduled a conference call with analysts at
Additional information can be found on www.carnivalcorp.com , www.aida.de , www.carnival.com , www.costacruises.com , www.cunard.com , www.hollandamerica.com , www.pocruises.com , www.princess.com and www.seabourn.com .
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this document are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to us, including statements concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "depends," "expect," "goal," "aspiration," "anticipate," "forecast," "project," "future," "intend," "plan," "estimate," "target," "indicate," "outlook," and similar expressions of future intent or the negative of such terms.
Forward-looking statements include, but are not limited to, statements that relate to our outlook and financial position, as well as, statements regarding:
• Pricing • Adjusted EBITDA • Booking levels • Adjusted EBITDA per ALBD • Occupancy • Adjusted EBITDA margin • Interest, tax and fuel expenses • Adjusted earnings per share • Currency exchange rates • Net debt to adjusted EBITDA •Goodwill , ship and trademark fair • Net yields values • Liquidity and credit ratings • Adjusted cruise costs per ALBD • Investment grade leverage metrics • Adjusted cruise costs excluding fuel per ALBD • Estimates of ship depreciable lives • Adjusted ROIC and residual values • Adjusted net income (loss)
Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. These factors include, but are not limited to, the following:
-- Events and conditions around the world, including geopolitical
uncertainty, war and other military actions, pandemics, inflation,
higher fuel prices, higher interest rates and other general concerns
impacting the ability or desire of people to travel could lead to a
decline in demand for cruises as well as have significant negative
impacts on our financial condition and operations.
-- Incidents concerning our ships, guests or the cruise industry may
negatively impact the satisfaction of our guests and crew and lead to
reputational damage.
-- Changes in and non-compliance with laws and regulations under which we
operate, such as those relating to health, environment, safety and
security, data privacy and protection, anti-money laundering,
anti-corruption, economic sanctions, trade protection, labor and
employment, and tax may be costly and lead to litigation, enforcement
actions, fines, penalties and reputational damage.
-- Factors associated with climate change, including evolving and
increasing regulations, increasing concerns about climate change and the
shift in climate conscious consumerism and stakeholder scrutiny, and
increasing frequency and/or severity of adverse weather conditions could
have a material impact on our business.
-- Inability to meet or achieve our targets, goals, aspirations,
initiatives, and our public statements and disclosures regarding them,
including those related to sustainability matters, may expose us to
risks that may adversely impact our business.
-- Cybersecurity incidents and data privacy breaches, as well as
disruptions and other damages to our principal offices, information
technology operations and system networks and failure to keep pace with
developments in technology have adversely impacted and may in the future
materially adversely impact our business operations, the satisfaction of
our guests and crew and may lead to fines, penalties and reputational
damage.
-- The loss of key team members, our inability to recruit or retain
qualified shoreside and shipboard team members and increased labor costs
could have an adverse effect on our business and results of operations.
-- Increases in fuel prices, changes in the types of fuel consumed and
availability of fuel supply may adversely impact our scheduled
itineraries and costs.
-- We rely on suppliers who are integral to the operations of our
businesses. These suppliers and service providers may be unable to
deliver on their commitments, which could negatively impact our
business.
-- Fluctuations in foreign currency exchange rates may adversely impact our
financial results.
-- Overcapacity and competition in the cruise and land-based vacation
industry may negatively impact our cruise sales, pricing and destination
options.
-- Inability to implement our shipbuilding programs and ship repairs,
maintenance and refurbishments may adversely impact our business
operations and the satisfaction of our guests.
-- We require a significant amount of cash to service our debt and sustain
our operations. Our ability to generate cash depends on many factors,
including those beyond our control, and we may not be able to generate
cash required to service our debt and sustain our operations.
-- Our substantial debt could adversely affect our financial health and
operating flexibility.
The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. Additionally, many of these risks and uncertainties are currently, and in the future may continue to be, amplified by our substantial debt balance incurred during the pause of our guest cruise operations. There may be additional risks that we consider immaterial or which are unknown.
Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
Forward-looking and other statements in this document may also address our sustainability progress, plans, and goals (including climate change- and environmental-related matters). In addition, historical, current, and forward-looking sustainability- and climate-related statements may be based on standards and tools for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions and predictions that are subject to change in the future and may not be generally shared.
CARNIVAL CORPORATION& PLC
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(UNAUDITED)
(in millions, except per share data)
Three Months Ended Six Months Ended
May 31, May 31,
2025 2024 2025 2024
Revenues
Passenger $ $ 3,754 $ 7,936 $ 7,370
ticket 4,104
Onboard and 2,224 2,027 4,202 3,817
other
6,328 5,781 12,139 11,187
Operating
Expenses
Commissions,
transportation 780 732 1,631 1,552
and other
Onboard and 671 628 1,271 1,178
other
Payroll and 640 614 1,280 1,237
related
Fuel 468 525 933 1,030
Food 372 360 726 706
Other operating 955 938 1,813 1,800
Cruise and tour
operating 3,886 3,798 7,653 7,502
expenses
Selling and 816 789 1,663 1,603
administrative
Depreciation and 692 634 1,346 1,247
amortization
5,394 5,221 10,662 10,352
Operating Income 934 560 1,477 836
Nonoperating
Income (Expense)
Interest income 12 25 18 58
Interest
expense, net of (341) (450) (718) (921)
capitalized
interest
Debt
extinguishment (4) (33) (255) (66)
and modification
costs
Other income (20) (7) (12) (25)
(expense), net
(353) (464) (967) (953)
Income (Loss)
Before Income 582 96 510 (118)
Taxes
Income Tax (17) (5) (24) (5)
Expense, Net
Net Income $ $ $ $
(Loss) 565 92 486 (123)
Earnings Per
Share
Basic $ $ $ $
0.43 0.07 0.37 (0.10)
Diluted $ $ $ $
0.42 0.07 0.37 (0.10)
Weighted-Average
Shares 1,312 1,267 1,310 1,265
Outstanding -
Basic
Weighted-Average
Shares 1,400 1,271 1,316 1,265
Outstanding -
Diluted
CARNIVAL CORPORATION& PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
May 31, November 30,
2025 2024
ASSETS
Current Assets
Cash and cash equivalents $ 2,146 $ 1,210
Trade and other receivables, net 569 590
Inventories 476 507
Prepaid expenses and other 1,158 1,070
Total current assets 4,349 3,378
Property and Equipment, Net 42,751 41,795
Operating Lease Right-of-Use Assets, 1,365 1,368
Net
Goodwill 579 579
Other Intangibles 1,178 1,163
Other Assets 943 775
$ 51,165 $ 49,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $ 1,392 $ 1,538
Current portion of operating lease 177 163
liabilities
Accounts payable 1,198 1,133
Accrued liabilities and other 2,072 2,358
Customer deposits 8,082 6,425
Total current liabilities 12,920 11,617
Long-Term Debt 25,862 25,936
Long-Term Operating Lease Liabilities 1,217 1,239
Other Long-Term Liabilities 1,159 1,012
Shareholders' Equity
Carnival Corporation common stock,
$0.01 par value; 1,960 shares
authorized; 1,298 13 13
shares issued at 2025 and 1,294
shares issued at 2024
Carnival plc ordinary shares, $1.66
par value; 217 shares issued at 2025 361 361
and 2024
Additional paid-in capital 17,208 17,155
Retained earnings 2,543 2,101
Accumulated other comprehensive (1,753) (1,975)
income (loss)
Treasury stock, 131 shares at 2025
and 130 shares at 2024 of Carnival
Corporation and (8,364) (8,404)
72 shares at 2025 and 73 shares
at 2024 of Carnival plc , at cost
Total shareholders' equity 10,007 9,251
$ 51,165 $ 49,057
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
OTHER BALANCE SHEET May 31, 2025 November 30, 2024
INFORMATION(in millions)
Liquidity (a) $ $
5,172 4,155
Debt (current and long-term) $ $ 27,475
27,254
Customer deposits (current $ $
and long-term) 8,530 6,779
As of May 31, 2025 , includes $2.1 billion of cash and cash equivalents and
$3.0 billion of borrowings available under the company's Revolving Facility.
(a) In June 2025 , the company entered into a $4.5 billion unsecured
multi-currency revolving credit facility, which replaced its existing
Revolving Facility, increasing its available liquidity by $1.5 billion .
Three Months Ended Six Months Ended
May 31, May 31,
CASH FLOW
INFORMATION(in 2025 2024 2025 2024
millions)
Cash from $ $ $ 3,317 $ 3,807
operations (a) 2,392 2,040
Capital
expenditures $ $
(Purchases of 850 1,318 $ 1,458 $ 3,457
Property and
Equipment)
(a) Cash from operations for the six months endedMay 31, 2024 includes the release of$818 million of credit card reserve funds.
Three Months Ended Six Months Ended
May 31, May 31,
STATISTICAL 2025 2024 2025 2024
INFORMATION
Passenger cruise
days ("PCDs")(in 25.3 24.3 49.6 47.8
millions)(a)
ALBDs (in 24.2 23.5 47.8 46.5
millions)(b)
Occupancy 104 % 104 % 104 % 103 %
percentage (c)
Passengers
carried(in 3.4 3.3 6.5 6.3
millions)
Fuel consumption
in metric tons 0.7 0.7 1.4 1.5
(in millions)
Fuel consumption
in metric tons 29.9 31.9 30.1 31.8
per thousand
ALBDs
Fuel cost per
metric ton $ $ 684 $ 628 $ 685
consumed 614
(excluding EUA)
Currencies (USD
to 1)
AUD $ $ 0.66 $ 0.63 $ 0.66
0.63
CAD $ $ 0.73 $ 0.70 $ 0.74
0.71
EUR $ $ 1.08 $ 1.08 $ 1.08
1.11
GBP $ $ 1.26 $ 1.28 $ 1.26
1.31
Notes to Statistical Information
(a) PCD represents the number of cruise passengers on a voyage multiplied by the
number of revenue-producing ship operating days for that voyage.
ALBD is a standard measure of passenger capacity for the period that we use
to approximate rate and capacity variances, based on consistently applied
formulas that we use to perform analyses to determine the main non-capacity
(b) driven factors that cause our cruise revenues and expenses to vary. ALBDs
assume that each cabin we offer for sale accommodates two passengers and is
computed by multiplying passenger capacity by revenue-producing ship
operating days in the period.
Occupancy, in accordance with cruise industry practice, is calculated using
a numerator of PCDs and a denominator of ALBDs, which assumes two passengers
(c) per cabin even though some cabins can accommodate three or more passengers.
Percentages in excess of 100% indicate that on average more than two
passengers occupied some cabins.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Three Months Ended Six Months Ended
May 31, May 31,
(in millions,
except per share 2025 2024 2025 2024
data)
Net income (loss) $ $ $ 486 $ (123)
565 92
(Gains) losses on
ship sales and (101) — (101) —
impairments
Debt
extinguishment and 4 33 255 66
modification costs
Restructuring 2 10 2 11
expenses
Other — — — —
Adjusted net $ $ $ 643 $ (46)
income (loss) 470 134
Interest expense,
net of capitalized 341 450 718 921
interest
Interest income (12) (25) (18) (58)
Income tax 17 5 24 5
expense, net
Depreciation and 692 634 1,346 1,247
amortization
Adjusted EBITDA $ $ $ 2,713 $ 2,068
1,508 1,197
Earnings per share $ $ $ 0.37 $ (0.10)
- diluted (a) 0.42 0.07
Weighted-average
shares outstanding 1,400 1,271 1,316 1,265
- diluted (a)
Adjusted earnings $ $
per share - 0.35 0.11 $ 0.48 $ (0.04)
diluted (b)
Adjusted
weighted-average 1,400 1,271 1,400 1,265
shares outstanding
- diluted (b)
(See Non-GAAP Financial Measures)
Diluted earnings per share includes the add-back of dilutive interest
expense related to the company's convertible notes of $18 million for the
(a) three months ended May 31, 2025 . The company's convertible notes were
antidilutive to the six months ended May 31, 2025 and the three and six
months ended, May 31, 2024 , earnings per share and therefore were not
included in the calculations of diluted earnings per share.
Diluted adjusted earnings per share includes the add-back of dilutive
interest expense related to the company's convertible notes of $18 million
(b) and $35 million for the three and six months ended May 31, 2025 . The
company's convertible notes were antidilutive to the three and six months
ended May 31, 2024 and therefore were not included in the calculations of
diluted adjusted earnings per share.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Gross margin yields and net yields were computed by dividing the gross margin
and adjusted gross margin by ALBDs as follows:
Three Months Ended May 31, Six Months Ended May 31,
(in 2025 2025
millions,
except 2025 Constant 2024 2025 Constant 2024
yields data)
Currency Currency
Total $ $ $ 12,139 $
revenues 6,328 5,781 11,187
Less: Cruise
and tour (3,886) (3,798) (7,653) (7,502)
operating
expenses
Depreciation
and (692) (634) (1,346) (1,247)
amortization
Gross margin 1,750 1,350 3,140 2,438
Less: Tour
and other (31) (37) (33) (41)
revenues
Add: Payroll 640 614 1,280 1,237
and related
Fuel 468 525 933 1,030
Food 372 360 726 706
Ship and
other — — — —
impairments
Other 955 938 1,813 1,800
operating
Depreciation
and 692 634 1,346 1,247
amortization
Adjusted $ $ $ $ 9,204 $ 9,245 $
gross margin 4,846 4,810 4,384 8,416
ALBDs 24.2 24.2 23.5 47.8 47.8 46.5
Gross margin $ $ $
yields(per 72.25 57.45 $ 65.71 52.45
ALBD)
Net yields $ 200.07 $ 198.58 $ $ 192.61 $ 193.46 $
(per ALBD) 186.60 181.04
(See Non-GAAP Financial Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Cruise costs per ALBD, adjusted cruise costs per ALBD and adjusted cruise
costs excluding fuel per ALBD were computed by
dividing cruise costs, adjusted cruise costs and adjusted cruise costs
excluding fuel by ALBDs as follows:
Three Months Ended May 31, Six Months Ended May 31,
(in millions, 2025 2025
except costs
per ALBD 2025 Constant 2024 2025 Constant 2024
data)
Currency Currency
Cruise and $ $ $
tour operating 3,886 3,798 $ 7,653 7,502
expenses
Selling and
administrative 816 789 1,663 1,603
expenses
Less: Tour and (37) (49) (56) (69)
other expenses
Cruise costs 4,665 4,538 9,260 9,036
Less:
Commissions,
transportation (780) (732) (1,631) (1,552)
and
other
Onboard and (671) (628) (1,271) (1,178)
other costs
Gains (losses)
on ship sales 101 — 101 —
and
impairments
Restructuring (2) (10) (2) (11)
expenses
Other — — — —
Adjusted 3,312 3,286 3,167 6,458 6,467 6,296
cruise costs
Less: Fuel (468) (467) (525) (933) (933) (1,030)
Adjusted $ $ $
cruise costs 2,845 $ 2,819 2,642 $ 5,525 $ 5,535 5,266
excluding fuel
ALBDs 24.2 24.2 23.5 47.8 47.8 46.5
Cruise costs $ $ $ 193.78 $ 194.37
per ALBD 192.61 193.16
Adjusted $ $
cruise costs 136.75 $ 135.68 134.83 $ 135.14 $ 135.34 $ 135.42
per ALBD
Adjusted
cruise costs $ $ 116.39 $ $ 115.62 $ 115.82 $ 113.27
excluding fuel 117.45 112.46
per ALBD
(See Non-GAAP Financial Measures)
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along with their most comparative
Non-GAAP Measure U.S. GAAP Measure Use Non-GAAP Measure to
Assess
• Adjusted net income
(loss),
adjusted EBITDA, adjusted
• Net income (loss) • Company Performance
EBITDA per ALBD and
adjusted
EBITDA margin
• Adjusted earnings per • Earnings per share • Company Performance
share
• Net debt to adjusted — • Company Leverage
EBITDA
• Net yields • Gross margin yields • Cruise Segments
Performance
• Adjusted cruise costs per
ALBD • Gross cruise costs per • Cruise Segments
and adjusted cruise costs Performance
excluding ALBD
fuel per ALBD
• Adjusted ROIC — • Company Performance
The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared in accordance with
Adjusted net income (loss) and adjusted earnings per share provide additional information to us and investors about our future earnings performance by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance. We believe that gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other gains and losses are not part of our core operating business and are not an indication of our future earnings performance.
Adjusted EBITDA, adjusted EBITDA per ALBD and adjusted EBITDA margin
provide additional information to us and investors about our core operating profitability, including on a per ALBD basis, by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance as well as excluding interest, taxes and depreciation and amortization. In addition, we believe that the presentation of adjusted EBITDA provides additional information to us and investors about our ability to operate our business in compliance with the covenants set forth in our debt agreements. We define adjusted EBITDA as adjusted net income (loss) adjusted for (i) interest, (ii) taxes and (iii) depreciation and amortization. There are material limitations to using adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items that directly affect our net income (loss). These limitations are best addressed by considering the economic effects of the excluded items independently and by considering adjusted EBITDA in conjunction with net income (loss) as calculated in accordance with
Net debt to adjusted EBITDA provides additional information to us and investors about our overall leverage. We define net debt to adjusted EBITDA as total debt less cash and cash equivalents excluding a minimum cash balance divided by twelve-month adjusted EBITDA.
Net yields enable us and investors to measure the performance of our cruise segments on a per ALBD basis. We use adjusted gross margin rather than gross margin to calculate net yields. We believe that adjusted gross margin is a more meaningful measure in determining net yields than gross margin because it reflects the cruise revenues earned net of only our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees.
Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non-GAAP measures provide useful information to us and investors and expanded insight to measure our cost performance. Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD are the measures we use to monitor our ability to control our cruise segments' costs rather than cruise costs per ALBD. We exclude gains and losses on ship sales, impairment charges, restructuring costs and certain other gains and losses that we believe are not part of our core operating business as well as excluding our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees. We exclude fuel expense to calculate adjusted cruise costs excluding fuel. The price of fuel, over which we have no control, impacts the comparability of period-to-period cost performance. The adjustment to exclude fuel provides us and investors with supplemental information to understand and assess the company's non-fuel adjusted cruise cost performance. Substantially all of our adjusted cruise costs excluding fuel are largely fixed, except for the impact of changing prices once the number of ALBDs has been determined.
Adjusted ROIC provides additional information to us and investors about our operating performance relative to the capital we have invested in the company. We define adjusted ROIC as the twelve-month adjusted net income (loss) before interest expense and interest income divided by the monthly average of debt plus equity minus construction-in-progress, excess cash, goodwill and intangibles.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted non-GAAP financial measures to the most comparable
Constant Currency
Our operations primarily utilize the
Constant currency reporting removes the impact of changes in exchange rates on the translation of our operations plus the transactional impact of changes in exchange rates from revenues and expenses that are denominated in a currency other than the functional currency.
We report adjusted gross margin, net yields, adjusted cruise costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a "constant currency" basis assuming the current periods' currency exchange rates have remained constant with the prior periods' rates. These metrics facilitate a comparative view for the changes in our business in an environment with fluctuating exchange rates.
Examples:
-- The translation of our operations with functional currencies other than
U.S. dollar to our U.S. dollar reporting currency results in decreases
in reported U.S. dollar revenues and expenses if the U.S. dollar
strengthens against these foreign currencies and increases in reported
U.S. dollar revenues and expenses if the U.S. dollar weakens against
these foreign currencies.
-- Our operations have revenue and expense transactions in currencies other
than their functional currency. If their functional currency strengthens
against these other currencies, it reduces the functional currency
revenues and expenses. If the functional currency weakens against these
other currencies, it increases the functional currency revenues and
expenses.
SOURCE:
CONTACT: MEDIA CONTACT,
