REG-Carnival PLC: Carnival Corporation 1Q 2026 Earnings
Today 13:30
CARNIVAL CORPORATION & PLC ACHIEVES RECORD FIRST QUARTER OPERATING RESULTS AND
RECORD BOOKINGS
Introduces PROPEL, ambitious targets designed to reflect continued earnings
growth momentum through 2029
Announces initial $2.5 billion share buyback program
MIAMI, March 27, 2026 -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK)
announced financial results for the first quarter 2026 and provided an updated
outlook.
* Diluted EPS of $0.19 and adjusted EPS
1 of $0.20, up
50 percent compared to the prior year.
* Record revenues 2
of $6.2 billion, gross margin
yields up nearly 10 percent and record net yields 1,2
(in constant currency), outperforming guidance on strong
close-in demand.
* Bookings for 2026 up double digits, further
strengthening the company's record booked position at historically high prices
(in constant currency).
* Expects operational improvement of nearly $150
million in full year 2026 adjusted net income
1 compared to December guidance, partially
mitigating the impact from recent changes in fuel prices.
* Announces PROPEL, a new set of long-term targets
designed to reflect continued earnings growth momentum, outsized shareholder
distributions and even higher returns to be achieved by 2029.
"We delivered a strong start to the year, with record first-quarter operating
results that exceeded our guidance, driven by healthy fundamentals and solid
execution across the business. This performance supported an increase to our
full year operational outlook of nearly $150 million, helping to mitigate the
impact of higher fuel prices," said Carnival Corporation &
plc's Chief Executive Officer Josh Weinstein.
"We remain on track to deliver solid yield growth, continued cost discipline
and $7 billion in adjusted EBITDA 1 this year, underscoring
the strength of demand across our portfolio, progress on our long-term
strategy, and the advancements we have made positioning the business to
perform across a range of environments."
"With this strong foundation in place, we are focused on the next chapter of
value creation for Carnival. Today, we are introducing PROPEL: Powering Growth
and Returns, Responsibly — our new set of long-term targets. At its core,
PROPEL is about converting strong demand into higher returns, earnings growth
and cash flow while maintaining disciplined capacity growth and a strong
balance sheet," Weinstein added.
First Quarter 2026 Results
* Net income 3 of $258 million and adjusted
net income of $275 million, outperformed guidance despite a $54 million ($0.04
adjusted EPS) unfavorable impact from fuel prices and currency rates compared
to guidance.
* Record adjusted EBITDA 2 of $1.3 billion.
* Gross margin yields increased nearly 10 percent. Record net
yields 2 (in constant currency) increased 2.7 percent,
which outperformed guidance by over 1 point.
* Cruise costs per available lower berth day ("ALBD") increased 4.9
percent. Adjusted cruise costs excluding fuel per ALBD 1
(in constant currency) increased 5.3 percent, better than guidance.
* Fuel consumption per ALBD decreased 4.7 percent due to the
company's efforts and investments to continuously reduce fuel consumption in
its operations.
Advance Sales
"We delivered an incredibly strong start to the year, achieving our highest
level of bookings ever on strong demand that extended well into 2028
sailings," Weinstein said.
"Bookings for 2026 were up double digits, which further pulled forward our
already record booked position for the remainder of the year at historically
high prices (in constant currency)," he continued.
"With nearly 85 percent of 2026 already on the books and an even smaller
amount of inventory available compared to this time last year, we are well
positioned to deliver yield improvement in the back half of the year.
Continued demand strength is also clearly reflected in higher first quarter
onboard revenues and an acceleration in pre-cruise onboard sales."
Customer deposits reached a first quarter record of nearly $8 billion,
surpassing the prior year's high by nearly 10 percent, reflecting the demand
momentum and reinforcing the company's strong cash flow profile.
_________________________________
1 See "Non-GAAP Financial Measures" and "Constant Currency."
2 First quarter record.
3 Net income (loss) attributable to Carnival Corporation & plc.
2026 Outlook
For the full year 2026, the company expects:
* Net yields (in constant currency) up approximately 2.75 percent
compared to record 2025 levels and 0.25 percentage points better than December
guidance. Net yields (in constant currency) up approximately 3.25 percent
after normalizing for the impact of the summer 2025 close-in decision to
redeploy away from the previously planned first quarter 2026 Arabian Gulf
voyages and the impacts of loyalty program accounting for Carnival Cruise
Line.
* Adjusted cruise costs excluding fuel per ALBD (in constant
currency) up approximately 3.1 percent compared to 2025 and better than
December guidance. Adjusted cruise costs excluding fuel per ALBD (in constant
currency) up approximately 2.3 percent after normalizing for the partial year
of operating expenses from Celebration Key, Grand Bahama and RelaxAway, Half
Moon Cay as well as the timing of certain expenses between the years.
* Operational improvement of nearly $150 million in adjusted net
income compared to December guidance, driven by improvements in both net
yields and adjusted cruise costs excluding fuel per ALBD, which partially
mitigates the impact from recent changes in fuel prices of more than $500
million.
* The company's guidance reflects the purchased price of fuel for
the month of March and early April, Brent averaging $90 per barrel for the
remainder of April and May, Brent averaging $85 per barrel for the third
quarter, and Brent averaging $80 for the fourth quarter. See sensitivities for
fuel costs included below.
See "Guidance" for additional information on the company's 2026 outlook,
"Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and
"Constant Currency."
PROPEL: Powering Growth & Returns, Responsibly
"We surpassed our SEA Change targets in nearly half the expected time, more
than doubling return on invested capital and delivering our highest adjusted
EBITDA per ALBD 1 in almost two decades alongside a
meaningful reduction in greenhouse gas emissions. PROPEL builds on that
foundation and reflects our confidence in the durability and earnings power of
our business," Weinstein noted.
The company is introducing PROPEL, a new set of long-term targets designed to
reflect continued earnings growth momentum, outsized shareholder distributions
and even higher returns to be achieved by 2029.
PROPEL Targets:
* Greater than 16 percent return on invested capital 1
* More than 50 percent adjusted EPS growth from 2025
* More than 40 percent of cash from operations distributed to
shareholders (approximately $14 billion)
These targets will be accomplished responsibly, as the company also intends to
achieve a 2.75x net debt to adjusted EBITDA 1 ratio and a
reduction of the company's greenhouse gas emissions rate by more than 25
percent compared to 2019 levels.
The keys to achieving PROPEL are grounded in:
* The strategic advantage of the company's industry leading
portfolio of world-class cruise lines
* Continued focus on commercial excellence and disciplined
execution, driving demand that outpaces intentionally measured capacity growth
* Investing in return-generating midlife ship refurbishment
programs for the company's existing fleet and in its exclusive differentiated
destinations in the Caribbean region and Alaska
* Building on industry-leading cost structure by further leveraging
scale and best practices, and improving productivity
* Aggressively leveraging technology to enhance revenue and reduce
cost
PROPEL, and all of the keys to its success, is powered by the best team in all
of travel and leisure, aligned on delivering the company's purpose, mission
and long-term goals.
_________________________________
1 See "Non-GAAP Financial Measures" and "Constant Currency."
Share Buyback Program
Today, the Boards of Directors approved an initial $2.5 billion share buyback
program 1 .
"Initiating an opportunistic buyback program reflects our strong and growing
free cash flow generation and ongoing commitment to return value to our
shareholders," commented Carnival Corporation & plc's Chief Financial Officer
David Bernstein. "With more than $800 million in total dividend distributions
expected this year, our newly authorized share buyback program, and a roadmap
to delivering approximately $14 billion to our shareholders through 2029, we
continue to demonstrate confidence in our operating performance, our focus on
disciplined capital allocation and our commitment to accelerating shareholder
returns."
Due to legal requirements associated with the current open voting period for
the unification of the dual listed company ("DLC") structure, the program will
commence following the meetings of shareholders expected to be held on April
17, 2026 and does not have an expiration date.
Other Recent Highlights
* AIDAluna completed its upgrade
as part of AIDA Evolution (learn more here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=502332748&u=https%3A%2F%2Fapi.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3D9b2584de098d6e9d488142744620075c17392b49%26allow_back%3Dtrue&a=here)
) and will begin sailing to Celebration Key in November 2027,
joining Carnival Cruise Line and Princess Cruises in sailing to the exclusive
destination (learn more here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=3662899045&u=https%3A%2F%2Fcruiseindustrynews.com%2Fcruise-news%2F2026%2F02%2Faida-to-sail-to-celebration-key-in-2027%2F&a=here)
).
* Carnival Cruise Line returned to New York's Times Square for the
lighting of the iconic New Year's Eve Ball as the official cruise line sponsor
for the fifth consecutive year (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=1331713522&u=https%3A%2F%2Fwww.carnival-news.com%2F2025%2F12%2F30%2Famericas-cruise-line-brings-extra-sparkle-to-americas-biggest-new-years-celebration&a=here)
).
* Holland America Line co-sponsored "Cruise Week" on the "Wheel of
Fortune," America's longest-running syndicated game show (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=2364593762&u=https%3A%2F%2Fwww.hollandamerica.com%2Fen%2Fus%2Fnews%2F2026%2Fjanuary%2Fnews-01052026-cruise-week-2026&a=here)
), featuring its Alaska itineraries and contributing to record
January bookings made on the cruise line's site.
* Cunard was named the headline sponsor for the 2026 Olivier
Awards, the UK's most prestigious stage honors (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=407653902&u=https%3A%2F%2Fwww.independent.co.uk%2Ftravel%2Fcruise%2Fcunard-theatre-at-sea-b2901217.html&a=here)
).
* Awards and Recognitions: * Princess
Cruises was recognized for 'Best Big-Ship Itineraries' at the 2026 The Points
Guy Awards (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=2470088706&u=https%3A%2F%2Fwww.princess.com%2Fnews%2Fnews-releases%2F2026%2F02%2Fprincess-cruises-recognized-by-the-points-guy-in-2026-tpg-awards-for-best-big-ship-itineraries&a=here)
).
* Seabourn Venture earned
a spot in Condé Nast Traveler's 2026 Gold List (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=4169656866&u=https%3A%2F%2Fwww.cntraveler.com%2Fgallery%2Fbest-cruise-ships-gold-list&a=here)
).
* Celebration Key was recognized with the Leading Edge Award from
the World Waterpark Association for its innovation,
design and guest experience (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=496756740&u=https%3A%2F%2Fwww.carnivalcorp.com%2Ftwo-exclusive-destinations-win-prestigious-honors%2F&a=here)
).
* The company was recognized as one of the World's Most Admired
Companies by Fortune for the second consecutive year (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=639738740&u=https%3A%2F%2Fapi.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3D445d4b66adad115030562da375e399dd5fdcd8cc%26allow_back%3Dtrue&a=here)
) and America's Most Trusted Companies by Forbes (learn more
here
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4651190-1&h=495221831&u=https%3A%2F%2Fapi.kscope.io%2Fks-doc-view%3Fkey%3Dfde6d8e0-6260-46ee-9286-9578b2baf99c%26content%3Dbenznews%26docid%3D2b77285bec5ffde39405088cc2cb6041abb2ac27%26allow_back%3Dtrue&a=here)
).
_________________________________
1 The program covers shares of Carnival Corporation and/or Carnival plc. Repurchases under the program may be made from time to time in amounts and at prices the company deems appropriate. The timing, volume and structure of any share buyback will be subject to market and general economic conditions, the prevailing share price(s), applicable legal requirements and the receipt of any required shareholder authority for Carnival plc.
Guidance
(See "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and
"Constant Currency")
2Q 2026 Full Year 2026
Year over year change Current Constant Current Constant
Dollars Currency Dollars Currency
Net yields Approx. 3.7% Approx. 2.0% Approx. 4.1% Approx. 2.75%
Adjusted cruise costs excluding fuel per ALBD Approx. 4.0% Approx. 2.6% Approx. 4.4% Approx. 3.1%
2Q 2026 Full Year 2026
ALBDs (in millions) (a) 24.7 97.4
Capacity growth compared to prior year 1.9 % 0.9 %
Fuel consumption in metric tons (in millions) 0.7 2.8
Fuel cost per metric ton consumed (excluding emission allowances) (b) $ 795 $ 718
Fuel expense (including emission allowances expense) (in billions) $ 0.61 $ 2.15
Depreciation and amortization expense (in billions) $ 0.73 $ 2.97
Interest expense, net of capitalized interest and interest income (in billions) $ 0.27 $ 1.09
Adjusted EBITDA (in billions) Approx. $1.48 Approx. $7.19
Adjusted net income (in millions) Approx. $470 Approx. $3,070
Adjusted earnings per share - diluted Approx. $0.34 Approx. $2.21
Weighted-average shares outstanding - basic 1,386 1,385
Adjusted weighted-average shares outstanding - diluted 1,392 1,392
(a) See "Notes to Statistical Information."
(b) Given the recent spike and volatility in fuel prices, we believe it is reasonable to forecast fuel based on the purchased
price of fuel for the month of March and early April, Brent averaging $90 per barrel for the remainder of April and
May, Brent averaging $85 per barrel for the third quarter, and Brent averaging $80 for the fourth quarter rather than
use the spot price for our guidance. See sensitivities for fuel costs included below.
Currencies (USD to 1) 2Q 2026 Full Year 2026
AUD $ 0.71 $ 0.70
CAD $ 0.73 $ 0.73
EUR $ 1.15 $ 1.16
GBP $ 1.34 $ 1.34
Sensitivities (impact to adjusted net income in millions) 2Q 2026 Remainder of 2026
1% change in net yields $ 48 $ 160
1% change in adjusted cruise costs excluding fuel per ALBD $ 28 $ 87
10% change in fuel cost per metric ton (excluding emission allowances) $ 56 $ 160
100 basis point change in variable rate debt — $ 31
1% change in currency exchange rates $ 6 $ 23
Capital Expenditures
For the remainder of 2026, newbuild capital expenditures are $0.6 billion and
non-newbuild capital expenditures are $1.8 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 statements concerning 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:
• Pricing • Adjusted net income
• Booking levels • Adjusted EBITDA
• Occupancy • Adjusted EBITDA per ALBD
• Interest, tax and fuel expenses • Adjusted EBITDA margin
• Currency exchange rates • Adjusted earnings per share
• Goodwill, ship and trademark fair values • Net debt to adjusted EBITDA
• Liquidity and credit ratings • Net yields
• Investment grade leverage metrics • Adjusted cruise costs per ALBD
• Shareholder returns • Adjusted cruise costs excluding fuel per ALBD
• Estimates of ship depreciable lives and residual values • Adjusted ROIC
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 information about the
factors that may affect future results is contained in our most recent Annual
Report on Form 10-K as well as our other filings with the SEC, all of which
are available on the SEC's website at
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 INCOME (LOSS) (UNAUDITED) (in millions, except per share data)
Three Months Ended February 28,
2026 2025
Passenger ticket $ 4,023 $ 3,832
Onboard and other 2,142 1,978
Total Revenues 6,165 5,810
Cruise and tour operating expenses:
Commissions, transportation and other 872 850
Onboard and other 618 599
Payroll and related 684 640
Fuel 397 465
Food 382 354
Other operating 986 858
Total Cruise and tour operating expenses 3,939 3,766
Selling and administrative expense 924 848
Depreciation and amortization expense 696 654
Operating Income 607 543
Interest income 12 7
Interest expense, net of capitalized interest (291) (377)
Debt extinguishment and modification costs — (252)
Other income (expense), net (47) 12
Income (Loss) Before Income Taxes 280 (68)
Income tax expense, net (17) (7)
Net Income (Loss) 263 (75)
Less: net income attributable to noncontrolling interest 4 4
Net Income (Loss) attributable to Carnival Corporation & plc $ 258 $ (78)
Earnings Per Share
Basic $ 0.19 $ (0.06)
Diluted $ 0.19 $ (0.06)
Weighted-Average Shares Outstanding - Basic 1,379 1,309
Weighted-Average Shares Outstanding - Diluted 1,392 1,309
CARNIVAL CORPORATION & PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except par values)
February 28, November 30,
2026 2025
ASSETS
Current Assets
Cash and cash equivalents $ 1,424 $ 1,928
Trade and other receivables, net 663 678
Inventories 510 505
Prepaid expenses and other 1,120 1,108
Total current assets 3,716 4,219
Property and Equipment, Net 43,700 43,494
Operating Lease Right-of-Use Assets, Net 1,295 1,328
Goodwill 579 579
Other Intangibles 1,181 1,177
Other Assets 1,095 890
$ 51,567 $ 51,687
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $ 1,502 $ 2,603
Current portion of operating lease liabilities 171 175
Accounts payable 1,242 1,245
Accrued liabilities and other 2,034 2,239
Customer deposits 7,472 6,831
Total current liabilities 12,420 13,092
Long-Term Debt 23,788 24,037
Long-Term Operating Lease Liabilities 1,146 1,178
Other Long-Term Liabilities 1,164 1,097
Shareholders' Equity
Carnival Corporation common stock, $0.01 par value; 1,960 shares authorized; 1,367 14 13
shares issued at 2026 and 1,298 shares issued at 2025
Carnival plc ordinary shares, $1.66 par value; 217 shares issued at 2026 and 2025 361 361
Additional paid-in capital 17,871 17,253
Retained earnings 4,733 4,817
Accumulated other comprehensive income (loss) (1,738) (1,810)
Treasury stock, 128 shares at 2026 and 131 shares at 2025 of Carnival Corporation and (8,210) (8,364)
71 shares at 2026 and 72 shares at 2025 of Carnival plc, at cost
Total shareholders' equity attributable to Carnival Corporation & plc 13,031 12,270
Noncontrolling interest 18 14
Total shareholders' equity 13,049 12,284
$ 51,567 $ 51,687
CARNIVAL CORPORATION & PLC OTHER INFORMATION
OTHER BALANCE SHEET INFORMATION (in millions) February 28, 2026 November 30, 2025
Debt (current and long-term) $ 25,290 $ 26,640
Customer deposits (current and long-term) $ 7,923 $ 7,246
Three Months Ended February 28,
CASH FLOW INFORMATION (in millions) 2026 2025
Cash from operations $ 1,263 $ 925
Capital expenditures (Purchases of Property and Equipment) $ 566 $ 607
Dividends paid $ 208 $ —
Three Months Ended February 28,
STATISTICAL INFORMATION 2026 2025
Passenger cruise days ("PCDs") (in millions) (a) 24.4 24.3
ALBDs (in millions) (b) 23.7 23.6
Occupancy percentage (c) 103 % 103 %
Passengers carried (in millions) 3.1 3.2
Fuel consumption in metric tons (in millions) 0.7 0.7
Fuel consumption in metric tons per thousand ALBDs 28.9 30.3
Fuel cost per metric ton consumed (excluding emission allowances) $ 559 $ 643
Currencies (USD to 1)
AUD $ 0.68 $ 0.63
CAD $ 0.73 $ 0.70
EUR $ 1.18 $ 1.04
GBP $ 1.35 $ 1.25
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,
(in millions, except per share data) 2026 2025
Net income (loss) attributable to Carnival Corporation & plc $ 258 $ (78)
(Gains) losses on ship sales and impairments — —
Debt extinguishment and modification costs — 252
Restructuring expense 0 —
Other 16 —
Adjusted net income $ 275 $ 174
Interest expense, net of capitalized interest 291 377
Interest income (12) (7)
Income tax expense, net 17 7
Depreciation and amortization expense 696 654
Adjusted EBITDA $ 1,267 $ 1,205
Earnings per share - diluted (a) $ 0.19 $ (0.06)
Weighted-average shares outstanding - diluted (a) 1,392 1,309
Adjusted earnings per share - diluted (a) $ 0.20 $ 0.13
Adjusted weighted-average shares outstanding - diluted (a) 1,392 1,316
(See Non-GAAP Financial Measures)
(a) Diluted earnings per share and diluted adjusted earnings per share for the three months ended
February 28, 2025 excludes the company's convertible notes, which were antidilutive and therefore
were not included in the calculations.
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,
(in millions, except yields data) 2026 2026 Constant Currency 2025
Total Revenues $ 6,165 $ 5,810
Less: Cruise and tour operating expenses (3,939) (3,766)
Depreciation and amortization expense (696) (654)
Gross margin 1,530 1,390
Less: Tour and other revenues 0 (2)
Add: Payroll and related 684 640
Fuel 397 465
Food 382 354
Other operating 986 858
Depreciation and amortization expense 696 654
Adjusted gross margin $ 4,675 $ 4,495 $ 4,359
ALBDs 23.7 23.7 23.6
Gross margin yields (per ALBD) $ 64.63 $ 58.99
Net yields (per ALBD) $ 197.44 $ 189.86 $ 184.95
(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,
(in millions, except costs per ALBD data) 2026 2026 Constant Currency 2025
Cruise and tour operating expenses $ 3,939 $ 3,766
Selling and administrative expense 924 848
Less: Tour and other expenses (18) (19)
Cruise costs 4,845 4,595
Less: Commissions, transportation and other (872) (850)
Onboard and other costs (618) (599)
Gains (losses) on ship sales and impairments — —
Restructuring expense 0 —
Other (16) —
Adjusted cruise costs 3,339 3,234 3,146
Less: Fuel (397) (397) (465)
Adjusted cruise costs excluding fuel $ 2,941 $ 2,837 $ 2,681
ALBDs 23.7 23.7 23.6
Cruise costs per ALBD $ 204.63 $ 194.99
Adjusted cruise costs per ALBD $ 141.01 $ 136.58 $ 133.50
Adjusted cruise costs excluding fuel per ALBD $ 124.22 $ 119.81 $ 113.76
(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, adjusted • Net income (loss) • Company Performance
EBITDA, adjusted EBITDA per attributable to Carnival
ALBD and adjusted EBITDA margin Corporation & plc
• 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 and • Cruise costs per ALBD • Cruise Segments
adjusted cruise costs excluding fuel 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 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 and
adjusted earnings per share provide additional information
to us and investors about our future earnings performance. These measures
represent net income (loss) attributable to Carnival Corporation & plc,
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 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) attributable to Carnival Corporation & plc. 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) attributable to Carnival Corporation & plc 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 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, Jody Venturoni, +1 469 797 6380;
INVESTOR RELATIONS, Beth Roberts, +1 305 406
4832
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