MIAMI, Dec. 19, 2025 /PRNewswire/ -- Carnival Corporation & plc ((NYSE/LSE: CCL, NYSE:CUK) announced financial results for the fourth quarter and full year 2025 and provided an outlook for the first quarter and full year 2026.
Key Highlights
Full year net income of $2.8 billion with record adjusted net income1 of $3.1 billion, up over 60 percent.
Full year record revenues of $26.6 billion on record net yields1 (in constant currency), outperforming guidance for the fourth time in 2025 due to strong close-in demand.
All-time high full year operating income of $4.5 billion, up 25 percent compared to the prior year.
Record full year adjusted EBITDA1 of $7.2 billion, up over $1 billion compared to the prior year.
Adjusted return on invested capital1 ("ROIC") exceeds 13 percent.
Net debt to adjusted EBITDA1 ratio of 3.4x and recognized by Fitch as investment grade.
Cumulative advanced booked position for 2026 remains in line with 2025 record levels at historical high prices (in constant currency1).
Full year 2026 adjusted net income expected to be $3.5 billion, surpassing record 2025 levels.
Proposes unifying the dual-listed framework to streamline governance and reporting.
"2025 was a truly phenomenal year. We set new records across our business, achieved investment grade leverage metrics and, as announced just today, reinstated our dividend. These milestones reflect the collective strength of our cruise line portfolio and confidence in our long-term future," said Carnival Corporation & plc's Chief Executive Officer Josh Weinstein.
"Our global team's relentless focus on delivering amazing guest experiences while executing with discipline enabled us to outperform guidance for the fourth time this year. We had record full year net yields (in constant currency) and adjusted net income increased more than 60 percent driven by strong demand that outpaced unit cost increases. The momentum is carrying into 2026, which is shaping up to surpass even these remarkable results with another year of double-digit earnings growth and return on invested capital expected to exceed 13.5 percent, closing in on our 20-year high."
"With our strengthened balance sheet, powerful and diverse portfolio of world-class cruise lines and exclusive destinations, we are well positioned to capitalize on a tremendous runway to continue driving yield improvement and exceptional returns. We look forward to delivering unforgettable happiness to our guests around the world and long-term value for our shareholders, for years to come," Weinstein added.
Fourth Quarter 2025 Results
Net income of $422 million, or $0.31 diluted EPS, up nearly 40 percent compared to 2024. Adjusted net income of $454 million, or $0.34 adjusted EPS1, up over 140 percent compared to 2024 and outperforming September guidance by over $150 million led by strong close-in demand and effective cost management.
Record adjusted EBITDA2 of $1.5 billion with adjusted EBITDA margins1 up nearly 300 basis points year over year.
Record revenues2 of $6.3 billion, up nearly $400 million compared to the prior year.
Gross margin yields were 16 percent higher than 2024.
Record net yields2 (in constant currency) were 5.4 percent higher than 2024 and outperformed September guidance by 1.1 points.
Cruise costs per available lower berth day ("ALBD") increased 2.2 percent compared to 2024. Adjusted cruise costs excluding fuel per ALBD1 (in constant currency) increased 0.5 percent compared to 2024, 2.7 points better than September guidance due to effective cost management and the timing of certain expenses between the years.
Fuel consumption per ALBD decreased 5.6 percent compared to the prior year due to the company's efforts and investments to continuously reduce the fuel consumption in its operations.
Record customer deposits2 of $7.2 billion surpassed the previous fourth quarter record at November 30, 2024.
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1 See "Non-GAAP Financial Measures" and "Constant Currency."
2 Fourth quarter record.
Bookings
"Looking forward, we are well positioned to top 2025's record yields. We remain at our highest booked occupancy for the upcoming year at about two-thirds booked at higher prices (in constant currency). In fact, we're at historical high prices (in constant currency) for both North America and Europe," Weinstein noted.
Over the last three months, we achieved record booking volumes for 2026 and 2027 sailings. In addition, strong booking volumes continued from Black Friday through Cyber Monday, even outpacing prior year's robust levels, which is a favorable indicator for wave season," Weinstein added.
2026 Outlook
For the full year 2026, the company expects:
Adjusted net income up approximately 12 percent compared to record 2025 on less than one percent capacity growth.
Net yields (in constant currency) up approximately 2.5 percent compared to record 2025 levels. Net yields (in constant currency) up approximately 3.0 percent after normalizing for the accounting treatment for Carnival Cruise Line's new loyalty program and the impact of the close-in redeployment of first quarter voyages from the Arabian Gulf.
Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 3.25 percent compared to 2025. Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 2.5 percent after normalizing for the partial year of operating expenses from Celebration Key, Grand Bahama and RelaxAway, Half Moon Cay and the timing of certain expenses between the years.
For the first quarter 2026, the company expects:
Net yields (in constant currency) up approximately 1.6 percent compared to record 2025 levels, building on the 7.3 percent increase in 2025 compared to 2024. Net yields (in constant currency) up approximately 2.4 percent after normalizing for the impact of the close-in redeployment of voyages from the Arabian Gulf.
Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 5.9 percent compared to the first quarter 2025 and higher than the full year due to the timing of certain expenses between the quarters.
See "Guidance" for additional information on the company's 2026 outlook, "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and "Constant Currency."
Successful Early Completion of Refinancing Plan Enables Dividend Reinstatement
"We have reached a meaningful turning point, surpassing the investment grade leverage metric threshold with a net debt to adjusted EBITDA ratio of 3.4x for 2025, representing a nearly one turn improvement from 2024 and successfully completing our $19 billion refinancing plan in less than a year," commented Carnival Corporation & plc's Chief Financial Officer David Bernstein. "These efforts strengthened our balance sheet by simplifying our capital structure, reducing interest expense and debt, optimizing our future debt maturities and enhancing our financial flexibility. In total, we have reduced our debt by over $10 billion since our peak less than three years ago. These efforts and our strong continued operating performance, resulted in multiple credit rating upgrades throughout the year, culminating in reaching investment grade with Fitch and being one notch away with a positive outlook from S&P."
Based on the company's ability to generate sustainable cash flow, disciplined capital allocation strategy and strong financial position, the Boards of Directors today approved the reinstatement of the company's quarterly dividend1 and declared an initial $0.15 per share dividend with a record date of February 13, 2026 and a payment date of February 27, 2026.
"This decision highlights confidence in our future performance and continued commitment to delivering value to shareholders," Bernstein added.
During the quarter, the company successfully issued $1.25 billion of senior unsecured notes at 5.125 percent due in 2029. In addition, the company entered into two $250 million loans due 2027. The combined proceeds from these financings, together with cash on hand, were used to repay $2.0 billion of debt.
On December 5, 2025, the company redeemed its outstanding convertible notes and settled conversions during the related conversion period with a combination of $500 million in cash and 69 million common shares, 18 million fewer shares than would have been required for an all equity-settlement.
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1 Holders of Carnival Corporation common stock and Carnival plc ADSs will receive the dividend payable in U.S. dollars. The dividend for Carnival plc ordinary shares will be payable in U.S. dollars or sterling. In the absence of instructions or elections to the contrary, holders of Carnival plc ordinary shares will automatically receive the dividend in sterling.
Dividends payable in sterling will be converted from U.S. dollars at the exchange rate quoted by Bloomberg (BFIX) in London at 12 noon on February 17, 2026. Holders of Carnival plc ordinary shares wishing to receive their dividend in U.S. dollars or participate in the Carnival plc Dividend Reinvestment Plan must elect to do so by February 13, 2026.
Simplification of the Corporate Structure
Following a review of the corporate structure, the Boards of Directors of Carnival Corporation and Carnival plc recommended unifying the dual-listed framework into a single company, Carnival Corporation, listed solely on the New York Stock Exchange, with Carnival plc as its wholly-owned UK subsidiary. Under this plan, Carnival plc shareholders would receive Carnival Corporation shares on a one-for-one basis, and Carnival plc shares and American Depositary Receipts would be de-listed from both the London Stock Exchange and the New York Stock Exchange, respectively. This would create a single global share price, streamline governance and reporting, reduce administrative costs and is expected to increase liquidity and weighting in major U.S. stock indexes, all of which the company believes will strengthen its ability to deliver long-term shareholder value. Carnival Corporation also proposes shifting its legal incorporation from Panama to Bermuda under the name Carnival Corporation Ltd., a jurisdiction widely recognized and aligned with international financial standards. There will be no material changes to the company's business fundamentals, including strategy, underlying assets and operations or to the company's commitment to the vital UK market. The unification and legal incorporation in Bermuda are expected to preserve key shareholder voting and economic rights.
These proposals will be subject to certain conditions, including the approval of shareholders and receipt of regulatory and UK court approvals. Additional shareholder materials are expected to be provided to Carnival Corporation and Carnival plc shareholders in February 2026. The company intends to hold meetings of shareholders in April 2026 to consider the proposals. Subject to shareholders approving the proposals and the remaining conditions being satisfied, the company intends to complete the unification and legal incorporation in Bermuda in the second quarter of 2026. More information on the proposed unification and legal incorporation in Bermuda will be included in materials Carnival Corporation and Carnival plc expect to file with the Securities and Exchange Commission ("SEC"), which will be available without charge on the SEC's website.
See "Important Information for Investors and Stockholders," "No Offer or Solicitation," "Participants in the Solicitation" and "Cautionary Note" for additional information.
Other Recent Highlights
The company furthered its destination strategy with the announcement of the development of Ensenada Bay Village - Treasures of Baja. The destination will showcase the natural beauty of Baja California, Mexico through a blend of adventure, culture and relaxation experiences (learn more here).
Beginning in November 2026, Princess Cruises will join Carnival Cruise Line and sail to Celebration Key, which has already welcomed over one million guests since its opening in July (learn more here).
Princess Cruises celebrated a spectacular naming ceremony for its newest and most innovative ship, Star Princess, featuring Camila and Matthew McConaughey as godparents and a special performance by Grammy Award-winning artist Sheryl Crow (learn more here).
AIDALuna became the second of seven ships to undergo a complete upgrade as part of AIDA Evolution, the most extensive modernization program in the brand's history (learn more here).
Carnival Cruise Line launched its new campaign, "Carnival is Calling," featuring Nick Offerman of Parks and Recreation fame, which invites guests to rediscover the joy and connection that makes a Carnival cruise unlike any other vacation (learn more here).
Holland America Line achieved record Black Friday weekend bookings after it cruised through the 2025 Macy's Thanksgiving Day Parade® with its debut float, showcasing its industry-leading Alaska experience and evoking the state's majestic landscape (learn more here). Following on this success, Star Princess will sail down the New's Year Rose Parade®, highlighting its upcoming inaugural Alaska season (learn more here).
Awards and Recognitions:
Sun Princess was recognized as the Best Mega Cruise Ship in the United States by Condé Nast Traveler 2025 Readers' Choice Awards for the second consecutive year (learn more here).
Carnival Cruise Line was a major recipient at the 2025 Travel Weekly Readers' Choice Awards, earning Best Domestic Cruise Line for the tenth consecutive year and Best Short Itinerary for the fourth year in a row (learn more here).
Seabourn was named Best Expedition Cruise Line by Condé Nast Traveler 2025 Readers' Choice Awards for the second consecutive year (learn more here) and Best Small-Ship Cruise Line by 2025 Travel Weekly Readers' Choice Awards (learn more here).
Holland America Line received top honors in 2025, including 'Best Service' for the fourth consecutive year and 'Best Itineraries' at the Cruise Critic's Awards (learn more here) as well as 'Best World Cruise Itinerary' at the Travel Weekly Readers' Choice Awards (learn more here).
Cunard was recognized as 'Best for Transatlantic Sailing' at the 2025 Travel Weekly Readers' Choice Awards (learn more here) and 'Best for Enrichment' at the 2025 Cruise Critic's Awards (learn more here).
P&O Cruises', "Holiday Like Never Before" platform was recognized as the Marketing Campaign of the Year at the UK 2025 Travel Industry Awards (learn more here).
Guidance
(See "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and "Constant Currency")
1Q 2026
Full Year 2026
Year over year change
Current Dollars
Constant
Currency
Current
Dollars
Constant Currency
Net yields
Approx. 5.1%
Approx. 1.6%
Approx. 3.7%
Approx. 2.5%
Adjusted cruise costs excluding fuel per ALBD
Approx. 9.6%
Approx. 5.9%
Approx. 4.6%
Approx. 3.25%
2026
1Q
2Q
3Q
4Q
Full Year
ALBDs (in millions) (a)
23.7
24.7
24.9
24.1
97.4
Capacity growth compared to prior year
0.5 %
2.0 %
1.5 %
(0.3) %
0.9 %
(a) See "Notes to Statistical Information"
1Q 2026
Full Year 2026
Fuel consumption in metric tons (in millions)
0.7
2.8
Fuel cost per metric ton consumed (excluding emission allowances)
$ 539
$ 524
Fuel expense (including emission allowances expense) (in billions)
$ 0.38
$ 1.63
Depreciation and amortization expense (in billions)
$ 0.70
$ 2.98
Interest expense, net of capitalized interest and interest income (in billions)
$ 0.29
$ 1.11
Adjusted EBITDA (in billions)
Approx. $1.24
Approx. $7.63
Adjusted net income (loss) (in millions)
Approx. $235
Approx. $3,450
Adjusted earnings per share - diluted
Approx. $0.17
Approx. $2.48
Weighted-average shares outstanding - basic
1,379
1,385
Adjusted weighted-average shares outstanding - diluted
1,388
1,392
Currencies (USD to 1)
1Q 2026
Full Year 2026
AUD
$ 0.67
$ 0.67
CAD
$ 0.73
$ 0.73
EUR
$ 1.17
$ 1.17
GBP
$ 1.34
$ 1.34
Sensitivities (impact to adjusted net income (loss) in millions)
1Q 2026
Full Year 2026
1% change in net yields
$ 43
$ 204
1% change in adjusted cruise costs excluding fuel per ALBD
$ 27
$ 114
10% change in fuel cost per metric ton (excluding emission allowances)
$ 37
$ 145
100 basis point change in variable rate debt
—
$ 42
1% change in currency exchange rates
$ 5
$ 27
Capital Expenditures
For full year 2026, newbuild capital expenditures are $0.6 billion and non-newbuild capital expenditures are $2.5 billion. These future capital expenditures will fluctuate with foreign currency movements relative to the U.S. Dollar. In addition, these figures do not include potential stage payments for ship orders that the company may place in the future.
Conference Call
The company has scheduled a conference call with analysts at 10:00 a.m. EST (3:00 p.m. GMT) today to discuss its earnings release. This call can be listened to live, and additional information including the company's earnings presentation and debt maturities schedule, can be obtained via Carnival Corporation & plc's website at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines, AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn.
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 the proposed unification and redomiciliation transactions, benefits of the transactions, 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:
• The proposed unification and redomiciliation transactions
• Adjusted net income (loss)
• 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 values
• Net yields
• Liquidity and credit ratings
• Adjusted cruise costs per ALBD
• Investment grade leverage metrics
• Adjusted cruise costs excluding fuel per ALBD
• Dividends
• Adjusted ROIC
• Estimates of ship depreciable lives and residual values
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 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.
Adverse weather conditions or an increase in the frequency and/or severity of adverse weather conditions could have a material impact on our business and results of operations.
Our targets, goals, aspirations, initiatives, public statements and disclosures, 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 and other offices, information technology operations and system networks and failure to keep pace with developments in technology may adversely impact our business operations, the satisfaction of our guests and crew and may lead to fines, penalties and reputational damage.
Our debt requires a significant amount of cash to service and our ability to generate sufficient cash depends on many factors, some of which may be beyond our control. Our financial condition and operations could be adversely impacted if we are unable to service our debt or satisfy our covenants.
Increases in fuel costs, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs.
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.
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.
Our investments in port destinations and exclusive islands may expose us to additional risks.
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.
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 measures, labor and employment, and tax may be costly and lead to litigation, enforcement actions, fines, penalties and reputational damage.
Factors associated with sustainability and the impact of greenhouse gases and other emissions on the environment could have a material impact on our business and operating results.
We may not successfully complete the proposed unification of our DLC structure and the migration of Carnival Corporation's legal incorporation to Bermuda, or, if we do, we may not realize the anticipated benefits and will be subject to Bermuda law which differs in some respects compared to our current jurisdictions.
The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. There may be additional risks that we consider immaterial or which are unknown. Additional factors that may affect future results are contained in Carnival Corporation's and Carnival plc's filings with the SEC, including Carnival Corporation's and Carnival plc's most recent joint Annual Report on Form 10-K, as it may be updated from time to time by quarterly reports on Form 10-Q and current reports on Form 8-K, all of which are available at the SEC's website http://www.sec.gov.
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 emissions and environmental-related matters). In addition, historical, current, and forward-looking sustainability-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 ...
