Carnival Stock Earnings Reports

Carnival reported a record second quarter with revenue, yields, EBITDA, net income, and customer deposits ($9.0B) all at highs. Results beat March guidance by $100M, driven by stronger-than-expected yields, robust onboard spend, and aggressive cost management (cruise costs ex-fuel per ALBD essentially flat year-over-year and ~250 bps better than prior guidance). Fuel efficiency improved >5% year-over-year. Management reiterated disciplined capacity growth (one-to-two new ships per year), announced three new Princess orders (total orderbook of 10 ships), and emphasized mid-life modernization programs (e.g., AIDA Evolution, Holland America Evolution) to drive returns. Investments in owned destinations (Celebration Key, RelaxAway Half Moon Cay, Isla Tropicale) are expanding differentiated itineraries. Full-year (June-year) EPS guidance is $2.22 (up $0.01 from prior), but yield guidance was revised down ~100 bps due primarily to prolonged Middle East geopolitical disruption impacting European deployments; management calls this impact transitory and highlighted that intensified cost savings largely offset the yield revision. Capital allocation: $2.5B buyback authorized, ~$450M repurchased to date, plus ongoing dividends; net debt/adjusted EBITDA improved to 3.1x and EBITDA is forecasted >$7B for the year.