Carnival posts record-breaking second quarter
By Josh White
Date: Tuesday 24 Jun 2025
(Sharecast News) - Cruise giant Carnival reported record-breaking second-quarter results on Tuesday, exceeding its financial guidance and surpassing its 2026 'Sea Change' targets well ahead of schedule.
The London and New York-listed company posted net income of $565m for the quarter to ended 31 May, an improvement of nearly $475m year-on-year, with adjusted net income more than tripling to $470m.
Second-quarter revenue hit an all-time high of $6.3bn, with record net yields in constant currency up 6.4% from the prior year and 200 basis points ahead of March guidance.
Operating income reached $934m, and adjusted EBITDA rose 26% to $1.5bn, as the company benefited from strong close-in demand and robust onboard spending.
The group said it had now exceeded its 2026 financial goals 18 months ahead of plan, lifting adjusted EBITDA per available lower berth day (ALBD) by 52% and more than doubling adjusted return on invested capital (ROIC) to over 12.5%.
Carnival also met its environmental commitment to cut carbon intensity by 20% from 2019 levels.
"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 Josh Weinstein.
"On top of this, thanks to our consistent track record of significant outperformance, we have already exceeded our 2026 Sea Change financial targets a full 18 months early."
Customer deposits reached a record $8.5bn, with the cumulative booked position for the remainder of 2025 showing strong occupancy and pricing levels.
Bookings for 2026 were already in line with last year's record levels, also at historical high prices.
For the full 2025 year, Carnival said it now expected net yields in constant currency to be about 5% higher than 2024, and adjusted EBITDA to reach $6.9bn - up more than 10% year-on-year and $200m ahead of previous guidance.
Adjusted net income was forecast to rise over 40%.
The company said it continued to improve its balance sheet, refinancing nearly $7bn of debt year-to-date.
Notably, Carnival prepaid $350m of 2026 notes and refinanced the remainder at lower rates, reducing interest expense by over $20m.
It also upsized its revolving credit facility by 50% to $4.5bn, now maturing in 2030, and secured credit rating upgrades from S&P and Fitch to BB+.
"We continued rebuilding an investment grade balance sheet, working aggressively to reduce interest expense, simplify our capital structure and manage our future debt maturities," commented finance chief David Bernstein.
Carnival said it ended the quarter with $27.3bn in total debt and a net debt-to-adjusted EBITDA ratio of 3.7x, down from 4.1x in February.
Recent developments included two new AIDA Cruises ship orders, the launch of a new Carnival Rewards program in 2026, and further investments in its exclusive Caribbean destinations, including Celebration Key and enhancements to Half Moon Cay and Mahogany Bay.
At 1549 BST, shares in Carnival were up 13.37% in London, at 1,746.5p.
Reporting by Josh White for Sharecast.com.
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