Carnival Sails Past Q2 Estimates, Raises Full-Year Outlook On Strong Demand

Carnival Corporation CCL shares are trading higher on Tuesday after the company reported second-quarter results.

The global cruise company reported adjusted earnings per share of 35 cents, beating the analyst consensus estimate of 24 cents. Quarterly sales of $6.328 billion outpaced the Street view of $6.207 billion.

The company reported adjusted EBITDA of $1.508 billion, compared with $1.197 billion a year ago.

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“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,” said CEO Josh Weinstein.

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).

Operating margins and adjusted EBITDA margins increased over 500 and 300 basis points, respectively, compared to 2024 and significantly exceeded 2019 levels. Gross margin yields were over 25 percent higher than 2024.

Adjusted cruise costs excluding fuel per ALBD rose 3.5% from 2024, mainly due to more dry-dock days. Costs came in better than March guidance because some expenses shifted to later quarters.

“We have already exceeded our 2026 SEA Change financial targets a full 18 months early, increasing adjusted EBITDA per ALBD by 52% and more than doubling adjusted ROIC to over 12.5% in less than two years,” Weinstein added.

The company exited the quarter with cash and equivalents worth $2.146 billion, with inventories worth $476 million.

Outlook

The company is looking for third-quarter adjusted earnings per share of $1.30 versus the $1.32 analyst estimate. For the third quarter, the company expects net yields in constant currency to rise about 3.5% versus 2024 levels, which were up nearly 9%.

Carnival raises fiscal year 2025 adjusted earnings per share guidance from $1.83 to $1.97 versus the $1.89 analyst estimate. For fiscal year 2025, the company expects net yields in constant currency to be about 5.0% higher than the year-ago period. This outlook is 0.3 percentage points above the March guidance.

For the remainder of 2025, newbuild capital expenditures are $1.1 billion and non-newbuild capital expenditures are $1.2 billion.

These future capital expenditures will fluctuate with foreign currency movements relative to the U.S. Dollar. 

Price Action: CCL shares are trading higher by 10.1% to $26.46 at last check Tuesday.

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