Carnival Corporation & plc reported its fiscal 2025 fourth‑quarter results on December 19, 2025. Adjusted earnings per share rose to $0.34, beating the consensus estimate of $0.25 by $0.09 or 36%. Revenue for the quarter was $6.33 billion, slightly below the $6.36 billion estimate, while adjusted net income reached $454 million. The company also reaffirmed its full‑year adjusted net income of $3.10 billion and total revenue of $26.60 billion, both record highs. A $0.15 per‑share quarterly dividend was reinstated, the first payment since the pandemic‑era pause.
The EPS beat was driven by disciplined cost management and strong pricing power. Adjusted EBITDA margins expanded by nearly 300 basis points year‑over‑year, reflecting higher average ticket prices and a favorable mix of premium itineraries. The company’s ability to maintain margin growth despite a modest revenue shortfall underscores effective operational leverage and cost discipline across its cruise and cruise‑related segments.
Revenue fell short of expectations by $30 million, a 0.5% miss. The miss was largely attributable to a slight decline in volume in the U.S. and Caribbean core markets, offset by a modest uptick in the Asia‑Pacific and European premium segments. While overall demand remained robust, the mix shift and a temporary slowdown in the most price‑sensitive segments tempered top‑line growth.
Management guided for fiscal 2026 adjusted net income of approximately $3.5 billion, up from the prior guidance of $3.1 billion, and adjusted EPS of $2.48 versus the consensus estimate of $2.43. Net yields are expected to rise 2.5% and adjusted cruise costs excluding fuel per available lower berth day are projected to increase 3.25%. CEO Josh Weinstein described 2025 as a “truly phenomenal year,” citing record profitability, investment‑grade leverage, and the dividend reinstatement as evidence of the company’s strengthened financial position. CFO David Bernstein highlighted the “meaningful turning point” achieved through debt reduction and refinancing.
Investors responded positively to the results, with the broader cruise‑line sector seeing gains. The dividend reinstatement, EPS beat, and upbeat 2026 outlook reinforced confidence in Carnival’s recovery trajectory and its ability to sustain shareholder returns.
Strategically, Carnival has completed a $19 billion refinancing that reduced debt by more than $10 billion and achieved a 3.4× net debt to adjusted EBITDA ratio, earning investment‑grade status from Fitch. The company is also consolidating its dual‑listed structure into a single NYSE‑listed entity, simplifying governance and reporting. Record customer deposits of $7.2 billion as of November 30, 2024, and a strong competitive position as the largest global cruise operator, position Carnival to capitalize on the ongoing rebound in leisure travel.
The dividend reinstatement, combined with the earnings beat and forward guidance, signals management’s confidence in continued demand and margin resilience, while the debt‑reduction strategy and investment‑grade leverage underscore a solid balance‑sheet foundation.
The article provides a comprehensive view of Carnival’s financial performance, the drivers behind the results, and the strategic context that supports the company’s outlook.
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