REG-Carnival PLC: Carnival Corporation 1Q 2025 Earnings
21/03/2025 13:30
CARNIVAL CORPORATION & PLC REPORTS RECORD-SETTING FIRST QUARTER OPERATING
RESULTS, OUTPERFORMS DECEMBER GUIDANCE AND RAISES FULL YEAR 2025 GUIDANCE
MIAMI, March 21, 2025 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK)
announced financial results for the first quarter 2025 and provided an updated
outlook for the full year and an outlook for the second quarter 2025.
* Record first quarter revenues of $5.8 billion, up over $400 million compared
to the prior year.
* Record net yields1 significantly outperformed December guidance due to
strong close in demand and continued strength in onboard revenue.
* Record first quarter operating income of $543 million, nearly double the
prior year.
* Cumulative advanced booked position for the remainder of the year is in line
with the prior year's record levels with pricing (in constant currency) at
historical highs. Booking volumes taken during the first quarter for 2026 and
beyond reached record levels.
* Accelerated efforts to manage the debt profile during the first quarter,
opportunistically refinancing $5.5 billion of debt, delivering $145 million in
annualized interest savings while reducing the debt balance by another $0.5
billion.
* Adjusted net income guidance for 2025 expected to be up over 30 percent
compared to 2024 and better than December guidance by $185 million on improved
revenue and interest expense expectations.
* Expecting to achieve both 2026 SEA Change financial targets one year in
advance, with adjusted return on invested capital1 ("ROIC") and adjusted
EBITDA per available lower berth1 ("ALBD") for 2025 reaching the highest
levels in nearly two decades.
"Our first quarter was truly characterized by outperformance. This was across
the board and led by incredibly strong demand throughout our portfolio
including exceptional close-in demand that exceeded expectations for both
ticket prices and onboard spending," commented Carnival Corporation & plc's
Chief Executive Officer Josh Weinstein.
"While we are not completely immune from the heightened macroeconomic and
geopolitical volatility since providing our December guidance, we are still
taking up our earnings expectations for the year and we remain on track to
have another stellar year across our cruise brands. This raise incorporates
our increased first quarter yield results and reduced interest expense thanks
to our recent successful refinancings. We are also affirming our December
yield guidance for the remainder of 2025, as our booking curve continues to be
the farthest out on record, at record prices (in constant currency), onboard
spending is robust and we have proven to be incredibly resilient," Weinstein
continued.
"We are delivering amazing vacation experiences every day in a time when
people all over the world are placing increasing importance on experiences,
particularly those spent with family and friends. Our value for money is truly
a strength when people look to make their vacation dollars go further," said
Weinstein.
First Quarter 2025 Results
* Record first quarter revenues of $5.8 billion, with record net yields (in
constant currency) * Gross margin yields were 25 percent higher than 2024.
* Net yields (in constant currency) were 7.3 percent higher than 2024 and
significantly outperformed December guidance by 270 basis points.
* Cruise costs per ALBD decreased 0.3 percent compared to 2024. Adjusted
cruise costs excluding fuel per ALBD1 (in constant currency) increased 1.0
percent compared to 2024 and were also better than December guidance, mainly
due to the timing of expenses between the quarters.
* Record first quarter operating income of $543 million exceeded 2024 by $267
million, nearly doubling that of the prior year.
* Net loss was $78 million, or $(0.06) diluted EPS, an improvement of $136
million compared to 2024. Net loss included $252 million of debt
extinguishment costs associated with the company's refinancing transactions
which will be highly accretive to future earnings.
* Adjusted net income1 of $174 million, or $0.13 adjusted EPS1, outperformed
December guidance by $173 million led by strong net yield improvement.
* Record first quarter adjusted EBITDA1 of $1.2 billion increased 38 percent
compared to 2024 and outperformed December guidance by $165 million.
* Operating margins and adjusted EBITDA margins1 both exceeded 2019 levels.
* Total customer deposits reached a first quarter record of $7.3 billion,
surpassing the previous first quarter record at February 29, 2024, reflecting
continued growth in both ticket prices and pre-cruise onboard sales.
1 See "Non-GAAP Financial Measures" at the end of this release for additional information.
Bookings
The company experienced another early start to a successful wave season,
continuing to execute on its proven yield management strategy. Having entered
the year with less 2025 inventory available for sale, the company achieved
higher prices (in constant currency) than last year on bookings taken during
the first quarter for the remainder of 2025.
"Our brands are continuing to deliver on our strategy to generate sustained
demand, even for further out sailings. With the vast majority of 2025 booked,
we continue to drive strong pricing for the remainder of the year in both
North America and Europe, while also building demand for future years,"
Weinstein commented. "In fact, booking volumes for 2026 sailings and beyond
reached an all-time high and at higher prices (in constant currency),"
Weinstein added.
The company's cumulative advanced booked position for the remainder of the
year remains strong, with pricing (in constant currency) at historical highs
for each quarter, and occupancy in line with the prior year's record levels.
The company's booking curve continues to be the furthest out on record.
2025 Outlook
For the full year 2025, the company expects:
* Net yields (in constant currency) approximately 4.7 percent higher than
2024, 0.5 percentage points better than December guidance.
* Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 3.8 percent compared to 2024, in line with December guidance.
* Adjusted net income up over 30 percent compared to 2024 and better than
December guidance by $185 million.
* Adjusted EBITDA of approximately $6.7 billion, up nearly 10 percent compared
to 2024 and better than December guidance.
* Adjusted ROIC of approximately 12 percent is now expected to reach the 2026
SEA Change target one year in advance, alongside exceeding the company's 2026
SEA Change EBITDA per ALBD target.
For the second quarter of 2025, the company expects:
* Net yields (in constant currency) up approximately 4.4 percent compared to
strong 2024 levels.
* Adjusted cruise costs excluding fuel per ALBD (in constant currency) up
approximately 5.5 percent compared to the second quarter of 2024 primarily due
to higher dry-dock days.
* Adjusted EBITDA of approximately $1.3 billion, up 10 percent compared to the
second quarter of 2024.
See "Guidance" and "Reconciliation of Forecasted Data" for additional
information on the company's 2025 outlook.
Financing
"During the quarter we stepped up our refinancing efforts, tackling $5.5
billion of debt, which included our highest coupon debt instruments and
delivered an incremental $145 million in annualized interest expense savings.
We have been opportunistically reducing interest expense while simplifying our
capital structure and managing our future debt maturities. Through all our
efforts, we have reduced our average cash interest rate to 4.6 percent,"
commented Carnival Corporation & plc's Chief Financial Officer David
Bernstein.
The company continued its efforts to proactively manage its debt profile.
Since November 30, 2024, the company has:
* Repriced approximately $2.45 billion of its first-priority senior secured
term loan facilities maturing in 2027 and 2028, which will result in interest
expense savings of approximately $18 million on an annualized basis.
* Refinanced its $2.03 billion 10.375% senior priority notes due 2028 with
$2.0 billion 6.125% senior unsecured notes due 2033, which will result in
interest expense savings of approximately $80 million on an annualized basis.
In addition, this refinancing simplified the company's capital structure and
managed its future debt maturities.
* Refinanced its $1.0 billion 10.5% senior unsecured notes due 2030 with $1.0
billion 5.75% senior unsecured notes due 2030, which will result in interest
expense savings of approximately $45 million on an annualized basis.
* Reduced its debt balance by another $0.5 billion, ending the quarter with
$27.0 billion of total debt.
During the quarter, Moody's upgraded the company's credit rating and
maintained a positive outlook. The company believes this is a reflection of
its improved leverage metrics and continuing journey to investment grade
ratings.
As of February 28, 2025, the company's debt maturities for the remainder of
2025 and full year 2026 are $1.1 billion and $2.7 billion.
Other Recent Highlights
* The company was recognized as one of the World's Most Admired Companies by
Fortune (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=3016299235&u=https%3A%2F%2Fapi-dev.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3Dcf4ebb689b3074231216f00c16d010ae96ddf219%26allow_back%3Dtrue&a=here))
and America's Best Large Employers by Forbes (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=3392499249&u=https%3A%2F%2Fapi-dev.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3D60807c38f471b86a4a2e0e269d4e1af92ef48e2e%26allow_back%3Dtrue&a=here)).
* Carnival Cruise Line was voted 'Best Ocean Cruise Line', 'Best Cruise Line
for Shore Excursions' and 'Best Alaska Cruise' with Carnival Spirit in USA
Today's 10Best Readers' Choice Awards 2025 (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=612927599&u=https%3A%2F%2Fapi-dev.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3Dad5df7717da16017aca87de710fa9393097a3be2%26allow_back%3Dtrue&a=here)).
* Carnival Cruise Line showcased Celebration Key while lighting the iconic New
Year's Eve ball in Times Square (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=2625979177&u=https%3A%2F%2Fwww.carnival-news.com%2F2024%2F12%2F30%2Fcelebration-is-the-theme-as-military-heroes-join-carnival-cruise-line-to-light-new-years-eve-ball-in-times-square&a=here))
and continued highlighting its new destination at Super Bowl LIX through
partnerships with celebrity chefs and brand ambassador Shaquille O'Neal in New
Orleans (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=3059276760&u=https%3A%2F%2Fwww.linkedin.com%2Fposts%2Fchristineduffy_superbowllix-guysflavortowntailgate-activity-7294732914519359491-vmdR%2F&a=here)).
* Holland America Line announced a $70 million multi-year expansion to enhance
Denali Lodge and Alaska cruisetours, building on leadership in wildlife
experiences (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=3860839860&u=https%3A%2F%2Fapi-dev.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3D43d26ea963cf37b1976df79831951b37e35f6208%26allow_back%3Dtrue&a=here)).
* Holland America Line and The HISTORY Channel™ introduced a multi-year
partnership featuring exclusive historically focused itineraries and immersive
shore excursions (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=1098301749&u=https%3A%2F%2Fwww.prnewswire.com%2Fnews-releases%2Fholland-america-line-and-the-history-channel-introduce-multi-year-partnership-featuring-exclusive-historically-focused-itineraries-and-immersive-shore-excursions-302369042.html&a=here)).
* The company sold Seabourn Sojourn in March and recorded a gain on the sale
(learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=1331743923&u=https%3A%2F%2Fapi.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3D0f36e6c457618f119211d47bdea56e9887f85f8d%26allow_back%3Dtrue&a=here)).
* AIDA Cruises was recognized as the most popular cruise line among Germans,
according to YouGov (learn more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=390254071&u=https%3A%2F%2Fbusiness-yougov-com.translate.goog%2Fde%2Fcontent%2F51032-top-cruise-lines-germany-2025%3F_x_tr_sl%3Dde%26_x_tr_tl%3Den%26_x_tr_hl%3Dde%26_x_tr_pto%3Dwapp&a=here)).
* Costa Cruises maintained its partnership with the Sanremo Music Festival
2025 for the 4th consecutive year, a prominent media event in Italy (learn
more here
(https://c212.net/c/link/?t=0&l=en&o=4388298-1&h=3621249543&u=https%3A%2F%2Fcruiseindustrynews.com%2Fcruise-news%2F2025%2F02%2Fcosta-partners-with-sanremo-festival-kicks-off-music-cruise%2F&a=here)).
Guidance
(See "Reconciliation of Forecasted Data")
2Q 2025 Full Year 2025
Year over year change Current Constant Current Constant
Dollars Currency Dollars Currency
Net yields Approx. 4.3% Approx. 4.4% Approx. 3.9% Approx. 4.7%
Adjusted cruise costs excluding fuel per ALBD Approx. 5.6% Approx. 5.5% Approx. 3.4% Approx. 3.8%
2Q 2025 Full Year 2025
ALBDs (in millions) (a) 24.2 96.2
Capacity growth compared to prior year 3.2 % 0.7 %
Fuel consumption in metric tons (in millions) 0.7 2.9
Fuel cost per metric ton consumed (excluding European Union Allowance ("EUA")) $ 617 $ 617
Fuel expense (including EUA expense) (in billions) $ 0.48 $ 1.88
Depreciation and amortization (in billions) $ 0.69 $ 2.76
Interest expense, net of capitalized interest and interest income (in billions) $ 0.33 $ 1.40
Adjusted EBITDA (in billions) Approx. $1.32 Approx. $6.7
Adjusted net income (loss) (in millions) Approx. $285 Approx. $2,490
Adjusted earnings per share - diluted (b) Approx. $0.22 Approx. $1.83
Weighted-average shares outstanding - basic 1,312 1,312
Adjusted weighted-average shares outstanding - diluted (b) 1,401 1,401
(a) See "Notes to Statistical Information"
(b) Diluted adjusted earnings per share includes the add-back of dilutive interest expense related to the company's convertible notes of $18 million for the second quarter of 2025 and $71 million for full year 2025.
Currencies (USD to 1) 2Q 2025 Full Year 2025
AUD $ 0.63 $ 0.63
CAD $ 0.70 $ 0.70
EUR $ 1.08 $ 1.07
GBP $ 1.29 $ 1.28
Sensitivities (impact to adjusted net income (loss) in millions) 2Q 2025 Remainder of 2025
1% change in net yields $ 42 $ 149
1% change in adjusted cruise costs excluding fuel per ALBD $ 26 $ 82
10% change in fuel cost per metric ton (excluding EUA) $ 46 $ 131
100 basis point change in variable rate debt (including derivatives) — $ 35
1% change in currency exchange rates $ 5 $ 20
Capital Expenditures
For the remainder of 2025, newbuild capital expenditures are $1.0 billion and
non-newbuild capital expenditures are $1.9 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. EDT
(2:00 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 some statements concerning future
results, operations, 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 those statements that relate to our outlook
and financial position including, but not limited to, statements regarding:
• 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
• Estimates of ship depreciable lives and residual values • Adjusted ROIC
• Adjusted net income (loss)
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 fuel prices,
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.
* 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, labor and employment, and tax may be costly and
lead to litigation, enforcement actions, fines, penalties and reputational
damage.
* Factors associated with climate change, including evolving and increasing
regulations, increasing concerns about climate change and the shift in climate
conscious consumerism and stakeholder scrutiny, and increasing frequency
and/or severity of adverse weather conditions could have a material impact on
our business.
* Inability to meet or achieve our targets, goals, aspirations, initiatives,
and our public statements and disclosures regarding them, 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 offices, information technology operations
and system networks and failure to keep pace with developments in technology
have adversely impacted and may in the future materially adversely impact our
business operations, the satisfaction of our guests and crew and may lead to
fines, penalties and reputational damage.
* 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.
* Increases in fuel prices, changes in the types of fuel consumed and
availability of fuel supply may adversely impact our scheduled itineraries and
costs.
* 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.
* 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.
* We require a significant amount of cash to service our debt and sustain our
operations. Our ability to generate cash depends on many factors, including
those beyond our control, and we may not be able to generate cash required to
service our debt and sustain our operations.
* Our substantial debt could adversely affect our financial health and
operating flexibility.
The ordering of the risk factors set forth above is not intended to reflect
our indication of priority or likelihood. Additionally, many of these risks
and uncertainties are currently, and in the future may continue to be,
amplified by our substantial debt balance incurred during the pause of our
guest cruise operations. There may be additional risks that we consider
immaterial or which are unknown.
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 climate change- and
environmental-related matters). In addition, historical, current, and
forward-looking sustainability- and climate-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
February 28/29,
2025 2024
Revenues
Passenger ticket $ 3,832 $ 3,617
Onboard and other 1,978 1,790
5,810 5,406
Operating Expenses
Commissions, transportation and other 850 819
Onboard and other 599 550
Payroll and related 640 623
Fuel 465 505
Food 354 346
Other operating 858 862
Cruise and tour operating expenses 3,766 3,705
Selling and administrative 848 813
Depreciation and amortization 654 613
5,268 5,131
Operating Income (Loss) 543 276
Nonoperating Income (Expense)
Interest income 7 33
Interest expense, net of capitalized interest (377) (471)
Debt extinguishment and modification costs (252) (33)
Other income (expense), net 8 (18)
(614) (489)
Income (Loss) Before Income Taxes (71) (214)
Income Tax Benefit (Expense), Net (7) —
Net Income (Loss) $ (78) $ (214)
Earnings Per Share
Basic $ (0.06) $ (0.17)
Diluted $ (0.06) $ (0.17)
Weighted-Average Shares Outstanding - Basic 1,309 1,264
Weighted-Average Shares Outstanding - Diluted 1,309 1,264
CARNIVAL CORPORATION & PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except par values)
February 28, November 30,
2025 2024
ASSETS
Current Assets
Cash and cash equivalents $ 833 $ 1,210
Trade and other receivables, net 543 590
Inventories 518 507
Prepaid expenses and other 1,083 1,070
Total current assets 2,977 3,378
Property and Equipment, Net 41,654 41,795
Operating Lease Right-of-Use Assets, Net 1,341 1,368
Goodwill 579 579
Other Intangibles 1,162 1,163
Other Assets 822 775
$ 48,535 $ 49,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $ 1,531 $ 1,538
Current portion of operating lease liabilities 164 163
Accounts payable 1,091 1,133
Accrued liabilities and other 1,939 2,358
Customer deposits 6,853 6,425
Total current liabilities 11,578 11,617
Long-Term Debt 25,487 25,936
Long-Term Operating Lease Liabilities 1,209 1,239
Other Long-Term Liabilities 1,078 1,012
Shareholders' Equity
Carnival Corporation common stock, $0.01 par value; 1,960 shares authorized; 1,297 13 13
shares issued at 2025 and 1,294 shares issued at 2024
Carnival plc ordinary shares, $1.66 par value; 217 shares issued at 2025 and 2024 361 361
Additional paid-in capital 17,180 17,155
Retained earnings 1,991 2,101
Accumulated other comprehensive income (loss) (1,986) (1,975)
Treasury stock, 131 shares at 2025 and 130 shares at 2024 of Carnival Corporation and (8,376) (8,404)
72 shares at 2025 and 73 shares at 2024 of Carnival plc, at cost
Total shareholders' equity 9,182 9,251
$ 48,535 $ 49,057
CARNIVAL CORPORATION & PLC OTHER INFORMATION
OTHER BALANCE SHEET INFORMATION (in millions) February 28, 2025 November 30, 2024
Liquidity $ 3,772 $ 4,155
Debt (current and long-term) $ 27,018 $ 27,475
Customer deposits (current and long-term) $ 7,257 $ 6,779
Three Months Ended February 28/29,
CASH FLOW INFORMATION (in millions) 2025 2024
Cash from operations (a) $ 925 $ 1,768
Capital expenditures (Purchases of Property and Equipment) $ 607 $ 2,138
(a) Cash from operations for the three months ended February 29, 2024 includes the release of $818 million in credit card reserve funds.
Three Months Ended February 28/29,
STATISTICAL INFORMATION 2025 2024
Passenger cruise days ("PCDs") (in millions) (a) 24.3 23.5
ALBDs (in millions) (b) 23.6 23.0
Occupancy percentage (c) 103 % 102 %
Passengers carried (in millions) 3.2 3.0
Fuel consumption in metric tons (in millions) 0.7 0.7
Fuel consumption in metric tons per thousand ALBDs 30.3 31.8
Fuel cost per metric ton consumed (excluding EUA) $ 643 $ 686
Currencies (USD to 1)
AUD $ 0.63 $ 0.66
CAD $ 0.70 $ 0.74
EUR $ 1.04 $ 1.09
GBP $ 1.25 $ 1.27
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.
(b) 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 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.
(c) Occupancy, in accordance with cruise industry practice, is calculated using a numerator of PCDs and a denominator of ALBDs, which assumes two passengers 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
February 28/29,
(in millions, except per share data) 2025 2024
Net income (loss) $ (78) $ (214)
(Gains) losses on ship sales and impairments — —
Debt extinguishment and modification costs 252 33
Restructuring expenses — 1
Other — —
Adjusted net income (loss) $ 174 $ (180)
Interest expense, net of capitalized interest 377 471
Interest income (7) (33)
Income tax benefit (expense), net 7 —
Depreciation and amortization 654 613
Adjusted EBITDA $ 1,205 $ 871
Earnings per share - diluted (a) $ (0.06) $ (0.17)
Adjusted earnings per share - diluted (a) $ 0.13 $ (0.14)
Adjusted weighted-average shares outstanding - diluted (a) 1,316 1,264
(See Non-GAAP Financial Measures)
(a) The company's convertible notes are antidilutive for the first quarter of 2025 adjusted earnings per share and therefore are not included in the calculation 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 February 28/29,
(in millions, except yields data) 2025 2025 Constant Currency 2024
Total revenues $ 5,810 $ 5,406
Less: Cruise and tour operating expenses (3,766) (3,705)
Depreciation and amortization (654) (613)
Gross margin 1,390 1,089
Less: Tour and other revenues (2) (4)
Add: Payroll and related 640 623
Fuel 465 505
Food 354 346
Ship and other impairments — —
Other operating 858 862
Depreciation and amortization 654 613
Adjusted gross margin $ 4,359 $ 4,435 $ 4,033
ALBDs 23.6 23.6 23.0
Gross margin yields (per ALBD) $ 58.99 $ 47.34
% increase (decrease) 25 %
Net yields (per ALBD) $ 184.95 $ 188.20 $ 175.36
% increase (decrease) 5.5 % 7.3 %
(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 February 28/29,
(in millions, except costs per ALBD data) 2025 2025 Constant Currency 2024
Cruise and tour operating expenses $ 3,766 $ 3,705
Selling and administrative expenses 848 813
Less: Tour and other expenses (19) (19)
Cruise costs 4,595 4,498
Less: Commissions, transportation and other (850) (819)
Onboard and other costs (599) (550)
Gains (losses) on ship sales and impairments — —
Restructuring expenses — (1)
Other — —
Adjusted cruise costs 3,146 3,181 3,128
Less: Fuel (465) (465) (505)
Adjusted cruise costs excluding fuel $ 2,681 $ 2,716 $ 2,624
ALBDs 23.6 23.6 23.0
Cruise costs per ALBD $ 194.99 $ 195.60
% increase (decrease) (0.3) %
Adjusted cruise costs per ALBD $ 133.50 $ 134.98 $ 136.03
% increase (decrease) (1.9) % (0.8) %
Adjusted cruise costs excluding fuel per ALBD $ 113.76 $ 115.24 $ 114.09
% increase (decrease) (0.3) % 1.0 %
(See Non-GAAP Financial Measures)
Non-GAAP Financial Measures
We use non-GAAP financial measures and they are provided along with their most comparative U.S. GAAP financial measure:
Non-GAAP Measure U.S. GAAP Measure Use Non-GAAP Measure to Assess
* Adjusted net income (loss), * Net income (loss) * Company Performance
adjusted EBITDA, adjusted
EBITDA per ALBD and adjusted
EBITDA margin
* Adjusted earnings per share * Earnings per share * Company Performance
* Net debt to adjusted EBITDA — * Company Leverage
* Net yields * Gross margin yields * Cruise Segments Performance
* Adjusted cruise costs per ALBD * Gross cruise costs per ALBD * Cruise Segments Performance
and adjusted cruise costs excluding
fuel 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 U.S. GAAP. It is possible
that our non-GAAP financial measures may not be exactly comparable to the
like-kind information presented by other companies, which is a potential risk
associated with using these measures to compare us to other companies.
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 and losses 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 U.S. GAAP. We define
adjusted EBITDA margin as adjusted EBITDA divided by total revenues.
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 U.S. GAAP financial measures because
preparation of meaningful U.S. GAAP forecasts would require unreasonable
effort. We are unable to predict, without unreasonable effort, the future
movement of foreign exchange rates and fuel prices. We are unable to determine
the future impact of gains and losses on ship sales, impairment charges, debt
extinguishment and modification costs, restructuring costs and certain other
non-core gains and losses.
Constant Currency
Our operations primarily utilize the U.S. dollar, Australian dollar, euro and
sterling as functional currencies to measure results and financial condition.
Functional currencies other than the U.S. dollar subject us to foreign
currency translational risk. Our operations also have revenues and expenses
that are in currencies other than their functional currency, which subject us
to foreign currency transactional risk.
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.
CONTACT: MEDIA CONTACT, Jody Venturoni, +1 469 797 6380; INVESTOR RELATIONS
CONTACT, Beth Roberts, +1 305 406 4832
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