Carnival PLC - Carnival Corporation 4Q 2025 Earnings
Outperforms guidance due to strong close-in demand and effective cost management
Key Highlights
-- Full year net income of $2.8 billion with record adjusted net income1of
$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 EBITDA1of $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 EBITDA1ratio 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
"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 .
____________________________ 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
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
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 dividend
1
and declared an initial
"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
On
____________________________ 1 Holders ofCarnival Corporation common stock and Carnival plc ADSs will receive the dividend payable inU.S. dollars. The dividend forCarnival plc ordinary shares will be payable inU.S. dollars or sterling. In the absence of instructions or elections to the contrary, holders ofCarnival plc ordinary shares will automatically receive the dividend in sterling. Dividends payable in sterling will be converted fromU.S. dollars at the exchange rate quoted by Bloomberg (BFIX) inLondon at 12 noon onFebruary 17, 2026 . Holders ofCarnival plc ordinary shares wishing to receive their dividend inU.S. dollars or participate in the Carnival plc Dividend Reinvestment Plan must elect to do so byFebruary 13, 2026 .
Simplification of the Corporate Structure
Following a review of the corporate structure, the Boards of Directors of
These proposals will be subject to certain conditions, including the approval of shareholders and receipt of regulatory and
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
Current Constant Current Constant
Year over year change Dollars Currency
Currency Dollars
Net yields Approx. 5.1% Approx. 1.6% Approx. 3.7% Approx. 2.5%
Adjusted cruise costs Approx. 9.6% Approx. 5.9% Approx. 4.6% Approx. 3.25%
excluding fuel per ALBD
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 0.7 2.8
tons (in millions)
Fuel cost per metric ton
consumed (excluding $ 539 $ 524
emission allowances)
Fuel expense (including
emission allowances $ 0.38 $ 1.63
expense) (in billions)
Depreciation and
amortization expense (in $ 0.70 $ 2.98
billions)
Interest expense, net of
capitalized interest and $ 0.29 $ 1.11
interest income (in
billions)
Adjusted EBITDA (in Approx. $1.24 Approx. $7.63
billions )
Adjusted net income (loss) Approx. $235 Approx. $3,450
(in millions)
Adjusted earnings per share Approx. $0.17 Approx. $2.48
- diluted
Weighted-average shares 1,379 1,385
outstanding - basic
Adjusted weighted-average
shares outstanding - 1,388 1,392
diluted
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 1Q 2026 Full Year 2026
millions)
1% change in net yields $ $ 204
43
1% change in adjusted cruise $ $ 114
costs excluding fuel per ALBD 27
10% change in fuel cost per $
metric ton (excluding emission 37 $ 145
allowances)
100 basis point change in — $ 42
variable rate debt
1% change in currency exchange $ $ 27
rates 5
Capital Expenditures
For full year 2026, newbuild capital expenditures are
Conference Call
The company has scheduled a conference call with analysts at
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 • Adjusted net income (loss) redomiciliation transactions • 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 • Net yields values • 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
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 INCOME (LOSS)
(UNAUDITED)
(in millions, except per share data)
Three Months Ended Twelve Months Ended
November 30, November 30,
2025 2024 2025 2024
Passenger ticket $ $ 3,854 $ 17,419 $ 16,463
4,053
Onboard and 2,277 2,084 9,202 8,558
other
Total Revenues 6,330 5,938 26,622 25,021
Cruise and tour
operating
expenses:
Commissions,
transportation 728 721 3,331 3,232
and other
Onboard and 663 634 2,816 2,678
other
Payroll and 673 653 2,589 2,464
related
Fuel 425 461 1,808 2,007
Food 375 358 1,499 1,457
Other operating 1,046 1,005 3,904 3,801
Total Cruise and
tour operating 3,910 3,833 15,947 15,638
expenses
Selling and
administrative 959 886 3,402 3,252
expense
Depreciation and
amortization 727 659 2,790 2,557
expense
Operating Income 735 561 4,483 3,574
Interest income 17 16 51 93
Interest
expense, net of (315) (403) (1,349) (1,755)
capitalized
interest
Debt
extinguishment (43) (1) (409) (79)
and modification
costs
Other income 10 117 (4) 83
(expense), net
Income Before 404 290 2,772 1,915
Income Taxes
Income tax
benefit 18 13 (12) 1
(expense), net
Net Income $ $ $ 2,760 $ 1,916
(Loss) 422 303
Earnings Per
Share
Basic $ $ $ $
0.32 0.23 2.10 1.50
Diluted $ $ $ $
0.31 0.23 2.02 1.44
Weighted-Average
Shares 1,313 1,300 1,312 1,274
Outstanding -
Basic
Weighted-Average
Shares 1,403 1,399 1,402 1,398
Outstanding -
Diluted
CARNIVAL CORPORATION& PLC
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in millions, except par values)
November 30,
2025 2024
ASSETS
Current Assets
Cash and cash equivalents $ 1,928 $ 1,210
Trade and other receivables, net 678 590
Inventories 505 507
Prepaid expenses and other 1,108 1,070
Total current assets 4,219 3,378
Property and Equipment, Net 43,494 41,795
Operating Lease Right-of-Use Assets, Net 1,328 1,368
Goodwill 579 579
Other Intangibles 1,177 1,163
Other Assets 890 775
$ 51,687 $ 49,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $ 2,603 $ 1,538
Current portion of operating lease 175 163
liabilities
Accounts payable 1,245 1,133
Accrued liabilities and other 2,239 2,358
Customer deposits 6,831 6,425
Total current liabilities 13,092 11,617
Long-Term Debt 24,037 25,936
Long-Term Operating Lease Liabilities 1,178 1,239
Other Long-Term Liabilities 1,097 1,012
Shareholders' Equity
Carnival Corporation common stock, $0.01 par
value; 1,960 shares authorized; 1,298 shares 13 13
issued at 2025 and 1,294 shares issued at
2024
Carnival plc ordinary shares, $1.66 par 361 361
value; 217 shares issued at 2025 and 2024
Additional paid-in capital 17,267 17,155
Retained earnings 4,817 2,101
Accumulated other comprehensive income (loss) (1,810) (1,975)
Treasury stock, 131 shares at 2025 and 130
shares at 2024 of Carnival Corporation and 72
(8,364) (8,404)
shares at 2025 and 73 shares at 2024 of
Carnival plc , at cost
Total shareholders' equity 12,284 9,251
$ 51,687 $ 49,057
CARNIVAL CORPORATION & PLC
OTHER INFORMATION
November 30,
OTHER BALANCE SHEET INFORMATION(in 2025 2024
millions)
Liquidity $ 6,428 $ 4,155
Debt (current and long-term) $ 26,640 $ 27,475
Customer deposits (current and $ 7,246 $ 6,779
long-term)
Three
Months Twelve Months Ended
Ended
November November 30,
30,
CASH FLOW
INFORMATION(in 2025 2024 2025 2024
millions)
Cash from $ $ $ 6,218 $ 5,923
operations (a) 1,518 911
Capital
expenditures $ $
(Purchases of 1,506 592 $ 3,611 $ 4,626
Property and
Equipment)
(a) Cash from operations for the twelve months endedNovember 30, 2024 includes the release of$818 million of credit card reserve funds.
Three Months Ended Twelve Months Ended
November 30,
November 30,
STATISTICAL INFORMATION 2025 2024 2025 2024
Passenger cruise days 24.6 24.6 101.7 100.5
("PCDs")(in millions)(a)
ALBDs (in millions)(b) 24.1 23.9 96.5 95.6
Occupancy percentage (c) 102 % 103 % 105 % 105 %
Passengers carried(in 3.3 3.3 13.6 13.5
millions)
Fuel consumption in metric 0.7 0.7 2.8 2.9
tons(in millions)
Fuel consumption in metric 28.7 30.4 29.2 30.9
tons per thousand ALBDs
Fuel cost per metric ton
consumed (excluding emission $ 573 $ 618 $ 610 $ 665
allowances)
Currencies (USD to 1)
AUD $ 0.65 $ 0.67 $ 0.64 $ 0.66
CAD $ 0.72 $ 0.73 $ 0.71 $ 0.73
EUR $ 1.16 $ 1.09 $ 1.12 $ 1.09
GBP $ 1.33 $ 1.30 $ 1.31 $ 1.28
Notes to Statistical Information
(a) PCD represents the number of cruise passengers on a voyage multiplied by the
number of revenue-producing ship operating days for that voyage.
ALBD is a standard measure of passenger capacity for the period that we use
to approximate rate and capacity variances, based on consistently applied
formulas that we use to perform analyses to determine the main non-capacity
(b) driven factors that cause our cruise revenues and expenses to vary. ALBDs
assume that each cabin we offer for sale accommodates two passengers and is
computed by multiplying passenger capacity by revenue-producing ship
operating days in the period.
Occupancy, in accordance with cruise industry practice, is calculated using
a numerator of PCDs and a denominator of ALBDs, which assumes two passengers
(c) per cabin even though some cabins can accommodate three or more passengers.
Percentages in excess of 100% indicate that on average more than two
passengers occupied some cabins.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES
Three Months Ended Twelve Months Ended
November 30,
November 30,
(in millions,
except per share 2025 2024 2025 2024
data)
Net income $ $ $ 2,760 $ 1,916
(loss) 422 303
(Gains) losses
on ship sales (9) (33) (110) (39)
and impairments
Debt
extinguishment 43 1 409 79
and modification
costs
Restructuring 8 1 13 21
expense
Other (10) (86) 7 (86)
Adjusted net $ $ $ 3,079 $ 1,891
income (loss) 454 186
Interest
expense, net of 315 403 1,349 1,755
capitalized
interest
Interest income (17) (16) (51) (93)
Income tax
benefit (2) (13) 14 (1)
(expense), net
Depreciation and
amortization 727 659 2,790 2,557
expense
Adjusted EBITDA $ $ 1,220 $ 7,182 $ 6,110
1,477
Earnings per $ $ $ $
share - diluted 0.31 0.23 2.02 1.44
(a)
Weighted-average
shares 1,403 1,399 1,402 1,398
outstanding -
diluted (a)
Adjusted
earnings per $ $ $ $
share - diluted 0.34 0.14 2.25 1.42
(b)
Adjusted
weighted-average
shares 1,403 1,305 1,402 1,398
outstanding -
diluted(b)
(See Non-GAAP Financial Measures)
Diluted earnings per share includes the add-back of dilutive interest
expense related to the company's convertible notes of $18 million and $71
(a) million for the three and twelve months ended November 30, 2025 , and $20
million and $94 million for the three and twelve months ended November 30,
2024 .
Diluted adjusted earnings per share includes the add-back of dilutive
interest expense related to the company's convertible notes of $18 million
and $71 million for the three and twelve months ended November 30, 2025 and
(b) $94 million for the twelve months ended November 30, 2024 . The company's
convertible notes were antidilutive to the three months ended November 30,
2024 and therefore were not included in the calculations of diluted adjusted
earnings per share.
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Gross margin yields and net yields were computed by dividing the gross margin
and adjusted gross margin by ALBDs as follows:
Three Months Ended November 30, Twelve Months Ended November 30,
(in 2025 2025
millions,
except 2025 Constant 2024 2025 Constant 2024
yields data)
Currency Currency
Total $ 6,330 $ $ 26,622 $ 25,021
Revenues 5,938
Less: Cruise
and tour (3,910) (3,833) (15,947) (15,638)
operating
expenses
Depreciation
and (727) (659) (2,790) (2,557)
amortization
expense
Gross margin 1,694 1,447 7,884 6,826
Less: Tour
and other (29) (33) (241) (255)
revenues
Add: Payroll 673 653 2,589 2,464
and related
Fuel 425 461 1,808 2,007
Food 375 358 1,499 1,457
Other 1,046 1,005 3,904 3,801
operating
Depreciation
and 727 659 2,790 2,557
amortization
expense
Adjusted $ 4,910 $ 4,846 $ $ 20,233 $ 20,096 $ 18,857
gross margin 4,550
ALBDs 24.1 24.1 23.9 96.5 96.5 95.6
Gross margin $ $
yields(per $ 70.20 60.57 $ 81.72 71.43
ALBD)
Net yields $ 203.52 $ 200.84 $ $ 209.72 $ 208.30 $ 197.33
(per ALBD) 190.53
(See Non-GAAP Financial Measures)
CARNIVAL CORPORATION & PLC
NON-GAAP FINANCIAL MEASURES (CONTINUED)
Cruise costs per ALBD, adjusted cruise costs per ALBD and adjusted cruise
costs excluding fuel per ALBD were computed by
dividing cruise costs, adjusted cruise costs and adjusted cruise costs
excluding fuel by ALBDs as follows:
Three Months Ended November 30, Twelve Months Ended November
30,
2025 2025
(in millions,
except costs 2025 Constant 2024 2025 Constant 2024
per ALBD data) Currency
Currency
Cruise and $ $
tour operating $ 3,910 3,833 $ 15,947 15,638
expenses
Selling and
administrative 959 886 3,402 3,252
expense
Less: Tour and (37) (39) (194) (212)
other expenses
Cruise costs 4,832 4,680 19,154 18,678
Less:
Commissions, (728) (721) (3,331) (3,232)
transportation
and other
Onboard and (663) (634) (2,816) (2,678)
other costs
Gains (losses)
on ship sales 9 33 110 39
and
impairments
Restructuring (8) (1) (13) (21)
expense
Other (6) — (10) —
Adjusted 3,436 3,363 3,356 13,095 12,974 12,786
cruise costs
Less: Fuel (425) (424) (461) (1,808) (1,807) (2,007)
Adjusted $ $
cruise costs $ 3,011 $ 2,939 2,895 $ 11,286 $ 11,167 10,780
excluding fuel
ALBDs 24.1 24.1 23.9 96.5 96.5 95.6
Cruise costs $ 200.26 $ $ 198.54 $ 195.45
per ALBD 195.95
Adjusted $
cruise costs $ 142.41 $ 139.40 140.53 $ 135.73 $ 134.48 $ 133.80
per ALBD
Adjusted
cruise costs $ 124.81 $ 121.83 $ $ 116.99 $ 115.75 $ 112.81
excluding fuel 121.22
per ALBD
(See Non-GAAP Financial Measures)
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along with their most comparative
Non-GAAP Measure U.S. GAAP Measure Use Non-GAAP Measure to
Assess
• Adjusted net income
(loss), adjusted EBITDA,
adjusted EBITDA per ALBD and • Net income (loss) • Company Performance
adjusted
EBITDA margin
• Adjusted earnings per • Earnings per share • Company Performance
share
• Net debt to adjusted — • Company Leverage
EBITDA
• Net yields • Gross margin yields • Cruise Segments
Performance
• Adjusted cruise costs per
ALBD and adjusted • Gross cruise costs per • Cruise Segments
cruise costs excluding fuel ALBD Performance
per ALBD
• Adjusted ROIC — • Company Performance
The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared in accordance with
Adjusted net income (loss) and adjusted earnings per share provide additional information to us and investors about our future earnings performance by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance. We believe that gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other gains, losses and expenses are not part of our core operating business and are not an indication of our future earnings performance.
Adjusted EBITDA, adjusted EBITDA per ALBD and adjusted EBITDA margin
provide additional information to us and investors about our core operating profitability, including on a per ALBD basis, by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance as well as excluding interest, taxes and depreciation and amortization. In addition, we believe that the presentation of adjusted EBITDA provides additional information to us and investors about our ability to operate our business in compliance with the covenants set forth in our debt agreements. We define adjusted EBITDA as adjusted net income (loss) adjusted for (i) interest, (ii) taxes and (iii) depreciation and amortization. There are material limitations to using adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items that directly affect our net income (loss). These limitations are best addressed by considering the economic effects of the excluded items independently and by considering adjusted EBITDA in conjunction with net income (loss) as calculated in accordance with
Net debt to adjusted EBITDA provides additional information to us and investors about our overall leverage. We define net debt to adjusted EBITDA as total debt less cash and cash equivalents excluding a minimum cash balance divided by twelve-month adjusted EBITDA.
Net yields enable us and investors to measure the performance of our cruise segments on a per ALBD basis. We use adjusted gross margin rather than gross margin to calculate net yields. We believe that adjusted gross margin is a more meaningful measure in determining net yields than gross margin because it reflects the cruise revenues earned net of only our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees.
Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non-GAAP measures provide useful information to us and investors and expanded insight to measure our cost performance. Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD are the measures we use to monitor our ability to control our cruise segments' costs rather than cruise costs per ALBD. We exclude gains and losses on ship sales, impairment charges, restructuring costs and certain other gains and losses that we believe are not part of our core operating business as well as excluding our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees. We exclude fuel expense to calculate adjusted cruise costs excluding fuel. The price of fuel, over which we have no control, impacts the comparability of period-to-period cost performance. The adjustment to exclude fuel provides us and investors with supplemental information to understand and assess the company's non-fuel adjusted cruise cost performance. Substantially all of our adjusted cruise costs excluding fuel are largely fixed, except for the impact of changing prices once the number of ALBDs has been determined.
Adjusted ROIC provides additional information to us and investors about our operating performance relative to the capital we have invested in the company. We define adjusted ROIC as the twelve-month adjusted net income (loss) before interest expense and interest income divided by the monthly average of debt plus equity minus construction-in-progress, excess cash, goodwill and intangibles.
Reconciliation of Forecasted Data
We have not provided a reconciliation of forecasted non-GAAP financial measures to the most comparable
Constant Currency
Our operations primarily utilize the
Constant currency reporting removes the impact of changes in exchange rates on the translation of our operations plus the transactional impact of changes in exchange rates from revenues and expenses that are denominated in a currency other than the functional currency.
We report adjusted gross margin, net yields, adjusted cruise costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a "constant currency" basis assuming the current periods' currency exchange rates have remained constant with the prior periods' rates. These metrics facilitate a comparative view for the changes in our business in an environment with fluctuating exchange rates.
Examples:
-- The translation of our operations with functional currencies other than
U.S. dollar to our U.S. dollar reporting currency results in decreases
in reported U.S. dollar revenues and expenses if the U.S. dollar
strengthens against these foreign currencies and increases in reported
U.S. dollar revenues and expenses if the U.S. dollar weakens against
these foreign currencies.
-- Our operations have revenue and expense transactions in currencies other
than their functional currency. If their functional currency strengthens
against these other currencies, it reduces the functional currency
revenues and expenses. If the functional currency weakens against these
other currencies, it increases the functional currency revenues and
expenses.
Important Information for Investors and Stockholders
In connection with the proposed unification and redomiciliation transactions,
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
This Announcement Contains Inside Information.
This announcement is being made on behalf of
SOURCE
CONTACT: MEDIA,
